ASIA PACIFIC MULTICHANNEL TV 2017 - Asia Video Industry Association

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ASIA PACIFIC MULTICHANNEL TV 2017 - Asia Video Industry Association
ASIA PACIFIC MULTICHANNEL TV 2017
ASIA PACIFIC MULTICHANNEL TV 2017 - Asia Video Industry Association
507
                                  ABOUT

    CASBAA is the Asia Pacific region’s largest
    non-profit media association, serving the
    multi-channel audio-visual content creation
    and distribution industry. Established in

                                                                                MILLION
    1991, CASBAA has grown with the industry
    to include digital multichannel television,
    content, platforms, advertising, and video
    delivery. Encompassing over 500 million
    multi-channel homes within a footprint
    across the region, CASBAA works to be
    the authoritative voice for multichannel TV;
    promoting even-handed and market-friendly
    regulation, IP protection and revenue growth
    for subscription and advertising, while
    promoting global best practices.                                            MULTICHANNEL HOMES
    For more information, visit
    www.casbaa.com
                                                                                ARE WATCHING
                                                   CASBAA Executive Office        WWW.CASBAA.COM
                                                   802 Wilson House
                                                   19-27 Wyndham Street
                                                   Central, Hong Kong
                                                   Tel: 852 2854 9913
                                                   Enquiry: casbaa@casbaa.com

2                   MULTICHANNEL TV 2017                                                             3
ASIA PACIFIC MULTICHANNEL TV 2017 - Asia Video Industry Association
CONTENTS                       EXECUTIVE SUMMARY

     6   FAST FACTS                Over the past 25 years since CASBAA
                                   was founded, it’s fair to say that the Pay
                                                                                working closely with regulators,
                                                                                operators, broadcasters, and industry
                                   TV industry in Asia has gone through         partners to see these efforts come to
    12   GLOBAL OVERVIEW           a process of steady growth and
                                   development. It’s equally fair to say that
                                                                                fruition. It is still too early to say whether
                                                                                the new metrics being developed
                                   over the past few years, the pace of         will address legacy issues with
    18   VIEWING DATA              change has accelerated tremendously,         addressability, but there is no question
                                   spurred by technological innovation,         that industry players must continue to

    28   MEASUREMENT GUIDE         changing consumer habits, and the
                                   abundance of exceptional content.
                                                                                collaborate to ensure they are seen by
                                                                                agencies and advertisers as credible.

    36   MARKET OVERVIEW           But as you’ll see in the pages that
                                   follow, even as online video services
                                                                                It is an exhilarating time in the Pay
                                                                                TV industry, with new services being
                                   continue to proliferate and expand,          rolled out regularly, new partnerships
    50   ADVERTISING OVERVIEW      linear pay TV subscriptions continue to      developing, and new business models
                                   grow in Asia. Multichannel TV services       being explored. All this experimentation

    70
                                   now reach a total of 507 million             is taking place to bring the industry
         INSIGHTS                  households in the region, and are            closer to achieving its critical goal:
                                   consumed more than any other media.          providing consumers in Asia with
    84   OTT & STREAMING           And despite advertisers increasingly
                                   embracing the online opportunity,
                                                                                access to the content they want, when
                                                                                they want it, in the format and on the
                                   multichannel television is nonetheless       device they prefer.
    94   ADVERTISING REGULATIONS   set for continued advertising growth
                                   across Asia for the foreseeable future.      CASBAA would like to thank Jane
                                                                                Buckthought, the members of the
                                   Audience measurement systems,                Research Committee, and all the
                                   however, have not necessarily been           contributors who have made this
                                   keeping pace, although there have            report possible. Please note that data
                                   been recent developments in key              provided by third parties for this report
                                   markets to address long-standing             have been generated independently
                                   measurement issues. CASBAA is                and represent their own views. 

4           MULTICHANNEL TV 2017                                                                                                 5
ASIA PACIFIC MULTICHANNEL TV 2017 - Asia Video Industry Association
FAST FACTS

6   MULTICHANNEL TV 2017                7
ASIA PACIFIC MULTICHANNEL TV 2017 - Asia Video Industry Association
FAST FACTS

                                                                                                                                                                                 98% 27%
                                                                                                                                                        59%
    507
                                                                                                                                                                               SOUTH KOREA

                                                                                                                    56%
                                                                                                                                                                                19.7 Million        JAPAN
                                                                                                                                                          CHINA                                   15.3 Million
                                                                                                                                                        266 Million
                                                                                                                    PAKISTAN

                                                                                                                                                             83% 96%
                                                                                                                    12.6 Million

    MILLION HOMES IN ASIA                                                                                                                                  HONG KONG             TAIWAN

                                                                                                                            92%
    RECEIVE MULTICHANNEL TV                                                                                                                                 2.2 Million         7.5 Million

                                                                                                                                                          59%                     19%
                                                                                                                                          14%
                                                                                                                              INDIA
                                                                                                                            150 Million                    VIETNAM
                                                                                                                                                          13.2 Million           PHILIPPINES
                                                                                                                                                                                  3.35 Million

                                                                                                                                                            61%
                                                                                                                                          THAILAND
                                                                                                                                          3.4 Million

                                                                                                                                                                                                  11%
                                                                                                                                                           MALAYSIA
    FAST FACTS*                                                                                                                                            4.2 Million
    POPULATION ............................ 3,661,373,051

                                                                                                                                                                60%
                                                                                                                                                                                                 INDONESIA
    TOTAL HOMES........................... 963,444,350                                                                                                                                            4.6 Million
    HOUSEHOLD SIZE...................... 3.8
    TELEVISION HOMES ................... 847,903,396                                                                                                           SINGAPORE
                                                                                                                                                                0.93 Million
    MULTICHANNEL HOMES.............. 507,114,810 / 60%
    INTERNET USERS........................ 1,686,938,047

                                                                                                                                                                                              36%
    * 15 selected markets

                                                                                                                                                                                              AUSTRALIA
                                                                                                                                                                                               3 Million

                                                                                                                                                                                                                   53%
    1. Percent of multichannel homes and millions of homes
    2. Thailand data refers to cable, IPTV and Truevisions. Free to air satellite est 14million homes is excluded
    3. Based on 15 selected markets

    Source: CASBAA, Nielsen, Kantar Media, S&P Global, MPA, Sarft, Astra, Astro, GfK, CSM, Video Research,
    Sky NZ,Medialogic, Internet World Stats, Govt Estimates
                                                                                                                                                                                                                 NEW ZEALAND
                                                                                                                                                                                                                  0.87 Million

8                              MULTICHANNEL TV 2017                                                                                                                                                                         9
ASIA PACIFIC MULTICHANNEL TV 2017 - Asia Video Industry Association
FAST FACTS

                         GROWTH OF
                         MULTICHANNEL HOMES

                                                                                                                                                                505

                                                                                                                                                                      507
                                                                                                                                                    501
                                                                                                                                          468
                                                                                                                               446
                                                                                                                      407
                                                                                                           363
                                                                                                 326
                                                                                       291
                                                                             264
                                                                   255
     Millions of homes

                                                         228
                                               218
                                     186
                          181
                          2002

                                    2003

                                              2004

                                                        2005

                                                                  2006

                                                                            2007

                                                                                      2008

                                                                                                2009

                                                                                                          2010

                                                                                                                    2011

                                                                                                                              2012

                                                                                                                                         2013

                                                                                                                                                  2014

                                                                                                                                                               2015

                                                                                                                                                                      2016

                         Source: CASBAA, Nielsen, Kantar Media, S&P Global, MPA, Sarft, Astra, Astro, GfK, CSM, Video Research, Sky NZ,Medialogic, Internet.
                         15 selected markets

10                                                   MULTICHANNEL TV 2017                                                                                                    11
ASIA PACIFIC MULTICHANNEL TV 2017 - Asia Video Industry Association
GLOBAL OVERVIEW

12   MULTICHANNEL TV 2017                     13
ASIA PACIFIC MULTICHANNEL TV 2017 - Asia Video Industry Association
GLOBAL OVERVIEW

     PRESENT AND FUTURE                                                                                Total multichannel homes, 2016-2020

     OF MULTICHANNEL MARKET SUMMARY                                                                     700

                                                                                                        600
     Home to 573 million pay TV households      ten years, the platform’s dominance is
     in 2016, the Asia Pacific region is        expected to endure long-term.                           500
     poised to strengthen its leadership as

                                                                                            millions
     the largest multichannel video market      DTH MARKET SUMMARY                                      400
     globally in terms of subscribers. While    Although cable dominates multichannel
     average revenue per user (ARPU)            households in a majority of Asia Pacific                300
     remains relatively low, the region’s       markets, DTH holds the highest share
     aggregate video subscription revenue       of multichannel subscribers in Malaysia,                200
     is estimated to reach US$35.5 billion by   New Zealand, Indonesia and Australia.
     the end of 2016, trailing North America
                                                                                                        100
     and Western Europe as the third most       With 62 million active pay DTH
     lucrative multichannel economy.            subscribers estimated for 2016, India
                                                                                                           0
                                                is the largest DTH market in the Asia                                     2016                       2017                        2018                       2019                        2020
     The Asia Pacific multichannel market is    Pacific, accounting for the majority of                                                                  © 2016 SNL Kagan, an o ering of S&P Global Market Intelligence, estimates. All rights reserved.
     characterized by aggressive digitization   the region’s total DTH connections. The
     efforts and increasing adoption of         market is also home to the top DTH
     emerging IP technologies. In some          providers in the region by subscriber
     markets, however, significant problems     base, including Dish TV India, Tata Sky,                    ASIA PACIFIC                                         EASTERN EUROPE
     with piracy and regulatory barriers        Sun Direct, Videocon d2h, Bharti Airtel
     inhibit growth. SNL Kagan expects          Ltd. and Reliance Communications.                           MIDDLE EAST & AFRICA                                 NORTH AMERICA
     operators to pursue widespread digital                                                                 LATIN AMERICA & CARIBBEAN                            WESTERN EUROPE
     infrastructure improvements, anchored      Historically, the Chinese government
     by initiatives in India and China, that    has prohibited the general population
     will drive lucrative pay TV revenue        from accessing DTH signals, with
                                                                                                                                                                                                                 4%
     and technology gains long term.            the exception of unencrypted                                                                                                                           8%
     Competition, historically limited to       state-affiliated channels via the CBTV
     cable versus direct-to-home platforms,     platform. At present, free-to-air DTH                                                                                                        9%
     is poised to heat up in Asia as IPTV       service is available extensively via
     and digital terrestrial television (DTT)   SARFT’s Huhutong project, which
     systems mature.                            aims to bring TV and radio access to                            Share of multichannel TV homes
                                                millions of residents living in rural and
                                                                                                                                 by region 2017                                         10%                                                  58%
     Cable dominates the Asia Pacific           mountainous areas not covered by
     multichannel landscape, with China         cable or terrestrial signals. SNL Kagan
     and India hosting the largest cable        expects SARFT-sanctioned pay DTH                                                                                                              11%
     populations in the world. Although         services will phase in long term after
     increasing competition is set to reduce    the Huhutong project has established a
     cable market share over the coming         sufficient DTH base.
                                                                                                       © 2016 SNL Kagan, an offering of S&P Global Market Intelligence, estimates.
                                                                                                       All rights reserved.

