Myanmar in View About CASBAA CASBAA is the Asia Pacific region’s largest non-profit media association, serving the multi- channel audio-visual content creation and distribution industry. Established in 1991, CASBAA has grown with the industry to include digital multichannel television, content, platforms, advertising, and video delivery. Encompassing some 507 million connections within a footprint across the region, CASBAA works to be the authoritative voice for multichannel TV; promoting even-handed and market-friendly regulation, IP protection and revenue growth for subscription and advertising, while promoting global best practices. www.casbaa.com About Pioneer Consulting Asia Pioneer Consulting Asia is an international management consultancy that specializes in media, telecoms and digital. We work in developed and developing markets in Asia-pacific. Our team comprises consultants and industry experts, and our work includes developing business strategies, performance improvement and implementation support. www.pioneerconsultingasia.com Preface Disclaimer Information Validity The information contained in this report is prepared from data gathered in the month of June and July 2016 and believed to be correct and reliable at the time of writing. Whilst Pioneer Consulting Asia has exercised all reasonable endeavours to ensure that the contents of the report are accurate and up to date, it does not accept liability for any information which may not be accurate. Our Approach It should be understood that some information contained in the accompanying report was obtained verbally from third parties without written documentation. In certain cases, publicly available sources were not available for independent verification. Where possible, Pioneer Consulting Asia has sought to verify the information supplied by speaking to multiple sources. Use of Information The report has been prepared for information purposes only and is intended for CASBAA and its members. The report must not be acted on or relied upon for any investment decisions or other specific actions without further study. Table of Contents 1 Executive Summary 4 2 Myanmar Country Overview 6 2.1 Demographic and Geographic Overview 6 2.2 Religion and Culture 8 2.3 Political Environment 8 2.4 Infrastructure 9 2.5 Economic Landscape 10 2.6 Changing Business Climate 11 3 Overview of Free-to-Air TV Landscape in Myanmar 13 3.1 TV Penetration in Myanmar 13 3.2 FTA Industry Players 14 3.3 Growth of FTA channels 16 3.4 Description of FTA Channels 17 3.5 TV Audience Figures by Channel 20 4 Overview of Pay-TV Landscape in Myanmar 21 4.1 Pay-TV Subscriber Estimates 21 4.2 Pay-TV Industry Players 22 4.3 Description of Pay-TV Offerings 24 4.4 Pay-TV Distribution Networks 30 4.5 Extent of Piracy 30 4.6 Future Developments of the Pay-TV industry 31 5 Advertising Spend 33 5.1 Myanmar TV Advertising Spend Overview 33 5.2 Growth of TV Advertising Spend 34 5.3 Top TV Advertisers in Myanmar 35 6 Overview of TV regulations 36 6.1 Overview of Regulator 36 6.2 Current Regulations 38 6.3 Broadcasting Law 38 6.4 Motion Picture Law 38 6.5 Licensing of new TV channels 39 6.6 Broadcasting Services Guidelines 39 6.7 TV Censorship Guidelines 40 6.8 Motion Pictures Censorship Guidelines 40 6.9 Investments and Cross-media Ownership 41 6.10 Process for TV Regulation Reform 41 7 Appendices 42 Appendix 1: Glossary 42 Appendix 2: Contact Information of Major Organisations 43 Appendix 3: Selected Examples of Programming for FTA Channels 44 Appendix 4: Pay-TV Channel List – as of Jun 2016 48 Appendix 5: Unauthorised satellite TVs’ Channel List – as of Jun 2016 52 Appendix 6: Advertising Rates for Selected FTA Channels 55 Appendix 7: Emerging OTT service provider 56 1 Executive Summary Myanmar is a developing market that recently emerged However, the TV industry is rapidly expanding. In from years of international isolation under military rule. the free-to-air (FTA) sector, the number of channels The country has been experiencing significant political has increased fivefold from 4 channels in 2009 to 20 and economic transitions over the past few years channels at the end of 2015. Other developments since power was handed over by the military junta to include pay-TV players’ plans to improve their a civilian administration. It is expected that Myanmar programming, expand their reach through more will experience high economic growth with the recent extensive distribution networks and upgrade their opening-up of the country, moving towards becoming services to provide consumers with more choices, better a free market and welcoming foreign direct investment quality content and less hassle during the subscription as well as foreign firms. However, Myanmar still suffers and renewal process. from inadequate infrastructure such as the lack of electricity and proper roads, although it has begun The pay-TV sector is currently served by three players: upgrading its infrastructure. Forever Group, Shwe Than Lwin Group (Sky Net) and Family Entertainment Group (5 Network). Pay-TV services TV industry statistics in Myanmar still reflect the state in Myanmar offer an alternative to local FTA channels of underdevelopment in the broader economy. TV by providing international channels and more foreign households reached 5.8 million in 2015, corresponding to programming. In recent years, competition between the a TV household penetration of 55%. Within the country, operators (especially between Sky Net and Forever) has pay-TV connections amount to ~12% of total households. improved consumer choices in Myanmar. 