Asia Pacific MULTICHANNEL TV ADVERTISING - Asia Video Industry Association
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Asia Pacific MULTICHANNEL TV ADVERTISING 2016
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About CASBAA
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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 1991, CASBAA has grown with the industry to
include digital multichannel television, content, platforms, advertising,
and video delivery. Encompassing some 515 million connections 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. For more
information, visit www.casbaa.com
www.casbaa.com
CASBAA Executive Office
802 Wilson House
19-27 Wyndham Street
million
MULTICHANNEL HOMES
CAN’T BE WRONG.
Central, Hong Kong
Tel: 852 2854 9913
Enquiry: casbaa@casbaa.com
www.casbaa.com
2 3
Executive Summary
Globally, there are many factors at work monetization, as advertisers shift
in reshaping the Pay TV ecosystem, their spending to online. Initiatives
including developments in technology, to improve pay TV measurement in
changing consumer expectations, the region are critical, as data-driven
a proliferation of new content, and media buying increasingly dominates
continually shifting advertising the market. New tools are being
dynamics. developed to help add contours to the
Contents The digital revolution is a decade old
data landscape, but these will require
collaboration among industry players
now, and while many Asian markets in order to be seen by advertisers and
are still lagging in fixed and wireless agencies as credible.
broadband deployments, audiences in
FAST FACTS .......................................6
the region are nonetheless following Times of change are often difficult, and
GLOBAL OVERVIEW .......................10 global trends. Increasingly, they do not that is certainly the case in Asia’s pay
really distinguish between digital and TV industry today. But by embracing
ASIA PACIFIC VIEWERS . ................20 traditional media; what they want is innovation and developing customer-
flexibility and choice in how and when centric strategies, we at CASBAA are
MEASUREMENT GUIDE .................28 they consume the content they want. confident our industry can ride out
whatever turbulence happens to come
COUNTRY OVERVIEW . ..................34 This is certainly a new Golden Age for our way.
TV, with more and better programming
ADVERTISING REVENUE . ..............43 being produced than ever before,
both internationally and locally. Risks
MAKING WAVES WITH OTT ..........63 are being taken, boundaries pushed,
and innovation explored, with the very
ADVERTISING REGULATIONS ......83
positive consequence that consumer
demand is fuelled, and the pace of
change is further accelerating.
But even with subscription TV’s
continued growth in the region, there
are still challenges, particularly around
CASBAA would like to thank Jane Buckthought, the CASBAA
Research Committee and the various networks and research
companies who made this report possible.
4 MULTICHANNEL TV 2016 5
Non-Terrestrial TV 30%
Connections 99% JAPAN
59%
15.2 MILLION
61%
SOUTH KOREA
24.7 MILLION
54%
CHINA
265.8 MILLION
PAKISTAN
11.9 MILLION 84% 97%
of homes in Asia 92% HONG KONG
2 MILLION
TAIWAN
7.9 MILLION
now receive INDIA
149.9 MILLION
Multichannel TV.
29% 62%
THAILAND
6.9 MILLION
VIETNAM
13.2 MILLION
20%
PHILIPPINES
62%
MALAYSIA
3.3 MILLION
4.2 MILLION
FAST FACTS 62%
SINGAPORE
11%
INDONESIA
POPULATION..........................................3,615,467,000 0.95 MILLION 4.6 MILLION
TOTAL HOMES...........................................946,444,560
HOUSEHOLD SIZE......................................................3.8
TELEVISION HOMES.................................834,535,058
MULTICHANNEL HOMES.........................505,548,304
INTERNET USERS....................................1,320,205,943
36%
AUSTRALIA
3 MILLION 56%
NEW ZEALAND
1. Percent of multchannel homes
2. Millions of connections 0.9 MILLION
3. Thailand government regulations have clarified penetration
6
6 MULTICHANNEL TV 2016 FAST FACTS 7
Growth of
Multichannel Homes
2015 505
2014 501
2013 468
2012 446
2011 407
2010 363
2009 326
2008 291
2007 264
2006 255
2005 228
2004 218
2003 186
2002 181
Millions of homes
Source: Casbaa, MPA, SNL Kagan, Nielsen, Kantar, GfK,, CSM, TAM India, SKY, Gallup Pakistan, Starhub, Astra, Astro, Video
8
8 Research, TmNS, OzTam, SARFT MULTICHANNEL TV 2016 9
ASIA-PACIFIC PAY TV OUTLOOK:
Making growth waves
The multichannel industry in the Asia-Pacific region is Multichannel TV Homes Penetration 2016
positioned for another year of growth, according to SNL 568,461,514
Kagan analysis.
Aggregate pay TV subscribers from a total of 46 territories are projected to reach
539.5 million by the end of 2015, penetrating 62.9% of TV households in the region.
Multichannel video subscription revenue is estimated to reach $36.2 billion by
the end of 2015, translating to an average $5.59 in monthly video service ARPU.
Over the next ten years, our model indicates the pay TV population in the region is
estimated to grow to 777.6 million, generating $74.3 billion in video subscription
revenue and an ARPU of $7.96 per month. 112,959,346
111,734,228
94,656,383
77,887,133
Cable remains the most common multichannel platform in the region, accounting 35,357,934
for an estimated 75.9% of total subscribers and 64.8% of total revenue by the end
of 2015. While cable’s dominance is expected to last, its share of pay TV subscribers
and revenue is projected to decline with each passing year as digital direct-to- ASIA PACIFIC N. AMERICA W. EUROPE E. EUROPE LATIN AMERICA MIDDLE EAST
AND CARIBBEAN AND AFRICA
home and IPTV operators ramp up. By the end of 2015, DTH and IPTV platforms are
anticipated to grab 12.7% and 11.2%, respectively, of Asia Pacific’s pay TV customers
and 20.0% and 15.1%, respectively, of pay TV subscription revenue. Pay-digital India is the single largest DTH satellite multichannel market in the Asia-Pacific region,
terrestrial television holds a niche position in the region with just 0.1% of subscribers with an estimated active subscriber base of 45.1 million by the end of 2015, out of
and revenue. The platform is only available in a handful of markets for pay TV 68.6 million subscribers for the region. Its six licensed operators, namely Dish TV
delivery, namely Cambodia, Indonesia, Laos, Myanmar, New Zealand and Vietnam India Ltd., Tata Sky Ltd., Videocon d2h, Sun Direct, Bharti Airtel Ltd. and Reliance
Communications Ltd., are all among the largest DTH providers in the region. DTH is
With 255 million cable TV households in China and 102 million in India in 2015, the the most expensive multichannel platform in the region at an average monthly ARPU
two markets collectively hold a majority share of Asia Pacific’s cable TV subscribers. of $9.21 in 2015, compared to $4.86 for cable, $8.09 for IPTV and $6.60 for pay-DTT,
Regionwide, the cable platform is making aggressive digitization headway, with according to SNL Kagan analysis. However, DTH ARPU for the Indian market remains
68.4% of subscribers anticipated to be on a digital connection by the end of 2015. relatively low at just $3.07 per month. DTH is the dominant multichannel platform in
Over the coming ten years, our analysis indicates the cable digitization rate will grow Australia, Indonesia, Malaysia and New Zealand.
to 93.7%, although it remains a long-term challenge for all markets in the region
to have fully digitized cable infrastructure. In markets such as Bangladesh, India,
the Philippines and Thailand, market fragmentation is expected to impede digital
upgrades due to localized ownership of last-mile networks. Consolidation of local
small operators into large-scale MSOs is therefore called for to facilitate digitization
initiatives. In China, for instance, regional cable systems are implementing a
government-mandated “one province, one network” directive, which has formed
some of the biggest cable operations in the world.
