Asia Pacific Multichannel Tv 2018 About

ASIA PACIFIC MULTICHANNEL TV 2018 ABOUT

Established in 1991, CASBAA is the association for digital Multichannel TV, content, platforms, advertising and video delivery across a variety of geographic markets throughout the Asia-Pacifc. CASBAA’s members reach over 600 million connections within a regional footprint ranging from China to Australasia, Japan to Pakistan. For more information, visit 623 www.casbaa.com MILLION PAY-TV SUBSCRIBERS IN ASIA

CASBAA Executive Offce WWW.CASBAA.COM 802 Wilson House 19-27 Wyndham Street Central, Hong Kong Tel: 852 2854 9913 Enquiry: [email protected]

Source: Media Partners Asia

2 MULTICHANNEL TV 2018 3 6 FAST FACTS 10 GLOBAL OVERVIEW As ever, across Asia Pacifc, emerging services are now an essential element 16 ASIA PACIFIC VIEWERS market growth is playing a starring role within any Pay-TV portfolio. We harvest when deconstructing the Pay-TV balance some of the information available sheet. to help you navigate the constantly MEASUREMENT GUIDE evolving terrain. 24 While the mega markets of India and China continue to lead the way, we As always, CASBAA also provides 38 MARKET OVERVIEW shouldn’t forget the likes of Vietnam, context for the development of Myanmar, Cambodia, Pakistan and Sri Multichannel TV in Asia. Lanka as they catch up with Thailand, This year, our CASBAA guide looks at 48 ADVERTISING OVERVIEW Taiwan, Singapore and Hong Kong, let the on-going negative impact of Pay-TV alone Japan and South Korea. There piracy, specifcally digital video theft and is plenty of development opportunity INSIGHTS the critical role of the Illicit Streaming CONTENTS 58 ahead for Multichannel TV and video Devices (ISDs) that are beginning to play across Asia Pacifc in 2018 and beyond. OTT & STREAMING within the marketplace. 72 Subsequently, the CASBAA research group has been exploring ways to Finally, we provide some narrative 96 COMBATTING PIRACY chart the increasingly complex data by profling specifc markets, for resources available for measuring instance Singapore and Myanmar, our sector’s performance. For both as well as revealing new approaches internal uses, such as by network and to cross-platform measurement and platform planners, as well as by external analytics, assessing the impact of partners, for example advertisers, brand Internet Video plus data privacy policies managers and investors. and practices, and consider the most important issues of content protection So this year we give renewed emphasis and revenue assurance. A WHAT AND WHERE ROADMAP to tabulating as much of the research TO ASIA PACIFIC PAY-TV DATA 2018 resources available in the public domain from CASBAA Members and others as Jane Buckthought laid out in the detailed Research Guide Editor By almost any measure, the Multichannel platforms are generating enhanced on page 24-37. TV and broadband video sectors across revenues and, equally importantly, the Asia Pacifc are performing well as developing new ways of measuring our The Research Guide 2018 provides a we move into 2018. diverse markets while providing insights roadmap to Asia Pacifc Multichannel TV into audience behavior. data: which countries and sectors are Just as the US and European Pay-TV being measured; from where the data markets are enjoying enormous varietal This guide is designed to give a sense of has been sourced; the platforms and growth in content offerings and new direction when we look at consumption, channels that are measured and in which ways of reaching the consumer, Asia ARPU and overall revenue growth from format. OTT, mobile and streaming Pacifc digital cable, DTH, OTT, VOD, all sources. SVOD, online streaming and other

4 MULTICHANNEL TV 2018 5 FAST FACTS

6 MULTICHANNEL TV 2018 7 FAST FACTS

100% SOUTH KOREA % % 32.7 Million 23 58 JAPAN CHINA 11.590 Million 55% 365 Million PAKISTAN 13.11 Million 623 81% 84% MILLION PAY-TV SUBSCRIBERS HONG KONG TAIWAN 2.217 Million IN ASIA PACIFIC 6.846 Million 79% INDIA 56% % 154.9 Million VIETNAM 19 % 11.454 Million PHILIPPINES 31 3.83 Million THAILAND 6.9 Million 30% 50% SRI LANKA MALAYSIA FAST FACTS* 1.329 Million 3.694 Million % POPULATION ...... 3,693,314,000 11 INDONESIA TOTAL HOMES ...... 1,038,291,000 4.605 Million TELEVISION HOMES ...... 882,884,000 55% MULTICHANNEL HOMES ...... 57% / 504,550,000 SINGAPORE 0.861 Million BROADBAND SUBSCRIBERS ...... 2,490,455,000 PAY-TV SUBSCRIBERS ...... 623,261,000

* 16 selected markets 33% AUSTRALIA 3.001 Million

1. Percent of Pay-TV penetration and Pay-TV subscribers 2. Free-to-air satellite subscribers are excluded from numbers above 3. Based on 16 selected markets

Source: Media Partners Asia . Source: Media Partners Asia . % Note: Data for 2017 has been sourced from MPA and cannot be compared to previous editions of this book Note: Percent of Pay-TV penetration of TV homes (includes subscribers to multiple platforms) 41 NEW ZEALAND 0.701 Million

8 MULTICHANNEL TV 2018 9 GLOBAL OVERVIEW

10 MULTICHANNEL TV 2018 11 GLOBAL OVERVIEW Total Multichannel homes, 2017-2021 Kagan, a media research group within the TMT offering of S&P Global Market Intelligence. © 2017 S&P Global Market Intelligence. All rights reserved. 800

700

600

PRESENT AND FUTURE 500

A MULTICHANNEL MARKET SUMMARY 400

millions 300

200 Kagan, a media research group within revenue within the next few years, mainly S&P Global Market Intelligence, driven by Japan and China. 100 estimates the Asia Pacifc region closed 0 2016 with 607.6 million Multichannel While cable is still the most adopted 2017 2018 2019 2020 2021 TV households, translating to 68.1% Pay-TV platform across Asia Pacifc, it Total Multichannel service revenue, 2017-2021 Pay-TV penetration. Growth was mainly is losing region-wide subscriber and Kagan, a media research group within the TMT offering of S&P Global Market Intelligence . © 2017 S&P Global Market Intelligence. All rights reserved. attributable to the IPTV sector, which revenue share to IPTV. By the end of 140 accounted for 78.3% of total subscriber 2016, the number of IPTV subscribers 120 net additions. China alone contributed had surpassed those taking DTH, the majority of IPTV subscriber growth, making IPTV the region’s second-largest 100 with China Telecom Corp Ltd and China Multichannel platform. However, due to 80 Unicom signing up more than 40 million low average ARPU, IPTV service revenue 60 customers during the year. This further is not anticipated to exceed that of DTH US$ billions 40 strengthened the country’s position within the next ten years. as the world’s largest IPTV and overall 20 Multichannel market. Digitization of cable TV networks is well 0 under way in many parts of the region. 2017 2018 2019 2020 2021 India trails China as the second-largest Most notably, South Korea plans to Pay-TV market globally, with 165.2 convert all analog cable subscribers 4% million subscribing households at in the market to digital by February 7% year-end 2016. Kagan estimates the two 2018, in time for the Pyeongchang 8% markets collectively accounted for 80.4% Olympic Winter Games. On the fipside, of the region’s total Pay-TV households. video piracy and regulatory barriers in Share of Multichannel Despite their sizes, both China and some markets continue to challenge 9% 61% TV homes 3% India produce some of the region’s the Multichannel industry, as does by region 2018 10% lowest Multichannel ARPUs, generally the maturing OTT sector, already 10% 3% at $3-$4 per month, dwarfed by those characterized by well-established online of the more advanced markets such video communities. Share of Multichannel as Australia, Japan, New Zealand and service revenue 51% 16% Singapore. DTH MARKET SUMMARY by region 2018 Although cable dominates Multichannel Multichannel subscription revenues households in the majority of Asia Pacifc from Asia Pacifc totaled $35.1 billion markets, Kagan analysis indicates DTH 17% in 2016, a 5.6% year-on-year increase. holds the highest share of Multichannel On a global scale, this has kept the subscribers in Malaysia, New Zealand, region the third-most-lucrative Pay-TV Indonesia and Australia. ASIA PACIFIC EASTERN EUROPE NORTH AMERICA economy after North America and Western Europe. With sustained growth, With 61 million active pay DTH MIDDLE EAST & AFRICA LATIN AMERICA & CARIBBEAN WESTERN EUROPE

our analysis indicates Asia Pacifc will subscribers in 2016, India is the Kagan, a media research group within the TMT offering of S&P Global Market Intelligence. overtake Western Europe in Pay-TV largest DTH market in the Asia Pacifc, © 2017 S&P Global Market Intelligence. All rights reserved.

12 MULTICHANNEL TV 2018 13 GLOBAL OVERVIEW

accounting for the lion’s share of the Although China is the region’s largest FIXED WIRELESS SUMMARY region, including those in Australia, New region’s total DTH connections. The cable TV economy, with subscription Kagan estimates legacy fxed-wireless Zealand, Malaysia and Singapore, are market is also home to the top DTH revenue at $9.86 billion in 2016, the systems served about 721,000 Asia funding fber rollouts, a policy expected providers in the region by subscriber market’s cable ARPU level remains low Pacifc subscribers at end-2016, with to foster the IPTV landscape long term. base, including Dish TV India Ltd., at $3.48 per month. Australia leads the the sector forecast to account for less Tata Sky Ltd., Sun Direct, Videocon region’s cable TV service ARPU at $63.57 than 1% of the region’s Multichannel DTT MARKET SUMMARY d2h, Bharti Airtel Ltd. and Reliance per month. subscribers and revenues for the As of June 2017, free-to-air DTT services Communications Ltd. foreseeable future. had launched in all Kagan-covered Asia Digitization has been in progress Pacifc markets. The Asia Pacifc region Australia holds the highest DTH ARPU in in most markets, with China, South IPTV MARKET SUMMARY was home to 164.6 million FTA DTT the region, at $64.67 per month in 2016. Korea and Taiwan making the most The Asia Pacifc market is the world’s households at year-end 2016. With a India, in contrast, registers the lowest notable headways in recent years. third-largest IPTV economy after North strong broadcast sector, Japan is the ARPU of $2.89 per month. Because of Within the next ten years, the majority America and Western Europe, with region’s largest DTT market, with 52.4 the sheer size of the market, however, of our covered markets should have China Telecom ranking as the largest million FTA DTT households in 2016. India still ranks as the top DTH economy fully digitized cable networks, with IPTV operator globally by subscriber in the region, with $2.03 billion in the exception of India, Philippines base. South Korea’s KT Corp. and Japan’s Our models do not count FTA DTT subscription revenue for 2016. and Vietnam. As of 2016, cable TV SKY Perfect JSAT Corp. also rank among households as Multichannel, given that households in Australia, Hong Kong, the top IPTV providers in the region. the service is not subscription-based. Historically, the Chinese government Japan, New Zealand and Singapore In the Asia Pacifc, digital terrestrial has prohibited the general population were 100% digital. China accounts for the vast majority of infrastructure is leveraged for Pay-TV from accessing DTH signals, with the the region’s IPTV subscribers. According service deployments in Indonesia and exception of unencrypted state-affliated Market fragmentation has posed a to analysis by Kagan, out of the 111.4 Vietnam, among several other South channels via the CBTV platform. At fundamental challenge in several of million IPTV households in 2016 East Asian territories. These operations present, free-to-air DTH service is Asia’s cable markets, including India, the region-wide, China alone accounted for form a niche position in the region’s available extensively via SAPPRFT’s Philippines and Thailand, as localized 86.7 million, or 77.9%, thanks to China Multichannel landscape, accounting for Huhutong project, which aims to bring ownership of last-mile networks Telecom’s rapid customer expansion a tiny fraction (0.2%) of the Asia Pacifc TV and radio access to millions of impedes digital upgrades. Adjustments in recent years. However, South Korea total Pay-TV subscriber base. Kagan does residents living in rural and mountainous to ownership regulation enabling remains the most lucrative IPTV market, not expect widespread pay DTT activities areas not covered by cable or terrestrial consolidation are paving the way for with $1.56 billion in subscription to emerge in the Asia Pacifc market long signals. As of June 2017, FTA satellite TV digitization initiatives. In China, regional revenues in 2016, followed by Japan’s term. households had reached 120 million in cable systems are implementing a $1.40 billion and China’s $1.13 billion. China, according to SAPPRFT. government-mandated "one province, The Association of Southeast Asian one network" directive which has formed IPTV ARPU was highest in New Zealand Nations (ASEAN), which includes Other markets in the region where FTA some of the biggest cable operations in at $47.19 per month in 2016, and lowest Indonesia, Malaysia, the Philippines, DTH services command a signifcant the world. in China at just $1.42 per month. Both Singapore and Thailand, endorsed presence include India, Indonesia, Japan China Telecom and China Unicom DVB-T as the offcial ASEAN DTT and Thailand. Kagan believes cable’s grip on the have marketed IPTV as a promo standard in June 2007. Japan and China Asia Pacifc Pay-TV market will slip over service add-on to fxed-broadband have opted for their own homegrown CABLE MARKET SUMMARY the coming years as DTH and IPTV subscriptions. standards, implementing ISDB-T With 237 million cable TV households services capture market share. However, (Integrated Services Digital Broadcasting in China and more than 100 million increasing competition is not expected Kagan analysis indicates IPTV will - Terrestrial) and DTMB (Digital Terrestrial in India, cable remains the dominant to impede industry growth as advanced be the fastest-growing Multichannel Multimedia Broadcast), respectively. platform in the Asia Pacifc Multichannel services including HD, VOD and DVR platform in the Asia Pacifc over the In 2006, South Korea selected the U.S. landscape. Kagan analysis indicates drive cable service revenues. coming years, with China, Japan and ATSC standard for its DTT platform. 67.4% of Pay-TV households in the South Korea positioned as key markets region were connected via cable as of for growth. Many governments in the 2016, translating to 409.5 million.

14 MULTICHANNEL TV 2018 15 ASIA PACIFIC VIEWERS

16 MULTICHANNEL TV 2018 17 ASIAPACIFIC VIEWERS

AFFLUENT VIEWERS MULTICHANNEL TV AGREE THAT... DON’T NOT WATCH VIEWERS WATCH VIEWED VIEWED Pay-TV Pay-TV yesterday in past month INDEX I am always one of the frst to use 108 89 INDIA 67% 7% innovative tech products THAILAND 53% 25% I have confdence in purchasing products/services that have been advertised 109 71 MALAYSIA 83% 4% SINGAPORE 76% 5% I tend to go for premium rather than standard goods/service 117 74 INDONESIA 64% 15% HONG KONG 35% 29% I have expensive tastes 112 71 TAIWAN 75% 4% Gaining knowledge and becoming better informed SOUTH KOREA 61% 9% is a priority for me 110 75 PHILIPPINES % % 71 10 People come to me for advice 112 73 AUSTRALIA 30% 29% before buying new things

Source: Ipsos Affuent Survey Asia Pacifc Q3-Q4 2016 % Reach Source: Ipsos Affuent Survey Asia Pacifc Q3-Q4 2016 Average Base Index: 100. Thailand or Hong Kong or Indonesia or Malaysia or Philippines or Singapore or Taiwan or India or South Korea or Average Base Index: 100. Thailand or Hong Kong or Indonesia or Malaysia or Philippines or Singapore or Taiwan or India or South Korea or Australia. Viewed cable/satellite channels yesterday or Not viewed any cable/satellite channels in past month Australia. Viewed cable/satellite channels yesterday or Not viewed any cable/satellite channels in past month

MULTICHANNEL TV CONSUMED MORE THAN OTHER MEDIA

ANY CABLE/SATELLITE TV CHANNEL (monthly) 88% ANY CABLE/SATELLITE TV (weekly) 81% ANY CABLE/SATELLITE TV (daily) 60,9% ANY INFLIGHT MAGAZINE 18,3% ANY REGIONAL MONTHLY MAGAZINE 23,3% ANY REGIONAL TRI-WEEKLY MAGAZINE 2,3% ANY REGIONAL WEEKLY MAGAZINE 10,3%

ANY REGIONAL DAILY NEWSPAPER 4,7% MULTICHANNEL TV ANY REGIONAL TITLE 28,9% OTHER MEDIA

Source: Ipsos Affuent Survey Asia Pacifc Q3-Q4 2016 - % media consumption Thailand or Hong Kong or Indonesia or Malaysia or Philippines or Singapore or Taiwan or India or South Korea or Australia.

