ASIA PACIFIC MULTICHANNEL TV 2017 - Asia Video Industry Association
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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
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
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
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
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. 14 MULTICHANNEL TV 2017 15
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
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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