Asia-Pac pay-TV shrugs shift to IP and set to generate $56BN in 2018 | Pay-TV | News | Rapid TV News
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Despite the travails in other parts of the world, pay-TV is alive and kicking in Asia-Pac and the market is expected to show 5% annual growth over the current year says research from Media Partners Asia (MPA).

MPA asia pay TV 8Nov2018According to the Asia Pacific Pay-TV Distribution report, covers 17 markets across the region, pay-TV revenue in Asia Pacific, comprising of subscription fees and local and regional advertising sales, is set to top US$56 billion in 2018 after 5% annual growth. The market is then forecast to expand at a 3% CAGR between 2018-23 to generate $66 billion in revenue by 2023.

The report notes that over the next five years, the biggest gains will come from what it calls the ‘utility-oriented’ China market, where pay-TV revenues are projected to grow at a 3% CAGR to reach US$25 billion by 2023, and the more commercial India market, where pay-TV revenues are set for an 8% CAGR to reach US$16 billion by 2023. If realised, this would make India the highest growth and most scalable pay-TV market in Asia Pacific. At the same time, fellow regional pay-TV powerhouse Korea is expected to grow at a 3% CAGR to reach US$7.4 billion in revenue by 2023, while pay-TV revenues in Japan will climb at a 1% CAGR to touch US$7.1 billion over the same time-frame.

Driving the revenue increase is a healthy growing subscriber base. MPA analysis forecasts that pay-TV in Asia Pacific will grow by 3% in 2018 to reach 645 million subs, representing 57% of TV homes with at least one pay-TV service. This is then projected for a 2% CAGR between 2018-23 to reach around 696 million subs by the end of this period. Yet MPA points out that by 2023, regional pay-TV penetration 2023 will fall to 55% of TV homes when adjusted for multiple subscriptions, largely due to an acceleration in cable cord-cutting in China.

Commenting on the findings from the Asia Pacific Pay-TV Distribution report, MPA executive director Vivek Couto said: “Pay-TV stakeholders are adjusting to new realities as the industry shifts to IP-based distribution. The growth of high-speed broadband and online video is driving fundamental changes in content consumption and investment across key markets. This, together with piracy, will continue to adversely impact pay-TV industry growth. There will be more fixed broadband subs than pay-TV subs across much of Asia Pacific by 2021, while the gap between the mobile broadband subs base and pay-TV and fixed broadband subs will further widen as mobile networks emerge as a major means for mass content distribution, accelerating the shift in content consumption from households to individuals.”

The report also found that M&A activity for the Asia Pacific broadcasting and pay-TV sectors for 2017 and the first half of 2018 reached US$10.5 billion in aggregate, with the biggest deals taking place in Australia, India and Korea. MPA believes that more M&A and consolidation is likely in these markets with Southeast Asia likely to join the action over 2019-20.