Report: AsiaPac Boasts 500 Million-Plus Multichannel TV Homes

HONG KONG: According to CASBAA’s recently updated Asia Pacific Multichannel TV Advertising 2015 report, there are currently more than 500 million multichannel homes across the Asia Pacific, marking the largest number by region anywhere in the world today.

Even though average revenue per user (ARPU) in the region remains relatively low, according to the report, the AsiaPac's aggregate video subscription revenue is forecast to reach $36.2 billion by the end of 2014. This makes it the third most lucrative multichannel market, behind only North America and Western Europe.

Cable connections dominate the AsiaPac multichannel landscape. SNL Kagan analysis indicates that approximately 80 percent of pay-TV households in the region are connected via cable. There are some 224 million cable TV households in China alone and close to 100 million in India. SNL Kagan believes cable’s stronghold on the Asia-Pacific pay-TV market will slip over the coming years, as DTH and IPTV services gain more market share.

Even though cable is dominant in the majority of AsiaPac markets, DTH holds the highest share of multichannel subs in Malaysia, New Zealand, Australia and Indonesia. There are around 35.8 million active pay DTH subscribers in India, accounting for the majority of the region's total DTH connections.

The Asia-Pacific region features the world’s third-largest IPTV economy after North America and Western Europe. SNL Kagan analysis indicates IPTV will be the fastest-growing multichannel platform in the Asia Pacific over the coming years, with China, Japan and South Korea ranking as key markets for growth.

"Our latest report reinforces the fact that the Asia Pacific is truly the growth engine for the multichannel TV industry today," said Christopher Slaughter, the CEO of CASBAA. "When we look at non-terrestrial TV connections, 61 percent of homes in Asia now receive multichannel TV and the region is poised to strengthen its leadership as the largest multichannel video market globally in terms of subscribers.”

The pay-TV advertising market also continues to grow in Asia Pacific with an estimated growth of 9.4 percent year-on-year increase for 2014. This compares to a 7.6 percent increase for the total ad market. TV is predicted to maintain a strong 40 percent of all adspend by 2019 in the Asia Pacific, down just slightly from the 41 percent seen today.

Jonathan Barnard, the head of forecasting at ZenithOptimedia, added: “Television is the dominant advertising medium in Asia Pacific, attracting 40 percent of all ad expenditure this year, and ZenithOptimedia forecasts it to grow at an average of 5 percent a year until at least 2016. Meanwhile online video offers high-quality content that viewers can watch whenever they want and—using smartphones and tablets—wherever they want. Video advertising as a whole will remain the best way to build brand awareness and engagement for many years to come.”