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ASIA PACIFIC MULTICHANNEL TV 2017 - Asia Video Industry Association
GLOBAL OVERVIEW

     CABLE MARKET SUMMARY                       SNL Kagan analysis indicates IPTV will
     With 244 million cable TV households       be the fastest growing multichannel
     in China and 105 million in India in       platform in the Asia Pacific over the
     2016, cable connections dominate the       coming years, with China, Japan and
     Asia Pacific multichannel landscape.       South Korea as key markets for growth.
     SNL Kagan analysis indicates 70.6% of      Many governments in the region,
     pay TV households in the region are        including those in Australia, New
     connected via cable as of 2016.            Zealand, Malaysia and Singapore, are
                                                funding fiber rollouts, which is expected
     Market fragmentation has posed a           to foster the IPTV landscape long term.
     fundamental challenge in several
     of Asia’s cable markets, including         DTT MARKET SUMMARY
     India, the Philippines and Thailand,       The Association of Southeast Asian
     as localized ownership of last-mile        Nations (ASEAN), which includes
     networks impedes digital upgrades.         Indonesia, Malaysia, the Philippines,
     Adjustments to ownership regulation        Singapore and Thailand, endorsed
     enabling consolidation are paving          DVB-T as the official ASEAN DTT
     the way for digitization initiatives. In   standard in June 2007. Japan and
     China, regional cable systems are          China have opted for their own
     implementing a government-mandated         homegrown standards, implementing
     “one province, one network” directive      ISDB-T (Integrated Services Digital
     which has formed some of the biggest       Broadcasting - Terrestrial) and
     cable operations in the world.             DTMB (Digital Terrestrial Multimedia
                                                Broadcast) respectively. In 2006, South
     SNL Kagan believes cable’s grip on         Korea selected the U.S. ATSC standard
     the Asia Pacific pay TV market will slip   for its DTT platform.
     over the coming years as DTH and IPTV
     services capture market share. However,    Our models do not count
     Increasing competition is not expected     free-to-air-DTT households as
     to impede industry growth as advanced      multichannel, given that the service
     services including HD, VOD and DVR         is not subscription-based. In the Asia
     drive cable service revenues.              Pacific, digital terrestrial infrastructure
                                                is leveraged for pay TV service
     IPTV MARKET SUMMARY                        deployments mainly in New Zealand,
     The Asia Pacific is the world’s            Indonesia and Vietnam, among several
     third-largest IPTV economy after North     other South East Asian territories. These
     America and Western Europe, with           operations form a niche position in
     China Telecom being the largest IPTV       the region’s multichannel landscape,
     operator globally by subscriber base.      accounting for a tiny fraction (0.2%) of
     South Korea’s KT Corporation and           the Asia Pacific total pay TV subscriber
     Japan’s Sky Perfect JSAT Corporation       base. SNL Kagan does not expect
     also rank among the top IPTV providers     widespread pay DTT activities to
     in the region.                             emerge in the Asia Pacific long term. 

16                   MULTICHANNEL TV 2017                                                     17
ASIA PACIFIC MULTICHANNEL TV 2017 - Asia Video Industry Association
ASIA PACIFIC VIEWERS

18   MULTICHANNEL TV 2017                          19
ASIAPACIFIC VIEWERS
                                                                                                                                                                                     Asia Pacific average audience
                                                                                                                                                                                                ALL TIME
     THE MULTICHANNEL TV VIEWER                                                                                                                                         ALL PEOPLE (000s)                                AFFLUENT PEOPLE (000s)
     IN ASIA
                                                                                                                                                                          55 110

     Across Asia Pacific, viewing of                                            Therefore trend analysis is not possible.
     multi-channel TV services are measured                                     The Ipsos Affluent Survey shows that                                                                     34 437
     by People meter TV. Audiences                                              multi-channel TV audiences in the main                                                                                                              25 306
     continue to grow each year and 88% of                                      cities in Asia are more likely to be more
     all people watch in a month.                                               affluent, early adopters, purchase more
     Multichannel TV average audience                                           consumer items, travel more and keep                                                                                                                              11 807

     continues to increase and the new Barc                                     up-to-date with new trends. 
     panel in India has boosted the data.
                                                                                                                                                                                    2015                                                    2015

                                       Asia Pacific monthly cumulative audience                                                                                                                        PRIME TIME

                                     ALL PEOPLE                                       AFFLUENT PEOPLE                                                                   ALL PEOPLE (000s)                                AFFLUENT PEOPLE (000s)

                                                      94%                                                                                                                 110 721
                                         88%                                                      87%         86%

                                                                                                                                                                                         71 782                                     54 199

                                                                                                                                                                                                                                                  24 945

                                              2015                                                     2015
                                                                                                                                                                                    2015                                                    2015

                          MULTICHANNEL TV           TERRESTRIAL TV                MULTICHANNEL TV           TERRESTRIAL TV
                                                                                                                                                               MULTICHANNEL TV           TERRESTRIAL TV                 MULTICHANNEL TV           TERRESTRIAL TV

     Source: Peoplemeter, Asia Pacific includes: Taiwan, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, South Korea, Australia   Prime Time 1800-2359
     (some overlap of metro and urban data)& India Barc (Nov-Dec 2015).                                                                     Source: Peoplemeter, Asia Pacific includes: Taiwan, Malaysia, Singapore, Thailand, Philippines, Thailand, Hong Kong, New Zealand, South Korea,
     All people universe: 845,500,367; Affluent universe: 390,346,349                                                                       Australia (some overlap of metro and urban data) & India Barc (Nov-Dec 2015).
                                                                                                                                            All people universe: 911,194,367; Affluent universe 403,033,349

20                               MULTICHANNEL TV 2017                                                                                                                                                                                                                                        21
ASIAPACIFIC VIEWERS

     MULTICHANNEL TV                                                                                                                                AFFLUENT VIEWERS
     MONTHLY REACH                                                                                                                                  AGREE THAT...                                                                                        WATCH
                                                                                                                                                                                                                                                                               DON’T
                                                                                                                                                                                                                                                                               WATCH
                                                                                                                                                                                                                                                         Pay TV
                                                                                           ALL PEOPLE                AFFLUENT ADULTS                                                                                                                                           Pay TV

                                                                                                                                                    I am always one of the first to use
                  INDIA                                                                         95%                                  96%            innovative tech products                                                                              115                     73
                  THAILAND                                                                      68%                                  69%
                                                                                                                                                    I have confidence in purchasing products/services
                  MALAYSIA                                                                      71%                                  77%            that have been advertised                                                                             115                     83
                  SINGAPORE                                                                     57%                                  57%            I tend to go for premium
                                                                                                                                                                                                                                                          116                     69
                  INDONESIA                                                                     96%                                  96%            rather than standard goods/service

                  HONG KONG                                                                     38%                                  44%            I have expensive tastes                                                                               113                     61
                  TAIWAN                                                                       100%                                 100%
                  SOUTH KOREA                                                                   86%                                  84%            Gaining knowledge and becoming better informed
                                                                                                                                                                                                                                                          109                     74
                                                                                                                                                    is a priority for me
                  PHILIPPINES                                                                   23%                                  45%
                  AUSTRALIA                                                                     33%                                  33%            People come to me for advice
                                                                                                                                                    before buying new things                                                                              112                     66
                  NEW ZEALAND                                                                   47%                                  46%            Source: Ipsos Affluent Survey Asia Pacific Q1-Q4 2015
                                                                                                                                                    Average Base Index: 100. Bangkok or Hong Kong or Jakarta or Kuala Lumpur or Manila or Singapore or Taipei or Seoul or Sydney or Melbourne or
     Source: Peoplemeter India Barc Nov-Dec 2015, Australia (metro), Taiwan, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, Indonesia,   India. Viewed Cable and Satellite Channels Yesterday or Not Viewed Cable and Satellite Channels in past month
     South Korea, Thailand 2015

     MULTICHANNEL TV
     CONSUMED MORE THAN OTHER MEDIA
     ANY CABLE/SATELLITE TV CHANNEL (monthly)                                                                                             83,5%
     ANY CABLE/SATELLITE TV (weekly)                                                                                                   78,7%
     ANY CABLE/SATELLITE TV (daily)                                                                               56,3%
     ANY INFLIGHT MAGAZINE                                              12,2%
     ANY REGIONAL MONTHLY MAGAZINE                                          19,3%
     ANY REGIONAL TRI-WEEKLY MAGAZINE                         2%
     ANY REGIONAL WEEKLY MAGAZINE                                  7,6%
     ANY REGIONAL DAILY NEWSPAPER                               3,6%                                                      MULTICHANNEL TV
     ANY REGIONAL TITLE                                                           23,3%                                      OTHER MEDIA

     Source: Ipsos Affluent Survey Asia Pacific Q1-Q4 2015
     Bangkok, Hong Kong, Jakarta, Kuala Lumpur, Manila, Singapore, Taipei, Seoul, Sydney, Melbourne, India

22                              MULTICHANNEL TV 2017                                                                                                                                                                                                                                               23
ASIAPACIFIC VIEWERS

     AFFLUENT VIEWERS
     ARE EARLY ADOPTERS...                                                                                                                 ... DECISION MAKERS...

