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.