APAC pay-TV sector on course to earn US$68.5BN in 2022 | Media Analysis | Business
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asian production 9 FebPay-TV industry revenue, comprising subscription fees and local and regional ad sales, will grow at 5.0% CAGR in the Asia Pacific to US$68.5 billion by 2022, according to analysts Media Partners Asia (MPA).

Vivek Couto Media Partners Asia MPAExcluding China, where the pay-TV market has scarce access for commercial pay channels and international investors, industry revenues are expected to reach about $40 billion in the region. This forecast, says MPA, is based on revenues trending at a 4% CAGR between 2017 and 2022.

Most of the growth will come from India and South Korea, which in 2017 represent 77% of pay-TV subs and almost 50% of pay-TV revenue in the Asia Pacific region, excluding China. Combined, these two markets will contribute over 80% of incremental revenue growth for the pay-TV industry in the region, excluding China, between now and 2022, believes MPA.

While overall pay-TV revenues remain what MPA calls “scalable and revenue-generative” a shift is taking place in the Asian market as broadband penetration becomes more prevalent.

Across the region, cable operators and telcos are bundling pay-TV channels and over-the-top (OTT) video-on-demand (VOD) services. And, to counter the increased competition, pay-TV operators are upping their quota of mass and premium content to differentiate themselves and cater to different customer segments.

“Cable and telecom operators are striving to reignite or sustain pay-TV customer growth by bundling pay-TV channels and on-demand services with broadband,” said Vivek Couto, executive director, Media Partners Asia.

“In Indonesia, Korea and Thailand for example, bundling has emerged as an important driver of net new pay-TV additions, underpinned by the rollout of high-speed fibre broadband. At the same time, pay-TV operators in Australia, Hong Kong, Japan, Malaysia, New Zealand and Singapore are adding more internet-based services, to revive a flagging consumer proposition,” he added.

“These services include cloud delivery, through new DVRs, as well as Android-enabled set-top boxes with strong Internet functionality that incorporate online video services. These upgrades could limit cord cutting and while help combat piracy across key markets.”

Some pay-TV operators in India, Japan, Korea and Southeast Asia are integrating their set-top boxes with over-the-top (OTT) platforms to both limit churn of existing customers and drive adoption among those who have traditionally eschewed pay-TV, said Couto.