10 MULTICHANNEL TV 2016 GLOBAL OVERVIEW 11
GLOBAL OVERVIEW
Asia-Pacific pay tv summary
ASIA-PACIFIC REGIONAL UNITS 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015 -
2025
CAGR
Population (000) 3,771,608 3,803,650 3,835,233 3,866,983 3,897,986 3,929,075 3,959,208 3,989,518 4,019,109 4,049,936 4,080,297 0.8%
HH (000) 1,035,070 1,055,297 1,073,854 1,094,184 1,113,670 1,135,353 1,155,993 1,175,643 1,197,357 1,218,498 1,238,531 1.8%
TVHH (000) 858,128 882,718 906,662 931,372 955,987 982,486 1,008,799 1,034,953 1,063,262 1,091,771 1,119,721 2.7%
DTH Universe
Total DTH Subs (000) 68,646 74,574 80,592 86,342 91,884 97,417 102,854 108,266 113,584 118,882 124,136 6.1%
Total DTH Revenue ($ mil) 7,231.41 7,786.92 8,351.03 8,966.97 9,598.17 10,272.63 11,021.31 11,841.34 12,714.92 13,605.54 14,558.37 7.2%
DTH ARPU $ 9.21 9.06 8.97 8.95 8.98 9.04 9.17 9.35 9.55 9.75 9.98 0.8%
Cable Universe
Analog Cable Subs (000) 129,588 112,452 100,291 87,701 79,562 70,839 61,995 53,324 45,550 39,050 34,312 -12.4%
Digital Cable Subs (000) 280,055 312,868 341,488 369,365 392,194 414,070 435,402 457,336 477,245 495,033 509,891 6.2%
Basic Cable Subs (000) 409,643 425,319 441,779 457,065 471,757 484,909 497,397 510,660 522,795 534,083 544,204 2.9%
% Cable Subs Taking % 68.4% 73.6% 77.3% 80.8% 83.1% 85.4% 87.5% 89.6% 91.3% 92.7% 93.7% 3.2%
Digital
Total Cable Revenue ($ mil) 23,433.89 25,322.81 27,214.15 29,123.46 31,054.24 32,958.82 34,993.30 37,169.37 39,529.63 42,066.31 44,563.51 6.6%
Blended video service $ 4.86 5.05 5.23 5.40 5.57 5.74 5.94 6.15 6.37 6.63 6.89 3.5%
ARPU
Digital Terrestrial
Universe
Pay DTT HH (000) 747 932 1,098 1,246 1,374 1,496 1,615 1,718 1,819 1,903 1,971 10.2%
Pay DTT Revenue ($ mil.) 52.06 68.33 84.66 100.22 114.98 129.42 143.97 158.25 172.57 186.34 198.89 14.3%
Pay DTT ARPU $ 6.60 6.78 6.95 7.13 7.31 7.51 7.71 7.91 8.13 8.34 8.56 2.6%
Source: SNL Kagan
12 MULTICHANNEL TV 2016 GLOBAL OVERVIEW 13
GLOBAL OVERVIEW
Asia-Pacific pay tv summary
ASIA-PACIFIC REGIONAL UNITS 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2015 -
2025
CAGR
IPTV Universe
IPTV Subs (000) 60,451 67,636 74,103 79,874 84,958 89,503 93,625 97,505 100,847 104,130 107,271 5.9%
IPTV Revenue ($ mil.) 5,458.91 6,356.60 7,228.17 8,125.61 9,016.80 9,932.03 10,857.28 11,817.28 12,813.20 13,855.28 14,959.84 10.6%
IPTV ARPU $ 8.09 8.27 8.50 8.80 9.12 9.49 9.88 10.30 10.77 11.27 11.79 3.8%
Total Multichannel HH (000) 539,487 568,462 597,573 624,527 649,973 673,326 695,491 718,149 739,046 758,998 777,582 3.7%
Subs
DTH Share of % 12.7% 13.1% 13.5% 13.8% 14.1% 14.5% 14.8% 15.1% 15.4% 15.7% 16.0% 2.3%
Multichannel HH
Cable Share of % 75.9% 74.8% 73.9% 73.2% 72.6% 72.0% 71.5% 71.1% 70.7% 70.4% 70.0% -0.8%
Multichannel HH
DTT Share of Multichannel % 0.1% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.3% 0.3% 6.2%
HH
IPTV Share of % 11.2% 11.9% 12.4% 12.8% 13.1% 13.3% 13.5% 13.6% 13.6% 13.7% 13.8% 2.1%
Multichannel HH
Subscriber Share Total % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 0.0%
Total Multichannel ($ mil) 36,176.27 39,534.66 42,878.01 46,316.26 49,784.19 53,292.90 57,015.86 60,986.24 65,230.33 69,713.47 74,280.61 7.5%
Revenue
DTH Share of % 20.0% 19.7% 19.5% 19.4% 19.3% 19.3% 19.3% 19.4% 19.5% 19.5% 19.6% -0.2%
Multichannel Revenue
Cable Share of % 64.8% 64.1% 63.5% 62.9% 62.4% 61.8% 61.4% 60.9% 60.6% 60.3% 60.0% -0.8%
Multichannel Revenue
DTT Share of Multichannel % 0.1% 0.2% 0.2% 0.2% 0.2% 0.2% 0.3% 0.3% 0.3% 0.3% 0.3% 6.4%
Revenue
IPTV Share of Multichannel % 15.1% 16.1% 16.9% 17.5% 18.1% 18.6% 19.0% 19.4% 19.6% 19.9% 20.1% 2.9%
Revenue
Revenue Share Total % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 0.0%
Source: SNL Kagan
14 MULTICHANNEL TV 2016 GLOBAL OVERVIEW 15
GLOBAL OVERVIEW
Asia-Pacific Leads the Way
IPTV MARKET SUMMARY Total Multichannel TV Homes 2015-2019
IPTV should have more than 60 million subscribers across Asia-Pacific markets by 700
the end of 2015, but is still in nascent stages of development in many territories as
600
telecom providers strive to roll out advanced services over DSL or fiber networks.
In terms of customer base, China leads the charge in the region with 39.5 million 500
subscribers estimated for 2015, nearly two-thirds of the regional total, and China
Telecom is by far the largest multichannel operator in the world with 36.8 million 400
MILLIONS
IPTV connections. Yet IPTV services in China are still regarded as an add-on option 300
for fixed-broadband package bundles, with limited content and a lack of advanced
features, yielding just $4.15 in monthly subscription ARPU. Well-established IPTV 200
operations are available from mature markets, including Japan, South Korea and
100
Taiwan, with top players such as KT Corp., NTT Group (NTT Plala Inc.) and Chunghwa
Telecom Co. Ltd. Governments in Australia, New Zealand and Singapore are funding 0
fiber rollouts, which are expected to foster the IPTV landscape. 2015 2016 2017 2018 2019
ASIA PACIFIC EASTERN EUROPE LATIN AMERICA & CARIBBEAN
Multiscreen TV Everywhere and over-the-top initiatives are aggressively pursued
MIDDLE EAST & AFRICA NORTH AMERICA WESTERN EUROPE
by leading pay TV operators in the Asia-Pacific region. As of August 2015, our
survey indicates 26 operators from 13 markets have rolled out TV Everywhere/
OTT services, with wide-ranging linear and on-demand content delivered most Share Of Multichannel TV Homes by Region 2016
commonly through PCs, smartphones and tablets. While the earliest TV Everywhere
deployments date back to the October 2009 launch by Australian DTH and
cable incumbent FOXTEL, the majority of multiscreen platforms only started to W.EUROPE
emerge within the past three years, especially in developing markets. In terms 11%
of content access, many operators are not just offering a pay TV extension with
free authenticated streaming, but are also targeting non-subscribers by charging N. AMERICA
11%
an additional fee for watching select programming without having to take a MIDDLE EAST
ASIA PACIFIC
& AFRICA
multichannel package. 57%
4%
LATIN AMERICA
AND CARIBBEAN
8%
E.EUROPE
9%
Global Multichannel Markets is a service of SNL Kagan, a division of SNL Financial LC. Source: SNL Kagan
16 MULTICHANNEL TV 2016 GLOBAL OVERVIEW 17
GLOBAL OVERVIEW
Asia-Pacific Leads the Way—TV Everywhere
CONNECTED DEVICE SUPPORTING TV EVERYWHERE SERVICE
COUNTRY OPERATOR PLATFORM TVE LAUNCH SMART SMARTPHONE TABLET GAME PC/MAC DEVICE # OF TV CHANNELS
DATE TV CONSOLE COMPATIBILITY
SCORES
Australia FOXTEL DTH/Cable Oct-09 yes yes yes yes yes 5 up to 74 channels
South Korea CJ HelloVision Cable May-10 yes yes no no yes 4 199 channels
Japan NTT Plala Inc. IPTV Aug-11 yes yes no no yes 4 N/A
Singapore StarHub Ltd Cable Jun-12 yes yes no no yes 4 up to 71 channels
Taiwan Vee Telecom Multimedia Cable Oct-12 yes yes yes yes yes 4 N/A
Japan SKY Perfect JSAT Corporation DTH/IPTV Oct-11 yes yes no no yes 4 59 channels
Hong Kong PCCW IPTV Dec-09 yes yes yes yes yes 4 6 channels
Thailand TOT IPTV Jan-13 yes yes no no yes 4 145 channels
Taiwan Chunghwa Telecom IPTV Dec-09 yes yes no no yes 3 N/A
New Zealand SKY Network Television Ltd DTH Jan-11 yes yes no no yes 3 up to 11 channels
South Korea KT Corporation DTH/IPTV Apr-11 yes yes no no yes 3 70 channels
Japan J:COM Cable May-12 yes yes no no yes 3 up to 77 channels
Singapore SingTel IPTV Jul-12 yes yes no no no 3 up to 19 channels
Malaysia Astro DTH/IPTV Jun-12 yes yes no no yes 3 up to 30 channels
Thailand TrueVisions DTH/Cable May-13 yes yes no no yes 3 up to 102 channels
China Beijing Gehua Cable Jun-11 yes yes no no yes 3 up to 46 channels
India Dish TV India Ltd. DTH Oct-13 yes yes no no yes 3 27 channels
India Tata Sky Ltd. DTH Oct-13 yes yes no no yes 3 54 channels
Malaysia Telekom Malaysia IPTV Jul-13 yes yes no no yes 3 up to 57 channels
Indonesia First Media Cable Feb-14 yes yes no no yes 3 50 channels
Indonesia PT MNC Sky Vision DTH Jun-14 yes yes no no yes 3 N/A
Philippines Cignal TV DTH Jul-13 yes yes no no no 2 up to 14 channels
Australia FetchTV IPTV Dec-13 yes yes no no no 2 N/A
India Videocon d2h DTH Jul-15 yes yes no no no 2 70 channels
India Bharti Airtel DTH Mar-14 no no no no no 1
Hong Kong i-Cable Communications Cable Feb-12 yes no no no no 1
Total 25 7 25 23 3 20
Service penetration by device platform 27% 100% 92% 12% 77%
18 MULTICHANNEL TV 2016 Source: SNL Kagan GLOBAL OVERVIEW 19THE MULTICHANNEL TV
VIEWER IN ASIA
• Across Asia Pacific, viewing of multi-channel TV services are measured by People Asia Pacific Average Audience: All Time
meter TV. Audiences continue to grow each year and 80% of all people watch in ALL PEOPLE (000s) AFFLUENT PEOPLE (00014156
s)
a month. 33506
36151 13090
11840
• Multichannel TV average audience continues to grow and outpace viewing of 29544
terrestrial channels which are seeing a continuing decline. 14156
36151 13090
• The Ipsos Affluent Survey shows that multi-channel TV audiences in the main 29544
16389
33506
15887 14793
11840
cities in Asia are more likely to be more affluent, early adopters, purchase more 4035 3823
3784
consumer items, travel more and keep up-to-date with new trends.
