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Tag: pay TV

  • Q2-16: DISH Network reports 27% profit hike, loses 281K pay-TV subscribers

    Q2-16: DISH Network reports 27% profit hike, loses 281K pay-TV subscribers

    BENGALURU: DISH Network Corp. (DISH) reported 26.52 percent increase in its net profit for the quarter ended 30 June 2016 (Q2-16, current quarter) at $ 410.46 million as compared to $ 324.42 million in the corresponding year ago quarter. Despite activating approximately 527,000 gross new pay-TV subscribers, net pay-TV subscribers declined approximately 281,000 in Q2-16. Comparatively, in Q2-15 approximately 638,000 gross new pay-TV subscribers were added with a net loss of approximately 81,000 pay-TV subscribers.

    DISH reported almost flat revenue (grew by 0.12 percent) in the current quarter of $ 3,837.04 million as compared to revenue of $ 3,832.29 million in Q2-15. Subscriber related revenue in Q2-16 grew 0.7 percent to $3,826.22 million as compared to $3,801.42 million in Q2-15.

    EBIDTA in Q2-16 declined slightly (2.7 percent) to $ 899.54 million from $ 924.45 million in the corresponding year ago quarter.

    Subscribers, ARPU, SAC

    The company closed Q2-16 with 13.593 million pay-TV subscribers, compared to 13.932 million pay-TV subscribers at the end Q2-2015.

    DISH lost approximately 15,000 net broadband subscribers in the second quarter, bringing its broadband subscriber base to approximately 613,000.

    Pay-TV ARPU for Q2-16 totalled $89.98, compared to Q2-2015 pay-TV ARPU of $ 87.91. Pay-TV subscriber churn rate in the current quarter was higher at 1.96 percent versus 1.71 percent for Q2-2015.

    Pay-TV subscriber acquisition cost (SAC) in Q2-16 was $353.08 million as compared to $ 405.70 million in Q2-15.  Pay-TV SAC was $782 per subscriber during Q2-16 compared to $767 during Q2-15 an increase of $15 or 1.9 percent.  

    DISH says that this change was primarily attributable to an increase in advertising costs per activation, partially offset by a decrease in hardware costs per activation. The decrease in hardware costs per activation was primarily due to a higher percentage of remanufactured receivers being activated on new DISH branded pay-TV subscriber accounts and by a reduction in manufacturing costs related to certain receiver systems. This decrease was partially offset by an increase in the percentage of new DISH branded pay-TV subscriber activations with Hopper 3 receiver systems, which have a higher cost per unit than the prior generation Hopper receiver systems.

    Notes

    It may be noted that DISH includes all of its Sling TV subscribers in the company’s total pay-TV metrics, including in the pay-TV subscriber, pay-TV ARPU and pay-TV churn rate numbers set forth below. Sling TV subscribers are reported net of disconnects in DISH’s gross new pay-TV subscriber activations. The Sling branded pay-TV services consist of, among other things, live, linear streaming over-the-top (OTT) internet-based domestic, international and Latino video programming services.

    DISH markets broadband services under the dishNET™ brand in the United States.  In addition to the dishNET branded satellite broadband service, DISH also offers wireline voice and broadband services under the dishNET brand as a competitive local exchange carrier primarily to consumers living in a 14-state region in the western United States.  It primarily bundles dishNET branded services with its DISH branded pay-TV service.

    During Q1-2016 DISH made its next generation Hopper, the Hopper 3, availableto customers nationwide.  Among other things, the Hopper 3 features 16 tuners, delivers an enhanced 4K Ultra HD experience, and supports up to seven TVs simultaneously says the company.

  • Q2-16: DISH Network reports 27% profit hike, loses 281K pay-TV subscribers

    Q2-16: DISH Network reports 27% profit hike, loses 281K pay-TV subscribers

    BENGALURU: DISH Network Corp. (DISH) reported 26.52 percent increase in its net profit for the quarter ended 30 June 2016 (Q2-16, current quarter) at $ 410.46 million as compared to $ 324.42 million in the corresponding year ago quarter. Despite activating approximately 527,000 gross new pay-TV subscribers, net pay-TV subscribers declined approximately 281,000 in Q2-16. Comparatively, in Q2-15 approximately 638,000 gross new pay-TV subscribers were added with a net loss of approximately 81,000 pay-TV subscribers.

