Report Shows Robust Growth in Asian Pay TV

HONG KONG: The top 40 pay-TV operators in Asia added 5.8 million net new subscribers between them in the first half of this year, taking the combined customer base to 65.3 million, according to Media Partners Asia (MPA).

The top 40 platforms account for about a third of the region’s pay-TV base, MPA says. These leading operators are expected to end 2009 with 70.7 million subscribers, reflecting an annual growth rate of almost 20 percent. 

“In spite of a recessionary macro environment, the demand for pay-TV remains robust in Asia Pacific and in certain instances, ARPUs along with profits are also growing healthily,” said Vivek Couto, the executive director of the research firm. “Pay TV, especially when anchored to digital upgrade, competition and next-generation broadband digital services, is proving itself as a sustainable proxy for consumption and investment.”

The gains in the region are being driven by subscriber growth in China and India; excluding those two markets, the growth rate for the top 40 platforms is expected to be less than 8 percent this year. MPA research found a softening of subscriber and ARPU growth in Singapore and Hong Kong, and a rise in Indonesia’s churn rate. In Thailand, Malaysia and Australia, customer additions remain healthy, MPA says. Japan, meanwhile, is benefiting from the growth of IPTV services.

China, Australia, Japan and Korea are leading the digital TV market. Overall, more than 70 percent of the top 40 operators’ base had upgraded to DTV by the end of June. By end 2009, the total digital TV base among the top operators is forecast to reach more than 54 million, reflecting more than 75 percent of total pay-TV subscribers and close to a 50-percent market share of digital pay-TV across Asia.

MPA has identified a number of issues facing these top operators in the coming months. These include the bids for English Premier League football in Hong Kong and key Southeast Asian markets later this year; new TV channel launches in Indonesia; the financing of digital cable in India; digital cable ARPU growth in China; expansion prospects for Astro in Malaysia; business models for Indian DTH platforms and profitability for IPTV platforms in Hong Kong, Singapore and Korea.