This report examines the reported content expenditure of 21 pay-TV operators between 2014 and 2017 and compares these costs with other relevant metrics including total opex, pay-TV revenue, and average video revenue per subscription.
- Content spend is growing faster than pay-TV and video revenue. With most operators struggling to grow their subscription bases – particularly in mature markets – and video ARPU levels under increasing pressure, pay-TV revenue growth is struggling to keep up with the rising cost of content.
- Content investment levels are rising steadily for the majority of operators. The costs associated with acquiring video content for pay-TV distribution have risen consistently for several years.
- Programming costs are eating into overall opex budgets. Growth in pay-TV programming costs is outpacing that of overall operating expenses, with content representing the single largest opex item for several pay-TV distributors.
Features and Benefits
- Details reported content spend for 21 pay-TV operators across multiple geographical territories.
- Overviews content spend as a proportion of TV revenues and of total opex.
- Examines content spend per video subscriber.
- Analyzes growth in operators' content spend both in absolute terms and in relation to other key metrics.
Key questions answered
- Which pay-TV distributors are the biggest spenders on video content?
- What are the broad differences in content spend between different types of operator?
- How does growth in content expenditure compare with growth in total opex?
Table of contents
Setting the scene
Fundamental factors behind rising content spend levels
Expense levels reflect a player's market positioning and business orientation
Content investment strategies vary by operator type
Content spend in context
Viewing content costs against other key metrics
How content spend levels are changing
Where does the big spenders' money go?
Absolute expenditure has grown steadily for most players