    DISH reported almost flat revenue (grew by 0.12 percent) in the current quarter of $ 3,837.04 million as compared to revenue of $ 3,832.29 million in Q2-15. Subscriber related revenue in Q2-16 grew 0.7 percent to $3,826.22 million as compared to $3,801.42 million in Q2-15.

    EBIDTA in Q2-16 declined slightly (2.7 percent) to $ 899.54 million from $ 924.45 million in the corresponding year ago quarter.

    Subscribers, ARPU, SAC

    The company closed Q2-16 with 13.593 million pay-TV subscribers, compared to 13.932 million pay-TV subscribers at the end Q2-2015.

    DISH lost approximately 15,000 net broadband subscribers in the second quarter, bringing its broadband subscriber base to approximately 613,000.

    Pay-TV ARPU for Q2-16 totalled $89.98, compared to Q2-2015 pay-TV ARPU of $ 87.91. Pay-TV subscriber churn rate in the current quarter was higher at 1.96 percent versus 1.71 percent for Q2-2015.

    Pay-TV subscriber acquisition cost (SAC) in Q2-16 was $353.08 million as compared to $ 405.70 million in Q2-15.  Pay-TV SAC was $782 per subscriber during Q2-16 compared to $767 during Q2-15 an increase of $15 or 1.9 percent.  

    DISH says that this change was primarily attributable to an increase in advertising costs per activation, partially offset by a decrease in hardware costs per activation. The decrease in hardware costs per activation was primarily due to a higher percentage of remanufactured receivers being activated on new DISH branded pay-TV subscriber accounts and by a reduction in manufacturing costs related to certain receiver systems. This decrease was partially offset by an increase in the percentage of new DISH branded pay-TV subscriber activations with Hopper 3 receiver systems, which have a higher cost per unit than the prior generation Hopper receiver systems.

    Notes

    It may be noted that DISH includes all of its Sling TV subscribers in the company’s total pay-TV metrics, including in the pay-TV subscriber, pay-TV ARPU and pay-TV churn rate numbers set forth below. Sling TV subscribers are reported net of disconnects in DISH’s gross new pay-TV subscriber activations. The Sling branded pay-TV services consist of, among other things, live, linear streaming over-the-top (OTT) internet-based domestic, international and Latino video programming services.

    DISH markets broadband services under the dishNET™ brand in the United States.  In addition to the dishNET branded satellite broadband service, DISH also offers wireline voice and broadband services under the dishNET brand as a competitive local exchange carrier primarily to consumers living in a 14-state region in the western United States.  It primarily bundles dishNET branded services with its DISH branded pay-TV service.

    During Q1-2016 DISH made its next generation Hopper, the Hopper 3, availableto customers nationwide.  Among other things, the Hopper 3 features 16 tuners, delivers an enhanced 4K Ultra HD experience, and supports up to seven TVs simultaneously says the company.

  • Dish TV to introduce card-less set top boxes

    Dish TV to introduce card-less set top boxes

    MUMBAI: Dish TV India is looking at moving away from set top boxes requiring smart cards for subscribers to its satellite pay TV service. This is likely to take place over the next three or four months.

    Last weekend, India’s largest DTH provider announced that it had selected Rambus’ Cryptomedia security platform for use in its pay TV satellite system. The platform, which includes a hardware root-of-trust embedded in the set-top box chipset, ensures secure distribution of premium content for cable and satellite operators while eliminating the need for a smart card and enhancing usability of the set-top box.

    “As we look to grow our customer base from the current 13 million subscribers, the demand for cost-effective and robust content protection solutions becomes increasingly important for consumers seeking premium content,” said Dish TV India managing director Jawahar Goel. “By leveraging the embedded CryptoMedia core, we no longer need a smart card to provide secure access to premium content, significantly reducing the cost and improving the security of the set-top box.”

    The CryptoMedia Content Protection Core, developed by Rambus Cryptography Research, is one of several new security elements to be integrated in Dish TV India’s latest set-top boxes. Together with the CryptoMedia operator services, the solution provides a flexible security foundation that allows Dish TV India to easily update and reconfigure software and hardware security throughout the lifecycle of the set-top box. Dish TV India will launch the new platform in broad commercial operation later this year.

