APAC ex-China pay-TV revenues to reach $35BN by 2027 | Media Analysis | Business | News | Rapid TV News
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Even though cord-cutting peaked between 2019 and 2021 with an aggregate 9.1 million subs cancelling subscriptions, Asia Pacific pay-TV subscriber growth outside of China, will be relatively flat in 2022, with a CAGR of 1.7%, with an estimated 106,000 subscribers cutting the cord according to a report from Media Partners Asia (MPA).
Viu PrettyLittleLiars 6DEC2022
This slowdown, noted in the Asia Pacific Pay-TV Distribution 2022 report, said MPA was driven by erosion in key markets such as Australia, Malaysia and Thailand as well as the contraction of the cable universe in India. Going forward, MPA estimates 1.0 million net new subs being added in total over 2022-27, driven by India and parts of South and Southeast Asia but partially offset by contraction in all other regions. India and the Philippines are projected to lead in terms of net new subscriber growth over the 2022-27 period.

Ex-China, total Asia Pacific pay-TV subscribers will grow from 232.9 million in 2022 to 234.7 mil. by 2027 with penetration of TV homes, adjusted for multiple subscriptions, reaching 48% versus 50% in 2022. India is forecast to remain the largest market in size, accounting for 52% of total subs by 2027 with most of its growth powered by DTH satellite platforms as overall penetration will remain flat. Korea is the second largest contributor with 16% of subs by 2027, driven by telco IPTV operators. Pakistan and Vietnam follow, each with 6% of total pay-TV subs by end-2027 while Japan’s high ARPU but declining subs base will contribute 5% by 2027.

Total Asia Pacific pay-TV industry revenues, including subscription and advertising, will grow by an estimated 3.5% in 2022 and is projected to grow at 2.1% CAGR over the next five years. Ex-China, the Asia Pacific pay-TV revenue pie is estimated to grow 1.4% in 2022 and at a CAGR of 1.7% between 2022 and 2027. Revenue growth in 2022 has largely been driven by India, Korea, the Philippines and Vietnam. India and Korea will continue to contribute the most to incremental revenue growth between 2022-27.

China remains the largest pay-TV market in Asia Pacific but said the report remains inaccessible to international investors and content providers. The high volume, low-ARPU pay-TV market continues to grow with total pay-TV subscribers reaching 578 million in 2022, 90% penetration of TV households, after adjusting for multiple subscriptions. After overtaking cable TV as the largest pay-TV segment in 2019, IPTV continues to gain share of subs and revenue, benefitting from popular telco fibre broadband bundles and superior content offerings (especially premium on-demand) over cable TV. MPA projects 41 million new IPTV subscriptions in China between 2022 and 2027, taking the total base up to 419 mil. by 2027, with 76% of the total fixed broadband base subscribing to IPTV.

“Pay-TV’s future sustainability is anchored to bundled IPTV and home broadband services with telcos and pay-TV operators also integrating premium online SVOD services through the launch of Android platforms, hybrid STBs and various new packages,” said MPA executive director Vivek Couto commenting on the report’s findings.

“Linear TV remains important with local and Asian content, sports, and niche international channels driving viewership. However, the growth of legal and affordable online SVOD options as well as the pervasiveness of piracy means that the value of premium sports and entertainment is migrating rapidly away from pay-TV to online. Operator consolidation grew between 2019 and 2021 and we expect more to occur in markets such as China, India, Indonesia, Japan, Korea, Malaysia and Taiwan. Linear channel products are being rationalized in many markets across Southeast Asia as well as India, Hong Kong, Japan and Taiwan.”

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