18 MULTICHANNEL TV 2018 19 ASIAPACIFIC VIEWERS

AFFLUENT VIEWERS ARE EARLY ADOPTERS...... DECISION MAKERS...

OWNERSHIP INDEX WATCH DON’T WATCH OWNERSHIP INDEX WATCH DON’T WATCH

PAY-TV PAY-TV

SMARTPHONE 101 > 93 CAR OWNER 104 > 88

OWN TABLET 103 > 98 PLATINUM/BLACK 103 > 82 CREDIT CARD

BUSINESS SMART TV 103 > 96 DECISION MAKER 109 > 70

HOME THEATRE TOP MANAGER SOUND SYSTEM 103 > 80 113 > 70

OWN DIGITAL STOCKS/SECURITIES/BONDS VIDEO CAMERA 105 > 82 OFFSHORE ACCOUNT 120 > 58 FOR INVESTMENT

OWN A PRIVILEGE/PRIORITY 110 > 72 Source: Ipsos Affuent Survey Asia Pacifc Q3-Q4 2016 BANK ACCOUNT Average Base Index: 100. Thailand or Hong Kong or Indonesia or Malaysia or Philippines or Singapore or Taiwan or India or South Korea or Australia. Viewed cable/satellite channels yesterday or Not viewed any cable/satellite channels in past month

OWN OTHER PROPERTIES 111 > 96 FOR INVESTMENT

20 MULTICHANNEL TV 2018 21 ASIAPACIFIC VIEWERS

... & TRAVELLERS TOO

INDEX WATCH DON’T WATCH

PAY-TV

6+ BUSINESS TRIPS IN PAST 12 MONTHS 138 > 30

FLY FIRST OR BUSINESS CLASS 118 > 51 IN PAST 12 MONTHS

12+ NIGHTS IN A HOTEL 102 > 79 IN PAST 12 MONTHS

3+ LEISURE TRIPS IN PAST 12 MONTHS 118 > 59

Source: Ipsos Affuent Survey Asia Pacifc Q3-Q4 2016 Average Base Index: 100. Thailand or Hong Kong or Indonesia or Malaysia or Philippines or Singapore or Taiwan or India or South Korea or Australia. Viewed cable/satellite channels yesterday or Not viewed any cable/satellite channels in past month

22 MULTICHANNEL TV 2018 23 MEASUREMENT GUIDE

24 MULTICHANNEL TV 2018 25 MEASUREMENT GUIDE TELEVISION AUDIENCE MEASUREMENT 2017-2018

COMMERCIAL CABLE/ VOD &/OR BREAK COMMERCIAL PAY-TV REACH TIME SHIFT MARKETS RESEARCH PEOPLEMETER PANEL SIZE RETURN PATH DATA (RPD) PANEL PANEL COVERAGE SATELLITE DTT INTERNET, TABLETS & OTT SERVICES RATINGS SPOT LOGS & FREQUENCY VIEWING SOFTWARE COMPANY (HOMES/HOUSEHOLDS) MEASURED MEASURED SMARTPHONES MEASURED FOR PAY-TV FOR PAY-TV AVAILABLE MEASURED CHANNELS CHANNELS

National Video Nielsen TAM 5,250 (Metropolitan), Metro areas (5 cities) User on behalf of No Yes Yes No player data re- No No Yes Yes OzTAM 2,120 (National subscription TV) & nationally for Subscription TV ported separately choice* AUSTRALIA Queensland, Northern NSW, Nielsen TAM User on behalf of 3,198 (Regional) No Southern NSW, Victoria, Tasmania Yes Yes No No No No Yes Yes choice* Regional TAM & Regional Western Australia Dhaka Metro, Dhaka Other Urban, MRB 550 Homes Media No Dhaka Rural, Chittagong Metro Yes No No No Yes Yes Yes No BANGLADESH Bangladesh 2,200 Individals XPress & Chittagong Rural Instar Kantar Media 795 Diaries Phnom Penh, Siem Riep & Battambang Yes Yes No Yes Yes Yes CAMBODIA Analytics National panel: 1 national meter panel 500,000 Smart TV Device & 52 79 city meter panels CSM 34,275 12 provincial meter panels, Yes-Cable Yes Yes Yes No No Yes Yes Infosys+ City panel: 52 diary city panels 200,000 Smart TV Device CHINA 13 diary provincial panels 20M RPD terminal units (including Peoplemeter: Harbin Nielsen- Peoplemeter (Individuals) DTV/IPTV/OTT TV); 1 National RPD RPD: 1 National RPD panel (15 core cities), Yes-Cable No Yes Yes Yes Yes Yes Yes Arianna CCData Harbin: 300+ panel (100,000+HH), 2 Provincial 2 Provincial RPD panels, 49 City RPD RPD panels, 49 City RPD panels panels Cable - Yes CSM & Kantar Satellite - If it is Yes Instar (new 1,000 No HK Region on the monitoring Yes Yes Yes No No Yes Media for subscribers service Jan 2018) list of AMS channel Analytics it will be measured HONG KONG Nielsen (HKTAM Yes Yes Yes 800 No HK Region Yes Yes Yes No No for Extended Arianna ends Dec 2017) Laptop/Desktop for subscribers Screen (PC) & OTT CSM Media Now TV 2,000 homes HK Region; Now TV subscriber base No Yes - & Eye device Yes No Yes Yes Yes InfoSys+ Research channels only Yes BARC INDIA BARC India 30,000 (2017) In Progress All India (Urban + Rural) Yes No No Yes Yes Yes India Media Vosdal Workstation

2,273 (Terrestrial) & 300 Terrestrial: 11 cities, Pay-TV: Greater Nielsen (Pay-TV). In 2018: 2,418 No Yes No No No No No Yes No Arianna INDONESIA Jakarta (all cities in 2018) (Terrestrial) & 640 (Pay-TV) 6,600 National panel & Video separate Subscription TV No Tokyo & Osaka Yes No No No No No Yes No RVCS JAPAN Research Ltd Panel 600 * 1,100 TV Households Across 11 states in Peninsular Malaysia, Astro Pay-TV & Njoi Digital ad ratings (DAR) Nielsen No No No No No Yes No Arianna in Peninsular Malaysia covering both urban and rural (Free Sat) inclusive of Desktop & Mobile MALAYSIA Across all 13 states in Peninsular & East Yes Planned integration of Astro Instar Kantar Media 4,000 homes No On The Go viewering in Q1 Q1 2018 Yes Yes Yes Yes Malaysia, covering urban & rural (Astro Pay-TV) 2018 (all channels) (all channels) Analytics Nielsen 1,000+ HH Diary Panel No 6 Key Cities within Metro & Urban Yes No No No No Yes Yes No Arianna MYANMAR MMRD 6,000+ Individuals NEW ZEALAND Nielsen 600 No National Yes Yes No No Yes Yes Yes Yes Arianna Medialogic Instar 900 Homes No Top 20 Cities Incl. 3 Metros Yes N/A No No Yes Yes Yes No Pakistan (80 channels) (80 channels) Analytics PAKISTAN National Diary Panel: Gallup 2,500 HH National (Urban+Rural) Yes N/A No No Yes No Yes No Reporter Pakistan 3,500 Individuals (2,000 Urban HH & 500 Rural HH)*

26 MULTICHANNEL TV 2018 27 MEASUREMENT GUIDE TELEVISION AUDIENCE MEASUREMENT 2017-2018 Please contact the research company for a comprehensive report on measurement.

Yes (in its testing period; for National Panel: 3,500 offcial rollout Yes Nielsen (2,000 Urban homes (NUTAM) No National (Urban+Rural) Yes within Me- in Digital Ad Ratings No Yes Yes Yes No Arianna & 1,500 Rural homes (RTAM)) gaTAM panel & Total Ad Ratings homes (part of NUTAM) by Q4 2017) Yes (in its testing PHILIPPINES period; for Metro Panel: 2,220 offcial rollout Yes (1,190 Mega Manila homes within Me- Nielsen (MEGATAM) and 1,030 homes No Metro Cities Yes in Digital Ad Ratings No Yes Yes Yes No Arianna gaTAM panel for 8 other Metros (MCTAM)) & Total Ad Ratings homes (part of NUTAM) by Q4 2017)

National Panel: 2,270 Yes Instar Kantar Media (1,370 Urban homes (Urban PH) National (Urban + Rural) Yes part of TAM Expected in Q1 2018 Yes Yes Yes & 900 Rural homes (Rural PH) panel Analytics

1,200 Households Yes GfK & 2,000 Individuals No National Yes Yes Yes No No No Yes Evogenius on pc/mobile devices (up to 28 days) SINGAPORE Nielsen for Panel: 5,000 homes Yes Arianna/ StarHub - StarHub TV Subscriber base Yes No No Yes Yes Yes Yes Census: 487,000 homes for VOD eTAM SmarTAM Nielsen 4,170 No National Yes Yes Yes Yes Yes Yes Yes No Arianna SOUTH KOREA TNMS 3,200 10,000 National Yes Yes No Yes Yes Yes Yes No Infosys 600 Homes Media Kantar LMRB National Yes Yes No No No No No No SRI LANKA ~ 2,200 Individuals Xpress Nielsen 2,000 - National Yes Yes No No Yes Yes Yes No Arianna TAIWAN Nielsen - 10,000 MOD subscriber base No No No No Yes Yes Yes No Arianna

2,400 Yes (Sat 1100, local cab 180, Yes Nielsen No National Yes Yes Digital Ad Rating (DAR) No Yes Yes Yes Arianna True 400, Digital 600, and Digital Content Rating (DCR) THAILAND Analogue 120) (DCR)

Kantar Media Follow Announcements in the Press Possible launch in 2018

National TAM (Diaries) 2,258 Homes & 2 Cities National Instar Kantar Media Yes Yes No Yes Yes Yes VIETNAM (Diary), 518 Homes & 4 6 cities Analytics Cities (PM), 1,294 homes

Survey Notes: Australia, OzTAM and Regional TAM: Peoplemeter/OzTAM: 5 City Metro Markets: Sydney, Melbourne, Brisbane, Adelaide & Perth & Nationally for Sailkot, Pakpattan, Jehlam, Kohat, Mardan, Larkana, Dadu and Quetta Pakistan, Gallup Pakistan: National diary panel include all 3 Metros (Karachi, Lahore, Islamabad/ Subscription TV Australia, TV/RegionalTAM: Queensland, Northern NSW, Southern NSW, Victoria, Tasmania and Regional Western Australia Australia, User Choice* Rawalpindi: 2,100 individuals) , 5 Large Cities (Faisalabad, Hyderabad, Multan, Peshawar, Quetta: 1,100 individuals), 10 Small Cities & Towns (Gujrat,Jacobabad,Kasur,- Gold Standard accredited software suppliers for OzTAM & Regional TAM Data : TV Map (Broadcast M.A.P), R8ting Library for MediaWise (Day 8 Technology), AdQuest Mardan,Pashin,Rajanpur,Rohri,Sahiwal,Sargodha,Thatta : 1,500 individuals) , Rural 800 individuals eTAM (Landsberry & James), Pinergy (MediaCom) OzTAM only, Arianna (NielsenTAM), TARDIIS (Starcom MediaVest Group), AdvantEdge (TechEdge) Indonesia, Philippines: PHINTAM (National Urban and Rural), NUTAM (National Urban), Mega TAM (Metro Manila & suburbs), MCTAM (Metro cities). South Korea, Nielsen: Nielsen: Terrestrial: 11 cities:Jakarta, Surabaya, Medan, Semarang, Bandung, Makassar, Yogyakarta, Palembang, Denpasar, Banjarmasin and Surakarta. Pay-TV: Greater National and over 100 Pay-TV channels are monitored programme names or TVC spot logs.(Seoul, Incheon, Busan, Gwangju, Daejeon, Daegu, Ulsan, Gyungi Province, Jakarta.^: CMV Indonesia sample include CMV + Fusion with TV data Japan,Video Research Ltd: Peoplemeters in Tokyo & Osaka.Non-continuous measurement,2 Kangwon Province, North Chungcheong Province, South Chungcheong Province, North Gyeongsang Province, South Gyeongsang Province, North Jeolla Province, week sweeps conducted every two months (12 weeks/year). Subscription TV panel is separate from national terrestrial TV panel of 6,600 homes, 52 weeks reporting South Jeolla Province, Jeju Island) South Korea, TNMS: Return Path Data panel size is 10,000 homes of KT IPTV Vietnam, Kantar Media, People Meter & Diaries, 1 /year Myanmar, Nielsen MMRD: Diary Panel, covering in 6 Key Cities within Metro and Urban (Yangon, Mandalay, Nay Pyi Taw, Taunggyi, Magway, Mawlamyine) National Diary panel, 2 Diaries panel cities: Hai Phong, Nha Trang ,4 People Meter cities: Ha Noi, HoChiMinh City, Da Nang, and Can Tho, 92 TV Channels monitored Pakistan,Medialogic: 20 cities - Karachi, Lahore, Islamabad,Rawalpinidi, Faisalabad, Multan, Hyderabad, Sukkur, Gujranwala, Bahawalpur,Peshawar, Sheikhupura, Programme and TVC Spot logs. Please contact the research company for more information.

28 MULTICHANNEL TV 2018 29 MEASUREMENT GUIDE

SYNDICATED MEDIA SURVEYS 2017-2018 Please contact the research company for a comprehensive report on measurement.