16389 15887 14793
Asia Pacific Monthly Cumulative Audience 2012 2013 2014 20124035 2013
3784 2014
3823
ALL PEOPLE
80%
79%
75% 73% 2012 2013 2014 2012 2013 2014
80%
78% 77% 79%
80%
78% 75% 73%
80% 78% 77%
75% 78%
76%
68%
75%
66% 76%
68% Asia Pacific Average Audience: Prime Time
66% ALL PEOPLE (000s) AFFLUENT PEOPLE (000s)
2009 2010 2011 2012 2013 2014 67832
64163 27275
57261 25706
Asia Pacific Monthly Cumulative Audience
2009 2010 2011
85%
2012 2013 2014
86% 23443
AFFLUENT PEOPLE 85% 86% 72% 67832
86% 85% 74% 64163
34929 33941 27275
85% 76% 57261 31369 25706
80% 85% 23443
83% 82% 86% 73% 74% 72%
9186 8927
85% 76% 8739
83% 82% 80% 73%
34929 33941 31369
2012 2013 2014 20129186 8927
2013 2014
8739
MULTICHANNEL TV TERRESTRIAL TV
2012 2013 2014 2012 2013 2014
2009 2010 2011 2012 2013 2014
Prime Time 1800-2359
MULTICHANNEL TV TERRESTRIAL TV
2009 2010 2011 2012 2013 2014 Source: Peoplemeter, Asia Pacific includes: India, Taiwan, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, South
MULTICHANNEL TV TERRESTRIAL TV Korea, Australia (some overlap of metro and urban data)
All people universe 446,813,395; Affluent universe 170,951,684
MULTICHANNEL TV TERRESTRIAL TV
20 ASIA PACIFIC VIEWERS 21Multichannel TV Monthly Reach Affluent Viewers Strongly Agree That...
INDIA AUSTRALIA TAIWAN INDEX WATCH DON’T WATCH
PAY TV PAY TV
95% 96% 33% 33% 100% 100%
I am always one of the first to use
114 70
innovative tech products
MALAYSIA SINGAPORE PHILIPPINES
I have confidence in purchasing products/
65% 74% 51% 52% 20% 39% services that have been advertised
112 87
HONG KONG NEW ZEALAND SOUTH KOREA I tend to go for premium rather than
110 86
standard goods/services
38% 44% 53% 58% 87% 87%
I have expensive tastes 111 89
ALL PEOPLE AFFLUENT ADULTS
Gaining knowledge and becoming better
105 91
Source: Peoplemeter India. Australia (metro), Taiwan, Malaysia, Singapore, informed is a priority for me
Philippines, Hong Kong, New Zealand, South Korea
People come to me for advice before
110 75
buying new things
Multichannel TV Consumed More Than Other Media
(MONTHLY) ANY CABLE/SATELLITE TV CHANNEL 82.1
(WEEKLY) ANY CABLE/SATELLITE TV 77.2
(DAILY) ANY CABLE/SATELLITE TV 54.6
ANY INFLIGHT MAGAZINE 9.6
ANY REGIONAL MONTHLY MAGAZINE 18.3
ANY REGIONAL TRI-WEEKLY MAGAZINE 1.7
ANY REGIONAL WEEKLY MAGAZINE 7.3
ANY REGIONAL DAILY NEWSPAPER 2.8
ANY REGIONAL TITLE 22
MULTICHANNEL TV OTHER MEDIA
Source: Ipsos Affluent Survey Asia Pacific Q1-Q4 2014
Source: Ipsos Affluent Survey Asia Pacific Q1-Q4 2014 Average Base Index: 100. Bangkok or Hong Kong or Jakarta or Kuala Lumpur or Manila or Singapore or Taipei or Seoul or
Bangkok • Hong Kong • Jakarta • Kuala Lumpur • Manila • Singapore • Taipei • Seoul • Sydney • Melbourne • India Sydney or Melbourne or India. Viewed Pay TV Yesterday or Not Viewed International Channels in past month
22 MULTICHANNEL TV 2016 ASIA PACIFIC VIEWERS 23Affluent Viewers Are Early Adopters... ...and Decision Makers...
WATCH PAY TV DON’T WATCH PAY TV WATCH PAY TV DON’T WATCH PAY TV
(INDEX) (INDEX) (INDEX) (INDEX)
102 92 106 85
SMARTPHONE CAR OWNER
104 93 106 81
TABLET OWN PLATINUM/BLACK
CREDIT CARD
111 76 102 80
SMART TV BUSINESS DECISION
MAKER
115 HOME THEATRE
75 104 79
SOUND SYSTEM TOP MANAGER
106 87 102 99
DIGITAL VIDEO CAMERA HOUSEHOLD MONTHLY
INCOME US $15,000+
Source: Ipsos Affluent Survey Asia Pacific Q1-Q4 2014
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 2016 ASIA PACIFIC VIEWERS 25...and Travelers Too.
