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Tag: Asia PAC

  • Asia PAC advertising to grow 5% in 2014, 5.7% in 2015, 4.5%CAGR for 2014-19: MPA study

    Asia PAC advertising to grow 5% in 2014, 5.7% in 2015, 4.5%CAGR for 2014-19: MPA study

    MUMBAI: A new report published by Media Partners Asia (MPA) indicates that net advertising revenues, measured after discounts across 14 markets, will grow at 5.0 per cent this year to top US$121 billion. Next year, MPA projects a re-acceleration in growth with the advertising market to expand at 5.7 per cent. Between 2014 and 2019, MPA forecasts indicate that net advertising in Asia will climb at an average annual growth rate of 4.5 per cent.

     

    Commenting on the findings of the report, entitled Asia Pacific Advertising Trends & Database 2014 – 15, MPA executive director Vivek Couto said: “The macro landscape is uneven and there are headwinds to economic growth across Asia Pacific. Encouragingly, governments and policymakers across the region have implemented reforms to address structural issues and this trend is likely to accelerate in markets where positive political change has occurred. Ad spends from large multinational advertisers softened through much of 2014, partially offset by spends from domestic advertisers but this has dampened growth across Southeast Asia and other key markets. Multinational advertising demand may return but weakness across global emerging and developed ad markets may exert downward pressure on Asia.”             

        

    Key highlights from the report include:  

       

    o    Southeast Asia rebound. Contraction in advertising across Malaysia, Singapore and Thailand, partially offset by robust though slower growth in Indonesia, Philippines and Vietnam, means that net advertising revenues will grow at only 1.2 per cent in Southeast Asia in 2014, the lowest in five years. A rebound is expected in 2015 with 7.2 per cent growth.

     

    o    Market rankings. China will overtake Japan as Asia’s largest advertising market by 2016 while India will overtake Korea in 2017. By 2019, the six largest ad markets in Asia will be China; Japan; Australia; India; Korea and Indonesia.              

         

    o    TV. TV’s share of the advertising market peaked in 2011 at 42.9 per cent and while still resilient, market share has been edging downwards, reaching 41.6 per cent in 2014 with MPA projecting 40.7 per cent share by 2019. In mature markets, TV will remain a growth media in Hong Kong and to a smaller extent, Australia but the future will be more challenging in Japan and Singapore. In Korea, terrestrial TV also faces a challenging future. In growth markets, TV’s best performers, from a relatively high base, will be Indonesia, India, Philippines, Thailand and Vietnam.

     

    o    Digital. Total digital advertising revenue (including search, display and mobile) is expected to climb at a CAGR of 11.1 per cent over 2014-19 with aggregate market share growing from 23 per cent in 2014 to 31 per cent by 2019. Digital has overtaken TV to be the largest media in terms of advertising on Australia; by 2019, it will also be the largest media by advertising in China, Korea and New Zealand. In more developing online markets such as India, Indonesia, Malaysia and Thailand, digital will have a 10-20 per cent advertising market share by 2019 versus 6-8 per cent in 2014. Mobile advertising will become increasingly significant in China, Japan, Korea and Taiwan while the online video ad pie will continue to expand in China, Japan, Korea and Taiwan and grow rapidly from a low base in markets such as India.   

  • India leads in pay TV piracy in Asia-Pac

    India leads in pay TV piracy in Asia-Pac

    HONG KONG: Pay television piracy continues unabated in the Asia-Pacific region, with total loss in revenue estimated to be $1.13 billion in 2006, out of which India’s dubious contribution is a whopping $ 668 million.

    According to study on piracy in Asia-pacific released by Cable and Satellite Broadcasting Association of Asia (Casbaa) here today ahead of their three-day annual convention, for the fourth consecutive year pay TV piracy has shown an increase with illegal pay TV subscription across the region growing by 20 per cent in 2006 to 5.2 million.
    The report, undertaken in association with Standard Chartered bank, also highlights that pay TV piracy will result in net estimated tax revenue loss of $ 158 million to the region’s governments in 2006.

    In particular, the piracy situation in India (considered the biggest accessible market, though), Hong Kong and Vietnam continues to worsen, the report said.

    Asked by Indiantelevision.com whether the Indian and foreign players operating in India have undertaken any concrete anti-piracy initiatives in India instead of just blaming the government, Casbaa CEO Simon Twiston Davies said, “The industry is constantly in talks with the government and the regulator on the issue.”

    He added that Casbaa has also exhorted the government to “review” existing regulations and strengthen digital infrastructure.
    The grey market deficit in India due to under-reporting by cable operators has grown from $ 632 million in 2005 to $ 667 million in 2006.

    Thailand also suffers from rising cost of piracy and at $ 160 million revenue loss has the second highest rate of piracy in the Asia-Pacific region

    Other markets facing an uphill pay TV piracy battle include Vietnam and the Philippines.

    The “Greenfield” market of Vietnam has the worst ratio of piracy in the region with one legal pay TV subscriber for every 15 illegal connections.

    In the Philippines, estimated net piracy costs due to illegal distributors, largely in provinces, has risen by 24 per cent in 2006.

    Indonesia is not far behind with revenue leakage of $ 23.8 million as government and industry insiders indicate a substantive piracy growth.

    Singapore is the only market covered by the report that brings some cheer to the industry reeling under piracy.

    As a result of ongoing digitization of cable networks, the number of pirated pay TV subscriptions remains low with a 15.8 per cent decline in piracy costs.

    Macau, covered in the study for the first time, has the unenviable distinction of having the region’s second highest piracy rate with 10 pirated connections for every one legal subscriber.

    The study notes that the Macau government’ anti-piracy measures announced last year have been inadequate to arrest rising piracy.

    The new study estimates that the cost of piracy in Hong Kong for 2006 will be $ 32.4 million, a hike of 29 per cent over last year.

    “This could have a genuine impact on Hong Kong’s reputation as an intellectual property rights hub,” Davies said.

    Pointing out that pay TV piracy is “corrosive” in nature and undermines investments in various markets of the Asia-Pacific region, Davies, however, said growth prospects remain good in the region.

    Interestingly, piracy also results in huge losses to governments too with the study estimating that at least $ 158 million being annually lost to regional governments. The losses corporate profit tax ($ 127 million) and VAT/GST ($ 31 million).

    The governments in the region taking the maximum hits due to loss in tax revenue include those in Thailand ($ 59 million), the Philippines ($ 38 million), Australia ($ 14 million) and Vietnam ($ 12 million). The India figure for this segment was not available.

    No wonder, Standard Chartered head of media and entertainment Lee Beasley said, “Pay TV piracy should raise an alarm not only in the pay TV industry, but also for a range of Asian governments.”

    Meanwhile, the annual Casbaa convention where industry people from the broadcasting and cable industry, investors and regulatory authorities from round the globe are converging kicks off Wednesday.

    Apart from the usual rounds of seminars and debates on issues of relevance, a tech exhibition too is being organized.