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Asia Pacific MULTICHANNEL TV ADVERTISING Asia Pacific MULTICHANNEL TV ADVERTISING 2016 P 186C P 287C P Pro.Blue C CMYK CMYK CMYK 0/100/95/5 100/75/0/10 80/10/0/20 RGB RGB RGB 224/20/38 0/60/141 0/136/198 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 515 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. For more information, visit www.casbaa.com 505 www.casbaa.com CASBAA Executive Office million 802 Wilson House 19-27 Wyndham Street MULTICHANNEL HOMES Central, Hong Kong Tel: 852 2854 9913 Enquiry: [email protected] CAN’T BE WRONG. www.casbaa.com 2 3 Executive Summary Globally, there are many factors at work monetization, as advertisers shift in reshaping the Pay TV ecosystem, their spending to online. Initiatives including developments in technology, to improve pay TV measurement in changing consumer expectations, the region are critical, as data-driven a proliferation of new content, and media buying increasingly dominates continually shifting advertising the market. New tools are being dynamics. developed to help add contours to the Contents data landscape, but these will require The digital revolution is a decade old collaboration among industry players now, and while many Asian markets in order to be seen by advertisers and are still lagging in fixed and wireless agencies as credible. broadband deployments, audiences in FAST FACTS ......................................6 the region are nonetheless following Times of change are often difficult, and GLOBAL OVERVIEW ......................10 global trends. Increasingly, they do not that is certainly the case in Asia’s pay really distinguish between digital and TV industry today. But by embracing ASIA PACIFIC VIEWERS .................20 traditional media; what they want is innovation and developing customer- flexibility and choice in how and when centric strategies, we at CASBAA are MEASUREMENT GUIDE ................28 they consume the content they want. confident our industry can ride out whatever turbulence happens to come COUNTRY OVERVIEW ...................34 This is certainly a new Golden Age for our way. TV, with more and better programming ADVERTISING REVENUE ...............43 being produced than ever before, both internationally and locally. Risks MAKING WAVES WITH OTT .........63 are being taken, boundaries pushed, ADVERTISING REGULATIONS ......83 and innovation explored, with the very positive consequence that consumer demand is fuelled, and the pace of change is further accelerating. But even with subscription TV’s continued growth in the region, there are still challenges, particularly around CASBAA would like to thank Jane Buckthought, the CASBAA Research Committee and the various networks and research companies who made this report possible. 4 MULTICHANNEL TV 2016 5 Non-Terrestrial TV 30% JAPAN Connections 99% 15.2 MILLION SOUTH KOREA 59% 24.7 MILLION CHINA 54% 265.8 MILLION PAKISTAN 11.9 MILLION 84% 97% 61% HONG KONG TAIWAN of homes in Asia 92% 2 MILLION 7.9 MILLION now receive INDIA 149.9 MILLION Multichannel TV. 29% % THAILAND 62 VIETNAM 6.9 MILLION 20% 13.2 MILLION PHILIPPINES 3.3 MILLION 62% MALAYSIA 4.2 MILLION FAST FACTS 62% 11% SINGAPORE INDONESIA POPULATION .........................................3,615,467,000 0.95 MILLION 4.6 MILLION TOTAL HOMES ..........................................946,444,560 HOUSEHOLD SIZE .....................................................3.8 TELEVISION HOMES ................................834,535,058 MULTICHANNEL HOMES.........................505,548,304 INTERNET USERS ...................................1,320,205,943 36% AUSTRALIA 3 MILLION 56% NEW ZEALAND 1. Percent of multchannel homes 2. Millions of connections 0.9 MILLION 3. Thailand government regulations have clarified penetration 6 MULTICHANNEL TV 2016 FAST FACTS 7 Growth of Multichannel Homes 2015 505 2014 501 2013 468 2012 446 2011 407 2010 363 2009 326 2008 291 2007 264 2006 255 2005 228 2004 218 2003 186 2002 181 Millions of homes Source: Casbaa, MPA, SNL Kagan, Nielsen, Kantar, GfK,, CSM, TAM India, SKY, Gallup Pakistan, Starhub, Astra, Astro, Video 8 Research, TmNS, OzTam, SARFT MULTICHANNEL TV 2016 9 ASIA-PACIFIC PAY TV OUTLOOK: Making growth waves The multichannel industry in the Asia-Pacific region is Multichannel TV Homes Penetration 2016 positioned for another year of growth, according to SNL 568,461,514 Kagan analysis. Aggregate pay TV subscribers from a total of 46 territories are projected to reach 539.5 million by the end of 2015, penetrating 62.9% of TV households in the region. Multichannel video subscription revenue is estimated to reach $36.2 billion by the end of 2015, translating to an average $5.59 in monthly video service ARPU. Over the next ten years, our model indicates the pay TV population in the region is estimated to grow to 777.6 million, generating $74.3 billion in video subscription revenue and an ARPU of $7.96 per month. 