RESEARCH MARKETS COMPANY SURVEY SAMPLE SIZE PANEL COVERAGE METHODOLOGY DEMOGRAPHIC CAB/SAT MEASURED DTT SOFTWARE REACH & FREQUENCY

HONG KONG Nielsen Media Index 6,000+ Hong Kong Face-to-face/Online 12 - 64 Yes Yes Clear Decisions Yes

AUSTRALIA Nielsen Consumer & Media View 21,000 Australia Online 14+ Yes Yes Clear Decisions No

Consumer & Media Nielsen 11,000 New Zealand Face-to-face/Online 10+ Yes No Clear Decisions Yes NEW ZEALAND Insights

INDONESIA 11 cities Nielsen Consumer & Media View 17,000 Indonesia, 11 cities Face-to-face 10+ Yes No Clear Decisions Yes

MALAYSIA Peninsular Malaysia only Nielsen Consumer & Media View 10,000 Peninsular Malaysia Only Face-to-face 15+ Fused with TAM data No Clear Decisions Yes

Consumer Nielsen MMRD Face-to-face Yes No Clear Decisions MYANMAR & Media View 5,500+ National 10+ No

PHILIPPINES National Urban Nielsen Consumer & Media View 10,000 National Urban Face-to-face 10+ Yes Yes Clear Decisions Yes

SINGAPORE Nielsen Consumer & Media View 4,200+ Singapore Face-to-face 15+ Yes No Clear Decisions Yes

THAILAND Nielsen Consumer & Media View 9,000+ Thailand Face-to-face 12+ Yes Yes Clear Decisions No

TAIWAN Nielsen Media Index 10,000 National Face-to-face/Online 12 - 65 Yes Yes Clear Decisions Yes

MRB National Media Survey 15,800 National Face-to-face 15+ Yes No ThinkMedia Yes BANGLADESH Bangladesh (NMS) Face-to-face/Self CTR China CNRS 100,000 60 1-4 tier cities 15-69 CHINA completed/Online Face-to-face/Self IMRB India 51,000 National 15-55 ABC INDIA completed National Demographic Kantar LMRB 12,500 National Face-to-face/CAPI 6+ Yes No QuestPlus No SRI LANKA & Media Survey (NDMS) 6 Cities 9,352 Media Habit Survey Face-to-face/Self Kantar Media (Urban) 6 cities & National 15-54 Choices 4 Yes VIETNAM (MHS) National 7,200 completed (exc 6 cities)

CATI/Online/Face- Ipsos Media Atlas Hong Kong 5,000 National 12 - 64 Yes Yes User choice Yes HONG KONG to-face Hong Kong, Singapore, Malaysia, Taiwan, Thailand, Indonesia, Ipsos Affuent Asia 21,750 CATI/Online Affuent 25 - 64 Yes No User choice Yes 10 ASIA MARKETS Philippines, South Korea, India, Australia China, Hong Kong, Indonesia, Elite/Senior business execs GBI (Global Business Japan, Malaysia, Philippines, Ipsos 60,000 Online in companies with 50+ Yes No User choice Yes 9 ASIA MARKETS Infuencer Survey) Singapore, South Korea, Taiwan, employees Thailand

30 MULTICHANNEL TV 2018 31 MEASUREMENT GUIDE

DIGITAL AUDIENCE MEASUREMENT

AUDIENCE MULTI- RESEARCH CORE REPORTING MARKETS SIZE OF PANEL PLATFORM COVERAGE METHODOLOGY DEMOGRAPHICS SEGMENTATION PLATFORM ONLINE VIDEO REPORTING PLANNING TOOLS COMPANY METRICS (BEHAVIOUR) REPORTING

AUSTRALIA CHINA HONG KONG Unique Visitors, Age, Gender, Desktop, Mobile People Panel, Enumeration Unique Video Viewers, Video Streams, Campaign Reach/Frequency, comScore Minutes, Page Expanded Yes Yes JAPAN (Smartphone and Tablet, Web and App) Survey, Server Tags, SDK Viewing Duration, Total Minutes Video Reach/Frequency SINGAPORE Views, Visits Demographics* TAIWAN VIETNAM 2 million-person global human panel and extensive comScore census network

Campaign Reach/Frequency, INDIA Unique Visitors, Age, Gender, Desktop, Mobile People Panel, Enumeration Unique Video Viewers, Video Streams, Video Reach/Frequency, Mobile comScore Minutes, Page Expanded Yes Yes INDONESIA (Smartphone and Tablet, Web and App) Survey, Server Tags, SDK Viewing Duration, Total Minutes Views, Visits Demographics* and Multi-Platform Reach/ MALAYSIA Frequency

Unique Visitors, Desktop, Mobile People Panel, Enumeration Yes Unique Video Viewers, Video Streams, Campaign Reach/Frequency, comScore Minutes, Page Age, Gender Yes NEW ZEALAND (Smartphone and Tablet, Web and App) Survey, Server Tags, SDK (2018) Viewing Duration, Total Minutes Video Reach/Frequency Views, Visits

7,500 PC; 2,500 smart- Nielsen PC + Smartphone + Tablet AUSTRALIA phone; 600 tablet

7,000 smartphone; Nielsen PC + Smartphone JAPAN 29,500 PC

NEW ZEALAND Nielsen 3,000 PC PC Only

PC: 12,000 Nielsen PC + Smartphone SOUTH KOREA Mobile: 6,000

* Expanded demographics dependent by market and product

32 MULTICHANNEL TV 2018 33 MEASUREMENT GUIDE

DIGITAL AD RATINGS

Unique Facebook universe (mil- Panel, Survey, Census Audience, Measurement of digital AUSTRALIA lions) with calibration pa- Desktop, Mobile Collection from Tags, All industry standard video and display Nielsen nel. 50-60% of campaign Impressions, Age and Gender Yes Yes campaign Impressions, Reach, (Smartphone and Tablet, Web and App) Facebook Attribution, SDK advertising JAPAN impressions matched to a Frequency, GRP, Frequency, GRP and On Target % or Platform Integration Facebook profle On Target %

INDONESIA INDIA Facebook universe Unique Survey, Census Collection MALAYSIA (millions) with calibration Audience, Measurement of digital survey. 50-60% of Desktop, Mobile from Tags, Facebook All industry standard video and display Nielsen Impressions, Age and Gender Yes Yes campaign Impressions, Reach, NEW ZEALAND campaign impressions (Smartphone and Tablet, Web and App) Attribution, SDK or Platform advertising Frequency, GRP, Frequency, GRP and On Target % PHILIPPINES matched to a Facebook Integration SINGAPORE profle On Target % THAILAND

Unique Survey, Census Collection Tencent + Weibo Audience, Age and Measurement of digital Desktop, Mobile from Tags, Weibo + All industry standard video and display Nielsen universe with calibration Impressions, Gender, Beha- Yes Yes campaign Impressions, Reach, CHINA (Smartphone and Tablet, Web and App) Tencent Attribution, SDK or advertising panel. Frequency, GRP, vioural Platform Integration Frequency, GRP and On Target % On Target %

DIGITAL CONTENT RATINGS

Reach, Time Spent, Page Views, App Facebook universe (mil- Panel, Survey, Census Measurement of digital video and static Launches, AUSTRALIA lions) with calibration pa- Desktop, Mobile Collection from Tags, content Reach, Time Spent, Page Views, Measurement of video and static Nielsen nel. 50-60% of campaign Platform, Age and Gender Yes Yes (Smartphone and Tablet, Web and App) Facebook Attribution, SDK App Launches, Platform, Content Type, content, apps, audio, etc. JAPAN impressions matched to a Content or Platform Integration Unique Audience, and Categories Facebook profle Type, Unique Audience, and Categories Reach, Time Spent, Page Facebook universe Views, App Survey, Census Collection Measurement of digital video and static (millions) with calibration Launches, survey. 50-60% of Desktop, Mobile from Tags, Facebook content Reach, Time Spent, Page Views, Measurement of video and static Nielsen Platform, Age and Gender Yes Yes THAILAND campaign impressions (Smartphone and Tablet, Web and App) Attribution, SDK or Platform App Launches, Platform, Content Type, content, apps, audio, etc. Content matched to a Facebook Integration Unique Audience, and Categories profle Type, Unique Audience, and Categories

34 MULTICHANNEL TV 2018 35 MEASUREMENT GUIDE

DIGITAL ADVERTISING AND AUDIENCE VALIDATION

CAMPAIGN AD FRAUD CAMPAIGN CAMPAIGN AUDIENCE, MARKETS RESEARCH PANEL SIZE & INVALID CAMPAIGN BRAND GEOGRAPHIC GROSS RATING POINT COMPANY TRAFFIC VIEWABILITY SAFETY AD DELIVERY (GRP) AND TARGET DETECTION RATING POINT (TRP)

Internet comScore Yes Yes, Free Yes Yes Yes AUSTRALIA Universe

Internet comScore Yes Yes, Free Yes Yes Yes CHINA Universe

Internet comScore Yes Yes, Free Yes Yes Yes HONG KONG Universe

Internet comScore Yes Yes, Free Yes Yes Yes INDIA Universe

Internet comScore Yes Yes, Free Yes Yes Yes INDONESIA Universe

Internet comScore Yes Yes, Free Yes Yes Yes JAPAN Universe

Internet comScore Yes Yes, Free Yes Yes Yes MALAYSIA Universe

Internet comScore Yes Yes, Free Yes Yes Yes NEW ZEALAND Universe

Internet comScore Yes Yes, Free Yes Yes Yes SINGAPORE Universe

Internet comScore Yes Yes, Free Yes Yes Yes TAIWAN Universe

Internet comScore Yes Yes, Free Yes Yes Yes VIETNAM Universe

36 MULTICHANNEL TV 2018 37 MARKET OVERVIEW

38 MULTICHANNEL TV 2018 39 MARKET OVERVIEW

THE BIGGEST REGIONAL TREND IS

MOBILE, MOBILE, MOBILE

As smartphone penetration increases Over-the-top (OTT) content has rapidly with broadcasters for in-programme BARC India’s digital products will and data charges tumble, the mobile become a global phenomenon. The advertising and sponsorship. Amazon be powered by Nielsen, which will has become the alternative screen. fast emergence of OTT is disrupting Prime entered the Australian market in help integrate the TV and Digital Smartphone, in turn, has driven the the media landscape in Asia Pacifc. We 2017 at the same time that there was service. The EKAM suite of products usage of YouTube across Asia Pacifc. have seen operators losing subscribers, an increase in Netfix pricing. Think will enable comprehensive video Over The Top (OTT) is also still growing e.g., RTL dropped from Singtel TV TV, a new industry body, has been measurement, i.e., all video (ads and with new players every day. (Singapore) in late 2016; HBO has launched to promote television as an content) played across Television At the same time, many traditional ceased all six channels with True industry. Viewability and brand safety and Digital platforms. BARC India will broadcasters are offering ad-supported Visions in Thailand in January 2017. have become major issues with digital be rolling out its frst EKAM product Video-on-Demand Services. More and more networks are shutting advertising. (Pulse) which will measure Video Ad In spite of all this new competition, Free down TV channels in the region, e.g., Campaigns to enable daily evaluation To Air, Satellite and Cable delivery is NBCUniversal closed two TV channels NEW ZEALAND and optimization opportunities on more still the dominant media platform. With - Universal and Syfy in Asia in June/July Traditional ad spend in New Zealand impactful ROI metrics. all the OTT services coming online, 2017. Pay-TV channels’ viewing share continues to see a decline and digital platform delivery is becoming blurred. has been greatly challenged by OTT ad spend has grown further. With INDONESIA Increased government regulation players. search, ad spend including digital is The Indonesian economy has softened around commercial time, commercial now larger than TV ad spend. Amazon in 2017, despite strong economic types and ownership has signifcantly Program genre localization continues Prime has entered the market here fundamentals, impacting in modest low increased in the early part of 2017. to be a driver in Asian markets. In as well and Netfix currently leads the single-digit growth in ad spend. Some Taiwan as an example, local drama & SVOD market penetration at 21%. advertisers are moving their budgets Total content consumption (especially entertainment takes 50% of total market Viewability and brand safety are away from commercial breaks in favor multi-screen viewing) has continued viewing share and news is at 14%. In ongoing concerns for New Zealand of in-program advertisements. Since to grow in Asia Pacifc. Audiences Thailand, local entertainment/variety advertisers as well. June of this year, Nielsen has launched have the fexibility to choose their viewing has increased from 4% (2012) standardized syndicated monitoring preferred content via different devices to 16% (2016). INDIA of in-program advertising which has at their preferred time. Measuring Total BARC India has taken another shown more than 20% of spots were Audience in the region is Nielsen’s top AUSTRALIA signifcant step towards launching its placed inside programs (in various priority. In Australia, total digital spend much-awaited digital measurement forms). has overtaken television as live TV service. After announcing that its Linear TV, time spent per viewing audiences have declined. Catch products will be made available under Increased government regulation in Asia Pacifc, has remained steady up (VOD) measurement has been the umbrella brand EKAM (Sanskrit around programme quality has during the past three years, with an extended out to 28 days and shows for “One”), BARC India has appointed become an issue with the government average of 2 hours 40 minutes per that there has been an increase of Nielsen India as its primary digital monitoring the quality of all day per person, based on Nielsen household preferring to watch on their measurement partner. Nielsen will fuse programming and looking to introduce 2016 TAM measurement for six own schedule and that live viewing has its global experience with India-specifc regulation around programme quality. markets: Indonesia, Malaysia, Thailand, declined. Television ad spend is mostly adaptations to meet unique needs of Digital Terrestrial introduction has again Philippines, Taiwan and South Korea. fat with brand owners working more the Indian market. been delayed with a new target date

40 MULTICHANNEL TV 2018 41 MARKET OVERVIEW

of the end of 2018; the 2019 election Astro Radio, overall Adex performance result will have an impact on all aspects in 2016 dropped 7% compared to of Indonesian broadcasting regulations. 2015, with spending of RM 7.06billion and RM 7.59 billion respectively. Print THAILAND suffered the most dramatic decline, with Following Nielsen U.S and Australian a drop of 13% (Newspaper) and 21% markets, Nielsen Thailand is the frst (Magazine), some of which has moved country in Asia Pacifc to launch Digital to Free To Air, with ad-spend growing Content Ratings (DCR). In Thailand at by +1.7% in 2016. While precise the end of July, Digital Content Ratings fgures are not available, the general were launched giving some terrestrial perception is that digital continues to broadcasters a measure of their digital grow strongly. streaming for the frst time. Eventually, these streaming numbers will be KOREA unduplicated and added back to the The Korea Communications main panel to give the market a Total Commission commissioned a Audience View. Total Content Ratings (nScreen) measurement report to get a complete SINGAPORE look at TV viewing in the mobile While in Singapore offine ad spend environment in Korea. Ad spending continues to drop, there has been is in decline. Terrestrial television and double-digit growth in the digital ad Print is continuing to show a downward space. Two of Singapore’s biggest trend with Cable and Digital having © Sanjay Sharma / Indiapixnet media owners, SPH and Mediacorp, an upward tendency. Three local IPTV announced a collaboration to launch providers lead the Subscription Video a new digital advertising marketplace. on Demand market with 15 million The joint venture, known as Singapore subscribers, Netfix increased their still the main form of media in Hong (+38% yoy) driven by aggressive Media Exchange, will consolidate number of subscribers by releasing an Kong, taking the lion’s share of the ad campaigns, including TV. Advertisers data resources from both companies original movie named “Okja” in cinemas spend amongst compared with digital. consider brand safety frst, viewability to better target audiences. Amazon to help drive brand awareness. Mobile ad spend continues to grow and and ad fraud second, and reach comes Prime entered Singapore, adding increase over 2.5 times in 1H 2017. as a third priority. another OTT player to an already busy HONG KONG landscape. In 2016 in Hong Kong, the overall ad JAPAN TAIWAN spend dropped 9.1% compared to Japanese Television ad spend has been Traditional media ad spend in Taiwan MALAYSIA 2015. However, in the frst half of 2017, fat, but digital ad spend increased has continued a downward trend this Now that the exclusivity clause the local ad spend has been increasing, (+13% yoy), especially mobile ads year, especially for print media. Digital protecting Astro in Malaysia as the sole Q1 17 was just on par with the previous and video ads. SVOD has become media growth is at a double-digit satellite Pay-TV operator has come to year, but it showed an upward trend in popular (+12% yoy), with Amazon Prime pace, but the growth has not offset the an end, new players are lining up to Q2 17. TV and mobile ads all recorded growing the most (+73% yoy). Netfix decline of traditional media. enter the market. Excluding Pay-TV and an increase in ad spend; Television is increased awareness and subscribers