    “By using the CryptoMedia Content Protection Core, Dish TV India recognizes the value of enabling another level of protection in the set-top box chipset alongside security elements provided by CAS vendors,” said Martin Scott, senior vice president and general manager of the Security Division at Rambus. “Our CryptoMedia Security Platform provides Dish TV India with extra protection for the delivery of content, utilizing our expertise in both embedded security and ecosystem enablement.”

    Formerly part of the CryptoFirewall family, the CryptoMedia Content Protection Core is designed to provide strong security and superior system design flexibility for premium content distribution. The solution minimizes the risk of security failure and helps simplify product development. The core is available in a broad range of set-top box and smart TV chipsets and is compatible with the leading CAS and DRM systems to prevent unauthorized access to content and services, including features like pay-per-view and service-tier upgrades.

  • Dish TV to introduce card-less set top boxes

    Dish TV to introduce card-less set top boxes

    MUMBAI: Dish TV India is looking at moving away from set top boxes requiring smart cards for subscribers to its satellite pay TV service. This is likely to take place over the next three or four months.

    Last weekend, India’s largest DTH provider announced that it had selected Rambus’ Cryptomedia security platform for use in its pay TV satellite system. The platform, which includes a hardware root-of-trust embedded in the set-top box chipset, ensures secure distribution of premium content for cable and satellite operators while eliminating the need for a smart card and enhancing usability of the set-top box.

    “As we look to grow our customer base from the current 13 million subscribers, the demand for cost-effective and robust content protection solutions becomes increasingly important for consumers seeking premium content,” said Dish TV India managing director Jawahar Goel. “By leveraging the embedded CryptoMedia core, we no longer need a smart card to provide secure access to premium content, significantly reducing the cost and improving the security of the set-top box.”

    The CryptoMedia Content Protection Core, developed by Rambus Cryptography Research, is one of several new security elements to be integrated in Dish TV India’s latest set-top boxes. Together with the CryptoMedia operator services, the solution provides a flexible security foundation that allows Dish TV India to easily update and reconfigure software and hardware security throughout the lifecycle of the set-top box. Dish TV India will launch the new platform in broad commercial operation later this year.

    “By using the CryptoMedia Content Protection Core, Dish TV India recognizes the value of enabling another level of protection in the set-top box chipset alongside security elements provided by CAS vendors,” said Martin Scott, senior vice president and general manager of the Security Division at Rambus. “Our CryptoMedia Security Platform provides Dish TV India with extra protection for the delivery of content, utilizing our expertise in both embedded security and ecosystem enablement.”

    Formerly part of the CryptoFirewall family, the CryptoMedia Content Protection Core is designed to provide strong security and superior system design flexibility for premium content distribution. The solution minimizes the risk of security failure and helps simplify product development. The core is available in a broad range of set-top box and smart TV chipsets and is compatible with the leading CAS and DRM systems to prevent unauthorized access to content and services, including features like pay-per-view and service-tier upgrades.

  • Indian Pay TV subscription to break Rs 10,000 crore barrier in 2016: MPA

    Indian Pay TV subscription to break Rs 10,000 crore barrier in 2016: MPA

    MUMBAI: It’s heartening news for many in the pay TV industry, the slow pace of digitalization, nothswithstanding.

    Subscription revenues for broadcasters in India from cable TV and DTH platforms are on course to cross the Rs 10,000 crore (US $1.5 billion) mark for by end 2016. That’s the prediction of Singapore-based industry research and analysis firm Media Partners Asia (MPA).

    On the whole, Asia Pacific Pay-TV And Broadband Markets 2016, predicts that
    India’s pay-TV industry is on course to generate $9.4 billion in sales this year.

    Of this, the pay TV channels will account for $4.9 billion in aggregate revenue in 2016, up 16 per cent year-on-year. (The rest of the $4.5 billion is revenue that accrues to cable TV and DTH, that is the platforms)

    The revenue mix is approximately 70:30, skewed in favor of ad sales. Maintaining strong future growth will require channel operators to manage several structural changes, including the increased importance of rural markets under BARC’s new TV measurement system, changing norms on channel pricing and the rise of OTT video services.

    Pay-TV channel advertising revenue should grow by 15 per cent this year, to reach US$3.4 billion, predicts MPA.