112,959,346 111,734,228 94,656,383 77,887,133 Cable remains the most common multichannel platform in the region, accounting 35,357,934 for an estimated 75.9% of total subscribers and 64.8% of total revenue by the end of 2015. While cable’s dominance is expected to last, its share of pay TV subscribers and revenue is projected to decline with each passing year as digital direct-to- ASIA PACIFIC N. AMERICA W. EUROPE E. EUROPE LATIN AMERICA MIDDLE EAST home and IPTV operators ramp up. By the end of 2015, DTH and IPTV platforms are AND CARIBBEAN AND AFRICA anticipated to grab 12.7% and 11.2%, respectively, of Asia Pacific’s pay TV customers and 20.0% and 15.1%, respectively, of pay TV subscription revenue. Pay-digital India is the single largest DTH satellite multichannel market in the Asia-Pacific region, terrestrial television holds a niche position in the region with just 0.1% of subscribers with an estimated active subscriber base of 45.1 million by the end of 2015, out of and revenue. The platform is only available in a handful of markets for pay TV 68.6 million subscribers for the region. Its six licensed operators, namely Dish TV delivery, namely Cambodia, Indonesia, Laos, Myanmar, New Zealand and Vietnam India Ltd., Tata Sky Ltd., Videocon d2h, Sun Direct, Bharti Airtel Ltd. and Reliance Communications Ltd., are all among the largest DTH providers in the region. DTH is With 255 million cable TV households in China and 102 million in India in 2015, the the most expensive multichannel platform in the region at an average monthly ARPU two markets collectively hold a majority share of Asia Pacific’s cable TV subscribers. of $9.21 in 2015, compared to $4.86 for cable, $8.09 for IPTV and $6.60 for pay-DTT, Regionwide, the cable platform is making aggressive digitization headway, with according to SNL Kagan analysis. However, DTH ARPU for the Indian market remains 68.4% of subscribers anticipated to be on a digital connection by the end of 2015. relatively low at just $3.07 per month. DTH is the dominant multichannel platform in Over the coming ten years, our analysis indicates the cable digitization rate will grow Australia, Indonesia, Malaysia and New Zealand. to 93.7%, although it remains a long-term challenge for all markets in the region to have fully digitized cable infrastructure. In markets such as Bangladesh, India, the Philippines and Thailand, market fragmentation is expected to impede digital upgrades due to localized ownership of last-mile networks. Consolidation of local small operators into large-scale MSOs is therefore called for to facilitate digitization initiatives. In China, for instance, regional cable systems are implementing a government-mandated “one province, one network” directive, which has formed some of the biggest cable operations in the world. 10 MULTICHANNEL TV 2016 GLOBAL OVERVIEW 11 GLOBAL OVERVIEW Asia-Pacific pay tv summary ASIA-PACIFIC REGIONAL UNITS 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015 - 2025 CAGR Population (000) 3,771,608 3,803,650 3,835,233 3,866,983 3,897,986 3,929,075 3,959,208 3,989,518 4,019,109 4,049,936 4,080,297 0.8% HH (000) 1,035,070 1,055,297 1,073,854 1,094,184 1,113,670 1,135,353 1,155,993 1,175,643 1,197,357 1,218,498 1,238,531 1.8% TVHH (000) 858,128 882,718 906,662 931,372 955,987 982,486 1,008,799 1,034,953 1,063,262 1,091,771 1,119,721 2.7% DTH Universe Total DTH Subs (000) 68,646 74,574 80,592 86,342 91,884 97,417 102,854 108,266 113,584 118,882 124,136 6.1% Total DTH Revenue ($ mil) 7,231.41 7,786.92 8,351.03 8,966.97 9,598.17 10,272.63 11,021.31 11,841.34 12,714.92 13,605.54 14,558.37 7.2% DTH ARPU $ 9.21 9.06 8.97 8.95 8.98 9.04 9.17 9.35 9.55 9.75 9.98 0.8% Cable Universe Analog Cable Subs (000) 129,588 112,452 100,291 87,701 79,562 70,839 61,995 53,324 45,550 39,050 34,312 -12.4% Digital Cable Subs (000) 280,055 312,868 341,488 369,365 392,194 414,070 435,402 457,336 477,245 495,033 509,891 6.2% Basic Cable Subs (000) 409,643 425,319 441,779 457,065 471,757 484,909 497,397 510,660 522,795 534,083 544,204 2.9% % Cable Subs Taking % 68.4% 73.6% 77.3% 80.8% 83.1% 85.4% 87.5% 89.6% 91.3% 92.7% 93.7% 3.2% Digital Total Cable Revenue ($ mil) 23,433.89 25,322.81
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