42 MULTICHANNEL TV 2018 43 MARKET OVERVIEW

MPA THE ASIA PAY-TV INDUSTRY ASIA PACIFIC PAY-TV IN VIEW REMAINS REVENUE GENERATIVE AND SCALABLE

PAY-TV SUBSCRIBER GROWTH We highlight six broad themes:

Pay-TV Penetration of TV Homes Total Pay-TV Subs (000s) (includes subscribers MARKETS to multiple platforms) (%) 1. 3. 2016 2017 y-o-y growth (%) 2016 2017 THE BUNDLE LOW ARPUS AND FREE TV Current strategies are anchored to The growth of free satellite TV and AUSTRALIA 2,952 3,001 2% 33% 33% the growth of broadband. As a result, Digital Terrestrial TV (DTT) is proving cable and telecom operators are disruptive to Pay-TV prospects in India CHINA 339,103 365,370 8% 57% 58% striving to reignite or try and sustain and parts of Southeast Asia. DTH HONG KONG 2,280 2,217 -3% 83% 81% Pay-TV customer growth through the satellite operators in India and the packaging of Pay-TV channels and Philippines will continue to experience INDIA 149,962 154,954 3% 79% 79% on-demand services with high speed robust customer growth but the pace of INDONESIA 4,271 4,605 8% 10% 11% internet and in certain cases, mobile. net additions will gradually decelerate Bundling is an important driver of net and pricing power will remain under JAPAN 11,610 11,590 0% 23% 23% new Pay-TV additions in markets such pressure, limiting ARPU growth. as Indonesia, Korea and Thailand, Increasingly, operators in these markets KOREA 32,206 32,773 2% 100% 100% underpinned by the growth of fber are investing in local and vernacular MALAYSIA 3,736 3,694 -1% 52% 50% network deployment. content and scalable technologies to address the needs of the mass market. NEW ZEALAND 744 701 -6% 43% 41% PAKISTAN 12,680 13,112 3% 55% 55% 2. TECHNOLOGY 4. PHILIPPINES 3,474 3,839 11% 18% 19% Pay-TV operators in markets such as OTT SINGAPORE 907 861 -5% 56% 55% Australia, Hong Kong, Japan, Malaysia, The proliferation of broadband is New Zealand and Singapore, are helping fuel the growth of legal online SRI LANKA 1,206 1,329 10% 28% 30% undertaking technology upgrades video consumption. A number of Pay-TV TAIWAN 6,808 6,846 1% 84% 84% to sustain a fagging consumer operators in India, Japan, Korea and proposition. This involves cloud delivery Southeast Asia are undertaking STB THAILAND 6,755 6,915 2% 30% 31% (through new DVRs) and android integration with various OTT platforms, VIETNAM 9,916 11,454 15% 49% 56% enabled STBs with strong internet thereby limiting churn for a premium functionality. This may help combat customer base and driving adoption TOTAL A-P 588,610 623,261 6% 57% 57% growing levels of piracy across key across new non-Pay-TV customer markets and limit cord cutting. segments. Source - Media Partners Asia

44 MULTICHANNEL TV 2018 45 MARKET OVERVIEW

5. 6. CONTENT CONSOLIDATION PAY-TV REVENUE GROWTH (US$ BIL.) Operators are increasingly investing While consolidation is only natural in local mass and premium content in low-growth, mature sectors, M&A MARKETS 2016 2017 y-o-y growth (%) segments to differentiate and cater activity remains modest in the Asia to the needs of important customer Pacifc Pay-TV sector. Much of this is AUSTRALIA 2.9 2.8 -2% verticals. Demand for Asian premium due to regulatory and anti-trust issues, content, led by Korean entertainment, is which limit the scope for large scale CHINA 18.7 21.0 12% growing. Premium sports remains a vital M&A. That said, at the distribution HONG KONG 0.6 0.6 -3% lifeline for many Pay-TV operators as level, consolidation continues to occur they look to drive ARPUs and customer in large markets such as Australia, INDIA 9.1 10.0 11% growth. Hollywood movie channels, China, India, Japan and Korea. Ultimate INDONESIA 0.4 0.5 5% kids networks and Asian pay channels consolidation is only a matter of time are in robust health but demand for and dependent on regulatory approval. JAPAN 6.4 6.5 1% new pay channels is scarce outside At the channel and content provider markets such as India and Korea. level, consolidation has begun at KOREA 5.2 5.5 6%

regional and global levels in the market MALAYSIA 1.2 1.2 0% for Pay-TV channels. This is expected to increase. NEW ZEALAND 0.6 0.6 -3%

PAKISTAN 0.9 0.7 4%

PHILIPPINES 0.4 0.4 1%

SINGAPORE 0.5 0.4 -6%

SRI LANKA 0.1 0.1 0%

TAIWAN 1.8 1.8 1%

THAILAND 0.7 0.8 7%

VIETNAM 0.7 0.8 19%

REGIONAL ADVERTISING 0.1 0.1 9%

TOTAL A-P 50.0 53.8 8%

Note - Includes subscription fees and local/regional ad sales - Source - Media Partners Asia

46 MULTICHANNEL TV 2018 47 ADVERTISING OVERVIEW

48 MULTICHANNEL TV 2018 49 ADVERTISING OVERVIEW

NEW MARKETS There has been signifcant growth in among other countries in the region, DRIVE GROWTH online aggregators (not owned by in 2016 and may bring further growth broadcasters) showcasing the kind of to the online video market, although Economic growth in many emerging respectively over the next fve years entertainment content that is limited they do not carry advertising. Neither markets is creating a new generation and when combined account for a on TV, and this will have an impact on SVOD service launched in China due of consumers for advertisers to target. 16.5% share of global TV advertising the development of the advertising to regulatory diffculties, although they Both global and local advertisers will revenue in 2021. Indonesia is one of the market. Netfix and Amazon Prime would also face strong competition use TV as a medium to engage and fastest-growing TV advertising markets Video launched in Japan and Korea, from local providers. attract this important new audience. globally and will expand at a 10.4% CAGR to reach revenue of US$7.4bn in Asia Pacifc’s performance will be 2021, when it will have risen to become underpinned by China and Japan, the fourth-largest TV advertising market Multichannel TV advertising revenue from 15.7% in 2016 to 19.9% in which will grow at 2.2% and 2.8% CAGR in the world. is expected to see solid increases at a 2021. The South East Asian markets 9.2% CAGR to 2021, with its share of are among the fastest-developing Asia Pacifc Share of TV Advertising Revenue (US $ millions) total TV advertising revenue growing Multichannel markets in the world. 2017 Forecasted Revenue Australia

China ASIA PACIFIC MULTICHANNEL TV ADVERTISING REVENUE (US $ MILLIONS) Hong Kong 2016- India COUNTRIES 2012 2013 2014 2015 2016p 2017 2018 2019 2020 2021 2021 %CAGR Indonesia AUSTRALIA 343 392 447 478 519 558 595 623 647 670 5.25 Japan CHINA 556 609 663 601 578 588 602 618 636 657 2.59 HONG KONG 60 71 69 74 77 80 82 84 85 86 2.15 Malaysia INDIA 1,846 2,089 2,431 2,773 3,136 3,516 3,928 4,378 4,867 5,401 11.49 New Zealand INDONESIA 34 81 123 180 263 368 498 655 840 1,065 32.24 JAPAN 543 616 694 762 833 906 981 1,056 1,132 1,211 7.78 Pakistan MALAYSIA 42 45 49 56 62 69 76 83 91 99 9.63 Philippines NEW ZEALAND 79 81 81 85 90 95 99 103 107 111 4.22 PAKISTAN 60 66 73 80 86 90 94 98 101 105 4.04 Singapore PHILIPPINES 101 114 138 157 178 200 223 248 275 306 11.44 South Korea SINGAPORE 36 39 43 48 52 56 59 61 64 66 4.94 Source: Global entertainment and media outlook 2017-2021, PwC, Ovum Source: Taiwan MULTICHANNEL TV SOUTH KOREA 1,008 1,016 1,061 1,138 1,186 1,234 1,278 1,319 1,360 1,399 3.36 TAIWAN 563 567 596 590 587 590 597 608 619 629 1.39 TERRESTRIAL TV Thailand THAILAND 115 133 157 178 203 230 261 294 330 370 12.76 Vietnam VIETNAM 32 39 48 58 68 78 89 100 113 127 13.24

ASIA PACIFIC 5,417 5,959 6,673 7,258 7,918 8,658 9,462 10,328 11,267 12,301 9.21 0 2000 4000 6000 8000 10000 12000 14000 16000

Source: Global entertainment and media outlook 2017-2021, PwC, Ovum

50 MULTICHANNEL TV 2018 51 ADVERTISING OVERVIEW

The home video market is tied to the 80.2million satellite TV households at the physical format of DVDs and Blu-rays end of 2016, a fgure which is expected in markets such as Japan far more than to increase at a CAGR of 4.3% to reach elsewhere in the world, so the decline 99.1million by the end of 2021. in demand is not as marked as in some IPTV households will rise strongly, regions. Physical home video will from 41.6million at the end of 2016 nonetheless decline at a -4.8% CAGR to to 64.1million at the end of 2021 (a US$4.6billion in 2021. This means a total CAGR of 9.0%). However, IPTV’s growth traditional TV and video market revenue will continue to be inconsistent. In of US$70.2billion in 2021, up from countries where broadband networks US$55.1billion in 2016; a CAGR of 5.0%. are upgraded, it is well-placed to Cable is the region’s overwhelmingly become a signifcant rival to cable © Sanjay Sharma / Indiapixnet dominant subscription TV platform, and direct to home (DTH), but it will bolstered by enormous subscriber bases still face challenges even where the in China and India. Cable will add more infrastructure is present. A key issue for The Asia Pacifc region will see total revenue at 84.8% in 2021. Public than 26mn households over the next fve these emerging competitors is sourcing TV subscription revenues increase licence fee revenue is set to decline years, with 436mn subscriptions in 2021 – and being able to afford – compelling to US$59.5billion in 2021 from at a -0.9% CAGR to US$6.0billion in after growth of 1.3% CAGR. content. This, plus insuffcient network US$42.8billion in 2016, representing 2021, attributable for 8.6% of traditional Satellite will also forge ahead in several capacity, will hold IPTV back from greater a 6.8% CAGR. This will account for market revenues at this time. territories – most notably India and growth. the majority of traditional TV market Indonesia. The Asia Pacifc region had

ASIA PACIFIC TRADITIONAL TV REVENUE (US $ MILLIONS) ASIA PACIFIC TV SUBSCRIPTION REVENUE (US $ MILLIONS) 2016- 2016- COUNTRIES 2012 2013 2014 2015 2016p 2017 2018 2019 2020 2021 2021 COUNTRIES 2012 2013 2014 2015 2016p 2017 2018 2019 2020 2021 2021 %CAGR %CAGR

AUSTRALIA 2,785 2,712 2,705 2,658 2,696 2,705 2,706 2,720 2,740 2,756 0.43 AUSTRALIA 1,930 1,914 1,961 1,942 2,003 2,032 2,056 2,090 2,130 2,166 1.58 CHINA 9,661 11,440 13,707 15,917 17,639 19,491 21,301 22,860 24,198 25,490 7.64 CHINA 9,400 11,191 13,471 15,693 17,426 19,290 21,110 22,680 24,029 25,331 7.77 HONG KONG 655 642 632 605 583 565 550 537 529 524 (2.10) HONG KONG 410 412 415 401 391 384 380 377 378 382 (0.44) & Media © 2017 S Telecoms INDIA 5,114 5,561 6,129 7,023 8,159 9,368 10,469 11,680 12,993 14,105 11.57 INDIA 5,082 5,532 6,102 6,999 8,138 9,351 10,455 11,668 12,983 14,098 11.62 INDONESIA 340 390 447 522 592 665 735 809 886 967 10.33 INDONESIA 331 381 439 514 583 657 728 801 878 960 10.47 JAPAN 12,751 12,701 12,858 12,985 13,273 13,051 12,833 12,612 12,383 12,141 (1.77) JAPAN 3,117 3,314 3,600 3,966 4,490 4,499 4,508 4,510 4,498 4,469 (0.10) MALAYSIA 1,483 1,573 1,639 1,679 1,716 1,748 1,785 1,821 1,854 1,882 1.85 MALAYSIA 1,001 1,108 1,191 1,246 1,299 1,345 1,396 1,445 1,491 1,532 3.35 NEW ZEALAND 694 707 706 711 726 746 770 794 817 835 2.84 NEW ZEALAND 484 509 519 535 560 588 621 652 682 707 4.79 PAKISTAN 554 670 768 862 935 1,006 1,076 1,160 1,252 1,346 7.55 PAKISTAN 418 530 624 715 785 853 921 1,004 1,094 1,187 8.63

& Media, European Audio Visual Obervatory Yearbook, CASBAA Audio Visual Obervatory Yearbook, & Media, European PHILIPPINES 354 393 435 472 502 534 574 617 659 697 6.78 PHILIPPINES 303 343 387 425 456 489 530 574 617 656 7.56 SINGAPORE 426 442 480 440 431 424 418 413 408 404 (1.30) SINGAPORE 312 333 376 341 337 334 332 331 329 329 (0.49) SOUTH KOREA 3,664 3,816 3,961 4,005 4,141 4,204 4,300 4,417 4,521 4,667 2.42 SOUTH KOREA 3,111 3,283 3,420 3,457 3,587 3,647 3,741 3,854 3,955 4,099 2.70 TAIWAN 2,557 2,510 2,440 2,405 2,365 2,313 2,314 2,309 2,307 2,308 (0.48) TAIWAN 1,635 1,614 1,570 1,560 1,545 1,517 1,541 1,558 1,579 1,602 0.74 THAILAND 374 414 476 585 718 848 959 1,058 1,147 1,221 11.20 THAILAND 329 371 435 545 680 812 924 1,024 1,115 1,190 11.85 Source: Global entertainment and media outlook 2017-2021, PwC, Ovum, Informa Telecoms Global entertainment and media outlook 2017-2021, PwC, Ovum, Informa Telecoms Source:

VIETNAM 315 395 468 540 587 615 661 707 762 819 6.88 VIETNAM 280 361 435 507 555 584 630 678 733 791 7.32 Global entertainment and media outlook 2017-2021, PwC, Ovum, CASBAA, Informa Source:

ASIA PACIFIC 41,728 44,365 47,851 51,409 55,064 58,283 61,451 64,514 67,455 70,162 4.97 ASIA PACIFIC 28,142 31,197 34,944 38,846 42,835 46,382 49,871 53,247 56,493 59,498 6.79

52 MULTICHANNEL TV 2018 53 ADVERTISING OVERVIEW

GLOBAL AD INTEL PULSE REPORT Q2 2017 ASIA PACIFIC SUMMARY

MEDIA CHANNEL TRENDS (Q2 2017) ASIA PACIFIC ADVERTISING GROWTH

• Television, Radio, Outdoor and box office titles, faces a moderate • Philippines continued very strong prior. Taiwan (+6.1%), Korea (+0.3%), Internet advertising have all decline year-on-year (-50%). growth again in 2017, showing a New Zealand (+7.1%) and Australia enjoyed growth over the same time positive trend of 22.5%. Similarly (+3.2%). last year, whilst the era of digital • Internet advertising continues to Indonesia continued its growth disruption has seen traditional press increase, particularly as local players (+5.3%). • Malaysia and Singapore saw the (Newspapers and Magazines) face find new and more effective ways to largest declines, -22.2% and -19.6% a continued decline in advertising monetize their content and diversify • This year-to-date, several regional respectively. revenues. their revenue streams. markets also enjoyed growth despite challenging conditions in the year • Cinema which saw strong growth last year thanks to many blockbuster ASIA PACIFIC Advertising Expenditure by Country % Change YTD ASIA PACIFIC % Share 0,2% 2,2% Thailand -7.8 of media spend YTD 1,6% Taiwan 6.1 Singapore -19.6 TELEVISION 2,9% South Korea 0.3 7,8% Philippines 22.5 MAGAZINES

New Zealand 7.1 NEWSPAPER Malaysia -22.2 8,7% INTERNET Indonesia 5.3 OUTDOOR Hong Kong -2.8

CINEMA China -9.7 Australia 3.2 RADIO 76.5%

Source: Nielsen Global Ad Intel -25 -20 -15 -10 -5 0% 5 10 15 20 25

Source: Nielsen Global Ad Intel

54 MULTICHANNEL TV 2018 55 ADVERTISING OVERVIEW

• 3 of the 4 macro sectors which • This year, only 3 macro sectors showed growth last year each displayed growth, with Durables faced moderate declines in increasing 3.0%, Industry & Services advertising revenue year-on-year. 0.2% and Others 1.6%. Telecommunications (-6.7%), Healthcare (-5.1%) and Distribution • Clothing & Accessories saw the Channels (-5.1%). largest decline year-to-date, dropping 13.4%. • Industry & Services continued their positive growth, increasing 0.2% • On average, these 12 macro sectors year-to-date. saw a moderate decline across the board of -4.5%.