WATCH PAY TV DON’T WATCH PAY TV
(INDEX) (INDEX)
120 49
TAKE A BUSINESS TRIP
IN PAST 12 MONTHS
140 28
6+ BUSINESS TRIPS IN
PAST 12 MONTHS
128 46
FLY 1ST OR
BUSINESS CLASS
110 74
12+ NIGHTS IN A HOTEL IN
PAST 12 MONTHS
121 62
3+ LEISURE TRIPS IN
PAST 12 MONTHS
Source: Ipsos Affluent Survey Asia Pacific Q1-Q4 2014
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 2016 27TV Audience Measurement 2015-2016
COMMERCIAL COMMERCIAL
CABLE/ BREAK RATINGS SPOT LOGS PAY TV REACH TABLETS,
PEOPLEMETER PANEL SIZE (HOMES/ SATELLITE DTT FOR PAY TV FOR PAY TV & FREQUENCY SMARTPHONES,
COUNTRY RESEARCH COMPANY HOUSEHOLDS) PANEL COVERAGE MEASURED MEASURED CHANNELS CHANNELS AVAILABLE SOFTWARE INTERNET
Australia Nielsen TAM on behalf 3,500 (Metropolitan), Metro areas (5 cities) & nationally Yes Yes No No Yes User choice* No
of OzTAM 1,413 (National subscription TV) for Subscription TV
Australia Nielsen TAM on behalf 2,135 (Regional) Queensland, Northern NSW, Yes Yes No No Yes User choice* No
of Regional TAM Southern NSW, Victoria,
Tasmania & Regional Western
Australia
Bangladesh MRB Bangladesh 550 Homes, 2200 individals Dhaka Metro, Dhaka Other Yes No Yes Yes Yes Media XPress No
Urban, Dhaka Rural, Chittagong
Metro and Chittagong Rural
Cambodia Kantar Media 795 Diaries Phnom Penh, Siem Riep & Yes Yes Yes Yes Yes Infosys+ No
Battambang
China CSM 34,175 National 1 / Provincial 25 / Yes Yes No No Yes Infosys+ Yes
City 138
Hong Kong Nielsen 800 HK Region Yes Yes No No Yes for Arianna Yes - Laptop/
subscribers Desktop
Hong Kong CSM Media Research 2,000 (Return Path Data Panel) HK Region; Now TV subscriber Now TV No No Yes Yes InfoSys+ Yes - & Eye
base channels only device
India TAM Media Research 11,100 Homes, 12,200 Urban India (including LC1 Yes No Yes Yes Yes MediaX*Press No
PeopleMeters Towns)
India BARC 22,000 Homes, 25,000 Bar-O- All India (Urban + Rural) Yes Yes Yes Yes Yes BMW No
Meters
Indonesia Nielsen 2,273 (Terrestrial), 300 (Pay TV)
Terrestrial: 11 cities, Yes No No No Yes Arianna No
Pay TV: Greater Jakarta
Japan Video Research Ltd 6,600 National panel & separate Tokyo & Osaka Yes No No No Yes RVCS No
Subscription TV Panel 600 *
Malaysia Nielsen 1,100 TV households in Across 11 states in Peninsular Only Astro No Yes, 29 Yes, 29 channels Yes Arianna Plan for digital
Peninsular Malaysia Malaysia, covering both urban PayTV, not channels ad ratings
and rural NJOI (Free (DAR) Q4
Sat) 2015 - website
browser only
Malaysia Kantar Media 2,700 homes at present, aim Across all 13 states in Peninsular Yes (Astro No Yes all channels Yes all channels Yes Infosys+ Planned
5,000 by Y/E 2015. Return Path & East Malaysia, covering Urban PayTV and integration of
Data panel representing Astro & Rural NJOI) Astro On The
subscriber base. Go viewing in
Q4 2015
New Zealand Nielsen 600 National Yes Yes Yes Yes Yes Arianna No
Pakistan Medialogic Pakistan 1000+ HH ,6000+ Individuals Top 20 Cities Incl. 3 Metros Yes N/A Yes (80 Yes (80 Yes InfoSys+ No
channels) channels) (Kantar)
Pakistan Gallup Pakistan National Panel: 2,500 HH , 3500 National (Urban+Rural) Yes N/A Yes Yes Yes Reporter No
Individuals (2,000 Urban HH &
500 Rural HH)*
Philippines Nielsen National Panel 3,500. National (Urban+Rural) Yes No Yes Yes Yes Arianna Launch of DAR
(2,000 Urban homes (NUTAM) Q3 2015
and 1,500 Rural homes (RTAM)
28 MULTICHANNEL TV 2016 MEASUREMENT GUIDE 29TV Audience Measurement 2015-2016
COMMERCIAL COMMERCIAL
CABLE/ BREAK RATINGS SPOT LOGS PAY TV REACH TABLETS,
PEOPLEMETER PANEL SIZE (HOMES/ SATELLITE DTT FOR PAY TV FOR PAY TV & FREQUENCY SMARTPHONES,
COUNTRY RESEARCH COMPANY HOUSEHOLDS) PANEL COVERAGE MEASURED MEASURED CHANNELS CHANNELS AVAILABLE SOFTWARE INTERNET
Philippines Nielsen Metro Panel 2,220. Metro Cities Yes No Yes Yes Yes Arianna
(1,190 Mega Manila homes
(MEGATAM) and 1,030 homes
for 8 other Metros)
Philippines Kantar Media National Panel 2,270 National (Urban + Rural) Yes Yes, part of Yes Yes Yes InfoSys+ Planning Stage
(1370 Urban homes (Urban PH) TAM panel
and 900 Rural homes (Rural PH))
Singapore Kantar Media 800 National Yes Some No No Yes InfoSys+ No
(end June
2016)
Singapore GfK 1200 Households and 2000 National Yes Yes TBC TBC Yes Evogenius Yes
(start July individuals on pc/ mobile
2016) devices
South Korea Nielsen 4,320 National Yes Yes Yes* Yes* Yes Arianna N/A
South Korea TNmS 3,200 National Yes Yes Yes Yes Yes Infosys No
Sri Lanka LMRB 500 homes / ~ 1,800 individuals National Establishment Age Yes Yes Media Xpress YES
Survey/F2F 4+,ABCD
Taiwan Nielsen 10,000 National Face to Face/ 12-65 Yes Yes Yes Clear YES
Online Decision(IMS)
Thailand Nielsen 2200 (Sat 1020, local cab 180, National Yes Yes Yes Yes Yes Arianna No
True 400, Digital 450, Analogue
150)
Vietnam Kantar Media 3065(diaries) & 1070 National, 6 cities Yes Yes Yes Yes Yes Infosys+ No
(peoplemeter)
Survey Notes: (Seoul, Incheon, Busan, Gwangju, Daejeon, Daegu, Ulsan, Gyungi Province, Kangwon Province, North Chungcheong Province, South
Chungcheong Province, North Gyeongsang Province, South Gyeongsang Province, North Jeolla Province, South Jeolla Province, Jeju
Australia,OzTAM: Peoplemeter. 5 City Metro Markets: Sydney, Melbourne, Brisbane, Adelaide & Perth & nationally for Subscription TV. Island)
Japan,Video Research Ltd: Peoplemeters in Tokyo & Osaka.Non-continuous measurement,2 week sweeps conducted every two months
(12 weeks/year). Subscription TV panel is separate from national terrestrial TV panel of 6,600 homes, 52 weeks reporting /year Vietnam,Kantarmedia : People meter & Diary, 1 National diary panel, 3 cities diary panel: Danang, Hai Phong & Nha Trang, 3 People
meter cities: HCMC, Hanoi and Can Tho. Please contact the research company for a comprehensive report on measurement.
Pakistan,Medialogic: 9 key cities - Karachi, Lahore, Islamabad, Faisalabad, Multan, Hyderabad, Sukkur, Gujranwala and Peshawar
Pakistan, Gallup Pakistan: National diary panel include all 3 Metros (Karachi, Lahore, Islamabad/Rawalpindi: 2,100
individuals) , 5 Large Cities (Faisalabad, Hyderabad, Multan, Peshawar, Quetta : 1,100 individuals), 10 Small Cities & Towns
(Gujrat,Jacobabad,Kasur,Mardan,Pashin,Rajanpur,Rohri,Sahiwal,Sargodha,Thatta : 1,500 individuals) , Rural 800 individuals
Philippines: NUTAM (National Urban), Mega TAM (Metro Manila & suburbs), MCTAM (Metro cities).
