Asia-Pac pay-TV revenue to reach US$60BN by 2025 | Media Analysis | Business | News | Rapid TV News
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Even though subscription fees and local and regional advertising sales contracted by 3% in 2020 to reach US$53 billion, the Asia Pacific pay-TV industry will grow at a CAGR of 3% between 2020-25 to top US$60 billion says a report from Media Partners Asia (MPA).
MPA Netfkixchina 21Aug2018
In the industry analyst’s Asia Pacific Pay-TV Distribution report, MPA forecasts total pay -TV industry revenues will be driven largely by India, China and Korea. It adds that most other markets, including Australia, Hong Kong, Singapore and Thailand will continue to contract though Philippines will expand while Japan and Malaysia will remain relatively flat. Asia Pacific pay-TV subscription fees are projected by MPA to expand at a CAGR of 2% to reach US$49 billion by 2025 while advertising is estimated to grow by 4% CAGR to total more than US$11 billion by 2025.

MPA also noted the extent to which the Covid-19 pandemic impacted pay-TV advertising growth across Asia Pacific and how the suspension of sports activity hurt subscriber and ARPU growth in the first half of 2020. The resumption of sports activity in the second half of 2020 and early 2021 helped operators partially recover earlier residential subscriber losses though activity in the commercial and enterprise segment remained soft said the analyst.

The research also found that Asia Pacific, including China and India, added 23.8 million net new subscribers in 2020. China contributed more than 90% to growth in 2020, driven by the bundled IPTV, OTT and broadband services, led by China Mobile. The total Asia Pacific pay-TV subscriber base grew 3% in 2020 to reach 668 million, representing 62% penetration of total TV homes, adjusted for multiple subscriptions in a home. MPA projections indicate that total Asia Pacific pay-TV subs will grow at a CAGR of 1% between 2020-25 to reach more than 715 million by 2025, representing 63% penetration. China, India and the Philippines will lead in terms of contribution to incremental subscriber growth over 2020-25.

Commenting on the findings from the report, MPA executive director Vivek Couto observed that the IP distribution of video content bundled with broadband services is helping to prolong the shelf life of pay-TV channel bundles while also providing a basis for integration with new OTT video services.

“This strategy, combined with continued demand for household TV and broadband bundles amongst aging customers, is ensuring that the pay-TV sector remains relatively robust in markets such as China, Korea and Malaysia while retaining scale in countries such as Japan,” he said.

“In large emerging markets such as India and Philippines, strong demand for live sports & entertainment channels on TV fuels the growth of low-ARPU DTH satellite platforms which will remain dominant but increasingly mature. In Southeast Asia, IPTV & broadband bundles have helped Indonesia, Thailand and Vietnam stay relatively afloat following the steady erosion of the DTH satellite sector.”

Going forward, MPA predicts that subscriber growth will decelerate in large markets such as China, India and Korea with a focus on ARPU growth and driving efficiencies through further consolidation. It added that cord-cutting will continue in highly penetrated online SVOD markets such as Australia, Singapore and New Zealand though churn should stabilise as operators cater to aging customer cohorts with bundles of live sports, local and international entertainment and OTT services through next gen STBs, supported by HD and Ultra HD/4K technology. This trend is also said to be likely evident in Hong Kong, Malaysia and Japan.

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