ASIA PACIFIC Sectors % change YTD

Télécommunications -6.7

Others 1.6

Media -2,4

Industry & Services 0.2

Healthcare -5.1

FMCG -6.3

Financial -3.6

Entertainment -8.9 Durables 3

Distribution Channels -5.1 Clothing & Accessories -13.4

Automotive -6.9

-14 -12 -10 -8 -6 -4 2 0% 2 4

Source: Nielsen Global Ad Intel

56 MULTICHANNEL TV 2018 57 INSIGHTS

58 MULTICHANNEL TV 2018 59 INSIGHTS

Print tells a similar ‘and’ story. Even 2016, U.S. TV expenditures reached $78 CONNECTED CONSUMERS though circulation and readership billion according to Kantar Media data, numbers confrm that print formats are an increase of 4% YoY which was mainly ENJOY MORE THAN JUST DIGITAL read a lot less frequently these days, they driven by the U.S. Presidential election still attract substantial audiences. and advertising during the Olympics.

83% say they read news and articles in Further, 80% of the connected adults There is no question that online media Online & printed newspapers, while 84% read surveyed say they tolerate or generally forms play an ever-more signifcant role more established offine magazines in print. like ads within printed newspapers. in our lives. But what does that mean for media forms co-exist Even with positive attitudes and high traditional media platforms? According These consumers are however also readership percentages, print spend to Kantar Media’s DIMENSION report, accessing news and articles online. continues to decline. Indeed, U.S. print HOW TV HOW NEWS traditional media isn’t going away. Indeed, 93% read articles online and expenditures decreased by 6% in 2016, IS VIEWED IS CONSUMED 84% on mobile devices – an indication of reaching only $19 billion according to Indeed almost half of the “connected the ubiquity of smartphones and of their our data. adults” we surveyed stated that while growing importance to advertisers. they access online media forms at 97% 83% Despite the growth of digital, online least once a day, they are also reading, BUT DIGITAL SPEND IS GROWING has no monopoly when it comes to viewing and listening to media via their MUCH FASTER how connected adults are choosing to established formats. TV set Printed newspaper Our DIMENSION study shows that consume media. In the media world of consumer dissatisfaction with digital the connected adult, online and more The DIMENSION report is an analysis advertising has been on the rise and established offine forms co-exist, making of 5,213 connected adults (ages 73% 93% that consumers are still using traditional it important for marketers to create 18+) across fve of the world’s largest media with regularity. That hasn’t held compelling cross-media campaigns that advertising markets: the U.S., Brazil, back advertisers who are eager to reach mesh with consumer behavior. China, France and the UK. Connected Online Online audiences with precision and frequency. adults in this study are defned as those According to recent IAB fgures, digital DIMENSION is a landmark new study from who have access to the internet via both Kantar Media exploring many of the key expenditures in the U.S. reached a record communication planning, buying and a PC/laptop (at home or work) and a $72.5 billion in 2016, a 22% increase measurement issues and themes from the 70% 84% personally owned smartphone or tablet. YoY. All this while 71% of consumers twin perspectives of those leading the media industry and the consumers they are trying surveyed in DIMENSION agree that they to reach. TV, PRINT STILL ATTRACT Mobile device Mobile device sometimes see the same ad over and For more information please visit EYEBALLS. . . over again and that it gets too repetitive. www.kantarmedia.com/DIMENSION For a medium pronounced dead so In the U.S. specifcally, 27% say they many times, TV is very much alive and Media forms ‘ever access’ always use ad blocker software. kicking. 97% of our sample reported that they watch TV on a TV set, mirroring the Base: 5,213 connected adults. Source: Kantar Media, DIMENSION study, Oct-Dec 2016. In comparison, 75% of those surveyed Nick Burftt dominance of the established format had positive attitudes towards offine Managing Director that is observed repeatedly in audience advertising – agreeing that they like it Kantar Media APAC measurement studies all over the world. 73% of them say they view TV online and generally and it can be enjoyable. While 70% of them do so via a mobile device, U.S. TV expenditures still exceeded This is not to suggest that our sample but they also still access the medium digital spend, the traditional medium is never view TV on any other device. through the TV set. It’s an ‘and’ not an ‘or’. not growing at nearly the same rate. In

60 MULTICHANNEL TV 2018 61 INSIGHTS We took 6 different TV programmes them with other age groups. Not across 6 genres (Drama, Variety, Cartoon, surprisingly we did see a greater uplift Children, News and Information/ in streaming of the same content, the Education) with 77 episodes broadcast younger an audience was. The chart SG-TAM over a one month time period. below demonstrates this. In this example BRINGING FULLY INTEGRATED AUDIENCE the uplift among the Gen Z group was MEASUREMENT TO SINGAPORE AUDIENCE UPLIFT AND PROFILE OF almost 13 times that of Baby Boomers. STREAMING AUDIENCES Simply put, that means that if streaming FOR THE FIRST TIME The hypothesis being tested here was added 1% viewing in addition to live TV With the ability to measure live TV viewers and those streaming that those in younger demographic viewing via a TV set to Baby Boomers TV content SG-TAM delivers key data to the industry in Singapore groups were more likely to watch TV it would add almost 13% to the Gen Z content online. This is generally accepted group. As audiences are spoilt for choice in the industry as true but we wanted and the devices that TV content can to put absolute numbers to this. We This is the frst time in Singapore that we be viewed on become ever smarter took the Baby Boomers (age 55-74) have been able to put frm fgures on and prolifc, the challenge for content by Lee Risk segment as the base and compared these types of uplifts. producers and advertisers to reach audience targets becomes ever more With these developments it is now complex. At the same time there is a possible to measure live viewing, We took baby signifcant challenge for the industry in catch-up of up to 28 days on up to 200 boomers as a base measuring the audiences of this content. channels and streaming of TV content on and compared partner broadcasters players, covered by the uplift with With this background the Infocomm a signifcantly enlarged panel. younger age Media Development Authority (IMDA) Audience groups of Singapore commissioned GfK to As more viewers go online, one key Uplift set up a more extensive and inclusive objective is to track the trends in live +1,280% measurement in 2015 with the launch TV viewing, and to see if viewers are of the new SG-TAM service in 2016. migrating to online for the same content. For the frst time in Singapore, this new We also want to know if the same service will deliver total TV viewership, content can attract new online viewers, which integrates linear and non-linear and if so, what is the incremental reach? viewership and report with standard Just as important is to look at the types metrics of TV audience measurement. of audiences that view on the different Grand-parents Baby Boomers Generation X Millennials Generation Z platforms. With SG-TAM’s ability to The purpose of SG-TAM is therefore to monitor what is being watched on the measure the contents’ ratings regardless different platforms and who is watching, This helps broadcasters and advertisers TV content is 29 years old compared to of the device they are played on. To do GfK recently ran some analysis to answer target very specifc audience segments 48 years for those who watched these so, on top of the traditional live viewing the following questions: on different platforms and devices. programmes on TV only. It really is a that still dominates TV in Singapore, - What is the audience uplift when generational gap in behaviours. What the streaming services of contributing streaming is added? Another interesting fnding regarding will be fascinating to track is to see if broadcasters can also now be tracked. - What is the profle of these streaming streamers of these programmes is the these Gen Z’s and Millennials stay on the This is further enhanced by a dedicated viewers compared to those who watch demographic breakdown. 67% of those other devices or migrate towards the digital panel with passive meters on live TV only? who watched the programmes on a big screen as they get older. There is no smartphones, tablets and PCs to collect device other than a TV set were either guarantee that this migration to the big all online activity. To answer these questions we looked at in the Gen Z or Millennial segments. screen will happen. viewers on Mediacorp’s Toggle platform. On average, a person who streams this

62 MULTICHANNEL TV 2018 63 INSIGHTS

What about Audience profle? TV Digital only only 47.5 28.9 Average Average age age Grand-parents 7% 0% +1,280% Baby Boomers 31% 11%

Generation X 35% 22%

Millennials 22% 44%

Generation Z 5% 23%

Not surprisingly, with streamers being information on both individuals and a much younger demographic, their households and are able to look deeper personal income is generally lower than to see that streamers tend to live in more those in the older age group who watch affuent households than those of TV only TV only. With SG-TAM, we have detailed viewers.

Digital only tends to be in more affuent TV Digital households only only

monthly personal income No personal income 41% 49% +1,280% Up to $3,000 29% 31% $3,001-5,000 17% 6% $5,001-8,000 7% 4% Above $8,000 4% $6,120 9% $7,046 Monthly Houselod Monthly Houselod Income Income

CPF Pension 4% 0% Allowance

With new methods being rolled out, to innovate for the changes that will SG-TAM in Singapore covers more video continue in the near future. viewing than ever before and continues

64 MULTICHANNEL TV 2018 65 INSIGHTS

ONLINE VIDEO TRENDS IN MYANMAR, VIETNAM AND LAOS

Online video viewing is increasing in WHAT ARE THE PRIORITY many key markets in South East Asia GREENFIELD MARKETS FOR ONLINE such as Malaysia, Singapore, Philippines, CONTENT PROVIDERS? Thailand, and Indonesia. Surveys have Content providers should prioritize shown that consumers in Philippines Vietnam and Laos. and Indonesia were already spending around 2 hours a day watching online Pioneer Consulting Asia (PCA) has videos in 2015. Mobile phones are a undertaken primary research in these popular way of watching online video markets. Our research shows that in these countries. For instance, 69% of adoption rates of online content for smartphone users in Indonesia access Myanmar is at a different stage from that online video with their phones. This of Laos and Vietnam. is enabled by cheap data plans and increased deployment of 3G and 4G While one-third of urban respondents networks which enhance the consumer in Myanmar don’t watch videos on experience. their mobile phones, only 3-5% of city How long do you watch video content dwellers in Laos and Vietnam don’t use on your mobile phone per day? As demand for online content has their mobile phones to watch videos. Source: Pioneer Consulting Asia grown in these markets, there has been a proliferation of content providers In Myanmar, for viewers who do watch 33.7% I don’t watch video 3.8% offering their services. This influx has video on their mobile phones, close to on mobile 5.4% increased competition and content 30% are spending 15 minutes or less per 28.4% <15 min 14.4% providers have started to look for day. In Laos and Vietnam, 49% and 44% 23% opportunities in greenfield markets such of viewers respectively are spending 13.5% as Myanmar, Vietnam and Laos where between 31 minutes and 2 hours 16 min-30 min 15% online viewing is more nascent but there watching video on their mobile phones. 17.2% is a better chance of grabbing market 10.2% 31 min - 1 hour 26.3% share thanks to less competition. 23% 8.6% 1 hour - 2 hours 23.8% The challenge is that there is very 20.5% little data on online viewing traction Pioneer Consulting Asia is an international management consultancy that specializes 3% and willingness to pay in these in telecoms, media and digital. For further 2 hours-3 hours 10.6% markets, making it difficult to prioritize information and for full results of PCA’s market 5.4% MYANMAR research in Myanmar, Laos, Vietnam and other 2.6% LAOS opportunities and develop a targeted countries please contact us on >3 hours 6.3% online content strategy. [email protected] 5.4% VIETNAM

66 MULTICHANNEL TV 2018 67 INSIGHTS

to offer TV advertisers enhanced SmarTAM, it is revealed that they watch HOW BIG DATA TECHNOLOGY audience profling options by fusing DIVA and BBC Earth at a certain time or StarHub SmarTAM with the product and specifc programme. With the enriched IS POWERING brands consumption data from Nielsen StarHub SmarTAM, the target audience Consumer and Media View (CMV)2. is redefned to be one who also loves ADVERTISING SALES PLANNING Using StarHub SmarTAM as the hub Coke and drinks it at least once a week. database for fusion, similar respondents This helps Brand A to pinpoint their The Pay-TV industry is an ever-changing types/ family compositions, channels from both databases are matched based audiences with greater accuracy. marketplace. TV viewing habits are and dayparts. The algorithms also on a common set of variables. evolving as media consumers become defne which panelists watch a given For brands, this enhancement provides accustomed to the ability of accessing channel at a given time using viewing Statistical analysis is applied to identify more precise and relevant targeting, their content from anywhere, anytime, concentration by profle, calculated for key variables for matching. CMOs deeper analysis and better profling of and on any device. But what remains different audiences to produce granular and media agencies welcome this consumers, resulting higher outputs in the same for Chief Marketing Offcers insights on the individual viewing of innovation as they are able to profle not campaign planning and better return on (CMOs) is the need for robust, reliable Pay-TV channels. Viewership includes just by demographics but analyse their investments. audience metrics that refect such media consolidated, live, time-shifted and audiences based on the brands and 2 Nielsen Consumer and Media View consumption. video-on-demand viewing of TV content products consumed. This gives them (CMV) is a syndicated study that surveys and advertising spots across more than greater accountability of their media adults aged 15+ in Singapore on their demographics, media, product, and brand BIG DATA IN TV AUDIENCE 220 StarHub TV channels. spend, increases the understanding of consumption habits. MEASUREMENT their own brand or competitor brands’ Recognising the need to better These insights help content partners viewer behavior. Example 2 understand TV viewing and its audience and advertisers make better informed Using fused data, audience profles reach, StarHub SmarTAM was launched. decisions about creating and scheduling Here are a few examples: beyond demographics are revealed. It is Singapore’s very frst Television content or advertising campaigns more Example 1 Viewers that resonate with a brand or Audience Measurement system that uses effectively. It also allows StarHub to Brand A could be targeting female product will likely increase the media 1 Return Path Data (RPD) technology. The perform day-to-day monitoring, plan students aged 20-29. Through StarHub campaign planning effectiveness. TV audience measurement currency was its channels and programmes to create created by harvesting big data via RPD relevant Pay-TV packages. through StarHub’s two-way digital cable 1 RPD refers to data collected from and IPTV set-top boxes across all StarHub interactions with cable or IPTV set-top PROFILE OF BBC LIFESTYLE AUDIENCE IN SINGAPORE TV homes. boxes every second for every channel, live, Source: StarHub SmarTAM Panel People aged 15+ who watch BBC Lifestyle on 1-15 April 2017, time-shifted or on demand. It provides consolidated insights for channel viewing/ switching, 5,000 StarHub TV homes are selected consumption of each programme or more likely to use to be statistically representative of advertisement, which button is pushed on 1.3x the remote, what has been recorded and private/priority banking services StarHub TV households. Viewing data is more. % Aged 45 & above 45 more likely to have processed daily by applying Nielsen’s 1.3x unit trust/mutual funds Individual Attribution Algorithms ENHANCED AUDIENCE DATA THAT based on probability models. Selected SPEAKS VOLUME more likely to own 1.2x panelists are allocated to each viewing In May 2017, StarHub brought together American Express Card event, based on a distribution of viewers the best of traditional and digital % Living in private dwelling 33 more likely to travel for estimated for different household 1.2x audience measurement using data Business trip

68 MULTICHANNEL TV 2018 69 INSIGHTS

Example 3 by the size of engine, type of car MEDIA BUDGETS ACCOUNTABILITY targeting is an expectation, not an For an automotive category, precise registered and brand ownership CMOs want to entrust their media option. targeting includes targeting audiences amongst car owners/leasers. budgets to media platforms that could give them full accountability and Comparing campaign metrics using AUTOMOTIVE assurance of minimum budget wastage. regular targeting vs enhanced audience Base (‘000): People who own/ lease/ main use of car: 396. Source: StarHub SmarTAM Panel People aged 15+: 1471, 1-31 July 2017 Campaign metrics against precise targeting for a beverage campaign.