     OWNERSHIP INDEX                                                                        WATCH                            DON’T WATCH   OWNERSHIP INDEX                      WATCH            DON’T WATCH

                                                                                                            PAY TV                                                                      PAY TV

                            SMARTPHONE                                                        103                   >          88                     CAR OWNER                 107         >      81

                                                                                                                                                      OWN
                            TABLET                                                            106                   >          81                     PLATINUM/BLACK
                                                                                                                                                      CREDIT CARD
                                                                                                                                                                                107         >      71

                                                                                                                                                      BUSINESS
                            SMART TV                                                          111                   >          70                     DECISION MAKER            106         >      64

                            HOME THEATRE
                            SOUND SYSTEM                                                      113                   >          68                     TOP MANAGER               117         >      52

                                                                                                                                                      OWN
                            DIGITAL                                                                                                                   STOCKS/SECURITIES/BONDS
                            VIDEO CAMERA                                                      109                   >          76                     OFFSHORE ACCOUNT          122         >      62
                                                                                                                                                      FOR INVESTMENT

     Source: Ipsos Affluent Survey Asia Pacific Q1-Q4 2015
     Average Base Index: 100. Bangkok or Hong Kong or Jakarta or Kuala Lumpur or Manila or Singapore or Taipei or Seoul or
     Sydney or Melbourne or India. Viewed Pay TV Yesterday or Not Viewed International Channels in past month

24                              MULTICHANNEL TV 2017                                                                                                                                                           25
ASIAPACIFIC VIEWERS

     ... & TRAVELERS TOO

     INDEX                                                                                  WATCH                            DON’T WATCH

                                                                                                            PAY TV

                            TAKE A BUSINESS TRIP
                            IN PAST 12 MONTHS                                                 124                   >          35

                            6+ BUSINESS TRIPS
                            IN PAST 12 MONTHS                                                 133                   >          24

                            FLY 1ST
                            OR BUSINESS CLASS
                            IN PAST 12 MONTHS
                                                                                              129                   >          34

                            12+ NIGHTS
                            IN A HOTEL
                            IN PAST 12 MONTHS
                                                                                              111                   >          64

                            3+ LEISURE TRIPS
                            IN PAST 12 MONTHS                                                 125                   >          49

     Source: Ipsos Affluent Survey Asia Pacific Q1-Q4 2015
     Average Base Index: 100. Bangkok or Hong Kong or Jakarta or Kuala Lumpur or Manila or Singapore or Taipei or Seoul or
     Sydney or Melbourne or India. Viewed Pay TV Yesterday or Not Viewed International Channels in past month

26                              MULTICHANNEL TV 2017                                                                                       27
MEASUREMENT GUIDE

28   MULTICHANNEL TV 2017                       29
MEASUREMENT GUIDE                                   TELEVISION AUDIENCE MEASUREMENT 2016-2017

                                                                                                                                                                                                                      COMMERCIAL        COMMERCIAL PAY TV REACH TIME SHIFT
                                                                                                                                              CABLE/                                                  VOD &/OR        BREAK
               RESEARCH         PEOPLEMETER PANEL SIZE                                                                                                          DTT        INTERNET, TABLETS &                                          SPOT LOGS
 COUNTRY                                                           RETURN PATH DATA (RPD) PANEL   PANEL COVERAGE                              SATELLITE                                               OTT SERVICES    RATINGS                      & FREQUENCY VIEWING                     SOFTWARE
               COMPANY          (HOMES/HOUSEHOLDS)                                                                                                              MEASURED   SMARTPHONES                                                  FOR PAY-TV
                                                                                                                                              MEASURED                                                MEASURED        FOR PAY TV                   AVAILABLE    MEASURED
                                                                                                                                                                                                                                        CHANNELS
                                                                                                                                                                                                                      CHANNELS

                                                                                                                                                                                                        National
               Nielsen TAM 5,250 (Metropolitan)                                                   Metro areas (5 cities)                                                                              Video player                                                                         User
               on behalf of2,120 (National subscription TV) No                                    & nationally for Subscription TV
                                                                                                                                                   Yes             Yes                No              data reported        No                No                Yes             Yes
                                                                                                                                                                                                                                                                                           choice*
               OzTAM            from April 2017                                                                                                                                                        separately
 AUSTRALIA
               Nielsen TAM                                                                        Queensland, Northern NSW,
                                3,000 (Regional)                                                                                                                                                                                                                                           User
               on behalf of                                        No                             Southern NSW, Victoria, Tasmania                 Yes             Yes                No                   No              No                No                Yes             Yes
                                from April 2017                                                                                                                                                                                                                                            choice*
               Regional TAM                                                                       & Regional Western Australia
                                                                                                  Dhaka Metro, Dhaka Other Urban,
               MRB              550 Homes                                                                                                                                                                                                                                                  Media
 BANGLADESH    Bangladesh       2,200 Individuals
                                                                   No                             Dhaka Rural, Chittagong Metro                    Yes             No                 No                   No              Yes               Yes               Yes              No
                                                                                                                                                                                                                                                                                           XPress
                                                                                                  & Chittagong Rural
                                                                                                                                                                                                                                                                                           Instar
 CAMBODIA      Kantar Media 795 Diaries                                                           Phnom Penh, Siem Riep & Battambang               Yes             Yes                No                                   Yes               Yes               Yes
                                                                                                                                                                                                                                                                                           Analytics
                                                                                                  1 national meter panel
                                                                   National panel:
                                                                                                  79 city meter panels
                                                                   500,000 Smart TV Device & 52
               CSM              34,275                                                            12 provincial meter panels,                      Yes             Yes               Yes                  Yes              No                No                Yes             Yes         Infosys+
                                                                   City panel:
                                                                                                  52 diary city panels
                                                                   200,000 Smart TV Device
                                                                                                  13 diary provincial panels
 CHINA
                                Peoplemeter (Individuals)
                                Guangzhou 350+                                                    1 national RPD panel
               Nielsen-                                            National panel:
                                Beijing 300+                                                      2 provincial RPD panels                          No              No                 No                  Yes              Yes               Yes               Yes             Yes         Arianna
               CCData                                              100,000+
                                Hangzhou 300+                                                     69 city RPD panels
                                Harbin 300+

                                                                                                                                                                                     Yes                                                                       Yes             Yes
               Nielsen          800                                No                             HK Region                                        Yes             Yes          Laptop/Desktop
                                                                                                                                                                                                           No              No                No                             for Extended   Arianna
                                                                                                                                                                                                                                                          for subscribers    Screen (PC)
 HONG KONG
               CSM Media                                                                                                                         Now TV
                                                                   2,000 homes                    HK Region; Now TV subscriber base                                No        Yes - & Eye device           Yes              No                Yes               Yes             Yes         InfoSys+
               Research                                                                                                                       channels only
                                22,000 Homes
 INDIA         BARC
                                25,000 Bar-O-Meters
                                                                                                  All India (Urban + Rural)                        Yes             Yes                No                                   Yes               Yes               Yes                         BMW

                                2,273 (Terrestrial)                                               Terrestrial: 11 cities,
 INDONESIA     Nielsen
                                300 (Pay TV)
                                                                   No
                                                                                                  Pay TV: Greater Jakarta
                                                                                                                                                   Yes             No                 No                   No              No                No                Yes              No         Arianna

                            6,600 National panel &
               Video
 JAPAN         Research Ltd
                            separate Subscription TV               No                             Tokyo & Osaka                                    Yes             No                 No                   No              No                No                Yes              No         RVCS
                            Panel 600 *

                                1,100 TV Households                                               Across 11 states in Peninsular Malaysia,    Astro Pay TV                    Plan for digital ad
               Nielsen                                             No                                                                            & Njoi            No      ratings (DAR) Q4 2015           No              No                No                Yes              No         Arianna
                                in Peninsular Malaysia                                            covering both urban and rural                  (Free Sat)                  - website browser only
 MALAYSIA                                                                                                                                                                   Planned integration
                                                                   4,000 home                     Across all 13 states in Peninsular & East        Yes
               Kantar Media                                                                                                                                        No        of Astro On The Go         Q42016             Yes               Yes               Yes             Yes         InfoSys+
                                                                                                                                                (Astro PayTV,
                                                                   4,500 by Q42016                Malaysia, covering urban & rural                                                                                     (all channels)    (all channels)
                                                                                                                                              NJOI in Q42016)               viewing in Q4 2016
               Nielsen          1,000+ HH Diary Panel
 MYANMAR       MMRD             6,000+ Individuals
                                                                   No                             6 Key Cities within Metro & Urban                Yes             No                 No                   No              No                Yes               Yes              No         Arianna

 NEW ZEALAND   Nielsen          600                                No                             National                                         Yes             Yes                No                   No              Yes               Yes               Yes             Yes         Arianna
               Medialogic                                                                                                                                                                                                  Yes               Yes                                           InfoSys+
                                900 Homes                          N/A                            Top 20 Cities Incl. 3 Metros                     Yes            N/A                 No                   No                                                  Yes              No
               Pakistan                                                                                                                                                                                                (80 channels)     (80 channels)                                     (Kantar)
 PAKISTAN                       National Diary Panel:
               Gallup           2,500 HH                                                          National (Urban+Rural)                           Yes            N/A                 No                                   Yes               Yes               Yes                          Reporter
               Pakistan         3,500 Individuals
                                (2,000 Urban HH & 500 Rural HH)*

30                            MULTICHANNEL TV 2017                                                                                                                                                                                                                                                     31
MEASUREMENT GUIDE                                                     TELEVISION AUDIENCE MEASUREMENT 2016-2017

                                                                                                                                                                                                                                                        COMMERCIAL        COMMERCIAL PAY TV REACH TIME SHIFT
                                                                                                                                                                       CABLE/                                                          VOD &/OR         BREAK
                                   RESEARCH       PEOPLEMETER PANEL SIZE                                                                                                                 DTT             INTERNET, TABLETS &                                              SPOT LOGS
  COUNTRY                                                                             RETURN PATH DATA (RPD) PANEL   PANEL COVERAGE                                    SATELLITE                                                       OTT SERVICES     RATINGS                      & FREQUENCY VIEWING                         SOFTWARE
                                   COMPANY        (HOMES/HOUSEHOLDS)                                                                                                                     MEASURED        SMARTPHONES                                                      FOR PAY-TV
                                                                                                                                                                       MEASURED                                                        MEASURED         FOR PAY TV                   AVAILABLE    MEASURED
                                                                                                                                                                                                                                                                          CHANNELS
                                                                                                                                                                                                                                                        CHANNELS

                                                  National Panel: 3,500                                                                                                                                     Launch of DAR Q3
                      National

                                   Nielsen        (2,000 Urban homes (NUTAM)          No                             National (Urban+Rural)                                  Yes              No                                             No               Yes               Yes               Yes                No          Arianna
                                                  & 1,500 Rural homes (RTAM))
                                                                                                                                                                                                                 2015

                                                  Metro Panel: 2,220
                      Metro

  PHILIPPINES                      Nielsen        (1,190 Mega Manila homes
                                                  (MEGATAM) & 1,030 homes
                                                                                      No                             Metro Cities                                            Yes              No                                             No               Yes               Yes               Yes                No          Arianna
                                                  for 8 other Metros)

                                                  National Panel: 2,270                                                                                                                   Yes, part of                                                                                                                           Instar
                                   Kantar Media   (1,370 Urban homes (Urban PH)                                      National (Urban + Rural)                                Yes                       expected in Q1 2017                                    Yes               Yes               Yes
                                                  & 900 Rural homes (Rural PH)
                                                                                                                                                                                          TAM panel                                                                                                                              Analytics

                                                                                                                                                                                                                                                                                                                                 Instar
                 10.2016 09.2016

                                   Kantar Media 800                                                                  National                                                Yes             Some                    No                                        No                No               Yes
                          ends

                                                                                                                                                                                                                                                                                                                                 Analytics
                                                  1,200 Households
                                                                                                                                                                                                                                                                                                                    Yes
                  starts