    Says MPA executive director Vivek Couto: “Future economic growth should remain strong, which will support solid gains in the pay-TV industry. Digitalising India’s 65 million analog subscribers remains a major opportunity for cable, DTH and other emerging pay-TV platforms. Digital cable has done well to attain a 30 per cent share in Phase III areas, which tend to be DTH strongholds. At the same time, changes in the distribution landscape, together with gaps in traditional pay-TV services, are fostering the growth of new platforms. While Reliance Industries has yet to unveil pricing and bundling plans for its broadband service R-Jio, the product could disrupt traditional pay-TV distribution in urban markets. Expanded TV ratings from BARC meanwhile, which gives a better picture of viewing in rural areas, has also helped Prasar Bharati’s Freedish gain traction in Phase III and Phase IV areas.”

    MPA says the future looks bright. The report says that India’s pay TV industry will grow sales at 9.a 2 per cent compounded annual growth rate (CAGR) between 2016 and 2021 to reach $14.5 billion in revenue by 2021, increasing thereafter to $18 billion by 2025.

    Total pay-TV subscribers are forecast to grow from 152 million this year to 183 million by 2025. Pay-TV penetration, including multiple subs in a home, should remain stable over 2016-25 at 80 per cent of TV homes, although digital pay-TV subs are projected to grow from 93 million to 129 million over the same period. MPA forecasts that 70 per cent of India’s pay-TV base will be digitalized by 2025.

    Ongoing cable digitisation will help facilitate a gradual increase in pay-TV monthly ARPUs, from US$3.3 in 2016 to US$4.5 in 2025, although this will be offset by the 30 per cent share of pay-TV subs still accruing to analog by 2025. Cable will remain pay-TV’s largest platform but its share of pay-TV subscribers is expected to decline, from 68 per cent in 2016 to 60 per cent in 2025, as DTH attracts the majority of new subs.

  • Indian Pay TV subscription to break Rs 10,000 crore barrier in 2016: MPA

    Indian Pay TV subscription to break Rs 10,000 crore barrier in 2016: MPA

    MUMBAI: It’s heartening news for many in the pay TV industry, the slow pace of digitalization, nothswithstanding.

    Subscription revenues for broadcasters in India from cable TV and DTH platforms are on course to cross the Rs 10,000 crore (US $1.5 billion) mark for by end 2016. That’s the prediction of Singapore-based industry research and analysis firm Media Partners Asia (MPA).

    On the whole, Asia Pacific Pay-TV And Broadband Markets 2016, predicts that
    India’s pay-TV industry is on course to generate $9.4 billion in sales this year.

    Of this, the pay TV channels will account for $4.9 billion in aggregate revenue in 2016, up 16 per cent year-on-year. (The rest of the $4.5 billion is revenue that accrues to cable TV and DTH, that is the platforms)

    The revenue mix is approximately 70:30, skewed in favor of ad sales. Maintaining strong future growth will require channel operators to manage several structural changes, including the increased importance of rural markets under BARC’s new TV measurement system, changing norms on channel pricing and the rise of OTT video services.

    Pay-TV channel advertising revenue should grow by 15 per cent this year, to reach US$3.4 billion, predicts MPA.

    Says MPA executive director Vivek Couto: “Future economic growth should remain strong, which will support solid gains in the pay-TV industry. Digitalising India’s 65 million analog subscribers remains a major opportunity for cable, DTH and other emerging pay-TV platforms. Digital cable has done well to attain a 30 per cent share in Phase III areas, which tend to be DTH strongholds. At the same time, changes in the distribution landscape, together with gaps in traditional pay-TV services, are fostering the growth of new platforms. While Reliance Industries has yet to unveil pricing and bundling plans for its broadband service R-Jio, the product could disrupt traditional pay-TV distribution in urban markets. Expanded TV ratings from BARC meanwhile, which gives a better picture of viewing in rural areas, has also helped Prasar Bharati’s Freedish gain traction in Phase III and Phase IV areas.”

    MPA says the future looks bright. The report says that India’s pay TV industry will grow sales at 9.a 2 per cent compounded annual growth rate (CAGR) between 2016 and 2021 to reach $14.5 billion in revenue by 2021, increasing thereafter to $18 billion by 2025.

    Total pay-TV subscribers are forecast to grow from 152 million this year to 183 million by 2025. Pay-TV penetration, including multiple subs in a home, should remain stable over 2016-25 at 80 per cent of TV homes, although digital pay-TV subs are projected to grow from 93 million to 129 million over the same period. MPA forecasts that 70 per cent of India’s pay-TV base will be digitalized by 2025.