Own/Lease/ Car engine (%) Make of car (%) Main use of car (%) 100 CAMPAIGN RESULTS TOYOTA 25 Base (‘000): PMEB (Professionals, Managers, Executives, Business People) P25-44: 409; PMEB P25-44 or People who 56 consumed non-carbonated drinks: 1,074. HONDA 19 50 30 Source: StarHub SmarTAM, May – Jun 2017, Consolidated 14 BMW 7 27% 0 NISSAN 7 Existing Target Audience Up to 1600CC 1601-2000CC 2000+CC PMEB P25-44 VOLKSWAGEN 6

HYUNDAI 5 Top channels purchased - Reach 73% Registration Scheme (%) % MITSUBISHI 5 20 100 96 MAZDA 5 3.2x 26% 11 10 MERCEDES BENZ 4 83% 10 50 GRP Frequency Reach KIA 4 0 4 0 AUDI 4 Hub E City Hub VV Drama Yes No Regular car Off Peak car ANY OTHER MAKE 12

Among Among people who own/lease/main use of car Expanded Target Audience with CMV product info people aged PMEB P25-44 or People who consume non-carbonated drinks 15+ Top channels purchased - Reach % 20 13 10 Drilling down to a specifc brand such as rather different viewing preferences. 89% 3.2x 27% 10 BMW and non-BMW owners revealed GRP Frequency Reach 0 Hub E City Hub VV Drama AUTOMOTIVE - TV VIEWING Base (‘000): BMW owners: 29; non-BMW owners: 367. Source: StarHub SmarTAM P15+, 1st – 31st Jul 2017, Consolidated

Top 10 channels (%) Top 10 channels (%) All in all, there is a need to help CMOs (among BMW owners) (among non-BMW owners) sharpen their focus on audience 50 50 targeting, and engagement across 39 40 36 40 multiple touchpoints to deliver higher 32 28 29 30 27 26 30 26 ROI results for their advertising By 24 24 24 24 23 25 25 23 23 23 23 22 Germaine 20 20 campaigns. StarHub SmarTAM has set Ng Ferguson a precedent for innovation in audience 10 10 General Manager, 0 0 measurement. As part of this industry, Integrated

AXN TLC TLC AXN we simply cannot rest on our laurels as History History Solutions & Hub E City Hub E City BBC Earth Wamer TV we navigate the challenges the media Analysis Animal Planet Nat. Geo. Wild Nat. Geo. Wild Nat. Geo. People DiscoveryHub Channel Sports Arena Discovery Channel industry faces today and in the future. StarHub Ltd National Geographic Crime & Investigation National Geographic

70 MULTICHANNEL TV 2018 71 OTT & STREAMING

72 MULTICHANNEL TV 2018 73 OTT & STREAMING

Japan and China dominate the market. market in these countries and across STREAMING market. This is despite international the region. China will grow at a stronger OTT providers Netfix and Amazon rate and establish a substantial lead THE MARKET DRIVERS avoiding the Chinese market in their over Japan in the next fve years, with global expansion due to the regulatory revenues of US$4.5 billion in 2021; environment. The number of domestic a CAGR of 19.7%. Japan will reach The region contains some of the most region, although most are domestic services offering local content and US$2.0 billion at this time. innovative markets and Internet video players focused on local content, with original productions is spurring the was quick to take off. This is despite international OTT platforms taking time several markets in the region being to establish a presence in even the most GROWTH OF OTT SUBSCRIPTIONS IN ASIA PACIFIC (US $ MILLIONS) slower than average to shift away from advanced markets. Netfix launched the physical market. A lot of Japanese in Japan in September 2015, with the 2016- content remains tied to physical video company taking a slightly different COUNTRIES 2012 2013 2014 2015 2016p 2017 2018 2019 2020 2021 2021 formats such as DVDs and Blu-rays, approach from other countries, with the CAGR % which is evident in the slower rate of standard 20% of local programming decline of the physical home video being pushed to 40%. This is due to AUSTRALIA 68 90 115 292 389 494 592 677 725 757 14.26 market than in many developed viewing trends in Japan, with the main CHINA 137 315 598 1047 1821 2319 2909 3517 4004 4470 19.67 countries. channels generally seeing fewer foreign broadcasts and local content averaging HONG KONG 8 16 21 31 40 49 58 65 81 112 22.88 China remains a market of enormous up to 60% of broadcast time. Netfix will potential due to its vast population, also embark on a vigorous advertising INDIA 8 16 45 67 87 108 135 166 201 239 22.40 but its conservative approach to media campaign to boost interest in its own INDONESIA 0 5 8 13 24 35 46 61 73 85 28.50 reform is a limiting factor. Netfix and original shows and major productions Amazon did not launch in China as from the US. JAPAN 205 292 454 718 1015 1169 1368 1531 1750 1994 14.46 part of their global expansion efforts in MALAYSIA 8 12 15 19 22 27 31 36 40 43 14.05 2016, primarily due to the regulatory The potential for Internet video is environment. The Chinese Internet boosted by stringent regulation of NEW ZEALAND 4 5 7 22 29 35 42 46 52 59 15.64 video market remains vast with a focus online piracy in Japan. Japanese on local productions. If the likes of Internet users who download illegal PAKISTAN 0 0 0 0 4 16 19 22 25 29 52.16 Netfix were to launch in China in the fles face up to two years in prison PHILIPPINES 1 3 6 11 19 23 28 32 34 35 12.84 future it would require a signifcant and/or receive fnes of up to JPYen2 investment and partnerships with million ($25,700). Illegal uploads carry SINGAPORE 41 48 57 63 70 77 87 98 113 130 13.29 local production houses to adequately tougher penalties: a maximum of 10 SOUTH KOREA 4 8 11 15 18 30 42 54 67 79 34.64 compete against the established years in prison and/or a JPYen10 million players in a complex market. fne. TAIWAN 6 10 12 15 22 46 59 72 103 169 50.37

THAILAND 1 5 9 15 22 29 33 36 37 38 11.41 As elsewhere, the growth of faster Asia Pacifc is the third-largest region for broadband connections in Asia Pacifc Internet video globally and produced VIETNAM 0 2 3 5 8 11 15 18 20 22 22.90 raises the prospect of cord-cutting. revenues of US$3.6 billion in 2016. This The number of legitimate Internet will rise at an 18.1% CAGR to reach ASIA PACIFIC 490 826 1362 2332 3589 4467 5462 6429 7325 8261 18.14 video services is increasing across the US$8.3 billion in 2021.

Source: Global entertainment and media outlook 2017-2021, PwC, Ovum

74 MULTICHANNEL TV 2018 75 OTT & STREAMING

ASIA OTT LEADERS Among the surveyed partnerships, the broadband customers. In addition, the frst OTT-telco agreement began with Netfix app was integrated into Optus’ CONSIDER TELCO PARTNERSHIPS Netfix in early 2015 when it launched in Fetch TV platform, allowing Fetch TV Australia. As launch partners, iiNet and subscribers to access Netfix content KEY TO SUCCESS Optus were able to offer unmetered from within their set-top boxes. by Wangxing Zhao Netfix streaming for their respective OTT-OPERATOR PARTNERSHIPS IN ASIA PACIFIC AS OF APRIL 2017 NETFLIX-OPERATOR PARTNERSHIPS IN ASIA PACIFIC AS OF APRIL 2017 International over-the-top video HOOQ IFLIX Netfix Viu Total services in the Asia Pacifc region OPERATOR COUNTRY DATE DESCRIPTION are actively pursuing partnerships TELKOM/TELKONSEL x x x x 4 with telcos and other SINGTEL x x x 3 IINET Feb-15 Unmetered streaming for iiNet broadband subscribers Multichannel operators alike to AIRTEL x x 2 expand their footprints across VODAFONE INDIA x x 2 Netfix app integrated into Fetch TV STB; unmetered OPTUS AUSTRALIA Feb-15 different markets. Strategic deals GLOBE TELECOM x x 2 streaming for Optus broadband subscribers with telcos and TV operators PLDT x x 2 are leveraged by major OTT TELSTRA Oct-15 Netfix app integrated into Telstra TV streaming player TELEKOM MALAYSIA x x 2 providers in the region, including IINET x 1 Netfix Inc., ifix, PCCW Ltd.’s Viu AIRTEL Mar-17 Netfix app integrated into Airlel STB OPTUS x 1 and HOOQ. As of April, these TELSTRA x 1 VIDEOCON D2H INDIA Mar-17 Netfix app integrated into Videocon d2h STB four companies had collectively partnered with 27 operators VIDEOCON D2H x 1 VODAFONE Mar-17 Direct carrier billing for Vodafone wireless subscribers across 14 Asia-Pacifc markets, PCCW x 1 SOFTBANK x 1 according to Kagan, a media PCCW HONG KONG Mar-16 Netfix app integrated into now TV STB research group within S&P Global SPARK x 1 STARHUB x 1 Direct carrier billing for Telkom's IndiHome broadband Market Intelligence. TELKOM INDONESIA Apr-17 DST x 1 subscribers By working with telco and TV DIGI TELECOMMUNICATIONS x 1 Direct carrier billing for SoftBank wireless subscribers; SOFTBANK JAPAN Aug-15 partners, OTT platforms gain CELCOM x 1 Netfix app pre-installed on SoftBank phones an upper hand with built-in DHIRAAGU x 1 One year free Netfix for Spark broadband subscribers SPARK NEW ZEALAND Mar-17 apps and integrated billing PTCL x 1 with an unlimited data plan mechanisms over existing fxed or DIALOG x 1 Direct carrier billing for Globe wireless and fxed mobile connections. In addition, IDEA CELLULAR x 1 GLOBE TELECOM Jul-16 by offering subscribers of broadband subscribers HUTCHINSON 3 INDONESIA x 1 PHILIPPINES partnering operators promotional INDOSAT OOREDOO Direct carrier billing for PLDT wireless and fxed x 1 PLDT Jan-16 access to OTT content and other SMARTFREN TELECOM x 1 broadband subscribers exclusive deals, OTT providers XL AXIATA x 1 Up to nine months of free Netfix for Singtel IPTV subscribers; are positioned to penetrate an SINGTEL Jan-16 AIS x 1 Netfix app integrated into Singtel STB already established customer SINGAPORE Direct carrier billing for StarHub IPTV subscribers; base and ultimately drive OTT TOTAL 11 9 14 3 STARHUB Jan-16 subscriber and revenue growth. Netfix app integrated into Fibre TV STB Kagan, a media research group within the TMT offering of S&P Global Market Kagan, a media research group within the TMT offering of S&P Global Market Intelligence. Intelligence. © 2017 S&P Global Market Intelligence. All rights reserved. © 2017 S&P Global Market Intelligence. All rights reserved.

76 MULTICHANNEL TV 2018 77 OTT & STREAMING

Netfix’s expansion to Asia Pacifc Philippines immediately after Netfix’s otherwise be unable to sign up due to partners across six markets between was met with a wave of reactions planned arrival in Australia. HOOQ payment diffculties. As of April 2017, two months and one year of free that triggered the birth of several enabled Globe customers to access our surveyed OTT services had set up subscription to its OTT service. PCCW’s regional rival services adopting similar thousands of Hollywood and Filipino carrier billing agreements with 14 telcos Viu, itself owned by a telco, worked strategies. HOOQ, in partnership movies and TV series, with the option in six Asian markets, including India, with Singtel to create a bundled with Globe Telecom, launched in the for offine viewing. Indonesia, Japan, Malaysia, Philippines package deal at S$4.98 per month and Singapore. for Singtel customers, as well as with PT Telekomunikasi Indonesia Tbk on HOOQ-OPERATOR PARTNERSHIPS On the content side, our survey reveals bundled deals for Telkom’s IndiHome IN ASIA PACIFIC AS OF APRIL 2017 that OTT providers are all willing to broadband subscribers and Telkomsel offer discounted deals or bundle their wireless subscribers. Furthermore, OPERATOR COUNTRY DATE DESCRIPTION services into entertainment packages Telekom Malaysia’s UniFi and Streamyx with partnering operators. For instance, broadband subscribers are able to AIRTEL Mar-16 Direct carrier billing for Airtel subscribers ifix offers selected customers of telco access Viu free of charge.

