IPTV drives Asia-Pac pay-TV growth | Pay-TV | News | Rapid TV News
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Even if it struggled elsewhere, pay-TV found Asia Pacific a pretty fertile ground in 2017 according to research from IHS Markit which calculates that the industry grew overall by 5.7% year-on-year to reach just over three-quarters of all homes in the region.

IHS Asia 17aug2018The Asia Pacific Pay TV and Online Video 2017 report also showed that the number of pay-TV homes will continue to rise steadily, from 632 million homes in 2017 to 743 million by the end of 2022 with the majority of households subscribing to cable TV, which at the end of the year accounted for 62% of total subscribers.

Yet it also revealed that despite growth in the number of pay-TV homes in the region, challenging economic conditions, an increase in competition and rampant piracy continue to pressure the ability of operators to attract and retain subscribers.

Cable is overwhelmingly the dominant pay-TV platform in this region, due to the vast number of subscribers in China and India. Despite cable’s dominance in absolute terms, IPTV was the regional growth leader, increasing its market share from 18% in 2016 to 23% in 2017. Satellite subscriptions remained steady, with 15%. Use of online video services was found to be growing, and mobile devices are projected to account for a growing amount of video viewing in this region.

In terms of business the platforms generated, online video revenues – including advertising-supported services, subscription services and transactional rentals and purchases – increased by 50% year-on-year, reaching $16.2 billion in 2017. Compared with 2016, subscriptions to online video services rose from 132 million in to more than 200 million in 2017. Nearly three quarters of these subscriptions came from China, followed by Japan with 10%.

Yet IHS Markit stressed that despite the clear rise of online video, it did not follow that the new trends heralded the end of pay-TV. That was, said the analyst, because growth for IPTV, and to a lesser extent in satellite and digital terrestrial television (DTT), is projected to offset the decline in the number of homes subscribing to cable TV.

That said IHS Markit noted in the Asia Pacific Pay TV and Online Video 2017 report that the surge in online video usage would continue unabated, with online net subscriber additions forecast to outstrip those of pay-TV between 2017 and 2022. Driving this was competition in the Asia-Pacific online video market which it expected to continue to intensify, as Netflix and regional competitors Hooq, Viu, and iflix made similar bids for subscribers.