18 April 2007
Asian
broadband market growing
Revenue expected to swell to $86 billion
By Vicki Rothrock
VARIETY
Payboxes and broadband markets in Asia
are on track to grow in the coming years, according
to a study released today (Wednesday, April 18) by Media
Partners Asia.
“In 2006, Asia’s
pay-TV and broadband industries generated turnover in
excess of US$44 billion, which represented 0.4% of real
GDP,” said Vivek Couto, MPA director of Content
and Research. “This has the potential to grow
exponentially.”
In the next five years, regional payboxes and broadband
revenue is expected to grow 11% to US$86 billion. By
2015, those industries are expected to hit US$102 billion.
Digitization, ARPU gains and notable advertising growth
will be the thrust of the growth, in addition to expected
penetration levels of 50% after 2010.
Advertising alone contributed 74% to the channel revenue
stream in Asia, excluding Japan and Australia. This
is expected to drop to 60% by 2015 as sub figures climb
to 40%.
Digital is making its mark.
Last year, a record 12.5 million new digital set-top
boxes were installed in homes across Asia. By 2015,
half of pay-TV homes will have these boxes, according
to the research.
The 2008 Beijing Olympics is a huge motivator for China.
The country had more than 12 million digital installations
as of last year. Production of quality content with
value-added services, such as HDTV and video on demand
will also help drive China's digital growth.
The Olympics will be preceded by the debut of English
Premiere League soccer matches, which will be shown
on digital pay-TV in SD and HD formats starting this
year.
India, Korea, Japan and Australasia will also contribute
new digital subs, which could hit a total of 30 million
by 2010.
Broadband growth will continue with impressive figures
in Korea, Singapore, Japan, Taiwan, Hong Kong and Australia
with a peak of 80-90% penetration by 2015. China comes
in at 40%, Malaysia at 50% and India at 11%.
While India’s broadband penetration is relatively low,
its pay-TV penetration should grow from 61% of homes
in 2006 to 84% in 2011, then a whopping 90% by 2015,
according to findings.
Pay-TV turnover in India is expected to hit US$10 billion
in the next five years and US$16 billion by 2015.
The study included 16 territories in the Asia-Pacific
region.
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