                                   GfK            & 2,000 Individuals                 No                             National                                                Yes              Yes                    Yes                     No                No                No               Yes                            Evogenius
  SINGAPORE                                       on pc/mobile devices
                                                                                                                                                                                                                                                                                                               (up to 28 days)

                                   Nielsen for
                                                                                      Panel: 5,000 homes                                                                                                                                                                                                                          Arianna/
                                   StarHub                                                                           StarHub TV Subscriber base                              Yes              No                     No                Yes for VOD            Yes               Yes               Yes               Yes
                                                                                      Census: 518,000 homes                                                                                                                                                                                                                        eTAM
                                   SmarTAM
                                   Nielsen        4,320                               No                             National                                                Yes              Yes                    Yes                    Yes               Yes               Yes               Yes                No          Arianna
  SOUTH KOREA
                                   TNMS           3,200                               10,000                         National                                                Yes              Yes                    No                     Yes               Yes               Yes               Yes                No          Infosys
                                                  600 Homes                                                                                                                                                                                                                                                                      Media
  SRI LANKA                        LMRB
                                                  ~ 2,200 Individuals
                                                                                      No                             National                                                Yes              Yes                    No                      No                No                No                No                No
                                                                                                                                                                                                                                                                                                                                 Xpress
                                   Nielsen        2,000                               -                              National                                                Yes              Yes                    No                      No               Yes               Yes               Yes                No          Arianna
  TAIWAN
                       MOD

                                   Nielsen        -                                   6,250                          MOD subscriber base                                     No               No                     No                      No               Yes               Yes               Yes                No          Arianna
                                                                                                                                                                                                                                                                                                                 Plan to
                                                  2,400                                                                                                                                                     Yes for Digital Ad                                                                                launch Digital
                                   Nielsen        (Sat 1,120, local cab 180,          No                             National                                                Yes              Yes           Rating (DAR and plan             No               Yes               Yes               Yes            Content Arianna
  THAILAND                                        True 400, Digital 550,
                                                  Analogue 150)
                                                                                                                                                                                                           to launch Digital Content
                                                                                                                                                                                                               Rating in H2/2016                                                                                Rating in
                                                                                                                                                                                                                                                                                                                H2/2016
                                   Kantar Media   Follow Announcements in the Press

                                                  National TAM (Diaries)
                                                  2,258 Homes & 2 Cities                                             National                                                                                                                                                                                                    Instar
  VIETNAM                          Kantar Media
                                                  (Diary), 518 Homes & 4                                             6 cities
                                                                                                                                                                             Yes              Yes                    No                                       Yes               Yes               Yes
                                                                                                                                                                                                                                                                                                                                 Analytics
                                                  Cities (PM), 1,294 homes

 Survey Notes:
 Australia, OzTAM and Regional TAM: Peoplemeter/OzTAM: 5 City Metro Markets: Sydney, Melbourne, Brisbane, Adelaide & Perth & Nationally for Subscription TV/           Pakistan,Medialogic: 20 cities - Karachi, Lahore, Islamabad,Rawalpinidi, Faisalabad, Multan, Hyderabad, Sukkur, Gujranwala, Bahawalpur,Peshawar, Sheikhupura, Sailkot,
 RegionalTAM: Queensland, Northern NSW, Southern NSW, Victoria, Tasmania and Regional Western Australia                                                                Pakpattan, Jehlam, Kohat, Mardan, Larkana, Dadu and Quetta
 Australia, User Choice* Gold Standard accredited software suppliers for OzTAM & RegionalTAM Data : TV Map (Broadcast M.A.P), R8ting Library for MediaWise (Day        Pakistan, Gallup Pakistan: National diary panel include all 3 Metros (Karachi, Lahore, Islamabad/Rawalpindi: 2,100 individuals) , 5 Large Cities (Faisalabad, Hyderabad,
 8 Technology), AdQuest eTAM (Landsberry & James), Pinergy (MediaCom) OzTAM only, Arianna (NielsenTAM), TARDIIS (Starcom MediaVest Group), AdvantEdge                  Multan, Peshawar, Quetta : 1,100 individuals), 10 Small Cities & Towns (Gujrat,Jacobabad,Kasur,Mardan,Pashin,Rajanpur,Rohri,Sahiwal,Sargodha,Thatta : 1,500
 (TechEdge)                                                                                                                                                            individuals) , Rural 800 individuals
 OzTAM and Regional TAM are undertaking a panel expansion which will increase the panel sizes by 50% ( as shown in the matrix). This is due to be completed by about   Philippines: PHINTAM (National Urban and Rural), NUTAM (National Urban), Mega TAM (Metro Manila & suburbs), MCTAM (Metro cities).
 April 2017                                                                                                                                                            South Korea, Nielsen: National and 103 pay TV channels are monitored programme names or TVC spot logs.(Seoul, Incheon, Busan, Gwangju, Daejeon, Daegu, Ulsan,
 Indonesia, Nielsen: Terrestrial: 11 cities:Jakarta, Surabaya, Medan, Semarang, Bandung, Makassar, Yogyakarta, Palembang, Denpasar, Banjarmasin and Surakarta. Pay     Gyungi Province, Kangwon Province, North Chungcheong Province, South Chungcheong Province, North Gyeongsang Province, South Gyeongsang Province, North
 TV: Greater Jakarta.^: CMV Indonesia sample include CMV + Fusion with TV data                                                                                         Jeolla Province, South Jeolla Province, Jeju Island)
 Japan,Video Research Ltd: Peoplemeters in Tokyo & Osaka.Non-continuous measurement,2 week sweeps conducted every two months (12 weeks/year). Subscription             South Korea, TNMS: Return Path Data panel size is 10,000 homes of KT IPTV
 TV panel is separate from national terrestrial TV panel of 6,600 homes, 52 weeks reporting /year                                                                      Vietnam, Kantar Media, People Meter & Diaries, 1 National Diary panel, 2 Diaries panel cities: Hai Phong, Nha Trang ,4 People Meter cities: Ha Noi, HoChiMinh City, Da
 Myanmar, Nielsen MMRD: Diary Panel, covering in 6 Key Cities within Metro and Urban (Yangon, Mandalay, Nay Pyi Taw, Taunggyi, Magway, Mawlamyine)                     Nang, and Can Tho, 92 TV Channels monitored Programme and TVC Spot logs
                                                                                                                                                                       Please contact the research company for a comprehensive report on measurement.

32                                            MULTICHANNEL TV 2017                                                                                                                                                                                                                                                                           33
MEASUREMENT GUIDE

SYNDICATED MEDIA SURVEYS                                                                                                                                                                        Please contact the research company for a comprehensive report on measurement.

                                   RESEARCH
 AREA                                             SURVEY                  SAMPLE SIZE      PANEL COVERAGE                      METHODOLOGY             DEMOGRAPHIC                   CAB/SAT MEASURED       DTT              SOFTWARE                 REACH & FREQUENCY
                                   COMPANY

 HONG KONG                         Ipsos          Media Atlas Hong Kong   5,000            National                              CATI/Online/F2F                12 - 64                      Yes                  Yes             User choice                   Yes

                                                                                           Hong Kong, Singapore, Malaysia,
                                                                                           Taiwan, Thailand, Indonesia,
 10 ASIA MARKETS                   Ipsos          Affluent Asia           18,800
                                                                                           Philippines, South Korea, India,
                                                                                                                                    CATI/Online             Affluent 25 - 64                 Yes                  No              User choice                   Yes
                                                                                           Australia
                                                                                           China, Hong Kong, Indonesia,                                Elite/Senior business execs
                                                  GBI (Global Business
 9 ASIA MARKETS                    Ipsos
                                                  Influencer Survey)
                                                                          5,275            Malaysia, Philippines, Singapore,          Online             in companies with 50+               Yes                  No              User choice                   No
                                                                                           South Korea, Taiwan, Thailand                                       employees

                                   Nielsen
 CHINA                             CCData
                                                  Media Index             15000+           40 1-3 tier cities                   Face-to-face/On-line             18-65                       Yes                  No             On report base                 Yes

 HONG KONG                         Nielsen        Media Index             6,000+           Hong Kong                            Face-to-face/Online             12 - 64                      Yes                  Yes           Clear Decisions                 Yes

 AUSTRALIA                         Nielsen        Consumer Media View     22,000           Australia                                  Online                      14+                        Yes                  Yes           Clear Decisions                 No

 NEW ZEALAND                       Nielsen        Consumer Media View     12,000           New Zealand                              Face-to-face                  10+                        Yes                  No            Clear Decisions                 Yes

 INDONESIA 11 cities               Nielsen        Consumer Media View     17,000           Indonesia, 11 cities                     Face-to-face                  10+                        Yes                  No            Clear Decisions                 Yes

 MALAYSIA Peninsular Malaysia only Nielsen        Consumer Media View     10,000           Peninsular Malaysia Only                 Face-to-face                  15+                Fused with TAM data          No            Clear Decisions                 Yes

 PHILIPPINES national urban        Nielsen        Consumer Media View     10,000           National Urban                           Face-to-face                  10+                        Yes                  No            Clear Decisions                 Yes

 SINGAPORE                         Nielsen        Consumer Media View     4,200+           Singapore                                Face-to-face                  15+                        Yes                  No            Clear Decisions                 Yes

 THAILAND                          Nielsen        Consumer Media View     9,000+           Thailand                                 Face-to-face                  12+                        Yes                  Yes           Clear Decisions                 No

 TAIWAN                            Nielsen        Media Index             10,000           National                             Face to Face/Online             12 - 65                      Yes                  Yes           Clear Decisions                 Yes

                                   MRB            National Media Survey
 BANGLADESH                        Bangladesh     (NMS)
                                                                          15,800           National                                 Face-to-face                  15+                        Yes                  No              ThinkMedia                    Yes

                                                                                                                                F-F/self completed/
 CHINA                             CTR            China CNRS              100,000          60 1-4 tier cities
                                                                                                                                      On-line
                                                                                                                                                                 15-69

 INDIA                             IMRB           India                   51,000           National                             F-F/self completed             15-55 ABC

                                                  National Demographic
 SRI LANKA                         LMRB
                                                  & Media Survey (NDMS)
                                                                          12,500           National                                  F-F/CAPI                     6+                         Yes                  No               QuestPlus                    No

                                                                          6 Cities 9,352
 VIETNAM                           Kantar Media   Vietnam                 (Urban)          6 cities & National                  F-F/self completed               15-54                                                             Choices 4                    Yes
                                                                          National 7,200
                                                                          (exc 6 cities)

                                                  Consumer
 MYANMAR                           Nielsen MMRD
                                                  & Media View
                                                                          5,500+           National                                Face-to-face                   10+                        Yes                  No            Clear Decisions                 No

34                            MULTICHANNEL TV 2017                                                                                                                                                                                                                         35
MARKET OVERVIEW

36   MULTICHANNEL TV 2017                     37
MARKET OVERVIEW

                                                                                                  Key priorities are:                                                                                            Groups with significant IP ownership

