Louise Duffy ©RapidTVNews | 28-09-2011 The pay TV market in Asia Pacific is to continue expanding steadily according to analyst firm Informa Telecoms & Media.
Its latest report shows that Asia Pacific accounted for 362 million of worldwide pay TV subscribers at the end of 2010 - a 53% share. This share is forecast to exceed 56% by 2016, when the region will have 481 million pay TV subscribers.
Pay TV will generate revenues of US$47 billion in 2016. In addition to good progress from the regional giants China and India, strong pay TV subscriber growth will also be experienced in emerging markets like Thailand, Vietnam and Indonesia.
Despite lower pay TV subscriber growth than most of its regional neighbours, Japan’s higher ARPU level means it remains dominant in revenue terms, accounting for 29% of the region’s pay TV revenues in 2010. This share will fall a little (to 26.3%) in 2016, mainly at the expense of China, which is catching it up fast and will overtake it in 2015. China will take a 27.5% share of regional revenues in 2016 - from 20.5% in 2010.
The Asia Pacific region will have 802 million TV households by 2016, an increase of more than 97 million compared with 2010. TV households have an average of 1.15 TV sets per home, leading to well over 1.1 billion sets across the region by 2016.
Of the 802 million total, 45% will subscribe to cable (both analogue and digital). This puts it well clear of the second-placed platform – pay DTH with a 12% share, which is being boosted by strong growth in India. Some 27% of TV households will take only analogue terrestrial signals by 2016. These 215 million homes show that subscription and digital systems will still have plenty of room for growth beyond the forecast period.
Broadband network upgrades in some territories make IPTV well-placed to become a significant rival to cable and DTH, although it will not be a ubiquitous success. A lack of compelling content, plus insufficient network capacity, will hold back IPTV from greater growth. This environment will often restrict it to be marketed as a ‘free’ or ‘low-cost’ add-on service within a multi-play bundle.