Complex rules, piracy hinder growth of Taiwan’s video market | OTT | News | Rapid TV News
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Mobile video now reaches 92% of the population in Taiwan, but content piracy and Government constraints on cable TV investment stifle the industry, warns pay-TV industry group CASBAA.

John Medeiros hi res 250“Living with massive revenue leakage from piracy while blocking sufficient investment in the digital economy, Taiwan is falling behind its natural potential as a regional communications hub,” said Christopher Slaughter, CEO, CASBAA.

Despite the Government constraints on cable TV investment under Taiwan’s ownership rules, cable and IPTV operators are benefitting from increased mobile broadband penetration and providing multiscreen services such as video-on-demand (VOD), interactive music and games, sophisticated EPGs, PVRs. Augmented reality and virtual reality (VR) services are also planned.

Some 95% of Taiwan’s 5.2 million cable TV subscribers are now receiving digital services, with 15 locally established and legitimate over-the-top (OTT) platforms now available. Local pay-TV platforms are bundling their own content with that of non-domestic content providers, developing exclusive content and packaging that appeals to younger consumers, CASBAA’s latest report states.

The industry body found the most prevalent OTT viewers in Taiwan are women aged 18-34, who represent 42% of the total. Along with 18-34 year-old males, almost 70% of Taiwan’s OTT subscribers are ‘binge’ viewers, said CASBAA.

In spite of the popularity of OTT services, current investment rules in Taiwan preclude any minimal state ownership – even if indirect – in pay-TV, but not telecommunications companies. The result, says CASBAA, is that investment into convergent services is wrought with difficulty.

John Medeiros(pictured), chief policy officer, CASBAA, said: “The complicated rules on investment, along with a hugely damaging level of content piracy, are not only holding back the growth of the local pay-TV market but also the overall economic development of Taiwan as a whole”.

These issues are on the agenda on 22 June at CASBAA’s Taiwan in View 2017 conference in Taipei.
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