South Korea, Nielsen: National and monitoring 78 Pay TV channels
South Korea, TNmS: Peoplemeter Panel and also DMB measurement, Car navigation device (310 panel) and Smartphone of Android OS
(700 panel). And Return Path Data panel size is 10,000 homes of KT IPTV
India: TAM and BARC to cooperate in the future
30 MULTICHANNEL TV 2016 MEASUREMENT GUIDE 31Audience Measurement 2015-2016
CAB/SAT REACH &
AREA RESEARCH COMPANY SURVEY SAMPLE SIZE PANEL COVERAGE METHODOLOGY DEMOGRAPHIC MEASURED DTT SOFTWARE FREQUENCY
Hong Kong Ipsos Media Atlas 5,000 National CATI/Online/F2F 12 - 64 Yes Yes User choice Yes
Hong Kong
10 Asia Ipsos Affluent Asia 18,800 10 Markets CATI / Online Affluent 25-64 Yes No User choice Yes
Markets
8 Asia Ipsos BE Asia 3,500 8 Markets CATI, Postal & Elite / Top Yes No User choice
Markets Online Business
Hong Kong Nielsen Media Index 6,000+ Hong Kong Face-to-face/ 12 - 64
Online
Australia Nielsen Consumer & 100,000+ Australia Online 14+
Media View
New Nielsen Consumer & 12,000 New Zealand Face-to-face 10+ Clear
Zealand Media View Decisions
Indonesia, Nielsen Consumer & 23,000^ Indonesia, 11 cities Face-to-face 10+
11 cities Media View
Peninsular Nielsen Consumer & 10,000 Pen Malaysia Only Face-to-face 15+ Fuse with TAM No Clear Clear Decision
Malaysia Media View data Decision
Only
Philippines, Nielsen Consumer & 10,000 National Urban Face-to-face 10+
National Media View
Urban
Singapore Nielsen Consumer & 4,200+ Singapore Face-to-face 15+
Media View
Thailand Nielsen Consumer & 9,000+ Thailand Face-to-face 12+
Media View
Bangladesh MRB Bangladesh National 15,800 National Face-to-face 15+ Yes No ThinkMedia Yes
Media
Survey(NMS)
China CTR China CNRS 100,000 60 1-4 tier cities F-F /self 15-69
completed/On-
line
India IMRB India 51,000 National F-F /self 15-55 ABC
completed
South Korea Hankook South Korea 9,000 National F-F /self 11-64
completed
Sri Lanka IMRB Sri Lanka 3,000 National 15-55
Vietnam Kantar Media Vietnam 13,560 6 cities F-F /self 15+ 4 Choices Yes
completed
Note: Please contact the research company for a comprehensive report on measurement.
32 MULTICHANNEL TV 2016 MEASUREMENT GUIDE 33Asia Pacific Pay-TV &
Broadband Industry:
2015 Review
Macro malaise, underlined by softer econonic growth,
weakening consumption and currency depreciation, has
limited media advertising growth for much of 2015 but the
consumption of pay-TV & broadband services remains
robust. Analysis and research from Media Partners Asia
(MPA) showcases the following key trends:
Asia Pacific
• With the exception of Australia, India and the Philippines, pay-TV subscriber
additions continue to decelerate in much of Asia Pacific though regional
penetration remains robust, reaching 61% in 2015.
• The bundled broadband and pay-TV proposition has started to bolster
subscriber growth with customers often paying for broadband as the primary
service with pay-TV as a hard bundle or as a value-add. This is increasingly
evident in Indonesia and Thailand.
• Fixed broadband adoption has started to grow rapidly from a low base across
Southeast Asia and India while mobile broadband is also rapidly scaling up
across Asia Pacific, driven by smartphone usage. Fixed broadband household
penetration reached 33% in 2015, while wireless broadband per capita
penetration soared to 36%.
• In general, most pay-TV operators are experiencing a slowdown in Southeast
Asia markets due to macro issues and, in certain cases, market dynamics and
structural barriers to growth. The slowdown is occuring at the same time as the
growth of low-cost multichannel services (i.e. Astro’s Njoi in Malaysia) and the
continued expansion of free satellite services – both organized (i.e. Thailand)
and unorganized (Indonesia).
34 MULTICHANNEL TV 2016 COUNTRY OVERVIEW 35• Also growing at a significant pace in Australia is Astro-owned IPTV wholesaler
Pay-TV Net Adds Pay-TV Net Adds
2015 2015 Fetch TV. The company has benefited from wider content availability and an
(000’) (000’)
aggressive push from third-party telcos, led by Optus.
China 9,035 Sri Lanka 185
India 5,079 Japan 155
Korea 1,747 Thailand 150 India
Pakistan 590 Malaysia 80
• TV advertising growth has been strong this year but new customer growth across
Vietnam 525 Hong Kong 30 satellite and cable platforms has been modest relative to previous years with a little
Indonesia 488 Singapore 25 over 5 million net new additions, largely driven by digital satellite.
Australia 339 Taiwan 10
• Addressability is growing through digitalization, with close to 50% of India’s pay-TV
Philippines 320 New Zealand 5 households having a digital set-top box (STB) at end-2015.
Total APAC 18,763
• More growth through digitalization and infrastructural investment is likely to come
through the expansion of HITS (a new service for local cable operators in Phases 3
and 4 of digital migration) and R-JIO (a fiber broadband service that requires last-
• Pay-TV is increasingly saturated in Hong Kong, Japan, Malaysia, Singapore and mile partnership with cable operators).
Taiwan. The focus has shifted in these markets to pricing power and new on-
demand services. • The market also needs to factor in Free Dish, a free satellite service with
penetration of up to 15 million homes.
• The subscription-enabled OTT proposition (i.e. SVOD) from both Netflix and pay-
TV operators and broadcasters has started to gain traction in strong broadband
markets such as Australia and Japan as well as China and Korea, but faces
Korea
significant barriers in most other markets due to piracy, and lack of payment
gateways and infrastructure. • IPTV operators continue to grow at a healthy pace as MPA projects KT, SKB and LG
will add a combined 1.65 million new customers in 2015.
• Hybrid DTH-IPTV operator KT SkyLife (KTS) has also showed a rebound in growth
Australia in 2015.
• New repackaging and competition is driving pay-TV subscriber growth.
• The Korean cable industry remains under pressure from cord-cutting and
• Foxtel, MPA estimates, will add an average of 20,000 new subs a month, closing competitive pressure.
2015 with ~240,000 new subs though up-selling will remain modest, leading to
ARPU erosion.
• IPTV will factor in the mix more widely after Q4 as Telstra launches new bundled
video and broadband services.
36 MULTICHANNEL TV 2016 COUNTRY OVERVIEW 37Malaysia Pay-TV Penetration Pay-TV Penetration
2015 2015
(%) (%)
• Astro, the leading pay-TV operator in Southeast Asia, will add ~40-50,000 new pay
subs in 2015 with ARPU up a robust 2%, reasonable momentum in a year when Korea 162% New Zealand 51%
Malaysia’s macro fundamentals are weak and consumer sentiment is soft. Hong Kong 104% Vietnam 37%
• Njoi, Astro’s low-cost multichannel service, will drive overall growth, as it nears a 1.5 Taiwan 91% Australia 35%
million customer base potentially by end-2015. India 84% Thailand 29%
Singapore 82% Japan 29%
China 61% Sri Lanka 19%
Philippines Pakistan 53% Philippines 16%
• The Philippines is the one market in Southeast Asia experiencing relatively robust Malaysia 53% Indonesia 11%
macro fundamentals, boosting telecoms, pay-TV and advertising industry growth. Average APAC Penetration (TV HH) 61%
• While SkyCable is adding a modest level of new customers every year, its ARPU
remains healthy. Rival Cignal is expected to add ~250,000 new customers this year
Indonesia
but ARPU growth will be muted until up-selling and packaging improves and takes
effect from 2016 onwards. • The market has suffered a deep slowdown due to macro issues, piracy and the
growth of free satellite.
• Pay-TV platforms that have grown in 2015 have typically bundled multichannel
services with cable and fiber broadband. These have exaggerated the true growth
Mobile Broadband Mobile Broadband
of the pay-TV industry.
2015 2015
Net Adds (000’) Net Adds (000’)
China 183,950 Australia 2,028
Thailand
India 35,020 Taiwan 1,866
Japan 24,093 Malaysia 1,651 • Free satellite, together with digital terrestrial, continues to limit pay-TV upside in
Thailand. That said, TrueVisions. Has repackaged its product effectively to grow
Indonesia 14,513 Phillippines 1,282
total net new additions.
Thailand 10,291 Sri Lanka 745
Vietnam 8,362 Hong Kong 633 • However, much of True’s pay-TV growth is being driven by low-ARPU mass services
and broadband bundles with little upside for premium pay-TV services, which have
Korea 6,278 New Zealand 612
suffered sustained customer decline.
Pakistan 4,151 Singapore 452
Total APAC 295,928
38 MULTICHANNEL TV 2016 COUNTRY OVERVIEW 39Fixed BB Fixed BB
2015 2015
Penetration (%) Penetration (%)
Singapore 101% Malaysia 33%
Korea 100% Vietnam 30%
New Zealand 89% Thailand 25%
Hong Kong 83% Sri Lanka 11%
Japan 74% Philippines 9%
Australia 72% Indonesia 8%
Taiwan 70% India 6%
China 46% Pakistan 6%
Average APAC Penetration (HH) 33%
Mobile BB Mobile BB
2015 2015
Penetration (%) (000’)
Singapore 186% Australia 54%
Hong Kong 183% Thailand 48%
Korea 140% Vietnam 45%
New Zealand 113% Indonesia 27%
Japan 79% Sri Lanka 15%
Taiwan 68% India 8%
China 57% Philippines 8%
Malaysia 54% Pakistan 6%
Average APAC Penetration Per Capita 36%
Founded in 2001, Media Partners Asia (MPA) is the leading provider of advisory,
consulting and research services, focusing on media and telecommunications
industries in Asia Pacific. For more information go to
www.mparesearchconsulting.com.
