Industry Analysis & Industry Trends
The Pay Television industry has performed strongly over the past five years due to increasing pay-TV penetration and greater subscription numbers. Industry revenue is expected to increase at a compound annual rate of 4.3% over the five years through 2014-15. Rising real household discretionary income has assisted 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 limited the number of cancelled subscriptions, further assisting industry operators. In addition, viewers have watched free-to-air TV networks less, demanding pay-TV subscriptions to receive a greater range of TV programs, films, sports telecasts and news programs... purchase to read more
Industry Report - Starting a New Business Chapter
The Pay Television industry has high barriers to entry and this trend has increased over the past five years. The industry's high market share concentration and the subsequent dominance of Foxtel makes it extremely difficult for new firms to enter the industry. In addition, larger vertically integrated players are able to bundle pay-TV services with other telecommunications products at discounted prices. Smaller companies seeking to enter the industry may be unable to compete with these lower prices.
The initial capital costs of establishing pay-TV infrastructure may also prove to be prohibitive for prospective companies. Capital intensity is very high, as pay-TV providers incur large depreciation costs on plant, equipment and transmission infrastructure... purchase to read more