Page 39 - AIB | The Chanel | Issue 2 2012
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THE CHANNEL
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ISSUE 2 2012
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39
as China, India, Indonesia,
Malaysia, Japan and Korea.
MPA projections indicate that
between 2011 and 2020 the market
for pay‐TV in Asia will see 318
million‐plus net new additions, or
125 million in Asia ex‐China. South
Asia’s (i.e. India, Pakistan, Sri
Lanka) contribution to new growth
ex‐China will be more than 75%,
with Southeast Asia representing
15% (led by Indonesia at 5%) and
North Asia coming in at 8%.
In addition, digitalization will
have a major impact on industry
growth in China, Japan, Korea,
Malaysia, the Philippines, Thailand,
Vietnam and Taiwan, as operators
invest more in upgraded networks to
support new services, volumes and
higher average revenue per user.
KEYMARKETS
China, India and Indonesia
dominate growth trends for the TV
industry while Thailand, Vietnam
and the Philippines also offer
growth potential along with untapped
territories such as Myanmar.
In Indonesia television industry
sales will grow at 17% over 2011–16
to reach US$3.5 billion per year in
net terms by 2016, says MPA, driven
by FTA terrestrial advertising
growth and the proliferation of
DTH‐driven pay‐TV. FTA networks,
in aggregate, are expected to retain
about 70% of the media ad spend pie
by 2016 while pay‐TV penetration
is expected to climb from only 5%
in 2011 to 14% by 2016.
No one stands still in Indonesia.
Many of the groups that acquire
and produce local and international
content, including MNC group,
Emtek, Trans, and Bakrie / Viva, are
also in the driving seat for pay‐TV
and online media. MNC owns the
largest pay‐TV operator, significant
production capabilities and a clutch
of online sites; Trans has a leading
online presence and scores of
studios; Emtek, a FTA cash cow, has
launched a DTT‐enabled pay‐TV
service; and Bakrie is investing in
online and may move into pay‐TV.
DTTWILL BEBIG
The big new development in
Indonesia is DTT licences, the
bidding for which is underway
with 41 licences up for grabs
although actual commercial launch
will likely only play out after
another 2‐3 years. The DTT licences
will be split into 15 service zones
with the four existing broadcast
groups. While the cost to upgrade
is affordable for existing groups,
the cost to the government and
related associations is steep.
In China, macro‐economic
fundamentals and a strong national
mandate will continue to drive
digital growth for all TV
distribution platforms including
digital cable TV, IPTV and DTH as
well as broadband. Any upside to
the growth of pay‐TV remains
capped however, due to regulatory
dynamics and the development of
broadband online platforms as a
potentially more viable window for
premium content. That said,
revenues from HD and value‐
added services (VAS) will grow
rapidly as the adoption of HDTV
and VOD reaches critical mass.
India remains a large scale cable
& satellite marketplace with more
than 600 channels. The transition to
pay‐TV was first driven by the
significant growth of DTH after
2006 and now the focus is on
digitising India’s fragmented 80 ‐
90 million or so cable households,
which the government wants to
take place over the next three years.
Digitalisation will undoubtedly
boost commercial and content
prospects for television
broadcasters. The first boost will
gh a higher proportion
of subscription revenues, as well as
potentially rationalized carriage
and placement fees, which channels
currently pay out to cable
operators. At the same time,
broadcasters in both niche and
mass genres will need to
programme stronger, differentiated
content to survive and prosper, and
create consumer demand in a new
eco‐system.
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FOCUS
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THE CHANNEL
The big
new
develop-
ment in
Indonesia
is DTT
licences
“
”
▼
KT SkyLife ismaking inroads with
3D as well as HD
Anindya Bakrie, head of VIVA -
owner of Indonesia’s tvOne and antv
Astro On-the-Go gives customers
constant access to channels
COM
Markets
Total TV Sales
(US$ bil.)
China
31.1
Japan
22.3
India
14.3
Australia
7.9
Korea
7.4
Indonesia
3.5
Taiwan
2.4
Note: Includes net advertising
after discounts and subscription
fees
Source: Media Partners Asia
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