India to be Asia’s leading pay-TV market

***image2:left***Hong Kong — Media Partners Asia, Ltd (MPA) recently announced the release of “Asia Pacific Pay TV and Broadband Markets 2006", a research report focusing on the distribution of multi-channel video and broadband services over multiple networks (including cable, satellite, ADSL, FTTH and mobile) across 16 geographical territories in the Asia Pacific region. <P></P> <P>The report represents the first ever examination of the key commercial and regulatory trends that could potentially help or hinder governments, media owners, and investors in the collective bid to unlock value across the multi-channel video and broadband distribution chain.</P> <P>MPA concludes that rapid technological change; increasing investment in content and distribution; and growing competition and consolidation will boost the development of pay television and broadband communications industries throughout Asia.</P> <P>However, the report also notes that the regulatory environment remains less than optimal in Asia’s largest consumer markets: China, India, Korea and Taiwan.</P> <P>This means that MPA’s forecasts for consumer adoption, competition and industry revenue generation remain conservative in scope and scale.</P> <P>According to MPA forecasts, the regional pay-TV sector, a US$18 bil. revenue opportunity in 2005, could grow at a CAGR of 13% over the next five years and 10% over the next decade, to reach US$32 bil. by 2010 and over US$45 bil. by 2015.</P> <P><STRONG>Additional findings:</STRONG></P> <P>India to emerge as Asia’s leading revenue generating pay-TV market by 2015; largest DTH market by 2008; and leading market for C&S broadcasters by 2010.</P> <P>Multiple digital distribution pipes to drive pay-TV and broadband in Japan.</P> <P>Competition and digitization to grow in China with long-term liberalization.</P> <P>Further sector realignment in favor of IPTV expected in Hong Kong. </P> <P>Consolidation and competition to boost digital penetration in Korea.</P> <P>Robust growth in broadband and pay-TV expected in S.E. Asia.</P> <P>Taiwan future dependent on deregulation and further M&A.</P> <P><!–page–></P> <P><STRONG>2005 Report Card</STRONG></P> <P>Pay-TV industry turnover up 14% Y/Y in 2005 to US$18 bil.</P> <P>Pay-TV penetration grows to 36%; Korea, Taiwan, India and Hong Kong lead in penetration</P> <P>Digital pay TV subs up 37% Y/Y to 14.4 mil., boosted by Hong Kong, Australia, Japan and Singapore; China digital pay-TV deployment passes 1 mil. </P> <P>Broadband penetration reaches 11%; Korea, Hong Kong, Taiwan and Singapore remain the highest penetrated markets; China leads in critical mass </P> <P>Japan, Australia, Taiwan and Korea dominate operator rankings</P> <P>Chinese, Indian and Korean broadcasters dominate channel rankings </P> <P><STRONG>MAJOR TRENDS OVER THE NEXT DECADE</STRONG></P> <P><STRONG>India</STRONG>: Significant (though not optimal) operating leverage. India is expected to join Japan as Asia’s leading revenue generating pay-TV market by 2015 and will overtake Japan as Asia’s leading revenue-generating market for cable & satellite broadcasters by 2010.</P> <P><STRONG>China</STRONG>: A long road and possibly a leap of faith to reach the pay-TV highway. ADSL-driven broadband growth in China leads Asia with respect to subscriber mass but the market for digital pay-TV remains limited by content scarcity brought on by regulation and the continued ban on foreign investment in cable. Gradual deregulation could occur after 2008, increasing the quality and depth of pay-TV programming on cable networks. </P> <P><STRONG>Japan</STRONG>: Multiple distribution pipes will increase penetration. Japan has one of the strongest regulatory frameworks in the region, supportive of both investment and competition. The market for pay-TV has been historically fragmented and limited. Significant growth is expected in the future as incumbent cable & satellite operators and FTTH telecom providers consolidate the market and aggressively compete in the delivery of digital video and broadband.<BR> <BR><STRONG>Korea</STRONG>: Digitization and further consolidation. Competition from DTH and partial deregulation of investment norms has forced cable consolidation. With IPTV deployment likely towards the end of 2006, Korean cable is readying for a volume-led deployment of digital pay-TV, significant investment in programming content and a push for joint ventures and alliances with global media distributors. Korea’s pay-TV battles will be increasingly fought in the broadband arena as cable and telecom operators aggressively bundle digital video, voice and data services. </P> <P><STRONG>Taiwan</STRONG>: The future remains dependent on deregulation. Analog cable has reached saturation in Taiwan and digitization shows little sign of acceleration. Regulation and market structures have limited prospects for digitization and competition. Following the establishment of the National Communications Commission, a certain level of liberalization may occur with respect to rate regulation and the promotion of level playing field competition.<BR></P>Note the date on this article may be incorrect due to importing it from our old system.