ITV

Tag: Media Partners Asia Report

  • India’s active DTH subscriber base to reach 75 million by 2023: MPA

    India’s active DTH subscriber base to reach 75 million by 2023: MPA

    MUMBAI: Even as India continues to remain the most important market for DTH pay-TV in Asia Pacific, active direct to home (DTH) subscribers in the country are projected to touch 75 million by 2023 from 41 million in 2014.

     

    The increase in contribution from high-ARPU (average revenue per user) HD subscribers, upselling of SD subscribers to high-value packs, and a higher uptake of VAS, will bolster industry economics in India, as per a report by Media Partners Asia (MPA).

     

    Additionally, total Asia Pacific DTH pay-TV subscribers grew nine per cent in 2014 to more than 61 million in 2014 while industry revenue grew five per cent to top $9 billion, according to the MPA research.

     

    While India, Malaysia and the Philippines continue to remain strong DTH markets, Indonesia, Korea and Japan are coming under increased pressure.

     

    MPA projections indicate that total Asia Pacific DTH industry pay-TV revenue will grow at seven per cent CAGR to $12.5 billion by 2019 and thereafter grow to reach $15 billion by 2023, with significant upside coming from HD and VoD-driven value added services (VAS).

     

    DTH’s share of total pay-TV subscribers in Asia Pacific will grow from 12 per cent to 22 per cent over the next 10 years. In recent years, DTH has experienced a significant phase of growth in Asia, driven by the expansion of DTH pay-TV in India, Southeast Asia and Korea. However, the growth of broadband, IPTV and OTT is placing a natural limit on future growth while macro concerns and aggressive competition are also challenging.

     

    The Philippines has also emerged as a strong market for DTH growth in recent years, driven by Cignal and Gsat. Total DTH pay-TV subs reached 1.06 million in 2014 and will rise 3x over the next decade with future upside coming from significant HD growth and package upselling, which will help boost ARPUs.

     

    DTH will also play an important role in the growth of pay-TV in Myanmar, Sri Lanka and Vietnam but its growth remains capped in markets such as Indonesia and Thailand. However, in Indonesia there could be significantly more upside if leading operators convert the existing free satellite market to pay-TV (starting with a low cost offer) and programme more premium local pay channels.

     

    In Malaysia, DTH will retain a dominant chunk of the pay-TV market, driven by Astro through HD and DVR services as well as VoD and the emergence of premium vernacular and Asian content, exclusive to the Astro DTH platform.

  • India’s pay-TV revenue to grow at 12% CAGR over five years: MPA

    India’s pay-TV revenue to grow at 12% CAGR over five years: MPA

    MUMBAI: India’s pay-TV market remains growth oriented. A new report released by Media Partners Asia (MPA) projects a compound annual growth rate (CAGR) of 12 per cent in total pay-TV channel revenue between 2014 and 2019 and a nine per cent CAGR between 2014-23.

     

    The report further says that the total channel revenue will reach $8 billion by 2023 with 67 per cent derived from advertising and 23 per cent from subscription.

     

    Moreover, during 2014 the pay-TV channels sector generated $3.5 billion in aggregate revenue, a growth of nine per cent year-on-year. The revenue mix stood at 68:32, skewed in favour of advertising sales. Affiliate fees for pay-TV broadcasters reached $1.1 billion in 2014, with $525 million from cable and $592 million from DTH.

     

    For the first time, revenue from digital cable outgrew analog cable revenues. International revenues for pay-TV channels, which MPA does include in its analysis, totaled $280 million in 2014.

     

    Additionally, India’s pay-TV industry will grow sales at a 9.8 per cent CAGR between 2014 and 2019 to reach $12.4 billion in revenue by 2019, according to the report.

     

    The report further projects the sales to reach close to $16 billion by 2023. The pay-TV industry, as per MPA report, generated $7.7 billion in sales in 2014.

     

    The report further highlights that the total pay-TV subscribers are expected to grow from 140 million in 2014 to 184 million by 2023. Pay-TV penetration, including multiple subs in a home, will climb incrementally from 80 per cent to 83 per cent over the 2014-23 period.

     

    That apart, total digital pay-TV subscribers will grow from 68 million to 126 million over the 2014-23 period. Adjusted for multiple subscriptions, digital penetration of total pay-TV subscribers will be trending towards 67 per cent by 2023 versus 46 per cent in 2014.

     

    According to MPA, analog to digital conversion will facilitate a gradual increase in pay-TV monthly ARPUs from $3.2 in 2014 to $4.7 in 2023, offset by a 30 per cent-plus share of pay-TV subscribers still accruing to analog, by 2023. Cable will remain the dominant platform; however, its share of pay-TV subscribers is expected to decline from 71 per cent in 2014 to 60 per cent in 2023, as DTH will command a majority share of net-new additions in the industry.

     

    MPA vice president Mihir Shah said, “The pace of digitalization has slowed to a crawl as the cable industry pauses to address issues in order to improve monetization. This will help the industry deliver more ROI on already digitalized markets before addressing the remainder 70 million plus analog cable homes that require conversion. This is a big opportunity for cable, DTH and other emerging alternative pay-TV platforms.”