While the television industry is preparing for the rise of FREETV - the premium television brand of Keshet and RGE, it turns out that in 2022 the revenues of the television services market in Israel will amount to about 3.75 billion shekels, a decrease of about 1.3% compared to 2021 - according to BDI's estimate.
As mentioned, the FREETV brand is expected to rise soon, but its pricing has already leaked and is estimated to be cheaper than that of the competitors Yes and Hot.
In addition, FREE TV will also provide the content packages of the international content giants Netflix, Amazon, Disney Plus and others.
About six months ago, the Council of the Second Authority for Television and Radio approved under conditions and limitations Keshet's request to open the new multi-channel television platform.
The Authority's announcement states that "this step will lead to increased competition between content companies in Israel for the benefit of the Israeli public, while maintaining and strengthening the scope of local Israeli productions."
The approval was preceded by a large number of discussions and a lot of pressure both from Keshet, who petitioned the High Court on the matter, and from other players in the market who will be harmed by the increase in competition, the largest of which is the HOT company. In addition, the council's approval of Keshet is given subject to all the presentations and commitments given to the council, including investment in a local creation.
Total revenues in the multi-channel television market in 2022 (photo: image processing, courtesy of BDI)
The distribution of market revenues among the players: As in the past, the TV services market is largely dominated by Hot Voice, which is expected to hold an aggregate financial market share of approximately 79% at the end of the year.
Despite this, it should be noted that in recent years there has been a downward trend in the market share of the two main players, due to the entry of new players, among them: Cellcom and Partner TV, Netflix, as well as the international streaming giants Disney Plus, Apple TV and others, along with the transfer of customers for discount packages.
Another factor that causes the decline is rising players in the streaming industry like here 11, who provide content for free.
In this context, it should be noted that at the beginning of the year, FREETV signed an exclusive agreement with Partner, under which it will offer its streaming services as an integrated package (fiber-streaming bundle) based on Partner's fiber optic infrastructure.
Financial distribution of revenues in the multi-channel television market (photo: image processing, courtesy of BDI)
In terms of the internal division in the industry, it appears that Hot has dropped from a share of 47% to 46% and Weiss from 34% at the end of 2021 to 33% in the past year.
Meaning: Yes recorded a relatively higher decrease.
The rest of the players together rose from a 19% share in 2021 to a 21% share in 2022.
However, it should be noted that Yas is the only company that is growing in the number of television subscriptions, according to the last quarter reports published a week ago, while the other companies are at a standstill.
In addition, Yes is the largest player in Israel in television over the Internet with a number of customers connected to streaming that make up 55% of the company's customers.
Comparison of market shares in multi-channel television (photo: image processing, courtesy of BDI)
Tehila Yanai, co-CEO of CofaceBDi (Photo: Yehuda Sobol)
According to Tahila Yanai, Co-CEO of CofaceBDi, "Against the background of the intensification of competition and the entry of new players into the market, we are witnessing a decrease in the average income from a subscription, and a shift of customers from premium packages to discount packages, alongside the openness of customers to switch to "leaner" packages, based on on internet services".
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