Research from Media Partners Asia (MPA) shows that the top 40 pay-TV operators in Asia added an aggregate of 5.8 mil. net new subscribers during the six months to end-June, 2009, taking their combined customer base to 65.3 mil., around a third of the installed pay-TV base across the region. MPA forecasts indicate that these leading operators will end the year with 70.7 mil. customers, implying annual net additions of 11.3 mil. and close to 20% annual growth.
“In spite of a recessionary macro environment, the demand for pay-TV remains robust in Asia Pacific and in certain instances, ARPU’s along with profits are also growing healthily” said MPA executive director Vivek Couto. “Pay-TV, especially when anchored to digital upgrade, competition, and next generation broadband digital services, is proving itself as a sustainable proxy for consumption and investment.”
Regional gains have been driven by significant subscriber growth in low-ARPU markets China and India, where cable and DTH, respectively, have led the way. Excluding these two markets, pay-TV subscribers for the leading operators in the region are expected to grow at less than 8% this year.
Subscriber and ARPU growth has softened in Singapore and Hong Kong while churn has risen in Indonesia, but customer additions remain solid for the most part in Thailand, Malaysia and Australia. The growth of fibre based IPTV services has provided a boost to the saturated Japan market.
DTV Upgrade
More than 70% of the 40 operators’ user base had been upgraded to digital TV (DTV) by the end of June. This has largely been driven by momentum in China, Australia, Japan and Korea and a recent cable DTV re-launch in Taiwan. India has disappointed in terms of cable DTV growth though DTH adoption remains strong.
According to MPA, the total DTV installed base for the 40 surveyed operators will reach over 54 million by end-2009, more than 75% of total pay-TV subscribers and close to 50% market share in DTV pay-TV across Asia.
Cash generation remain strong in Australia, Japan and Korea, where HD and DVR deployment are at their highest while subscribers to real time IPTV broadcasting have accelerated in Japan and Korea. Momentum from a DTV re-launch in Q1 2009 and better broadband growth has given the Taiwan cable industry much needed traction.
Indonesia has seen subscriber momentum slowly recover since July as the market leader is benefiting from the launch of a new satellite and the addition of 30 new TV channels.
Key issues for the operator group going forward include:
- Competitive EPL football bids in Hong Kong and key S.E. Asian markets in 2H 2009
- Leveraging the launch of a new satellite and new TV channels in Indonesia
- Cable DTV financing in India over 2009 / 2010
- Realizing stronger DTV cable ARPU growth in China
- Mass market growth for Malaysia’s Astro
- Better monetization for DTH operators in India
- Profit visibility for IPTV operators in Hong Kong, Singapore and Korea
The details and data of the full survey undertaken by MPA are available in its monthly research digest, Media Route 26.
