10:24 30.08.2018

1+1 media predicts 3-fold growth of paid TV market by 2021 if media groups consolidate positions

2 min read
1+1 media predicts 3-fold growth of paid TV market by 2021 if media groups consolidate positions

The 1+1 media has predicted the 3-fold rise in the paid TV market in Ukraine by 2021 inclusively compared with 2017, to UAH 9.3 billion.

Executive Director of 1+1 media and PayTV Development Director Yaroslav Pakholchuk gave his opinion to reporters in Kyiv on Tuesday, adding that the cumulative effect is expected from the increase in payments of subscribers for paid TV after the introduction of industrial initiatives by media groups and self-regulation of the market in pricing.

According to the data presented by 1+1 media, in 2017 incomes of operators from TV broadcasts amounted to UAH 3.111 billion with 4.7 million households paying for TV (average revenue per user per month (ARPU) is UAH 55) in the Ukrainian market. Of this amount, UAH 560 million accounted for payments for content (18% of the total amount), of which UAH 380 million to international TV channels, UAH 123 million to media groups and UAH 57 million to other content producers. At the same time, in 2017, the share of the TV viewing of Ukrainian media groups was 80% of the broadcast, while the share of media groups in payments is only 22% (about 4% of the providers' income).

It is planned that in 2021 incomes of operators from TV broadcasts in the Ukrainian market may amount to UAH 9.254 billion with 7.3 million clients (ARPU is UAH 102).

Of this amount, UAH 2.43 billion can be paid for content, of which UAH 1.587 billion would be allocated to Ukrainian media groups, UAH 650 million to international TV channels and UAH 120 million to other content producers.

It is planned that the volume of operator fees will increase threefold as compared to 2017, the charge for content by more than 25%, and the subscriber base will exceed 7 million households.

"Our goal for these UAH 9 billion is to increase the amount of payments for content from 18% in Ukraine today to the global average of 25%. The figures are large, but in our opinion - quite achievable," Pakholchuk said.

He also said that all the figures presented by the media group do not rely on any sectoral research, and are solely the opinion of the management of the media group.

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