MPA Report Charts AsiaPac Pay-TV Slowdown

Between 2022 and 2027, the Asia-Pacific region, excluding China, will add about 1 million net new pay-TV subscribers, with India and parts of Southeast Asia helping to offset cord-cutting in other key markets, according to Media Partners Asia (MPA).

Asia Pacific pay-TV subscriber growth will be relatively flat this year, as some 106,000 will cut the cord. Pay-TV cancellations peaked between 2019 and 2021, MPA indicates, when some 9.1 million customers cut the cord, notably in Australia, Malaysia and Thailand. The findings were released in MPA’s latest Asia Pacific Pay-TV Distribution report.

MPA estimates that excluding China, the region will be home to 234.7 million pay-TV subs in 2027, with penetration slipping from 50 percent this year to 48 percent. India will remain the biggest pay-TV market in AsiaPac after China, accounting for 52 percent of all subs in 2027, followed by Korea at 16 percent, Pakistan and Vietnam at 6 percent each and Japan at 5 percent.

Vivek Couto, executive director of MPA, commented, “Pay-TV’s future sustainability is anchored to bundled IPTV and home broadband services with telcos and pay-TV operators also integrating premium online SVOD services through the launch of Android platforms, hybrid STBs and various new packages. Linear TV remains important with local and Asian content, sports and niche international channels driving viewership. However, the growth of legal and affordable online SVOD options as well as the pervasiveness of piracy means that the value of premium sports and entertainment is migrating rapidly away from pay-TV to online. Operator consolidation grew between 2019 and 2021 and we expect more to occur in markets such as China, India, Indonesia, Japan, Korea, Malaysia and Taiwan. Linear channel products are being rationalized in many markets across Southeast Asia as well as India, Hong Kong, Japan and Taiwan.”

China alone is home to some 578 million pay-TV subs as of this year, a 90 percent penetration rate of TV homes. IPTV leads in terms of subscribers and revenues.

Total Asia Pacific pay-TV industry revenues, including subscription and advertising, are expected to rise 3.5 percent this year, with a 2.1 percent compound annual growth rate (CAGR) through 2027. Excluding China, revenues will rise 1.4 percent this year, with a 1.7 percent CAGR through 2027. India, Korea, the Philippines and Vietnam will drive revenue gains this year, with India and Korea remaining significant contributors through 2027.

This year, India, Korea and Japan will account for a combined 74 percent share of revenues, rising to 78 percent in 2027. Australia, Malaysia and the Philippines will contribute 7 percent this year.