     A BRAND NEW GAME
                                                                                                  (1) Reducing or recalibrating channel                                                                          will market content directly to
                                                                                                  portfolios;                                                                                                    customers, in partnership with telco and
     A PERSPECTIVE FROM MEDIA PARTNERS ASIA ON HOW PAY-TV, BROADBAND                              (2) Investing in digital rights and scaling                                                                    pay-TV groups. Eventually, the market
     AND ONLINE VIDEO ARE CONVERGING                                                              businesses in large local markets;                                                                             for channel operators will consolidate
                                                                                                  (3) Potentially investing more in local IP                                                                     significantly with less room for
     In general, the Asia Pacific pay-TV       and drive customer yields as data                  and premium Asian content and                                                                                  aggregators and curators, as the market
     industry is maturing. Unadjusted for      becomes gradually commoditized.                    (4) Driving program sales and                                                                                  for IP ownership, as well as viable
     multiple connections in a household,                                                         syndication growth through direct deals                                                                        local and Asian content, grows at the
     pay-TV penetration is expected to scale   This could help fuel the growth of                 with telcos and pay-TV operators for                                                                           expense of packaged, commoditized
     from 65% to 75% between 2016 and          digital video services (SVOD & AVOD)               on-demand and OTT services.                                                                                    programming. 
     2021 – the adjusted numbers show a        as operators maximize carrier billing
     small spike from 55% to 60% over the      functionality and strong local marketing                                                              Fixed broadband penetration versus pay-TV penetration (2021)
     same period.                              capabilities to be the B2C partners for

                                                                                           Fixed Broadband and Penetration of HHs
                                                                                                                                      120%
                                               players such as iFlix, Netflix, Viu and                                                                                                                                                                        Korea
     The exponential growth of mobile and      premium offerings from the BBC, Fox,                                                   100%
                                                                                                                                                                                             New Zealand                   Singapore

     broadband, as well as the growing         Disney and Viacom.                                                                                                                                                              Hong Kong

     scale and capitalization of telecom                                                                                              80%                       Japan                     Australia              China
     platforms is likely to reshape the        At end-2015, mobile broadband had                                                                                                                                                           Taiwan

     landscape. Operators are repackaging      reached 42% per capita penetration on                                                  60%
     and repricing channel tiers and           average in Asia Pacific, and is on course                                                                                           Vietnam
                                                                                                                                                                                                                    APAC Average
                                                                                                                                                                                                      Malaysia
     product bundles. At the same time,        to grow to 75% per capita penetration                                                  40%                               Thailand
     content providers and operators are       by 2021 and to 85% by 2025. Fixed                                                                                              Sri Lanka
                                                                                                                                                              Philippines
     navigating the complex world of digital   broadband household penetration                                                        20%           Indonesia
                                                                                                                                                                                                                                        India
     content rights and adapting to new        reached 33% in 2015, and is expected
     technologies to roll out competitive      to grow to 49% by 2021 and to 55% by                                                    0%
                                                                                                                                             0%                20%                      40%                      60%                   80%                   100%                 120%
     on-demand and authenticated digital       2025.
                                                                                                                                                                                           Pay-TV Penetration of TVHHs
     services.
                                               In a number of markets, especially
     The context in which these strategies     across Southeast Asia, broadband                             Wireless broadband penetration versus fixed broadband penetration (2021)
     are being implemented, is important:      household and user penetration will                                                    250%

                                                                                           Wireless Broadband & Penetration of Pop.
     Broadband reshapes consumer               exceed that of pay-TV, according to                                                                                                                                                              Hong Kong

     demand. Operators and broadcasters        Media Partners Asia (MPA). In addition,                                                200%                                                                                                                  Singapore   South Korea
     are keen to capitalize on rapidly         the growth of connected devices
     growing residential fixed broadband       as players such as Alibaba, Le and
                                                                                                                                                                                                                                                        New Zealand
     penetration and rising next generation    Samsung rollout platforms across                                                       150%
     mobile broadband penetration. In          India and Southeast Asia, will offer                                                                                         Thailand                                     Taiwan    Japan

     most emerging markets and even            content providers and OTT platforms                                                    100%                                                        Vietnam
                                                                                                                                                                                                                                     China
                                                                                                                                                                                                                                   Australia
     mature geographies, households and        new opportunities for strong branded                                                                   Indonesia
                                                                                                                                                                                       Malaysia         APAC Average
     residential users are spending more       destinations.                                                                                      India
                                                                                                                                      50%                PhilippinesSri Lanka
     on broadband (or bundled video and
     broadband) than on standalone pay-TV.     Broadcasters carve out new
     In most instances, telecom operators      strategies. Most media groups will                                                      0%
                                                                                                                                             0%                20%                      40%                      60%                   80%                   100%                 120%
     need to aggregate and curate more         reassess, resize and reinvest in their
     content for their users to help sustain   channel and content portfolios.                                                                                                   Fixed Broadband & Penetration of HHs
                                                                                                                                                                                                                                                        Source: Media Partners Asia

38                   MULTICHANNEL TV 2017                                                                                                                                                                                                                                                39
MARKET OVERVIEW
                                                                                                                                               Share of new video subscription dollars (2016-2021)

     TV & DIGITAL
                                                                                                           60%
                                                                                                                                                          Developed SEA
                                                                                                                                                                          China

     PROSPECTS
                                                                                                           50%
                                                                                                                                                                                     North Asia
                                                                                                           40%
                                                                                                                                                                                     Australia

                                                                                                 Digital
                                                                                                           30%
     Pay-TV advertising revenue in Asia         advertising expands. This will not only                                                                                                                 Emerging SEA
     Pacific is expected to grow at a 7%        benefit large global platforms with                        20%
     CAGR between 2016-21, reaching             increasingly local reach (i.e. YouTube,                    10%
     US$16 billion by 2021. Future prospects    Facebook) but also local players with                                                                                                                                              India

     will remain driven by high base markets    IP ownership in markets such as China,                      0%
     such as India and Korea, along with        India, Korea and parts of Southeast Asia.                         0%       10%           20%         30%           40%     50%      60%           70%         80%         90%         100%
     China. Australia, Japan and Taiwan will                                                                                                                               TV
     remain material, although growth in all    Pay-TV’s share of the consumer wallet
     three markets will soften. Malaysia and    will remain robust by 2021 though                                                               Share of new video advertising dollars (2016-2021)
     the Philippines will remain the standout   digital’s share through SVOD-based                         100%
                                                                                                                           Australasia
                                                                                                            90%    China
     markets for pay-TV advertising in          OTT and integrated telco video                                                Developed SEA
                                                                                                            80%                                      North Asia
     Southeast Asia, while Vietnam promises     platforms will substantially grow in                        70%
     future growth.                             markets such as Australia, China, Japan                     60%

                                                                                                 Digital
                                                                                                                                                                                       India
                                                and in key emerging markets such as                         50%
     In most markets, TV (both free and         Indonesia.                                                  40%                                                                                                     Emerging SEA
     pay-TV) in aggregate will continue to                                                                  30%
                                                                                                            20%
     lose share of incremental advertising      Retail subscription dollars are already                     10%
     dollars to digital media, most notably     flowing online in markets such as                            0%
     in Australia, China, Japan and Korea       China, Australia and Korea, but will                              0%          10%              20%                30%      40%         50%              60%            70%             80%
     and parts of Southeast Asia. The market    take longer to eventuate in emerging                                                                                       TV
     erosion will be evident but much slower    Southeast Asian economies and India.                                                                                                               Developed SEA: Singapore, Malaysia
                                                                                                                                                                                  Emerging SEA: Indonesia, Thailand, Philippines, Vietnam
     in markets such as India and Indonesia.    SVOD in these markets requires greater                                                                                                     North Asia: Hong Kong, Taiwan, Korea, Japan

                                                education, marketing, scale (as pricing
                                                                                                                                                                                                     Australasia: Australia, New Zealand

     Mobile consumption of clips and            power will always remain modest)                                                                                                                              Source: Media Partners Asia

     short-form video continues to climb        and consolidation, as more local and
     rapidly in most emerging Southeast         vernacular content comes online,
     Asia markets, as well as in India,         along with premium Asian content and
     Australia, China, Japan and Korea. This    Hollywood content that’s already being
     is informing the creation and curation     exploited. 
     of new local content in China, India and
     Korea, and in time will drive demand for
     other genres, including sports, factual
     and lifestyle.                             Media Partners Asia provides data, insights
                                                and strategies for the media & telecoms
                                                industry across Asia Pacific. For more than 15
     All of this is a key catalyst for an       years, industry stakeholders have put their
     increasingly material advertising          trust in our consulting services, research,
     opportunity for online video, which will   publications and industry events.
     grow further as video’s share of digital   www.media-partners-asia.com

40                   MULTICHANNEL TV 2017                                                                                                                                                                                                    41
MARKET OVERVIEW

        THE EVER-CHANGING                                                                                                                      THAILAND                                      was available from beginning to end,

        ASIA PACIFIC MEDIA SCENE
                                                                                                                                               In Thailand, Digital Terrestrial Television   24 hours a day across Smart TVs,
                                                                                                                                               (DTT) is gaining momentum since its           Smartphone and Tablets. This was the
                                                                                                                                               launch in April 2014. This brings more        coming of age for streaming services
        People are consuming more media                                                    in the U.S., where over the last 10                 programming and channel choices to            and the most complete coverage of a
        than ever before and Nielsen expects to                                            years alone we have seen an increase                consumers moving from six channels to         marquee sporting event such as the
        see this trend continue to grow. Thanks                                            of 28% (15hrs) more media being                     a current total of 22 channels.               Olympics.
        to the influx and variety of connected                                             consumed per week – primarily driven                Since the introduction of DTT in the
        devices, consumers now have the ability                                            by new time spent consuming content                 Thai market we have seen a significant        PHILIPPINES
        to access media content according                                                  via a smartphone, tablet or PC. As                  increase in audience share – 2% to 32%        It’s all about social in 2016 as we see
        to their own personal preference,                                                  infrastructure improves, this trend will            to date. This increase is in line with        the Philippines become the sixth largest
        wherever and whenever they want.                                                   be increasingly evident in Asia Pacific.            both the National Telecommunications          Internet market in Asia and the second
        This is nowhere more apparent than                                                                                                     Commission (NBTC) set top box (STB)           largest in Southeast Asia. Dubbed as
                                                                                                                                               coupon distribution initiative and            the "social networking capital of the
                                                                                                                                               increased signal coverage capacity. This      world" Filipinos have the highest time
                      THERE ARE MORE MEDIA OPTIONS FILLING UP CONSUMER’S DAY                                                                   all points to one truth: the more options     spent on social media platforms across
                        Weekly time spent in the Total US population Based on Qtr 2, P18+                                                      consumers have, the more time they            Asia Pacific, averaging more than 4
                                                                                                                                               spend consuming media.                        hours a day.
                      72                                                                                                   TABLET                                                            This move by consumers to social
                      66
                                                                                                                           SMARTPHONE
                                                                                                                                               INDIA                                         media is seeing more and more
                      60                                                                                                                       With the increased penetration of 4G          brand owners turn to social media as
                      54                                                                                                   PC                  services in India, 2016 has become            a primary channel for marketing and
                      48                                                                                                                       the year of digital video with a host         awareness.
     Hours per week

