Southeast Asia to Lead Growth in TV Subscription Spend

NEW YORK: PwC’s latest entertainment and media outlook reveals that Indonesia will be the fastest-growing market in terms of TV subscription spending, followed by Vietnam and Thailand.

From 2013 to 2017, TV subscription revenues in Indonesia are expected to deliver a 21-percent compound annual growth rate to reach $1.7 billion. The CAGR in Vietnam is forecast to be 19 percent, followed by Thailand and Kenya at 14 percent each.

Global expenditure on TV subscriptions will hit $212.4 billion in 2017, up from $171.7 billion in 2012, reflecting a 4.3-percent CAGR. PwC says this is a “reasonable” growth rate but is below historic levels. TV ARPU has peaked, according to the Global Entertainment and Media Outlook 2013-2017, as dual- and triple-play bundles push down the price of the TV component of the package. There are also low-cost pay-TV services popping up in emerging markets.

Cable remains the dominant platform, at 515.4 million homes in 2012, rising to 566.3 million in 2017, a CAGR of just 1.9 percent, versus satellite’s growth rate of 7.1 percent. The number of satellite pay-TV homes will hit 247.2 million by 2017. IPTV, meanwhile, will have a 13.8-percent CAGR, with the number of homes rising to 112.1 million in 2017.