9 June 2005

Report: Future bright for Asian media
Hollywood Reporter
Copyright 2005, VNU eMedia Inc. All rights reserved.

By Blake Murdoch

SYDNEY -- Despite softening economic growth in Asia, overall media revenue in the region could grow by up to 9% year-over-year for this year to $59.7 billion, according to the latest study from media research and publishing firm Media Partners Asia.

Media companies' earnings before interest, tax, depreciation and amortization could increase 15% to eclipse $9.1 billion, the study, released here Tuesday, predicts.

Excluding Japan and Australia, the industry report indicated turnover in the region could grow 13% to $11.4 billion, while EBITDA could grow 20% to $3.4 billion.

The MPA forecast is based on data from more than 65 key media owners across the region. Pay TV looks to be one of the biggest growth contributors in Asia, with a projected 2005 revenue increase of 19% to more than $7 billion on earnings of about $1.9 billion.

"As far as different Asian regions are concerned, cable and satellite broadcasters are still growing rapidly," the report said.

Companies singled out in the report included News Corp.'s STAR, with turnover projected to increase 16% to $475 million, and Hong Kong's TV & Broadcasting, with earnings increasing 7% to $532 million. Other companies flagged for solid growth include Korea's CJ Cable, part of CJ Entertainment, Australian pay TV operator Foxtel, Japan's Jupiter Telecommunications, Malaysia's Astro All Asia Networks and Korea's On Media.

Asia's online media companies are projected to see 37% growth in revenue this year to $2.6 billion, with major drivers including Yahoo! Japan and China's Shanda Interactive.

"Moderating advertising growth will impact revenue gains for the region's free-to-air terrestrial broadcasters," the report said. Overall revenue for the free-to-air and cable and satellite are projected to grow 9% to $21 billion.