4 MYANMAR IN VIEW Competition in the pay-TV sector could intensify The regulatory climate governing the television, further as existing operators improve their service broadcasting and video sectors is currently being propositions and new players join the market. However, reshaped. There are two key legislative texts that widespread piracy from “overspill” satellite dishes govern the television, broadcasting and video industry may dampen growth in the pay-TV industry. Through in Myanmar: the Broadcasting Law and the Motion these unregistered satellite TVs, viewers can watch Picture Law. These two laws focus primarily on enforcing more channels at a significantly lower price than that censorship, which is a key constraint on media charged by Myanmar pay-TV players. Pirated DVDs of production and consumption in the country. international movies and dramas, which are widely available in cities, also dampen growth of the pay-TV The Broadcasting Law, drafted in 2013 and approved market. Unfortunately, there is a lack of concerted effort at the end of 2015 by the previous government, is to tackle piracy issues in the country. viewed by local industry players as “control-oriented” with insufficient contributions from the broadcasting The TV advertising market has been growing rapidly at community. As a result, there are likely to be further 31.2% p.a. from 2007 to 2015. In 2015, the size of the TV revisions to the current law. A revised version of the advertising market was US$ 120 million. At present, TV Broadcasting Law is anticipated to be released soon. advertising represents about 68% of the total advertising In tandem with the revision of laws to promote the spend. It is expected to grow further in the near future growth of the TV industry, the Ministry of Information as more foreign advertisers and consumer brands is considering offering more TV channel licenses. enter Myanmar with the advent of market liberalization. (There doesn’t appear to be interest in any more pay-TV Currently, FTA TV remains the dominant advertising operator licenses.) medium in Myanmar. Exhibit 1: Overview of Myanmar TV Market Total TV Penetration (2015) TV Penetration by Regions (2015) Households without TVs Households with TVs % of TVHH 92% 76% 45% 55%* 43% *5.8 million Households have TV out of 10.6 million total households in Myanmar Metro Urban Rural Source: MMRD/Nielsen Source: MMRD/Nielsen Disclaimer Use of Information The report has been prepared for information purposes only and is intended for CASBAA and its members. The report must not be acted on or relied upon for any investment decisions or other specific actions without further study. MYANMAR IN VIEW 5 2 Myanmar Country Overview 2.1 Demographic and Geographic Myanmar is the second largest country in Southeast Overview Asia after Indonesia, with a land area of 676,563 square km. The country has a land border that stretches for 5,876km and is bordered by Bangladesh, India, China, Myanmar is home to a population of 50.3 million people Laos and Thailand. It also has an uninterrupted coastline and 10.9 million households. The population is largely that faces the Bay of Bengal and the Andaman Sea. rural, with approximately 70% of the population living in rural areas. Population density is sparse with an average Myanmar has a fairly mountainous and rugged terrain of 83 people per square km as of 2014. that is traversed by three major mountain ranges. These mountain ranges run roughly parallel to each other and The majority of the Burmese1 people live in the create a unique topology that shapes the four major river cultivated flat plains of the Irrawaddy valley (traversed systems which flow from north to south. The Irrawaddy by the Irrawaddy River) in central Myanmar. These River, which starts from the northern tip of Myanmar areas include the cities of Yangon, Mandalay and and empties out into the Andaman Sea, is the longest Naypyidaw. Yangon is the largest city with a population in the country at 2,170 km. Besides being the principal of nearly 7.4 million people. waterway in Myanmar, the surrounding floodplains are crucial for sustaining agricultural activities that have 1. The country’s formal name is the Republic of the Union of Myanmar.