                                                                                                                           MULTIMEDIA DEVICE
                                                                                                                                               of new streaming services on offer
                      42                                                                                                   VCR                 from broadcasters such as Direct to           MYANMAR
                      36                                                                                                                       Household (DTH) operators as well             Satellite and Digital Receiver Ownership
                                                                                                                           GAME CONSOLE
                      30                                                                                                                       as independent services (including            across all Myanmar households has
                      24                                                                                                   DVD/BLU RAY         Netflix). Indian consumers have found         almost doubled to 2.7M households
                      18                                                                                                   TIME-SHIFTED TV
                                                                                                                                               themselves inundated with choice and          in 2016. Local broadcast giant, Forever
                      12                                                                                                                       are enjoying the benefits of on-demand        Group, launched in August 2016, as did
                                                                                                                           RADIO               viewing.                                      Pyoneplay, the country’s first mobile
                       6
                                                                                                                           LIVE TV
                                                                                                                                                                                             app. Pyoneplay provided access to
                       0                                                                                                                       AUSTRALIA                                     replay and live content for the group’s
                                       2002              2006              2011             2016
                                                                                                                                               For the first time, Australians could         two leading free to air channels, MRTV
                      Source: Nielsen Total Audience and Insights Report (US total population, annual qtr. 2 comparison)                       access the 2016 Rio Olympics across           4 and Channel 7. Along with the lifting
                                                                                                                                               a multitude of digital platforms and          of trade sanctions in Myanmar comes
        This increased opportunity to reach                                                Fragmentation caused by greater                     experienced each distribution platform        news of up to five new FTA channels
        and engage with consumers is                                                       consumer choice is a common theme                   utilizing its strength. DTT channels          permitted to broadcast starting January
        certainly exciting for media owners and                                            seen across many Asia Pacific markets.              delivered the more popular sports             2017 – bringing the total number of
        advertisers. However, navigating the                                               And, there are local nuances in each                along with discussion based programs          channels featuring local Myanmar
        labyrinth of screen choices and media                                              market of which players need to be                  and highlights. This was complemented         content and ads to 56.
        platforms can be incredibly complex, yet                                           aware in order to ensure cross-platform             by premium subscription-based digital
        critical to get right.                                                             strategies are relevant and optimal.                streaming service where every sport

42                                         MULTICHANNEL TV 2017                                                                                                                                                                         43
MARKET OVERVIEW

                                                                                             JAPAN                                        businesses of television, advertising,
                                                                                             Japan is considered a technology             and measurement. Nielsen’s vision is
                                                                                             leader across the region and                 to supply the most comprehensive
                                                                                             recently has seen an exciting new            view of media content and advertising
     MALAYSIA                                    SINGAPORE                                   venture between digital ad agency,           consumption to media owners, brand
     The acceleration of 4G and a recent         Singapore migrated its linear national      CyberAgent and TV broadcaster, TV            advertisers and agencies in a set of
     reduction in price and bundling offers      television audience measurement             Asahi Corporation. The duo will launch       integrated tools in order to support the
     see Malaysia going through a digital        system to a multi-platform system           a new Internet based TV station called       continued growth of the media industry
     revolution. Coupled with the entry          creating a single unified TV audience       Abematv. In a mobile-first country           through transparency, measurability
     of cheaper smartphones along with           measurement currency. This includes         like Japan, Abematv TV will focus on         and insights to drive informed business
     Netflix and iflix, these factors have all   the audiences garnered for TV across        catering to smartphone viewers and           decisions.
     come together at once to enable more        desktops, smartphones and tablets.          reaching the younger generation              As the media ecosystem changes to
     Malaysians to consume even larger           In addition to a ratings system change      that are consuming less traditional          accommodate increasing demands and
     amounts of content online – particularly    in Singapore, Mediacorp and Nielsen         television. This is the beginning of new     complexity so should the requirements
     via mobile screens.                         have teamed up to launch the world’s        era for the TV industry in Japan and         and methods of measurement.
     For the first time ever, both the 2016      first cross-media audience planning         has turned digital disruption around to
     Rio Olympics and Paralympics were           solution (Customer360).                     benefit and redefine the TV business.        In response to these changes
     streamed live by subscription television    Customer360 integrates all available
                                                                                                                                          Nielsen has introduced the Nielsen
     and an independent broadcaster. The         media currencies and enables robust         INDONESIA                                    Total Audience Framework, an end-
     digital eco-sphere continues to expand,     cross-media planning for Mediacorp’s        After some delay, the era of                 to-end solution working across the
     giving Malaysian audiences and              breadth of touchpoints: TV, Print, Radio,   non-analogue terrestrial viewing             three phases: planning, activation
     advertisers a lot more choices.             Out-of-Home and Digital. This planning      has arrived in Indonesia. Two major          and measurement. Nielsen’s Total
                                                 solution will help Singapore marketers      streaming services launched in the           Audience Framework system enables
     NEW ZEALAND                                 look across all platforms to see how to     first quarter of this year and a number      media companies and advertisers
     The New Zealand media landscape             plan across a proliferation of channels.    of broadcasters now deliver their            to make the most of the evolving
     is currently faced with discussion on                                                   streams by mobile application. Telecom       media landscape, providing them
     media ownership amalgamations with          VIETNAM                                     companies are competing aggressively         with a comprehensive view of their
     two proposed mergers. First, Sky TV         Digital TV was established in Vietnam       by offering unlimited 4G access to           audience for both ads and content, in
     (pay television network) and Vodafone,      in 2006 by Vietnam Television               homes in large urban areas, which will       the form of independent, comparable,
     and second, a proposed union                Corporation. They were the first to         drive the uptake of streaming. The 2016      de-duplicated measurement across all
     between NZME (media owners of print/        broadcast Digital Terrestrial Television    Olympics badminton final featuring the       screens and platforms. Each of these
     digital/radio properties) and Fairfax       (DTT) using DVB-T standards with            Indonesia team attracted the biggest         measurement solutions are flexible, to
     (media owner in print and digital).         coverage across Ha Noi, Ho Chi Minh,        audience to live online streaming to date.   cater to local market nuances, while
     Both amalgamations are subject to           Da Nang and some suburban areas. In         The Indonesian government has                being comparable across multiple
     Commerce Commission approval, and           2010, the government regulated DTT          indicated 2018 as DTT switchover year,       countries. 
     protest submissions have been put           standard to DVB-T2 and at the same          and is currently working on revising the
     forward under the anti-competitive          time a digital transition roadmap to        broadcasting law for digital; however it
     umbrella; however most commentators         2020 was put in place. Vietnam has          is still unclear how implementation will         Craig Johnson,
     are predicting the mergers will go          switched off the analogue terrestrial       occur.                                        Managing Director
     ahead. This will lead to a greater          TV in Ha Noi, Ho Chi Minh, HaiPhong,                                                                  Media,
     concentration of media ownership.           CanTho, Da Nang and Binh Duong, with                                                       South East Asia,
                                                                                             Across Asia Pacific, consumers                    Pacific & India
                                                 analogue scheduled to be switched off       have a growing array of options for
                                                 across the country by 2020.                 viewing their favorite content, and
                                                                                             this is fundamentally changing the

44                   MULTICHANNEL TV 2017                                                                                                                                            45
MARKET OVERVIEW                                                                                                                                           Connected device supporting TV
                                                                                                                                                                    Everywhere service                                                                                                  Business model

                                                                                                                                                                                                                                               Live channels offered
                                                                                                                                                                                                                         compatibility score
                                                                                                                                             TVE launch date

                                                                                                                                                                                                                                                                                                                                                    in local currency
                                                                                                                                                                                                                                                                                     authentification

                                                                                                                                                                                                                                                                                                       authentification
                                                                                                                                                                                                                                                                                                                         OTT/Available
                                                                                                                                                                                                 Game console

                                                                                                                                                                                                                                                                                                                                                                        TVE channels
                                                                                                                                                                          Smart-phone

                                                                                                                                                                                                                                                                                                                                                    Monthly cost
                                                                                                                                                                                                                                                                       VOD offered
     APAC TV EVERYWHERE

                                                                                                                                                                                                                                                                                                                         to non-subs

                                                                                                                                                                                                                                                                                                                                                                        No. of luve
                                                                                                                                                               Smart TV
                                                                                                           Operator

                                                                                                                               Platform
                                                                                                  Market

                                                                                                                                                                                                                PC/Mac

                                                                                                                                                                                                                         Device
                                                                                                                                                                                        Tablet

                                                                                                                                                                                                                                                                                     Free

                                                                                                                                                                                                                                                                                                       Paid
     AUTHENTICATION REMAINS THE NORM
                                                                                              Australia     FOXTEL              DTH/Cable   Oct-09               yes      yes           yes         yes          yes             5             yes                        yes            yes                no              yes                 A$25-95                   78

     WHILE OTT TAKES BETTER SHAPE
                                                                                           Hong Kong        PCCW                IPTV        Dec-09                no      yes           yes         yes          yes             4             yes                        yes            yes                no              yes                      Free                 6

                                                                                               Taiwan       Chunghwa            IPTV        Dec-09                no      yes           yes          no          yes             3             yes                        yes            yes                no               no                           ——              N/A
                                                                                                            Telecom
     by Wangxing Zhao
                                                                                          South Korea       CJ HelloVision      Cable       May-10               yes      yes           yes          no          yes             4             yes                        yes             no                no              yes 2,900-10,900 won                          220

                                                                                          New Zealand       SKY Network         DTH         Jan-11                no      yes           yes          no          yes             3             yes                        yes            yes                no               no                           ——              16
                                                                                                            Television Ltd