40 MULTICHANNEL TV 2016 GLOBAL OVERVIEW 41advertising
revenue
42 MULTICHANNEL TV 2016 ADVERTISING REVENUE 43ADVERTISING REVENUE
Asia Pacific Share of TV Advertising
US$ Millions
0 2000 4000 6000 8000 10000 12000 14000 16000
Australia
China
Hong Kong
India
Indonesia
Japan
Malaysia
New Zealand
Pakistan
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Multichannel TV Terrestrial TV
Source: Global entertainment and media outlook 2015-2019, PwC, Ovum
44 MULTICHANNEL TV 2016 ADVERTISING REVENUE 45Asia Pacific Multichannel TV Advertising Revenue (US $ Millions)
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2014-2019CAGR
Australia 356.497 373.647 416.516 475.82 542.671 571.689 610.746 651.826 695.212 745.808 6.566
China 170.724 201.306 227.576 255.422 292.788 326.657 370.429 411.394 462.396 521.12 12.222
Hong Kong 44.02 54.155 66.719 78.581 77.146 80.805 85.32 89.385 94.491 98.999 5.115
India 1655.012 1826.747 2036.872 2304.881 2682.306 3060.46 3469.283 3889.947 4358.251 4863.809 12.64
Indonesia 15.347 23.977 37.685 59.041 96.361 137.959 184.273 238.495 301.725 368.708 30.784
Japan 433.138 492.253 559.655 634.638 715.303 785.732 863.074 938.931 1022.453 1094.934 8.888
Malaysia 48.012 50.458 52.906 56.994 62.412 67.628 74.508 84.65 95.795 105.427 11.055
New Zealand 26.733 30.42 34.757 38.157 41.29 44.16 47.627 50.812 54.147 57.252 6.755
Pakistan 50.775 60.676 62.264 69.289 76.289 84.624 92.785 101.772 112.201 123.533 10.119
Philippines 72.994 91.204 108.686 122.716 147.519 180.126 225.394 272.64 328.65 398.324 21.977
Singapore 31.375 37.401 39.071 42.193 47.033 51.674 56.836 61.979 67.706 73.867 9.448
South Korea 746.71 1003.143 1114.725 1123.463 1173.12 1226.38 1280.463 1336.419 1395.623 1458.705 4.454
Taiwan 475.844 635.631 599.074 603.658 634.445 654.747 682.562 704.404 738.388 756.109 3.571
Thailand 63.521 92.711 124.862 144.684 170.486 192.262 223.352 254.112 291.418 329.594 14.093
Vietnam 17.447 25.375 33.748 42.04 51.144 60.268 70.213 80.556 91.737 104.305 15.319
Asia Pacific 4208.149 4999.104 5515.116 6051.577 6810.313 7525.171 8336.865 9167.322 10110.193 11100.494 10.264
Source: Global entertainment and media outlook 2015-2019, PwC, Ovum
46 MULTICHANNEL TV 2016 ADVERTISING REVENUE 47Television Digital Newspapers
Magazines Globally
TV still remains dominant Radioand in Asia-Pacific
Outdoor with Digital
The Pay TV advertising market continues to grow in Asia-Pacific, with an estimated spend continuing to100%
grow
+6.1% growth in 2015. We predict a CAGR of +8.5% for Pay TV over the next 4 years;
this compares to 5.2% for the total advertising market. Television
80% Digital Newspapers
Magazines Radio Outdoor
CAGR growth of Pay TV advertising will be driven by developing and emerging
60%
% Share of Media
markets in Asia-Pacific, notably Malaysia, Indonesia and India. From a volume 100% 40%
31%
perspective though, Pay TV advertising revenues will be driven by China, India, Japan
and South Korea. 40%
80%
Global
Total TV is predicted to maintain a strong 38% of all advertising spend by 2019 in 20%
60% 39% 37%
% Share of Media
Asia-Pacific; although spend on Digital will closely follow at 37%. Globally, by 2019, 31% 40%
Digital spend will be higher than TV spend at 40% and 37% respectively.
0%
40%
2015 2019
The opportunity for the industry to expand its footprint beyond traditional TV is
more evident than ever as spend into Digital Video continues to accelerate. Within 20% 39% 37%
Asia-Pacific, growth in Mobile Video is predicted at 43% per annum up to 2019; with
Online Video expected to grow at 11.5% per annum. By 2019, we estimate that 0%
Mobile Video advertising spend will overtake Online Video spending.
2015 2019
Television Digital Newspapers
In addition to the advertising opportunities, this growth in Digital Video has an
Magazines Radio Outdoor
impact on content marketing for advertisers, agencies and broadcasters.
100%
Television Digital Newspapers
80%
asia-pacific
Magazines Radio Outdoor
60%
% Share of Media
100% 37%
29%
Craig Harvey, Head of Research,
40%
80%
IPG Mediabrands Hong Kong
20%
60% 41% 38%
% Share of Media
29% 37%
0%
40%
2015 2019
Source: Magna Global Advertising Forecasts (June 2015), IPG Mediabrands
20% 41% 38%
48 MULTICHANNEL TV 2016 0% ADVERTISING REVENUE 49
2015 2019Advertisers continue to invest into Digital Video in APAC, with Mobile IPG Mediabrands: APAC TV Advertising Revenue
Video expected to overtake Online Video in 2019
2015
2015 % OF
Online Video Mobile Video 2015 TOTAL % OF TOTAL
TOTAL TV
(US$ MILLIONS) ADVERTISING
10,000 REVENUE
REVENUE
9,000
8,000 FTA PAY TV TOTAL FTA PAY TV FTA PAY TV
7,000 5,087 Asia Pacific 46,271 13,346 147,226 31% 9% 78% 22%
US$ millions
6,000
Australia 3,125 459 11,991 26% 4% 87% 13%
5,000
4,000 China 12,756 5,033 49,675 26% 10% 72% 28%
3,000 1,216
Hong Kong 1,038 50 3,500 30% 1% 95% 5%
2,000 4,231
2,736 India 241 2,864 7,737 3% 37% 8% 92%
1,000
- Indonesia 3,383 19 6,688 51% 0% 99% 1%
0
Japan 17,686 1,334 42,110 42% 3% 93% 7%
11
05
06
07
08
09
10
12
13
14
15
16
17
18
19
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Malaysia 746 271 2,882 26% 9% 73% 27%
New Zealand 580 99 1,850 31% 5% 85% 15%
Developing and emerging markets in APAC will register high growth
Pakistan 32 172 328 10% 52% 16% 84%
rates over the next 4 years
Philippines 995 41 1,658 60% 2% 96% 4%
Pay TV CAGR % (2015 vs. 2019)2 Singapore 604 60 2,008 30% 3% 91% 9%
18.0% South Korea 1,655 1,595 8,866 19% 18% 51% 49%
16.0% 14.8% 15.6% 15.6%
14.0% Sri Lanka 93 4 182 51% 2% 96% 4%
12.4% 12.1% 12.4% 11.8%
12.0% Taiwan 136 729 2,149 6% 34% 16% 84%
10.0% 8.5% 7.8% 8.1%
7.7% Thailand 2,468 315 4,344 57% 7% 89% 11%
8.0%
6.0% 5.1%
3.7% 3.2% 4.1% 3.2% Vietnam 733 301 1,258 58% 24% 71% 29%
4.0%
2.0% 0.8%
0.0% FTA PAY TV TOTAL
India
Hong Kong
Philippines
Singapore
China
Japan
Thailand
Indonesia
Vietnam
Australia
Taiwan
New Zealand
Malaysia
South Korea
Pakistan
Sri Lanka
Asia-Pacific
2015 vs. 2014 2.1% 6.1% 6.3%
% Change
Source: Magna Global Advertising Forecasts (June 2014), IPG Mediabrands
Sources : Magna Global Advertising Forecasts (June 2015) IPG Mediabrands Note: Data excludes revenue from regional campaigns
50 MULTICHANNEL TV 2016 ADVERTISING REVENUE 51Advertising Revenue CAGR 2015-2019 APAC TV Advertising Revenue CAGR by Market
GLOBAL ASIA PACIFIC FTA TV PAY TV
2015 2019 CAGR 2015 2019 CAGR 2015 2019 CAGR 2015 2019 CAGR
$US M $US M $US M $US M $US M $US M $US M $US M
FTA Television 143,176 165,008 3.6% 46,271 50,510 2.2% Asia-Pacific 46,217 50,510 2.2% 13,346 18,493 8.5%
Pay Television 54,740 66,840 5.1% 13,346 18,493 8.5% Australia 3,125 2,787 -2.8% 459 532 3.7%
Total TV 197,916 231,848 4.0% 59,617 69,003 3,7% China 12,756 14,039 2.4% 5,033 6,760 7.7%
Online Video 11,089 21,454 17.9% 2,736 4,231 11.5% Hong Kong 1,038 1,312 6.0% 50 68 7.8%
Mobile Video 4,257 21,340 49.6% 1,216 5,087 43.0% India 241 253 1.2% 2,864 4,575 12.4%
Total Video 15,346 42,794 29.25 3,952 9,318 23.9% Indonesia 3,383 5,078 10.7% 19 33 14.8%
TOTAL 512,994 626,672 5.1% 147,227 180,609 5.2% Japan 17,686 17,345 -0.5% 1,334 2,103 12.1%
ADVERTISING
MARKET Malaysia 746 896 4.7% 271 484 15.6%
New Zealand 580 596 0.7% 99 112 3.2%
Source: Magna Global Advertising Forecasts (June 2014), IPG Mediabrands