VODAFONE INDIA Mar-16 Direct carrier billing for Vodafone subscribers

IDEA CELLULAR Mar-16 Direct carrier billing for Idea subscribers IFLIX-OPERATOR PARTNERSHIPS IN ASIA PACIFIC AS OF APRIL 2017 HUTCHINSON 3 INDONESIA Apr-16 Direct carrier billing for Hutchinson 3 subscribers OPERATOR COUNTRY DATE DESCRIPTION INDOSAT OOREDOO Apr-16 Direct carrier billing for Indosat Ooredoo subscribers

SMARTFREN DST BRUNEI Nov-16 One year free ifix for PTCL broadband and IPTV subscribers TELECOM INDONESIA Apr-16 Direct carrier billing for Smartfren Telecom subscribers Direct carrier billing for Telkom's IndiHome broadband Direct carrier billing for Telkomsel subscribers; TELKOM INDONESIA Apr-16 TELKOMSEL Apr-16 subscribers HOOQ included in the simPATI Entertainment Package DIGI TELECOMMUNI- Direct carrier billing and two months free ifix for Digi Sep-15 XL AXIATA Apr-16 Direct carrier billing for XL Axiata subscribers CATIONS subscribers, later one year free ifix for selected subscribers

Globe subscribers can access HOOQ for PHP199 per month CELCOM MALAYSIA Mar-16 Two months free ifix for Celcom wireless subscribers GLOBE TELECOM PHILIPPINES Feb-15 with the option of offine viewing One year free ifix for Telekom's UniFi and select Streamyx TELEKOM MALAYSIA Dec-15 SINGTEL SINGAPORE Nov-16 HOOQ included in select Singtel bundles subscribers

AIS THAILAND Apr-15 HOOQ app integrated into AIS Playbox DHIRAAGU MALDIVES Nov-16 Three months free ifix for Dhiraagu subscribers

Kagan, a media research group within the TMT offering of S&P Global Market Intelligence. © 2017 S&P Global Market Intelligence. All rights reserved. PTCL PAKISTAN Apr-17 One year free ifix for PTCL broadband and IPTV subscribers

Free access to ifix for selected premium-tier PLDT broadband PLDT PHILIPPINES Jun-15 subscribers Direct carrier billing is at the core pay OTT subscription fees as part of many OTT-telco partnerships. In of their monthly telephone or data DIALOG SRI LANKA Oct-16 Two months free ifix for Dialog subscribers markets where credit card payment is bills. OTT providers are leveraging Kagan, a media research group within the TMT offering of S&P Global Market Intelligence. beyond the capability of the average telecom incumbents’ billing systems © 2017 S&P Global Market Intelligence. All rights reserved. OTT subscriber, this allows users to to reach new customers that would

78 MULTICHANNEL TV 2018 79 OTT & STREAMING

OPERATOR/NETWORK-OWNED OTT SERVICES IN ASIA PACIFIC AS OF APRIL 2017 VIU-OPERATOR PARTNERSHIPS IN ASIA PACIFIC AS OF APRIL 2017 OPERATOR COUNTRY PARENT REMARKS

OPERATOR COUNTRY DATE DESCRIPTION A virtual Multichannel subscription service offering live channels and VOD. Subscribers also have access FOXTEL PLAY AUSTRALIA Foxtel to Foxtel Go, a free authenticated live and catch-up TELKOM Special bundled data package pricing for Telkom's IndiHome INDONESIA May-16 TV service (ALSO TELKOMSEL) broadband subscribers and Telkonsel wireless subscribers Offers both free/ad-supported content and a HBO GO HONG KONG HBO subscription pack of library and current HBO TELEKOM Free access to Viu for Telekom's UniFi and Streamyx MALAYSIA Feb-16 content at HK$88/mo MALAYSISA broadband subscribers Offers both free/ad-supported content and a s Direct carrier billing and bundled package deal at S$4.98 HOTSTAR INDIA STAR India Pvt. Ltd. ubscription pack of 23 linear channels and VOD at SINGTEL SINGAPORE Jul-16 per month along with other exclusive promotional offers Rs. 199/mo for Singtel subscribers Offers both free content and movie rentals and USEETV PT Telekomunikasi Kagan, a media research group within the TMT offering of S&P Global Market Intelligence. Indonesia subscription © 2017 S&P Global Market Intelligence. All rights reserved. INDONESIA Offers a subscription pack of 9 linear channels starting GENFLIX PT Mega Media Indonesia Group at Rp.25,000/month and hundreds of VOD rental titles

Unlike other OTT providers that solely telecommunications industries, telcos A virtual Multichannel service with a subscription ASTRO-ON-THE-GO Astro Malaysia focus on telco partners, Netfix also and TV operators are also putting MALAYSIA Holdings Bhd. pack of 17 linear channels starting at RM5.3/mo. and thousands of VOD rental titles sees distribution opportunities with together OTT services themselves to Hundreds of movies and TV shos available Multichannel TV operators. To date, the create new business opportunities NEON SKY company has made its service available for value-added gains. Other than NEW at NW$20/mo ZEALAND on direct-to-home and IPTV platforms telco-backed regional players HOOQ LIGHBOX Spark Offers TV Shows at NZ$12.99/mo by working with Fetch TV, Bharti Airtel and Viu, our survey fnds several other Ltd., Videocon d2h, now TV, Singtel and operator/network-owned OTT services Offers 11,000+ hours of movies and TV series from Fox as well as global flm studios and TV networks, at P390/ StarHub Ltd. to integrate the Netfix across seven markets in Asia Pacifc. PHILIPPINES/ app into Pay-TV STBs. Multichannel Among them, FOXTEL and Astro are FOX+ SINGAPORE Fox Networks Group mo. in the Philippines and from S$12.9 to S$19.9 per month in Singapore (available only to Singtel subscribers of those operators are then making one important step further customers and later to StarHub customers as well) able to have direct access to Netfix on than their counterparts by offering Subscription packs start at S$9.9 for a 30-day pass. the primary screen via the built-in app. linear streaming packages in addition STARHUB GO SINGAPORE StarHUb A Netfix app is also pre-installed onto to on-demand content, effectively Movie rentals at S$3.5 - S$6 per title the Telstra TV box as well as SoftBank operating as virtual Multichannel Offers both free/ad-supported content and paid VIU PCCW phones. service providers. As of April, HBO, Fox subscription of movies and series. Fees vary by market and STAR India were the only premium REGIONAL Singtel, Sony Inspired by strategic cross-sector networks in Asia Pacifc with proprietary Offers rentals/purchases and subscription packs HOOQ Pictures Television alliances between upstart OTT OTT offerings. and Warner Bros. of movies and series. Fees vary by market and traditional media and Entertainment Kagan, a media research group within the TMT offering of S&P Global Market Intelligence. © 2017 S&P Global Market Intelligence. All rights reserved.

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privacy compliance and trustworthy data handling in video services. 1. TRANSPARENCY 5 CORE ELEMENTS The legal and regulatory regimes are WALK THE TALK evolving, with a growing international A critical best practice for ensuring TO DETERMINE consensus on the core rules and data trust is to be consistent in how PRIVACY POLICIES principles for data privacy. However, it information management practices is critical to pay attention to the voice of and controls are aligned with what Understand how to improve privacy regulatory compliance and the customer in the design of products individuals are told will happen with increase trust and engagement of subscribers and services. Hence, smart organisations their data. will adopt a customer-centric view, design appropriate privacy controls and In video services markets, there is • Improve viewer experience, with practices into their services, and build 2. significant potential in the data that can relevant programme suggestions that and maintain trust with their customers. VALUE TO CUSTOMER be obtained from set-top boxes, smart avoid an algorithmic bubble COMMUNICATE VALUE CLEARLY TVs and the entire ecosystem. However, • Improved ROI for advertisers on A core element of Privacy by Design, care should be taken to learn the lessons platforms and a key theme emerging through from the “born on the internet” media consumer studies, is the need to companies whose data-driven business With a wide and varied level of legal communicate the value of the proposed models many old media enterprises obligations depending on the markets BUILDING A PLATFORM OF data-processing activity. If you are not seek to emulate. In this context, service and technology providers are TRUST WITH THE CONSUMER IS able to communicate the value of what media companies and broadcasters, operating in, service providers are ESSENTIAL, PARTICULARLY WHEN you are trying to do in a way giving particularly long-established ones, have faced with a choice between managing ORGANISATIONS ARE INVITED a clear “win-win” proposition to your a significant value in their brands being obligations under a multitude of customers, you may not be hitting the seen as “trusted” by their subscribers. regulatory regimes or adopting a INTO PEOPLE’S LIVING ROOMS right balance from a quality, ethical, or principles-based approach. This involves TO BE PART OF SOME OF THEIR legal perspective. The key strategic choice for video service striking a balance between their desire MOST PRIVATE TIMES. providers, be they broadcasters or OTT for information about how and where providers or traditional Pay-TV operators, programmes are being viewed, and 3. is whether they will follow the business services are being used, and customers’ BEST PRACTICES IN PERSONAL RESPONSIBILITY AND GOVERNANCE model and approach of the “born on desire for privacy control with regards to DATA PRIVACY IMPLEMENT APPROPRIATE DATA the internet” advertising and media their viewing habits and tastes. The data privacy landscape is changing GOVERNANCE AND DATA MANAGEMENT businesses; or will attempt to learn in terms of consumer expectations, DISCIPLINES, SUPPORTED BY from the lessons of these peers and The competitive advantage and legislative frameworks, and regulatory APPROPRIATE TECHNOLOGIES competitors to build a more-balanced brand positioning of video streaming enforcement. So how can video service Bad data and bad data outcomes don’t approach to using data about viewers service providers is ultimately a factor providers best address these challenges just happen. They arise because of and their habits, likes, and dislikes to: of how they “dial-up” their approach to unlock market opportunities, build management action or inaction. Service • Improve quality of programming to these different areas. The selection trust, and ensure relevance of content providers need to invest time and effort • Improve the range of content of appropriate tools and supporting and programming for viewers? in establishing good Data Governance • Improve the quality of service delivery technologies, and the engagement of practices supported by appropriate across an ever-expanding array of trusted and trustworthy service partners, There are several emergent best technologies. This ensures effective technology platforms are essential elements of ensuring data practices to help answer this question. coordination of activities and obligations

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across a range of functions in your difference between data security and organisation including, but not limited data privacy, will have an advantage over to, information security. their competitors.

Regardless of more or less restrictive 4. regulations across different jurisdictions, GIVE CUSTOMERS CONTROL video service providers build trust with A quick-win best practice for many customers through self-enforcement of service providers is to provide customers clear data privacy practices. Video service with meaningful and useful controls and providers should go above and beyond visibility over how their data is being to leverage data analytics within a used. This goes beyond simply giving rigorous framework of respect for users’ customers a set of check-boxes to opt-in personal data protection choices. It is or out of specific processing purposes. clear data privacy policies are becoming It includes giving customers choices a competitive differentiator in the digital over how much of their data is shared, marketplace. This makes it paramount and with whom. It encompasses giving to choose technology partners who not customers access to information that only provide data security and analytics helps them make better choices, use capabilities to enable data monetisation, services more efficiently, or gives them but who also are aware customers’ trust some other tangible benefit. is everything. Personal data privacy must be embedded in the technology-solution 5. framework and the value proposition for BALANCING RISK users. TREAT PRIVACY AS A QUALITY Protecting and preserving the security of CHARACTERISTIC the personal data of your subscribers is By treating privacy as a quality increasingly viewed as the bare minimum characteristic of your product or expected of video service providers. service, your organisation can begin The key opportunity for competitive to apply design philosophies and differentiation in the “data-driven” methodologies, such as Privacy by age lies in the building and sustaining Design and Privacy Engineering, to of trust with customers through meet or exceed the expectations your data-management policies and practices customers have for how you will treat the which go beyond just keeping it safe data you hold about them. but aim to delight customers through transparency, control, and delivery of Privacy can support and enhance value. features and functions. How you treat it and manage it, will increasingly be a key part of your brand and brand positioning. Video service providers For more information, visit realising this, and recognising the www.verimatrix.com/dataprivacy

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NEXT-GENERATION CONTENT PROTECTION, CLOUD SERVICE DELIVERY, AND DATA ANALYTICS TECHNIQUES ARE GAMER-CHANGERS FOR PAY-TV OPERATORS

Changes are fast-moving and abundant and monetize such content increases. UHD services are gaining popularity, to recognize the advantages of in the television and media environment. Pay-TV operators need reliable content and high-resolution content is especially cloud-based business models. Using a Mobile video consumption continues protection for both their traditional prone to piracy. Operators can combat TV Everywhere platform hosted in the to rise, with the latest Cisco Visual offerings and OTT multiscreen services. this by receiving real-time actionable cloud, operators can effectively manage Networking Index predicting that by insights from the analytics console of all aspects of the content preparation 2021 there will be a 5X increase in live On the content protection front, their DRM solution. and distribution workflow from internet video and mobile traffic overall choosing a web player with forensic transcoding to packaging, encryption, will grow from 10 to 20 percent. watermarking technology for tablets To combat illegal streaming on the web, publishing, recommendations, and and smartphones is essential. Operators operators are deploying world-class delivery. Managing the entire video As TV Everywhere evolves and OTT should choose a player that is anti-piracy protection. The most workflow from the cloud offers delivery increasingly gains popularity compatible with PCs and Macs in order advanced anti-piracy solutions today significant advantages over traditional among consumers, one of the key to protect content on all screens, for utilize real KPIs to mitigate piracy, with infrastructure, including increased agility, challenges operators face is how to stay both live and VOD content. tactics such as de-referencing and direct reduced costs, and faster time to market profitable in a competitive landscape. removal of illegal content-sharing sites for OTT offerings, in particular. This article will highlight how operators A multi-DRM (Digital Rights for live and VOD premium content. can maximize the television experience Management) suite is also important Collecting evidence is a must for The problem with traditional through the latest advancements in for securing premium content on any operators, as this ensures they have infrastructure is that it’s expensive content protection, cloud service device and in any delivery format. Today, the legally relevant documentation for and takes a long time to deploy. The delivery, and data analytics technologies. the DRM market is quite fragmented, fighting piracy. cloud enables operators to launch an and deploying a multi-DRM solution will OTT offering instantly, and scale it up CONTENT PROTECTION ensure that operators can keep assets CLOUD SERVICE DELIVERY or down as needed. Moreover, cloud FOR AN OTT WORLD safe in any ecosystem (i.e. Microsoft IS TRENDING service delivery follows an OPEX-based Today’s consumers have access to a PlayReady, Google Widevine, and Content protection is just one way that model, which requires no infrastructure lot of high-quality content on mobile Viaccess-Orca Connected Sentinel operators can gain a competitive edge on-premises. Without having to make devices, including the latest TV series proprietary DRM). The DRM solution in the industry. Another technology significant capital investments for and Hollywood movies. The more that should be flexible and scalable to trend is cloud-based service delivery. equipment and software that go out premium content is available on mobile accommodate rapid change and service The TV as a service market is on of date, operators have more flexibility devices, demands from studios and growth. Moreover, analytics in a DRM course to be a US$1.5 billion a year when it comes to introducing new content owners to securely deliver solution is becoming a necessity. 4K and industry by 2021 as operators continue services. For live or special events, the

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elasticity of the cloud is especially useful. CONCLUSION Operators can automatically adjust By staying on top of the latest to spikes in demand from live events technology trends — from content without having to purchase redundant protection to cloud service delivery and hardware. big data — operators can deliver a more competitive service offering, increase DATA ANALYTICS AND ITS ROLE their agility in terms of launching OTT IN PERSONALIZATION offerings quickly and cost-effectively, Big data and analytics are also being and provide viewers with a more utilized to drive better video experiences contextually-rich and ultra-personal in the OTT environment. By using viewer experience. advanced OTT technologies, operators can measure an individual’s digital footprint, collecting data from TVs, smartphones and other connected devices. As the number of connected devices per household continues to rise, data loads may reach an estimated 5TB per million households, per month.

Once operators have a massive amount of data, the challenge is extracting valuable information from that data. By Chem Assayag, A sophisticated analytics service is EVP Marketing and Sales extremely beneficial in terms of helping at Viaccess-Orca operators leverage data related to the television subscriber profile to deliver more contextually relevant content. Viewers love to get personalized content, and this a perfect way to increase satisfaction with the service and boost revenues. Data can also be used to prevent piracy. For example, during a major live sports event operators can track piracy and break down data about audiences to learn more about the source.

