Tripleplay and quadrupleplay to drive multiplay market in Korea
Thursday, October 17th, 2024Tripleplay and quadrupleplay to drive overall multiplay services market in South Korea during 2023-2028, forecasts GlobalData
South Korea’s multiplay services market is set for steady growth between 2023 and 2028, driven primarily by tripleplay and quadrupleplay bundles. Increased demand for high-speed fiber broadband and value-added services like IPTV and OTT video will boost household spending on these packages. While doubleplay remains dominant, quadrupleplay is projected to see the fastest growth, supported by fixed-mobile convergence adoption, says GlobalData, a leading data and analytics company.
GlobalData’s South Korea Multiplay Forecast Model (Q1 2024) reveals that South Korea’s multiplay service revenue is expected to see a gradual yet consistent increase at a compound annual growth rate (CAGR) of 1% from $6.2 billion in 2023 to $6.6 billion in 2028.
The aggregate increase in total multiplay households will be supported by operators discounted multiplay bundles centered on high-speed fiber broadband services. The growth in multiplay households will however remain tepid i.e., at a CAGR of 0.3% over the forecast period, given the growing popularity of OTT video services that are often bundled with fiber broadband plans.
Hrushikesh Mahananda, Telecom Analyst at GlobalData, says: “The average monthly household spend on overall multiplay bundles is forecast to increase from $27.09 in 2023 to $28.02 in 2028, driven by the growing adoption of relatively high-cost tripleplay and quadrupleplay services and service bundles offerings inclusive of IPTV services and value-added OTT services.”
Doubleplay services will account for majority of the multiplay households through 2028. Quadrupleplay services, on the other hand, are estimated to increase at the fastest rate over the forecast period and are expected to garner about 23% share of the total multiplay households by the end of 2028, owing to the growth in fixed mobile convergence household penetration.
Mahananda concludes: “The three major operators KT Corp, SK Telecom, and LG Group are offering discounts on fixed broadband and multiplay plans with a goal to bring down churn and increase revenue-generating units (RGUs). KT Corp will lead the overall multiplay services market through 2028, given its strong subscriber base in triple-play and quad-play services.”
Links: GlobalData
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