Note: Data excludes revenue from regional campaigns Pakistan 32 39 5.1% 172 275 12.4%
Philippines 995 1,369 8.3% 41 56 4.1%
Singapore 604 711 4.1% 60 71 4.1%
South Korea 1,655 1,769 1.7% 1,595 1,811 3.2%
Sri Lanka 93 132 9.2% 4 7 15.6%
Taiwan 136 135 -0.1% 729 753 0.8%
Thailand 2,468 3,015 5.1% 315 384 5.1%
Vietnam 733 1,034 9.0% 301 469 11.8%
Source: Magna Global Advertising Forecasts (June 2014), IPG Mediabrands
Note: Data excludes revenue from regional campaigns
52 MULTICHANNEL TV 2016 ADVERTISING REVENUE 53Share of Global Adspend by Region in 2016 (US$ Million)
Television is the dominant advertising medium in Asia Pacific, but its share of the
Asia Pacific ad market has been declining since 2011 as advertisers have followed
consumers on to the internet. Consumers in Asia Pacific spent an average of 158 200,839
minutes a day watching television in 2014, down from 166 minutes in 2011, while the
159,137
amount of time they spent using the internet increased by 63% between 2011 and
115,340
2014 to 97 minutes a day. Over the same period television’s share of total adspend
dropped from 41.7% to 40.0%, while the internet’s share increased from 16.3% to 42,263
23,229 11,671
25.2%. By 2017 we expect television to account for 36.4% of adspend in Asia Pacific 4,759
and the internet to account for 34.2%; at this rate it won’t be long before the internet
overtakes television. North Asia Pacific Western Latin Central & Middle Rest of
America Europe America Eastern East & world
Europe North
Despite its loss of market share, we expect television advertising in Asia Pacific to Africa
continue to grow over the next few years, because the total market is expanding
rapidly. Television adspend totalled US$56.4 billion in 2014, up from US$37.6 billion
ten years earlier, and we predict it will reach US$61.3 billion in 2017.
However, one of the driving forces behind the rise of internet advertising is the
rapid growth of online video. The young, affluent consumers who spend the least Share of Global Adspend by Region 2015 (%)
time watching television are the heaviest users of online video, which is proving a
very effective medium for advertising to a valuable audience. Online video adspend
grew 60% in Asia Pacific in 2014, and we estimate it will be a tenth of the size of TV (Growth by region in 2015 %)
adspend in Australia and China in 2015. Online video has quickly become a vital (+3.6%) (+3.1%) (+6.1%) (-4.3%) (+8.4%) (+2.3%) (+7.3%)
partner to television, for viewers, broadcasters and advertisers. 36.4
28.2
20.9
Jonathan Barnard,
7.3
Head of Forecasting, 4.2
0.9 2.0
Zenith Optimedia
North Western Asia Pacific Central & Latin Middle Rest of
America Europe Eastern America East & world
Europe North
Africa
Source: Zenith Optimedia Advertising Expenditure Forecasts June 2015
54 MULTICHANNEL TV 2016 ADVERTISING REVENUE 55Global Share of Ad Expenditure 2016
Growth (%) in Asia Pacific Adspend
12.7
Newspapers
13%
Internet
Newspapers Magazines
30% 6.9
13% 6% 6.7 6.3 6.2
Internet 6.0 6.1 5.6
Magazines
30%
6%
Television
Outdoor
37%
7%
Television
Outdoor
37%
7%
Cinema
0.5
Radio -4.9
Cinema 6% 2009 2010 2011 2012 2013 2014 2015 2016 2017
0.5
Radio
6%
Asia Pacific Share of Ad Expenditure 2016 Growth (%) in Asia Pacific Television Adspend
Newspapers 14.2
Magazines
14%
3%
Internet Newspapers
Magazines 10.3
32% 14%
3%
Internet
32% 6.2
4.7
Television 3.6
2.6 2.9 2.8
37% 2.3 2.0
Television
Outdoor
10% 37%
Outdoor
10%
-3.4
Cinema
Radio
0.5
4% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Cinema
Radio
0.5
4%
Source: Zenith Optimedia Advertising Expenditure Forecasts June 2015 Source: Zenith Optimedia Advertising Expenditure Forecasts June 2015
56 MULTICHANNEL TV 2016 ADVERTISING REVENUE 57Television Expenditure in Asia Pacific 2015 Television Advertising Expenditure % Share 2016
Japan 17,597 11.7 8.7 12.5 10.0
China 16,369 27.0
South Korea 4,855 48.7 43.2
Indonesia 3,899
Australia 3,530
India 2,735 97.0
88.3 91.3 87.5 90.0
Thailand 2,633
73.0
Philippines 1,511
56.8
Vietnam 969 51.3
Hong Kong 835
Taiwan 818 3.0
Malaysia 789 Australia Hong India* Malaysia New Philippines South Vietnam
Singapore 583 Kong Zealand Korea
New Zealand 497
Pakistan 310
Pay TV Free TV
Television Share of Total Adspend in Asia Pacific 2015 (%) Top Online Video Ad Markets in Asia Pacific in 2015
87.6
Adspend (US$ million)
65.6 64.5 64.9
58.1 China 1,697
41.3 Australia 320
39.1 38.9 39.6 38.7 38.2
30.0 32.7 30.2 32.5
28.5 Taiwan 100
25.2
New Zealand 33
South Korea 23
Singapore 20
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ili an
ut ore
G ific
ng e
on hin
re
BA
Si pin
tra
Ko
iw
la
ne
a
Ph st
n
ew lay
As etn
Ko
c
Ja
So ap
al
LO
I
C
ai
ki
Pa
Malaysia 17
s
p
a
Au
h
In
H
0
N
Source: Zenith Optimedia Advertising Expenditure Forecasts June 2015 Source: Zenith Optimedia Advertising Expenditure Forecasts June 2015
58 MULTICHANNEL TV 2016 ADVERTISING REVENUE 59Growth in Asia Pacific Online Video Adspend %
% Growth
63.8
60.1
47.6
37.0
27.4
2013 2014 2015 2016 2017
Source: Zenith Optimedia Advertising Expenditure Forecasts June 2015
60 MULTICHANNEL TV 2016 ADVERTISING REVENUE 61with OTT 62 MULTICHANNEL TV 2016 GLOBAL OVERVIEW 63
MAKING WAVES WITH OTT
Growth of OTT Subscription in Asia Pacific (US $ Millions)
2014-
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2019CAGR
Australia 37.835 42.582 61.163 87.247 114.721 140.369 168.577 200.555 237.29 281.337 19.651
China 0 47.348 72.306 103.528 134.751 165.973 197.195 228.418 259.641 290.863 16.636
Hong Kong 0 0 0 0 0 0 0 0 0 0 -
India 0 2.086 11.774 20.221 31.057 43.1 55.389 67.3 81.684 96.067 25.338
Indonesia 0 0 0 0 0 0.007 1.983 3.959 5.935 7.911 -
Japan 90.293 95.727 126.228 172.146 245.855 311.004 379.003 443.004 516.911 590.817 19.167
Malaysia 0 0 0 0 0.148 1.794 3.44 5.086 6.732 8.378 124.169
New Zealand 7.702 8.351 12.978 19.249 26.701 34.98 43.712 51.93 61.119 70.308 21.366
Pakistan 0 0 0 0 0 0 0 0 0 0 -
Philippines 0 0 0 0 0 0 0 0 0 0 -
Singapore 0 4.016 6.808 9.256 12.375 16.382 21.076 26.1 32.48 38.858 25.715
South Korea 0 10.677 12.94 27.333 43.796 67.781 93.72 116.939 145.921 174.904 31.909
Taiwan 0 0 0 0 0 0 0 0 0 0 -
Thailand 0 0 0 0 0.109 1.671 3.233 4.795 6.357 7.919 135.64
Vietnam 0 0 0 0 0 0 0 0 0 0 -
Asia Pacific 135.83 210.787 304.197 438.98 609.513 783.061 967.328 1148.086 1354.07 1567.362 20.792
Source: Global entertainment and media outlook 2015-2019, PwC, Ovum
64 MULTICHANNEL TV 2016 MAKING WAVES WITH OTT 65WAVE MAKERS
The Ericsson ConsumerLab TV & Media Half of viewing time is TV series & movies
Average number of self-reported weekly hours of active TV/video
Report 2015 viewing, by gender:
50% of consumers state they watch streamed on-demand video content at least once
a day. They estimate that they spend 6 hours a week watching streamed TV series, TV series according to a fixed TV schedule 4.8
programmes and movies on-demand, this has doubled since 2011. 4.0
Movies according to a fixed TV schedule 3.9
The popularity of Linear TV remains high, mainly due to its access to premium 4.3
viewing, live content and its social value. Linear TV is watched more by older age
Other TV programs according 3.0
groups, whilst those aged 16-34 spend 53% of all video viewing on a smartphone, to a fixed TV schedule 2.8
laptop or tablet.