    Ongoing cable digitisation will help facilitate a gradual increase in pay-TV monthly ARPUs, from US$3.3 in 2016 to US$4.5 in 2025, although this will be offset by the 30 per cent share of pay-TV subs still accruing to analog by 2025. Cable will remain pay-TV’s largest platform but its share of pay-TV subscribers is expected to decline, from 68 per cent in 2016 to 60 per cent in 2025, as DTH attracts the majority of new subs.

  • Research and Markets’ World DTH TV Update for 2015

    Research and Markets’ World DTH TV Update for 2015

    MUMBAI: What’s driving DTH subscriber growth globally? According to research firm, Research and Markets’ (R&M’s) latest report, World DTH Market End 2015, almost one third of pay TV satellite growth is a result of telecom companies making DTH offers.

    Telecoms players’ foray into extending their current portfolios along with strategy of selling bundles is the reason behind this..

    The market research outfit says that DTH television is growing in all regions, excepting in the US where it has gone down. Latin America has added the maximum DTH subs growing from 14 million in 2010 to 35 million in 2015 – a compounded annual growth rate of 20 per cent.

    Next to Latin America the other region growing fast is APAC at a CAGR of 17 per cent followed by Middle-East Africa (MEA) at a CAGR of 15 per cent. Europe has grown at a CAGR of 5 per cent for 2010-15.

    The author has tracked tracks TV subscribers quarterly based on technology type – Cable, DTT, IPTV and DTH. The report analyses the DTH pay TV subscribers globally and the share of telecom operators in the DTH space.

  • Research and Markets’ World DTH TV Update for 2015

    Research and Markets’ World DTH TV Update for 2015

    MUMBAI: What’s driving DTH subscriber growth globally? According to research firm, Research and Markets’ (R&M’s) latest report, World DTH Market End 2015, almost one third of pay TV satellite growth is a result of telecom companies making DTH offers.

    Telecoms players’ foray into extending their current portfolios along with strategy of selling bundles is the reason behind this..

    The market research outfit says that DTH television is growing in all regions, excepting in the US where it has gone down. Latin America has added the maximum DTH subs growing from 14 million in 2010 to 35 million in 2015 – a compounded annual growth rate of 20 per cent.

    Next to Latin America the other region growing fast is APAC at a CAGR of 17 per cent followed by Middle-East Africa (MEA) at a CAGR of 15 per cent. Europe has grown at a CAGR of 5 per cent for 2010-15.

    The author has tracked tracks TV subscribers quarterly based on technology type – Cable, DTT, IPTV and DTH. The report analyses the DTH pay TV subscribers globally and the share of telecom operators in the DTH space.

  • MPA: APAC pay TV growth to slowdown 2016-2025

    MPA: APAC pay TV growth to slowdown 2016-2025

    MUMBAI: Slowdown. After years of dizzying speedy growth, the Asia-Pacific pay-TV industry is expected to grow at a very sedate average 5.8 per cent annually between 2016 and 2021, says leading industry analyst Media Partners Asia (MPA in its new report Asia Pacific Pay-TV & Broadband Markets, published today.

    MPA projects pay-TV industry sales across 18 major markets in APAC to climb from $54 billion in 2016 to US$72 billion by 2021, rising thereafter to US $81 billion by 2025. The pace of pay-TV subscriber and revenue growth is slowing however, weakened by an economic slowdown and increasing competition from both legal and illegal alternatives. Pay-TV subscriber growth has declined or substantially decelerated in Hong Kong, Indonesia, Malaysia and Singapore in particular.

    At the same time however, India and Korea remain two of the region’s largest and most scalable pay-TV opportunities. Revenue growth will also accelerate in Australia and the Philippines, largely thanks to subscriber growth.

    However, MPA analysts have lowered subscriber growth forecasts across much of Southeast Asia, especially for Indonesia, Malaysia and Singapore, although ARPU (average revenue per user) should remain resilient in both Malaysia and Singapore.

    The pay-TV industry in China, meanwhile, remains the largest in the region and is becoming increasingly digitalized. Pay-TV growth opportunities for broadcasters are limited however, due to increasing regulation as well as competition from free and paid online video services.

    Elsewhere in the region, subscription-based video-on-demand (SVOD) services have had a negligible impact on pay-TV so far, despite the global launch of Netflix earlier this year, in addition to increasing competition among lower-priced regional and local SVOD services.