                                                                                          South Korea       KT Corporation      DTH/IPTV    Apr-11                no      yes           yes          no          yes             3             yes                        yes             no                no              yes                5,500 won                  80+
     Multichannel operators across the           With the exception of South Korea’s
                                                                                                 China      Beijing Gehua       Cable       Jun-11                no      yes           yes          no          yes             3             yes                         no             no               yes               no                  RMB 10                   76
     Asia Pacific region are exploring           Tbroad, all TV Everywhere providers
     innovative ways of extending                in Asia Pacific offer linear streaming         Japan       NTT Plala Inc.      IPTV        Aug-11               yes      yes           yes          no          yes             4             yes                        yes            yes                no              yes          480 or 1,200 yen                 18

     traditional pay TV services to a wider      channels, and all but six offer VOD            Japan
                                                                                                            SKY Perfect JSAT
                                                                                                            Corporation
                                                                                                                                DTH/IPTV    Oct-11               yes      yes           yes          no          yes             4             yes                        yes            yes                no               no                           ——              60+

     audience, particularly cord-cutters         content. CJ HelloVision leads the         Hong Kong        i-Cable
                                                                                                            Communications
                                                                                                                                Cable       Feb-12                no      yes           yes          no           no             2             yes                         no            yes                no               no                           ——              9

     and cord-nevers. TV Everywhere              charge in second-screen linear                 Japan       J:COM               Cable       May-12                no      yes           yes          no          yes             3             yes                        yes            yes                no               no                           ——              89
     authentication today can take both free     programming, with 220 channels             Singapore       StarHub Ltd         Cable       Jun-12               yes      yes           yes          no          yes             4             yes                        yes            yes                no              yes             S$9.90-19.90                  100+
     and paid forms. Paid authentication         available to subscribers. During
                                                                                              Malaysia      Astro               DTH/IPTV    Jun-12                no      yes           yes          no          yes             3             yes                        yes            yes               yes              yes                 RM10.60                   55
     means existing subscribers of               2015 and 2016, many TV Everywhere
     multichannel services have to pay an        platforms have expanded content            Singapore       SingTel             IPTV         Jul-12               no      yes           yes          no           no             2             yes                         no             no               yes               no            S$6.90 or 9.90                 120+

     extra fee, usually monthly, to stream       offerings with new channels,             South Korea       SK Broadband        IPTV         Jul-12               no      yes           yes          no           no             2             yes                        yes             no                no              yes          2,000-3,000 won                  80+

     TV Everywhere content via secondary         on-demand libraries and live broadcast       Thailand      TOT                 IPTV        Jan-13               yes      yes           yes          no          yes             4             yes                        yes            yes                no               no                           ——              160+

     devices. Our analysis indicates many        events. In addition, HD programming          Thailand      TrueVisions         DTH/Cable   May-13                no      yes           yes          no          yes             3             yes                        yes             no               yes               no                 100 baht                  90+
     Asia Pacific pay TV operators are opting    is becoming widely available from            Malaysia      Telekom             IPTV         Jul-13               no      yes           yes          no          yes             3             yes                        yes             no               yes              yes                 RM 5-15                   68
     for paid models for their TV Everywhere     advanced TV Everywhere operators                           Malaysia

     services, generating value-added            such as FOXTEL, TOT, Singtel, StarHub
                                                                                            Philippines     Cignal TV           DTH          Jul-13               no      yes           yes          no           no             2             yes                         no            yes                no               no                           ——              11

     revenue streams. As of September            Ltd., Astro and TrueVisions.             South Korea       LG Uplus            IPTV         Jul-13               no      yes           yes          no           no             2             yes                        yes             no                no              yes               5,500 won                   90

     2016, out of 34 TV Everywhere                                                             Taiwan
                                                                                                            TWM
                                                                                                            Broadband           Cable       Sep-13                no      yes           yes          no           no             2             yes                        yes            yes                no               no                           ——              N/A

     operators in the region, 19 still offered                                                 Taiwan       Kbro                Cable       Sep-13                no      yes           yes          no           no             2             yes                        yes            yes                no               no                           ——              N/A

     free authentication, while 10 opted for                                                  Vietnam       FPT Telecom         IPTV        Oct-13               yes      yes           yes          no          yes             4             yes                        yes             no                no              yes                       N/A                 93
     paid.                                                                                                  Dish TV India
                                                                                                 India                          DTH         Oct-13                no      yes           yes          no          yes             3             yes                        yes             no               yes               no                    Rs 69                  58
                                                                                                            Ltd.

     Apart from TV Everywhere, subscription
                                                                                                 India      Tata Sky Ltd.       DTH         Oct-13                no      yes           yes          no          yes             3             yes                        yes             no               yes               no                    Rs 60                  140

     and transactional OTT models are                                                         Australia     Fetch TV            IPTV        Dec-13                no      yes           yes          no           no             2             yes                        yes            yes                no               no                           ——              35

     increasingly being adopted by                                                           Indonesia      First Media         Cable       Feb-14                no      yes           yes          no          yes             3             yes                         no            yes                no               no                           ——              50

     multichannel providers, allowing                                                            India      Bharti Airtel       DTH         Mar-14                no      yes           yes          no           no             2             yes                        yes             no               yes               no                    Rs 45                  150

     non-pay TV subscribers to access paid                                                   Indonesia      PT MNC Sky          DTH         Jun-14                no      yes           yes          no          yes             3             yes                         no            yes                no               no                           ——              55
     content via broadband and on a range                                                                   Vision
                                                                                                            Taiwan Optical
                                                                                               Taiwan                           Cable       Dec-14                no      yes           yes          no           no             2             yes                        yes            yes                no               no                           ——              N/A
     of devices. As of September 2016, 12                                                                   Platform

     operators in the region had launched                                                 South Korea       Tbroad              Cable       Jun-15                no      yes           yes          no          yes             3              no                        yes             no                no              yes          4,000-9,000 won                  ——

     pure OTT streaming and on-demand                                                       Philippines     SkyCable            Cable        Jul-15               no      yes           yes          no          yes             3             yes                        yes            yes                no               no                           ——              36

     packages to target broadband users                                                          India      Videocon d2h        DTH          Jul-15               no      yes           yes          no           no             2             yes                        yes             no               yes               no                    Rs 60                  78

     without a multichannel subscription.                                                     Vietnam       VTVcab              Cable       May-16                no      yes           yes          no          yes             3             yes                        yes             no               yes               no                       N/A                 20+

                                                                                               TOTAL        34                                                     7      34            34             2          23                            33                         28             19               10                12

46                   MULTICHANNEL TV 2017                                                                                                                                                                                                                                                                                                                                              47
MARKET OVERVIEW

                                                       Number of Asia Pacific TV Everywhere                                                  As of September 2016, South Korea             Number of TV Everywhere
                                                                      LAUNCHES BY YEAR,                                                      had the most TV Everywhere services,           LAUNCHES BY MARKET,
                                                                      as of September 2016                                                   offered by CJ HelloVision, KT Corp., SK
                                                                                                                                                                                              as of September 2016
                                                                                                                                             Telecom Co. Ltd.’s SK Broadband, LG
                                                                                                                                             U+ and Tbroad, respectively. India and
                                                                                                                                                                                                                South Korea                          5
       12                                                                                                                                    Taiwan followed suit with four services
                                                                           11                                                                each, and Japan still had three. By                                            India                    4
       10                                                                                                                                    2014, all 14 Asia Pacific markets in our                                    Taiwan                      4
                                                                                                                                             survey had at least one TV Everywhere
                                                                                                                                                                                                                           Japan                     3
                                                                                                                                             operator, indicating multi-screen
        8                                                                                                                                    service models have become standard                                      Australia                      2
                                                                                                                                             among the region’s main multichannel                                  Singapore                         2
                                                                                                                                             operators.
        6                                                    6                                                                                                                                                   Hong Kong                           2
                                              5                                                                                              Smartphones and tablets remain                                           Thailand                       2
        4                                                                                  4                                                 the most common types of devices                                         Malaysia                       2
                                                                                                                                             for TV Everywhere programming
              3                                                                                           3                                                                                                         Indonesia                        2
                                                                                                                                             delivery, with all 34 operators having
        2                                                                                                                                    developed smartphone and tablet                                      Philippines                        2
                              1                                                                                          1                   apps. Computers are also a popular                                        Vietnam                       2
        0                                                                                                                                    platform for secondary screen viewing,                             New Zeland                           1
            2009            2010           2011           2012           2013           2014           2015           2016
                                                                                                                                             with 23 operators having a dedicated
                                                                                                                                             TVE website. Smart TVs and game                                               China                     1
                  Source: © 2016 SNL Kagan, an offering of S&P Global Market Intelligence, analysis of industry data. All rights reserved.   consoles, by contrast, are rarely used                                          Total                 34
                                                                                                                                             as TV Everywhere viewing devices,
                                                                                                                                             with adoption by just seven and two
                                                                                                                                             operators, respectively. 
                                                                                                                                                                                        Source: © 2016 SNL Kagan, an offering of S&P Global Market
                                                                                                                                                                                            Intelligence, analysis of industry data. All rights reserved.

     The first known TV Everywhere                                           resulting in three new TVE service
     proposition in Asia Pacific was                                         initiatives across the region in 2015 and
     introduced in October 2009 by                                           just one in 2016. Our analysis indicates
     Australian DTH and cable incumbent                                      operators’ interests in pursuing
     FOXTEL, followed by Hong Kong’s                                         multi-screen video deployment
     PCCW Ltd. and Taiwan’s Chunghwa                                         are shifting from authenticated TV
     Telecom Co. Ltd. later that year. The                                   Everywhere to subscription OTT
     years leading up to 2013 brought a                                      services, as evidenced by a slew of
     growing number of TV Everywhere                                         operator-led OTT initiatives launched
     launches across the region, with 11                                     within the last few years, such as Foxtel
     new platforms launched in 2013                                          Play, Astro-on-the-Go, StarHub Go, and
     alone. However, this upward trend has                                   PCCW’s Viu.
     reversed over the last couple of years,

48                          MULTICHANNEL TV 2017                                                                                                                                                                                                            49
ADVERTISING OVERVIEW

50   MULTICHANNEL TV 2017                          51
ADVERTISING OVERVIEW

     A NEW GENERATION                                                                                                       Multichannel TV advertising revenue                                      multichannel markets in the world.

