Industry Analysis & Industry Trends
The Pay Television industry has undergone slight growth over the past five years. Revenue is expected to increase by an annualised 1.2% over the five years through 2015-16, to reach $4.5 billion. Rising real household discretionary income has assisted the industry's financial performance over the past five years, as consumers have had more money to spend on non-essential services such as pay-TV subscriptions. This trend has also allowed pay-TV networks to retain more subscribers, as existing customers have been more willing to continue paying for pay-TV services. In addition, viewers have been watching less of free-to-air TV networks, and instead demanded pay-TV subscriptions to receive a greater range of TV programs, films, sports telecasts and news programs... purchase to read more
Industry Report - Industry Investment Chapter
The industry displays a high level of capital intensity. In 2015-16, for every dollar spent as wages, an estimated $1.27 is invested in capital. Capital intensity is high for industry operators due to the significant amount of capital that is required to invest in telecommunications infrastructure. Establishing satellites and laying fibre-optic cables to transmit pay-TV channels is extremely costly. Industry players also incur significant up-front capital, maintenance and depreciation costs to establish and maintain TV studios.
Programming costs and the associated amortisation are also significant, as these intangible assets are written off as their value decreases over time... purchase to read more