The Future of Pay-TV & Broadband in Asia Pacific

Hong Kong, August 1, 2014-- Asia’s pay-TV and broadband industries are at a critical stage of growth and evolution, according to leading research & consulting firm Media Partners Asia (MPA). Pay-TV industry sales, including subscription and advertising, grew at a robust 10% in 2013 to reach approx. US$ 49 billion.

Pay TV Revenue is expected to reach US$ 70.5 billion by 2018 and US$ 86 billion by 2023. This implies that industry turnover will grow at a CAGR of 7.6% between 2013-18 and 5.5% between 2013 – 23. The pay-TV industry added 26 million net new customers in 2013, the lowest annual growth since 2007. Net additions will reaccelerate over 2015-16, and adjusted for multiple subscriptions, pay-TV penetration will rise from 53% of TV homes in 2013 to 60% by 2018 and 63% by 2023. 

Amidst slower though robust growth, MPA predicts consolidation and a focus on operating leverage. MPA also sees platforms and broadcasters starting to increasingly focus on non-linear multiscreen consumer offerings that embrace over-the-top (OTT) media distribution with the initial emphasis on legitimate subscription video-on-demand (SVOD) platforms. Piracy and illegal streaming video services are a key challenge though anti piracy legislation in Singapore could be a welcome antidote to IP theft.

In general, SVOD offerings are either emerging or are in gestation while video-on-demand (VOD) and TV Everywhere (TVE) are proliferating with the former having a significant economic impact in a number of key markets. These offerings leverage growing broadband connectivity across fiber and mobile networks. MPA analysis calls for total broadband subscribers (fixed and wireless) to rise from 565 million in 2013 to 1.24 billion by 2023 with fixed broadband household penetration rising from 32% to 40% over the same period while mobile broadband per capita penetration will explode from 7% to 21%.

The projections are published in a new report called Asia Pacific Pay-TV and Broadband Markets 2014, an analysis of consumption, investment and revenue generation across pay-TV, broadband, digital TV and interactive value added service (VAS) industries in 18 Asia Pacific markets. New analysis includes expanded coverage of all on-demand services, TVE services, HDTV and the fixed service satellite segment.

Summary information on the report is available here and the full Table of Contents is available here.