    Most pay-TV subscribers downgrading or canceling pay-TV services are moving instead to illegal services, as well as to free, ad-supported options across both TV and online video.

    At the same time, more pay-TV operators are rolling out connected set-top boxes that can incorporate OTT video services. In addition, some operators (telcos in particular) are aggressively hard-bundling video content, including pay-TV channels, with high-speed broadband. This is helping drive subscriber growth, especially in a number of Southeast Asian markets.

    Commenting on the report, MPA executive director Vivek Couto said:

    “Pay-TV providers are increasingly focused on repackaging and re-pricing both linear and on-demand services. Local and regional Asian programming is also becoming increasingly important. At the same time, sports, kids, infotainment and Hollywood movies will remain mainstays of the pay-TV bundle, although channels offering Hollywood TV series are being disrupted by both legal and illegal OTT. Few pay-TV operators have been able to capture or monetize large-scale online video viewing so far, although early results in Hong Kong and Korea are encouraging. The goal is driving the next cycle of customer growth and consumer spend. Pay-TV user interfaces and data analytics are improving, although often too slowly to effectively compete with legal and illegal OTT rivals. Increasingly, viable pay-TV operators will become drivers and targets for M&A and consolidation, as the worlds of pay-TV, broadband and OTT collide and converge in the wider context of media and telecoms.”

    Ex-China, which remains a utility-oriented and highly regulated pay-TV market, Asia Pacific added 9.6 million net new pay-TV customers last year, the slowest pace of growth since 1997-98. MPA analysts project a spike to 10.4 million net additions ex-China this year, driven by government-mandated cable digitalization in India. Subscriber growth should decelerate again from next year onwards, moderating to between 4 million to 8 million net adds per annum between 2018 and 2022.

    Including China, MPA sees total pay-TV subscribers in Asia Pacific growing from 567 million in 2016 to 764 million by 2025. Adjusted for multiple connections in a household, pay-TV penetration in Asia Pacific will grow from 55 per cent of TV households in 2016 to 61 per cent by 2025.

    Digital pay-TV penetration in Asia Pacific will increase from 80 per cent of pay-TV subs in 2016 to 91 per cent by 2025, as pay-TV networks in most markets go 90-100 per cent digital, with the exception of India (70 per cent) and Pakistan (32 per cent) in the 18 markets covered in the report. HD penetration of digital pay-TV subs in Asia Pacific will grow from 30 per cent in 2016 to 46 per cent in 2025.

    The fastest growing segment within the Asia Pacific pay-TV industry over 2016-21 will be value-added services (VAS), driven by VOD, as revenues climb at an 11 per cent CAGR over the next five years. Australia, China, Japan and Korea will be the biggest markets for VOD revenue growth. Malaysia will lead amongst smaller markets.

    In standout pay-TV markets such as India and Korea, pay-TV subscription revenue growth will be driven by high volumes and a level of ARPU upside (partially offset by price competition). Higher yields will also boost subscription revenue growth in Hong Kong, Malaysia, the Philippines, Singapore and Vietnam.

    Pay-TV advertising will expand from US$11.6 billion in spend in 2016 to US$16.2 billion by 2021, with growth driven by markets with high levels of pay-TV penetration such as India and Korea, along with China. Meanwhile, pay-TV ad spend in Australia, Japan and Taiwan will remain material, although growth in each of these markets will soften. Malaysia and the Philippines will remain the standout markets for pay-TV advertising in Southeast Asia.

  • MPA: APAC pay TV growth to slowdown 2016-2025

    MPA: APAC pay TV growth to slowdown 2016-2025

    MUMBAI: Slowdown. After years of dizzying speedy growth, the Asia-Pacific pay-TV industry is expected to grow at a very sedate average 5.8 per cent annually between 2016 and 2021, says leading industry analyst Media Partners Asia (MPA in its new report Asia Pacific Pay-TV & Broadband Markets, published today.

    MPA projects pay-TV industry sales across 18 major markets in APAC to climb from $54 billion in 2016 to US$72 billion by 2021, rising thereafter to US $81 billion by 2025. The pace of pay-TV subscriber and revenue growth is slowing however, weakened by an economic slowdown and increasing competition from both legal and illegal alternatives. Pay-TV subscriber growth has declined or substantially decelerated in Hong Kong, Indonesia, Malaysia and Singapore in particular.

