According to PMR’s data, in 2018 the value of the Polish pay-TV and VOD services market reached nearly PLN 7 billion, growing by 4% annually. The positive market situation is primarily due to dynamically growing revenues in the VOD segment, which last year accounted for 12% of the total market value. In the latest report: “Pay TV and VOD market in Poland 2019. Market analysis and development forecasts for 2019-2024“. PMR forecasts that in 2024 this share will increase to nearly one fifth of the market.
Last year brought a continuation of the upward trend in the market for paid video services in Poland. In 2018, the combined revenues of pay TV and VOD service providers amounted to nearly PLN 7 billion. Compared to the previous year, this means an increase in the market by a quarter of a billion PLN. This is mainly due to dynamically growing revenues in the VOD segment (25% y/y), which is successively gaining in the market cake. Currently, the share of the VOD paid services segment is at the level of approx. 12% of the total market value. Nevertheless, the upward trend is also visible at the level of revenues of pay TV providers themselves. The market is consistently defending itself with a stable customer base and a higher ARPU index based on premium content. In 2019. PMR expects similar trends to continue in the market in 2019.
In the last two periods, after four years of decline, the situation on the pay TV market in Poland is stable and growing.
In 2018, the value of the market reached PLN 6.1 billion, 10 million more than a year ago. This is primarily a consequence of stabilising the subscriber base. The value of the market is also affected by the trend in which operators are fighting for customer attention no longer mainly by price (one of the lowest ARPU in Europe), but by the content and quality of the content offered to them. This is evidence of high market maturity. In PMR’s opinion, last year brought an increase in average revenues from customers in most of the market’s component segments. This is primarily the result of higher consumption of premium TV packages, with a wide range of film and sports channels. The value of the market is also determined by the growing sales of Multiroom services. Also of paramount importance are revenues in the IPTV segment, which are growing along with the subscriber base, located mainly in cities with more affluent customers.
In the six-year perspective, the pay TV market in Poland will enter a period of stagnation. In the long run, gradual declines in the market should be expected, both in terms of volume (CAGR 2019-2024: -0.2%) and value (CAGR 2019-2024: -0.1%).
According to PMR’s estimates, the value of the VOD paid services market in Poland in 2018 was PLN 854m, an increase of 25% compared to 2017. The dynamic growth of revenues of on-demand service providers should be combined primarily with the development of subscription platforms and the related increase in the number of subscribers to such services. SVOD services attract the largest number of users of paid VOD services. We estimate that in 2018, the number of paid subscribers (or rather RGU) of SVOD services in Poland amounted to 2.7m, 46% of which is distributed in the operator channel (HBO GO service, mainly offered by pay-TV providers, and Netflix, Showmax and Player services). Dynamic growth in the SVOD market is mainly dictated by the dynamic growth:
- the still relatively low market saturation of such services
- the growing offer and quality of VOD services, including a richer offer of premium content
- greater willingness of Poles to pay for content on the Internet.
At the same time, the value of the SVOD services market is positively influenced by relatively stable average ARPU for access to the service. In 2018, revenues from subscriptions to SVOD services constituted 46% of the total value of the Polish VOD market. After adding the revenues from the subscription of services in the operator channel, this share clearly increases to 84%. Between 2019 and 2024, CAGR forecasts growth for the Polish VOD pay-per-view market at 7.8%. At the same time, the number of paid users of VOD services will increase by 1.6 million in the period under review, thanks to subscription services.
Netflix is the clear leader in the market of SVOD services in Poland, with the number of paid subscribers three times higher than the average number of users of other major players on the market (Ipla, Player, CDA Premium, HBO GO, Showmax, Amazon Prime Video). Due to the fact that Netflix has the largest number of paid subscribers in the entire SVOD market in Poland and the most expensive access plans to the service, it is also the largest subscription service in terms of generated revenues. Netflix’s revenues on the Polish market are practically equal to those of other leading SVOD providers in Poland.
ICT Business Unit Director