Streamed on-demand TV series 3.0
2.5
Average number of self reported weekly hours of active
TV/video viewing: Recorded movies, TV series 3.0
and other TV shows 2.9
6,0 h/week 2.3
Streamed on-demand movies
Streamed 2.5
on demand
TV programs
2.3
Live news
2.6
Other 1.9
1.8
Streamed on Streamed on-demand 1.3
demand TV other TV programs 1.3
2,9 h/week series
121%
increase
Educational or instruction videos 1.1
1.3
Streamed on 1.0
Live sports
demand TV series 3.1
and programs
Streamed
0.7
Live events
on demand 1.2
Streamed on
demand movies
90%
increase
movies
e-sport 0.4
1.1
2011 2015 Female Male
BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China,
Source: Ericsson ConsumerLab TV & Media 2015 Study Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK,
Ukraine, US
Source: Ericsson ConsumerLab TV & Media 2015 Study
66 MULTICHANNEL TV 2016 MAKING WAVES WITH OTT 67Daily media habits On-demand frequency
Percentage of people watching different media types at least once per day (global Percent of people using each on-demand service on a daily vs. weekly basis, US 2015
average of self reported frequency of viewing) [self-reported]
100% 41%
YouTube 71%
Netflix 27%
52%
75%
Amazon Prime 6%
19%
Hulu 8%
50% 19%
HBO Go/HBO 5%
Now 13%
25% ABC.com 4%
12%
Apple iTunes 4%
9%
0%
Xfinity On- 5%
2010 2011 2012 2013 2014 2015 demand 9%
Crackle 1% At least daily
9%
Scheduled linear TV Recorded linear TV 3%
Vevo 8% At least weekly
Streamed on demand video U-verse On- 4%
(YouTube, short clips, movies, TV-series & programs) demand 6%
Twitch 3%
6%
Vudu 2%
BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil*, China,
5%
Germany, Spain, South Korea*, Sweden, Taiwan, UK, US, * excluded in 2010 figures, ** 3 years moving average ¼, ½, ¼
FiOS on demand 2%
[Showing: Use once per day or more] 3%
Source: Ericsson ConsumerLab TV & Media 2010-2015 Study
Pirate streaming 1%
2%
Pirate File sharing 1%
2%
BASE: US Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly
Source: Ericsson ConsumerLab TV & Media 2015 Study
68 MULTICHANNEL TV 2016 MAKING WAVES WITH OTT 69A shift from fixed to mobile devices
Share of self-reported total weekly TV/video viewing time, per year, done on
respective device **
100%
Smartphone,
tablet & laptop
75%
50%
TV screen
& desktop
25%
0%
2010 2011 2012 2013 2014 2015
TV Screen Desktop Laptop Smartphone Tablet
screen screen screen screen
61% 42%
of consumers watch TV & think it is very important
video on their smartphones, to watch their TV & video
an increase of 71% since 2012 content wherever they are
BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil*, China,
Germany, South Korea*, Spain, Sweden, Taiwan, UK and US. * excluded. in 2010 figures, ** 3 years moving average ¼, ½, ¼
Source: Ericsson ConsumerLab TV & Media 2010-2015 Study
70 MULTICHANNEL TV 2016 MAKING WAVES WITH OTT 71ASIA-PACIFIC OTT: WHAT’S NEW?
Asia-Pacific OTT viability key stats
By Abigail Cruz, SNL Kagan by December 2015 (continued)
Asia-Pacific comparison table
IPTV MARKET SUMMARY
Market Multichannel BB HHs/HHs gap b/n BB and
The Asia-Pacific region is gradually becoming a favorable landscape for medium- to subs/HHs (%) (%) MC pen (%)
long-term over-the-top video streaming development. By end-2015, broadband
AUSTRALIA 36.0 77.0 41.0
adoption is expected to maintain notable market traction in several markets
CHINA 68.0 41.3 (27.0)
including Australia, New Zealand, Singapore and Japan. On the other hand, India
may continue to have one of the region’s highest penetration rate disparities INDIA 52.2 7.5 (45.0)
between broadband and pay TV services, projected to reach 7.5% and 52.2% by JAPAN 29.0 69.0 40.0
year-end, but in light of the implementation of various OTT initiatives by local and NEW ZEALAND 53.0 91.2 38.2
out-of-market OTT players, India may eventually become one of Asia Pacific’s liveliest
SINGAPORE 76.4 94.3 18.0
OTT playing fields. Much as are other countries in the region such as Malaysia,
Philippines and Hong Kong, these markets are taking a positive turn for OTT as more SOUTH KOREA 153.0 98.0 (55.0)
online video streaming services are introduced. TAIWAN 76.0 75.3 (0.7)
INDONESIA 6.0 7.0 1.0
MALAYSIA 62.0 34.2 (28.0)
Asia-Pacific OTT viability key stats by December 2015 PHILLIPPINES 14.4 14.0 (0.4)
Asia-Pacific comparison table HONG KONG 86.3 90.0 4.0
Market Occupied Multichannel Broadband Given the OTT growth in the Asia-Pacific region, SNL Kagan has expanded its
Households Subscribers Households
coverage of OTT in the region from an initial eight markets to 12 as of September
AUSTRALIA 8,539,453 3,044,660 6,564,966 2015, now including Indonesia, Malaysia, Philippines and Hong Kong. In this article,
CHINA 433,745,557 294,341,055 179,066,029 SNL Kagan outlines select OTT service launches during the first half of 2015, as well
INDIA 283,517,700 147,856,492 21,148,860 as OTT launches expected in the
second half.
JAPAN 54,459,475 15,621,442 37,558,828
NEW ZEALAND 1,598,936 844,059 1,457,996 Australian OTT had a busy first quarter, with three OTT services launched. Global
SINGAPORE 1,278,839 977,654 1,205,999 player Netflix Inc. began its Asia-Pacific expansion with launches in Australia and
New Zealand in March 2015, following the January launches of FOXTEL’s Presto and
SOUTH KOREA 18,941,487 28,919,281 18,540,021
StreamCo’s Stan.
TAIWAN 8,515,696 6,442,780 6,415,856
INDONESIA 70,171,478 4,158,250 4,876,795 Subscription prices of the three services are similar, with Netflix’s basic plan priced at
A$8.99 and Stan at A$10.00 per month for unlimited access to TV and movies. Presto
MALAYSIA 7,239,839 4,464,682 2,475,567
provides more subscription options to the Australian market by offering movie- and
PHILLIPPINES 22,384,704 3,226,783 3,111,854 TV-focused monthly plans, each priced at A$9.99, and a combination of TV and
HONG KONG 2,489,027 2,148,200 2,230,494 movies for A$14.99. Quickflix, an established OTT player in Australia, shares the
A$9.99 price point.
72 MULTICHANNEL TV 2016 MAKING WAVES WITH OTT 73You can also read