    At the same time however, India and Korea remain two of the region’s largest and most scalable pay-TV opportunities. Revenue growth will also accelerate in Australia and the Philippines, largely thanks to subscriber growth.

    However, MPA analysts have lowered subscriber growth forecasts across much of Southeast Asia, especially for Indonesia, Malaysia and Singapore, although ARPU (average revenue per user) should remain resilient in both Malaysia and Singapore.

    The pay-TV industry in China, meanwhile, remains the largest in the region and is becoming increasingly digitalized. Pay-TV growth opportunities for broadcasters are limited however, due to increasing regulation as well as competition from free and paid online video services.

    Elsewhere in the region, subscription-based video-on-demand (SVOD) services have had a negligible impact on pay-TV so far, despite the global launch of Netflix earlier this year, in addition to increasing competition among lower-priced regional and local SVOD services.

    Most pay-TV subscribers downgrading or canceling pay-TV services are moving instead to illegal services, as well as to free, ad-supported options across both TV and online video.

    At the same time, more pay-TV operators are rolling out connected set-top boxes that can incorporate OTT video services. In addition, some operators (telcos in particular) are aggressively hard-bundling video content, including pay-TV channels, with high-speed broadband. This is helping drive subscriber growth, especially in a number of Southeast Asian markets.

    Commenting on the report, MPA executive director Vivek Couto said:

    “Pay-TV providers are increasingly focused on repackaging and re-pricing both linear and on-demand services. Local and regional Asian programming is also becoming increasingly important. At the same time, sports, kids, infotainment and Hollywood movies will remain mainstays of the pay-TV bundle, although channels offering Hollywood TV series are being disrupted by both legal and illegal OTT. Few pay-TV operators have been able to capture or monetize large-scale online video viewing so far, although early results in Hong Kong and Korea are encouraging. The goal is driving the next cycle of customer growth and consumer spend. Pay-TV user interfaces and data analytics are improving, although often too slowly to effectively compete with legal and illegal OTT rivals. Increasingly, viable pay-TV operators will become drivers and targets for M&A and consolidation, as the worlds of pay-TV, broadband and OTT collide and converge in the wider context of media and telecoms.”

    Ex-China, which remains a utility-oriented and highly regulated pay-TV market, Asia Pacific added 9.6 million net new pay-TV customers last year, the slowest pace of growth since 1997-98. MPA analysts project a spike to 10.4 million net additions ex-China this year, driven by government-mandated cable digitalization in India. Subscriber growth should decelerate again from next year onwards, moderating to between 4 million to 8 million net adds per annum between 2018 and 2022.

    Including China, MPA sees total pay-TV subscribers in Asia Pacific growing from 567 million in 2016 to 764 million by 2025. Adjusted for multiple connections in a household, pay-TV penetration in Asia Pacific will grow from 55 per cent of TV households in 2016 to 61 per cent by 2025.

    Digital pay-TV penetration in Asia Pacific will increase from 80 per cent of pay-TV subs in 2016 to 91 per cent by 2025, as pay-TV networks in most markets go 90-100 per cent digital, with the exception of India (70 per cent) and Pakistan (32 per cent) in the 18 markets covered in the report. HD penetration of digital pay-TV subs in Asia Pacific will grow from 30 per cent in 2016 to 46 per cent in 2025.

    The fastest growing segment within the Asia Pacific pay-TV industry over 2016-21 will be value-added services (VAS), driven by VOD, as revenues climb at an 11 per cent CAGR over the next five years. Australia, China, Japan and Korea will be the biggest markets for VOD revenue growth. Malaysia will lead amongst smaller markets.

    In standout pay-TV markets such as India and Korea, pay-TV subscription revenue growth will be driven by high volumes and a level of ARPU upside (partially offset by price competition). Higher yields will also boost subscription revenue growth in Hong Kong, Malaysia, the Philippines, Singapore and Vietnam.

    Pay-TV advertising will expand from US$11.6 billion in spend in 2016 to US$16.2 billion by 2021, with growth driven by markets with high levels of pay-TV penetration such as India and Korea, along with China. Meanwhile, pay-TV ad spend in Australia, Japan and Taiwan will remain material, although growth in each of these markets will soften. Malaysia and the Philippines will remain the standout markets for pay-TV advertising in Southeast Asia.