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THRIVE WITH LIVE HOW TO DELIVER ENGAGING AND PROFITABLE LIVE EVENTS AND 24/7 CHANNELS

2017 is the year that brought live DELIVER A HIGH QUALITY VIEWER streaming to the forefront of online TV. EXPERIENCE Take the recent Floyd Mayweather vs. • Provide your viewers with a seamless Conor McGregor fight on 27 August experience across multiple devices 2017, which was one of the most and platforms—whether they are anticipated fights in the history of the mobile, at home or at work. sport. This was live streamed worldwide, • Provide seamless instant replay and thus normalising this new method catch up TV with Cloud DVR features. blockers, thereby maximising both video platforms as more premium of viewing for millions of consumers • Make ads an integral part of the audience engagement and revenue. content is delivered via the public around the world. Though tentpole viewing experience without pauses, • Deliver ad supported live streams to Internet. events such as the US elections, the buffering or glitches through any platform or device that can play • Though there are many DRM systems Olympics or The World Cup have server-side ad insertion. an HLS video. available to protect video content, consistently set new records for live • Easily protect your live streams and the top three systems for supporting events, live streaming hasn’t been REDUCE YOUR COSTS 24/7 channels using encryption and the most popular web browsers, limited to one-time events. Increasingly, • Geographically distributed token authentication. devices and set-top boxes are broadcasters are live streaming their architecture enables you to originate • Employ Live to VOD clipping - Google’s Widevine, Apple’s FairPlay 24/7 linear content, giving people the live streams locally, without costly broadcasters can publish clips to their and Microsoft’s PlayReady. freedom to watch premium branded backhauling. web properties and apps, offering content on the device of their choice, • Opt for simple per hour or per additional monetisation opportunities. ENSURE CONNECTIVITY, SCALE AND as well as offering stand-alone options channel pricing, so you pay for what Often, the highest demand for GLOBAL AVAILABILITY for cord cutters. At the same time, live you use. catch-up content is within two hours • Rely on a geographically distributed streaming is opening the door to new of it ending on linear television, hence cloud architecture designed for competition for broadcasters. INCREASE REVENUE FROM LIVE the need to publish this content as broadcasters to deliver seamless live • Increase your viewer engagement soon as possible is paramount. events, with minimal streaming delays Although live streaming offers unique through live content with longer view anywhere in the world. opportunities for premium content times. PROTECT YOUR LIVE CONTENT • Streams should be delivered owners to build viewership and boost • Seamlessly add monetization to live • Digital Rights Management or DRM to viewers via HLS to ensure revenues, it hasn’t been without events and 24/7 channels through is a method of securing digital compatibility with a wide variety of its challenges. To ensure that any server-side ad insertion (SSAI) content to prevent unauthorised platforms and players, as well as most broadcaster can thrive with live, here are because ads can be fully integrated use and piracy, and it has become popular CDNs (Content Delivery some quick pointers: into the live stream and bypass ad a requirement for many streaming Network).

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CONCLUSION With Brightcove Live, every media company can deliver and monetize live video at low Live streaming presents a tremendous cost with fexibility to scale with business opportunity for media companies to needs. Brightcove Live is a broadcast-grade, reach new audiences and enable new cloud-based live streaming solution with wide device reach and integrated monetization revenue streams. Even though the capabilities using server-side ad insertion. growth of live streaming has provided Broadcasters and publishers can originate much-needed new revenue channels for live events using our globally distributed architecture, and deliver a high-quality media companies, there are technology experience to viewers with minimal delay limitations that can hinder their ability across multiple platforms and devices. to truly capitalise on this growth. For established broadcasters seeking to Live streaming at scale is inherently boost live content offerings and niche content complicated, requiring a careful owners looking to start broadcasting live orchestration of hardware, encoding events or launch 24/7 channels, speak to Brightcove ([email protected]) on how to services, and distribution platforms with thrive with live. a narrow (and often unforgiving) margin for error.

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USER EXPERIENCE THE KEY TO OTT VIDEO SUCCESS

With the popularity of global and What do Pay-TV operators’ OTT service regional OTT services on the rise, there offerings need to do to succeed? is an increasing threat of losing high value customers and cord cutting for A compelling OTT video service has Pay-TV operators in SEA. According to to offer more than just an appealing Comparison of two OTT video services using PCA’s OTT UX framework recent surveys, one quarter of Pay-TV content library - it needs to provide the Source: Pioneer Consulting Asia subscribers in Philippines and Singapore right user experience (UX) across the all Content Proposition are planning to cut the cord over following attributes: the next 12 months with 20% of the remaining Pay-TV subscribers intending to downgrade to a cheaper pack. This 1. trend can also be observed in Thailand CONTENT PROPOSITION where one third of Pay-TV subscribers Breadth, depth, and exclusivity of are planning to cut the cord over the content offering. next 12 months and another third are looking to downgrade to a cheaper 2. Features Content Access package. ACCESSIBILITY Ease of locating content available on the Naturally, Pay-TV operators in Asia are platform. alarmed. They are leveraging their existing content libraries to launch their 3. INDUSTRY LEADER own OTT services to retain their existing INTERFACE customer base as well as to attract new Ease of navigation and stability of ASIAN PAY-TV customers. OPERATOR platform technology. Interface Despite the advantage of having existing content partners, a customer base and 4. VIDEO PLAYER FUNCTIONALITY About Pioneer Consulting Asia marketing dollars, Pay-TV companies Pioneer Consulting Asia is an international Fast forward, scrubbing, event markers, are finding it tough to compete within management consultancy that specializes ease of binge watching, and number of in media, telecoms and digital. PCA has the OTT space. For instance, “Redbox steps required to access other features developed a UX framework to assess OTT instant”, a collaboration between Verizon platforms for clients. Our team comprises such as changing videos from the video and Redbox, was forced to shut down experienced consultants and industry experts player. and our clients include broadcasters, Pay-TV within 19 months from initial launch as it operators, telcos, digital start-ups, investors failed to gain traction. and regulators.

94 MULTICHANNEL TV 2018 95 COMBATTING PIRACY

96 MULTICHANNEL TV 2018 97 COMBATTING PIRACY

E-COMMERCE PIRACY 3.0 Alibaba.com 3% Qoo10 12% MARKETPLACES Carousell 3% ILLICIT STREAMING DEVICES (ISD) Source: Veri-Site study Lazada 17% Rakuten 2% ARE ADVERSELY IMPACTING CABLE AND Taobao 2% JD 1% OTT BUSINESSES Asianproducts 1% Lelong 1% 11st.co.kr 1% Gmarket.co.kr 1% Shopping.yahoo.co.jp 1% Other marketplaces <1% The nature of how people access not having anything to do with Kodi). Aliexpress 27% copyrighted content without paying Payment for enabling such access is for it has changed dramatically over usually included in the purchase price of the past decade. DVD-enabled piracy, such boxes, or, less frequently, through 1688.com 27% which used to be ubiquitous, has all “subscription“ services. Because these but disappeared globally. The usual ISD’s are cheap, easy-to-use ‘plug-in’ way to access such content today is via devices, and because they offer a wide the Internet, either by downloading range of pirated content while being or streaming movies and TV shows. easily available (both online and in the Watching copyright-protected content physical world), their utilisation has risen Veri-Site recently undertook a study of The legal framework to fight ISD box which is streamed live over the Internet steeply throughout the US, Europe and how widespread the sales of ISDs are piracy has strengthened in the EU (and thus not stored), however, now in Asia. online in Asia, and of the major platforms and the US with several favorable constitutes a legal grey area in many through which such sales are taking judgements, and offers for sale for such parts of the world. According to industry expert, Neil Gane, place and found that most leading devices will be treated on par with, for “Industry stakeholders are well aware of marketplaces in Asia such as Taobao, instance, counterfeit products, both in Many Android-based devices utilise the massive online infringement caused Lazada, Aliexpress and JD distributed the EU and the US and possibly in a few a free, open-source media software by streaming devices. We need to work these boxes unchecked. other jurisdictions. The entertainment application called Kodi, which enables together with government regulators and sector must investigate and constantly users to view videos and movies from law enforcement agencies to develop Kodi add-on pirate sites are blatantly disrupt the ISD box manufacturers and the Internet. This application can be effective strategies to tackle the ISD supported by mainstream brand distributor's business models. used for legitimate purposes, such as ecosystem.” advertising and ad networks. A brief hotel television systems. However, Kodi study conducted by Veri-Site of ten Kodi-Add on sites found that eight of is also a popular software application ISDs are especially popular with About Veri-Site for set-top boxes or ‘illicit streaming diaspora populations in foreign markets these sites were supported by Google Veri-Site, a division of Strategic IP Information devices’ (ISDs) in which unofficial third as cheaper subscription options to AdSense and DoubleClick (both are Pte (“SIPI”), is a TAG Certifed Digital Advertising Assurance Service Provider party add-ons designed to facilitate access content; good examples are Google Inc. companies). Further, 33 (“DAAP”) focused on providing anti-piracy unauthorized access to copyrighted Chitram boxes with built-in apps advertisers were found to be advertising solutions to the advertising industry. content are sold pre-loaded into the targeting the Indian diaspora, WelPinoy on these sites and 94% of the advertisers Authors: Bharat Dube, Chairman – SIPI device (which are then promoted as for Tagalog speakers, and Micox ISD’s represented legitimate businesses such and Bharat Kapoor, CEO – SIPI. For further “fully loaded Kodi boxes,” despite for Chinese and Korean speakers. as Ford, Amazon, Asus and Airtel. information please contact: [email protected].

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Those Singaporeans who admitted was motivated by the desire to access to actively streaming or downloading content for free. pirated content admitted that the SINGAPORE’S primary incentive behind their behaviour is that it costs nothing to pirate. An ILLICIT STREAMING DEVICE (ISD TV BOX) overwhelming 63% of respondents For more information, go to EPIDEMIC answered that their decision to pirate www.casbaa.com

74% of active pirates recognise they are at risk of malware infection. Incidence of piracy in Singapore 9% Almost half the population admit to having pirated with 39% stating they are currently active. 52% LAPSED 39% Despite major growth in the number and in behaviour, followed by recognition NEVER DONE ANY range of legal online content choices that there were now more legal CURRENT

available to them, recent studies have options available (37%). Which of these, if any, have you ever done / Please indicate how often you do each of these activities? Base: Main sample (n=1000) *NB this refects an updated set of piracy behaviours found Singaporeans to be among the than those recorded in 2013 top consumers of pirated online content • 68% of Singaporeans recognise that around the world. A new consumer pirating movies, TV shows or sporting study by research company Sycamore events is stealing or theft, with almost Pte Ltd, in conjunction with CASBAA, a third agreeing that blocking of sites ISD owners are more likely to be young, affuent and educated examined online piracy behaviour within which profit from pirated content than pirates in general * Signifcant Lower Singapore and found several striking would be the most effective means of * Signifcant Higher trends: reducing online piracy. GENDER AGE SES CLASS

• Almost half the population admit to The Sycamore study combined 18-24 yo 8%* SES A 60%* Male 50% having engaged in online piracy, with qualitative and quantitative 25-34 yo 34%* 39% stating they currently illegally methodologies. This included a survey SES B 22% Female 50% 35-49 yo 41% stream or download movies, TV shows of 1,000 respondents in Singapore, SES C 18%* 50 & above 16%* or live sports channels. weighted to be representative of Ave. age = 37.76 Ave. monthly HHI = 8,387.0 • Illicit Streaming Devices (TV boxes) the population, plus a further 300 are changing the face of piracy in users of illicit streaming devices, to HIGHEST EDUCATION LEVEL CURRENT SUBSCRIPTION BOX OWNERSHIP Singapore, with 14% of Singaporeans better understand the details of their Base (n=406) admitting to currently using an illicit behaviours. Secondary & below 12%* Starhub 42% Smart TV Box 32% streaming device. Poly, Vocational... 29% Singtel (mio TV) 35% • 74% of active pirates recognise that Despite the fact that two-thirds of Xiaomi TV Box 26% Netfix 26%* accessing pirated content puts them at Singaporeans agree that piracy is University & above 29%* E-Box (Android) 15% greater risk of getting viruses, spyware stealing, the study revealed that nearly Starhub go 19%* Others 0% Minix X7 7% and other malware. In fact, the risk three-quarters of the population Toggle Prime 12%* of malware was the primary reason consider piracy to be a normal or typical Others 9% (40%) cited by those who said they behaviour. None of the above 22%

had stopped pirating for their change Which of the following devices do you use to watch movies, TV shows and sports events? Which of the following devices connected to the TV do you own? Base: All who view via ISD (n=415) *Only showing top 4 TV services/ ISD Brands

Source: Sycamore

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PIRATES PERCEIVE NO DOWNSIDES

50% 47% 41% 34% Viewing across multiple devices The idea of ‘FREE’ is psychologically powerful 30% 27% Which of the following devices do you use to watch movies, Which of these, if any, are reasons why you watch pirated movies, TV shows or sports events? TV shows and sports events? Base: All active pirates (n=393) 14% Base: Main sample (n=1000) *Device connected to your TV that connects to the internet (for 2% example an Android box, media box, Roku stick or similar)

It’s free 63% Tablet

Smart TV Want to get it 31%

Smart Phone as soon as possible to the internet Laptop computer Desktop computer None of the above Can’t fnd the Device connected to A Pay-TV set top box 31% your TV that connects Source: Sycamore TV show/series that I want to watch legally

Can’t fnd the movie that 28% I want to watch legally

Want to watch an ‘uncut’ version 27% of a movie/TV show

Not aware of any alternatives 20%

Prefer to sample a TV show/series/movie frst 13% and then I will pay for it

Can’t fnd the sports event that I want 11% to watch legally There are currently no perceived To watch religious downsides to piracy. programming not 7% otherwise available Options with no downside have a more positive emotional response. No enforced laws 7% in place to stop me By opting for piracy, viewers avoid a loss (having to pay) and have a greater Others 3% benefit (the same content and a positive emotional response). Source: Sycamore

102 MULTICHANNEL TV 2018 103 ACRONYM INTERPRETATION ABEI (Vietnam) Authority for Broadcasting and Electronic Information ADSL Asymmetric Digital Subscriber Line AIDCF All India Digital Cable Federation ARPU Average Revenue Per User AVOD Advertising-supported Video on Demand CAGR Compound Annual Growth Rate CAS Conditional Access System CDN Content Delivery Network CMO Chief Marketing Offcer DRM Digital Rights Management DTH Direct to Home DTT Digital Terrestrial Television DVB Digital Video Broadcasting DVB-CA Digital Video Broadcasting – Conditional Access DVB-H Digital Video Broadcasting – Mobile handsets DVB-S Digital Video Broadcasting – Satellite DVB-T Digital Video Broadcasting – Terrestrial DVR Digital Video Recorder EPL English Premier League FTA Free To Air FTTx Fibre to the x (Broadband network using optical fbre for last mile) HVOD Hybrid Video on Demand IPOS Intellectual Property Offce Singapore IPTV Internet Protocol Television ISD Illegal Streaming Device ITU International Telecommunication Union KCC Korean Copyright Commission KCC Korean Communications Commission MCMC Malaysian Communications and Multimedia Commission MIC (Vietnam) Ministry of Information and Communications MSO Multi-System Cable Operator NBTC (Thailand) National Broadcasting and Telecommunications Commission NCC (Taiwan) National Communication Commission NTC (Philippines) National Telecommunications Commission OTT Over The Top OPEX Operating Expenditure PCTA Philippines Cable Television Association PMEB Professional, Manager, Executive, Business Person PPV Pay Per View RPD Return Path Data (Viewing information from a set top box) STB Set Top Box STBA (Taiwan) Satellite Television Broadcasting Association SVOD Subscription Video on Demand TAM Television Audience Measurement TRAI Telecom Regulatory Authority of India UHD Ultra High Defnition TV UX User Experience VAS Value Added Service VCA Vietnam Content Alliance

OTHER TERMS Cord-cutter Someone who drops their cable subscription in favour of internet provided content Cord-never Someone who has never signed up to a commercial cable subscription

104 MULTICHANNEL TV 2018 105 106 MULTICHANNEL TV 2018 107 STAY CONNECTED

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Go to www.casbaa.com for an e-book download DESIGNED BY CALAMANSI DESIGNS CALAMANSI DESIGNED BY