     IS DRIVING TV ADVERTISING
                                                                                                                            is expected to see solid increases                                       Additionally Indonesia, South Korea
                                                                                                                            at a 10.2% CAGR to 2020, with its                                        and Japan are the largest markets and
                                                                                                                            share of total TV advertising revenue                                    are projected to comprise 64% of total
                                                                                                                            growing from 15.1% in 2015 to 18.0%                                      mulichannel TV advertising revenue in
     Economic growth in many emerging                                      and 3.9% respectively to account                 in 2020. The South East Asian markets                                    2020. 
     markets is creating a new generation                                  for a combined 15.9% of global                   are among the fastest-developing
     of consumers for advertisers to target.                               TV advertising revenue in 2020.
     Both global and local advertisers will                                Meanwhile, Indonesia is growing the
     use TV as a medium to engage and                                      fastest at a 15.7% CAGR to rise from
     attract this important new audience.		                                being the seventh to fourth-largest              ASIA PACIFIC MULTICHANNEL TV ADVERTISING REVENUE (US $ MILLIONS)
     				                                                                  market globally between 2015 and
     Asia Pacific’s performance will be                                    2020. Vietnam will grow at a 13.8%                                                                                                                                                   2015-
     underpinned by China and Japan,                                       CAGR, while the Philippines will rise at a           COUNTRIES          2011       2012       2013       2014 2015p            2016       2017       2018       2019       2020      2020
     which will grow at CAGRs of 4.4%                                      9.6% CAGR.                                                                                                                                                                          CAGR

                                                                                                                                 AUSTRALIA          313        349        398        454        478        519        562        609        645        682        7.34
                      Asia Pacific Share of TV Advertising Revenue (US $ millions)
                                                        2016 Forecasted Revenue                                                       CHINA         534        591        647        703        638        638        676        715        755        794        4.48
     Australia
                                                                                                                              HONG KONG               49         60         71         69         63         64         65         69         70         74       3.38
     China
                                                                                                                                       INDIA      1,734      1,934      2,188      2,547      2,906      3,294      3,693      4,138      4,618      5,134      12.05
     Hong Kong
                                                                                                                                INDONESIA             21         34         81       124        181        265        370        501        658        844      36.07
     India
                                                                                                                                      JAPAN         430        489        555        625        667        725        792        864        938      1,048        9.48
     Indonesia
                                                                                                                                  MALAYSIA            42         45         48         53         59         67         74         82         90         99     10.62
     Japan
                                                                                                                            NEW ZEALAND               80         80         82         82         85         90         95       100        105        111        5.36
     Malaysia
                                                                                                                                  PAKISTAN            59         61         68         74         78         81         84         87         90         94       3.76
     New Zealand
                                                                                                                               PHILIPPINES            89       106        120        144        162        185        216        252        289        355      16.94
     Pakistan
                                                                                                                                SINGAPORE             35         36         39         43         48         53         57         62         67         76       9.55
     Philippines
                                                                                                                             SOUTH KOREA            929      1,033      1,041      1,087      1,166      1,215      1,264      1,325      1,381      1,468        4.73
     Singapore
                                                                                                                                    TAIWAN          606        571        575        604        623        641        659        686        707        739        3.48
     South Korea
                                                                                                   TERRESTRIAL TV                 THAILAND            88       118        137        161        182        211        241        276        312        348      13.84
     Taiwan
                                                                                                MULTICHANNEL TV                    VIETNAM            25         33         41         50         64         82         97       114        132        162      20.49
     Thailand

     Vietnam                                                                                                                  ASIA PACIFIC        5,034      5,538      6,090      6,822      7,400      8,129      8,945      9,879 10,858 12,027              10.20

     0           2000           4000          6000           8000          10000     12000     14000    16000       18000
                                                                                                                            Source: Global entertainment and media outlook 2016-2020, PwC, Ovum. NB: 2015 estimates are considered preliminary and marked with a ‘p’.
     Source: Global Entertainment and Media Outlook 2016-2020, PWC, Ovum

52                            MULTICHANNEL TV 2017                                                                                                                                                                                                                       53
ADVERTISING OVERVIEW

     ASIA PACIFIC
     MULTICHANNEL TV
     TV ADVERTISING 2016-2020

     The Pay TV advertising market                 and account for 15% of all digital spend
     continues to grow in Asia Pacific, with       by 2020, it currently stands at 11%.
     an estimated +6.4% YOY in 2016. We            Growth in mobile video is predicted at
     predict a CAGR of +6.7% for Pay TV            32% per annum up to 2020; with online
     over the next 4 years; performing better      video expected to grow at 11% per
     than the 5.2% estimated for the total         annum.
     advertising market.
                                                   Looking to the future, Programmatic
     Future advertising revenue growth for         buying across all screens will be the
     Pay TV will be driven by Developing           next frontier for the industry. Within Asia
     and Emerging markets in Asia Pacific,         Pacific, MCN in Australia are already
     notably India, Malaysia & Pakistan            leading the way offering programmatic
                                                                                                          Globally and within Asia Pacific, TV will see its share of advertising
     (+15% CAGR). From a volume                    TV, Out-of-Home TV and digital screens.
     perspective though, Pay TV advertising        Although multi-screen is the future for                    spend reduce as Digital media continues to gain momentum
     revenues will continue to be driven by        content, programmatic TV should at
     China, India, Japan and South Korea           go some-way to ensuring TV remains
     (accounting for 84% of all Pay TV             relevant.                                                                                           Global                        Asia Pacific
     advertising spend).
                                                                                                                                          100%
                                                   For the industry, embracing new
     As Digital growth continues in Asia           technologies to seamlessly buy across
     Pacific, total TV advertising is predicted    all screen offers great potential for                                                  80%
     to decline to 33% of all advertising          broadcast industry, advertisers and

                                                                                                                       % Share of Media
     spend by 2020 in Asia Pacific;                agencies. 
     compared to 38% in 2016. Conversely,                                                         OUTDOOR                                 60%
     digital spend in Asia Pacific will increase                                                                                                    36%           47%                  34%           44%
                                                                                                     RADIO
     from 34% in 2016 to 44% by 2020.                Craig Harvey,                                                                        40%
     Even though media budgets will switch                Head of                                MAGAZINES
     between media, collectively TV and                  Research,
     digital will continue to be effective                    IPG                                NEWSPAPER
                                                                                                                                          20%
                                                     Mediabrands                                                                                    37%           34%                  38%           33%
     in targeting consumers through                                                                 DIGITAL
                                                       Hong Kong
     multi-screen strategies.                                                                                                              0%
                                                                                                 TELEVISION
                                                                                                                                                    2016          2020                2016          2020
     Within the digital world, video screen
     advertising will continue to accelerate                                                                                                     Source: Magna Global Advertising Forecasts (June 2016), IPG Mediabrands

54                    MULTICHANNEL TV 2017                                                                                                                                                                                 55
ADVERTISING OVERVIEW

                                                                                     Within the Digital space, Video screen advertising                                                                                                                                                            2016 APAC TV ADVERTISING REVENUE
                                                                                     will account for 15.2% of all Digital spend by 2020
                    12,000                         MOBILE Video
                                                                                                                                                                                                                                                                                                                                           2016                    2016
                                                                                                                                                                                                                                                                                                 2016
                                                   ONLINE video (PAC)                                                                                                                                                                                                                                                             % OF TOTAL ADVERTISING   % OF TOTAL TV REVENUE
                    10,000

                                                                                                                                                                                                                                                          US$ MILLIONS             FTA           PAY-TV          TOTAL                  FTA     PAY-TV       FTA         PAY-TV
     US$ Millions

                     8,000
                                                                                                                                                                                                      7,145

                     6,000
                                                                                                                                                                                                                                                       ASIA PACIFIC              40,208          13,424         139,975                 29%      10%         75%          25%
                                                                                                                                                                                                                                         4,321
                     4,000                                                                                                                                                                                                                             AUSTRALIA                  2,451            405           10,555                 23%       4%         86%          14%
                                                                                                                                                                               2,865
                                                                                                                                                                                                                                                       CHINA                     12,524           5,079          53,269                 24%      10%         71%          29%
                     2,000                                                                                                                2,364
                                                                                                                                                                                                                                                       HONG KONG                   967              41           3,268                  30%       1%         96%          4%
                           0
                                                                                                                                                                                                                                                       INDIA                       253            3,419          8,793                  3%       39%          7%          93%
                                    2005

                                                     2006

                                                                 2007

                                                                              2008

                                                                                           2009

                                                                                                        2010

                                                                                                                  2011

                                                                                                                                 2012

                                                                                                                                               2013

                                                                                                                                                                  2014

                                                                                                                                                                                2015

                                                                                                                                                                                                2016

                                                                                                                                                                                                              2017

                                                                                                                                                                                                                          2018

                                                                                                                                                                                                                                         2019

                                                                                                                                                                                                                                                2020
                                                                                                                                                                                                                                                       INDONESIA                  2,910             18           5,835                  50%       0%         99%          1%

                                                                                                                                                                                                                                                       JAPAN
                                                                                                                           Source: Magna Global Advertising Forecasts (June 2016), IPG Mediabrands
                                                                                                                                                                                                                                                                                 13,359           1,035          34,101                 39%       3%         93%          7%

                                                                                                                                                                                                                                                       MALAYSIA                    604             246           2,328                  26%      11%         71%          29%
                     Specifically within Pay-TV, we predict strong growth in developing
                     markets and expect declines in a few well-established markets across                                                                                                                                                              NEW ZEALAND                 471              82           1,618                  29%       5%         85%          15%
                     the next 5 years                                                                                                                                                                                                                  PAKISTAN                     33             181             344                  10%      53%         15%          85%
                                                                                                                                                                       PAY TV CAGR % (2016 VS 2020)
                                                                                                                                                                                                                                                       PHILIPPINES                1,274             40           1,962                  65%       2%         97%          3%
                                                                                                                                                                                              Sri Lanka

                    30%
                                                                                                                                                                                                                                                       SINGAPORE                   539              54           1,825                  30%       3%         91%          9%

                    25%                                                                                                                                                                                                                                SOUTH KOREA                1,477           1,583          8,462                  17%      19%         48%          52%
                                                                                                                                                                                              24.5%
                                                                                                                                                                                                                                                       SRI LANKA                    96              5              204                  47%       2%         95%          5%
                    20%
                                                                                                                                                                                                                                                       TAIWAN                      126             661           2,068                  6%       32%         16%          84%
                                                                                   India

                                                                                                                Malaysia

                                                                                                                                         Pakistan

                                                                                   15.7%                                                                                                                                                               THAILAND                   2,446            279           4,158                  59%       7%         90%          10%
                    15%
                                    Asia Pacific

                                                                                                                                                                                                                                                       VIETNAM                     678             296           1,185                  57%      25%         70%          30%
                                                                                            Indonesia

                                                                                                                13.1%
                                                                                                                                         12.4%
                                                                                                                           New Zealand
                                                   Australia

                                                                                                                                                                                                                               Vietnam
                                                                                                                                                    Philippines

                    10%
                                                                       Hong Kong

                                                                                                                                                                                South Korea
                                                                                                        Japan

                                                                                           7.5%                                                                                                                                                                                    FTA           PAY-TV          TOTAL
                                   6.7%
                                                               China

                      5%                                                                                5.0%                                                                                                                   10.0%
                                                                                                                                                                   Singapore

                                                   4.6%
                                                                                                                                                                                                                    Thailand

                                                                                                                                                    3.6%                                                                                                  2016 VS. 2015
                                                                                                                                                                                                           Taiwan

                                                               2.3% 2.4%                                                   2.6%                                                                                                                             % CHANGE              1.4%            6.4%           6.0%
                                                                                                                                                                               1.6%
                      0%
                                                                                                                                                                                                                                                       Source: Magna Global Global Advertising Forecasts (June 2016), IPG Mediabrands
                     Source: Magna Global Advertising Forecasts (June 2016), IPG Mediabrands                                                                      -1.1%                                                                                Note: Data excludes revenue from regional campaigns
                                                                                                                                                                                                          -2.4% -2.5%

56                                                             MULTICHANNEL TV 2017                                                                                                                                                                                                                                                                                                57
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