Digital TV to boom in Asia Pacific over next five years

Digital TV is expected to boom in the Asia Pacific region, with a nearly two and a half times increase in subscribers by the end of 2015, according to a new report by Informa Telecoms and Media.

The Asia Pacific region will see an increase of more than 94 million TV households to 784 million by 2015, with an average of 1.4 TV sets per home, totalling 1.1 billion TVs in the region within the next five years.

43 percent of this number will be cable subscribers for both analogue and digital. Direct To Home (DTH) satellite TV is in second place with nine percent. India is the strongest market for DTH, overtaking Japan in 2008, and is expected to have a 63-percent market share for DTH by 2015.

33 percent, or 259 million, will still use analogue terrestrial signals but may switch to cable analogue or digital after 2015.

Paid TV packages will also see strong growth, garnering an expect 400 million subscribers in the region by 2015. This should generate revenue of over $40 billion (£26 billion) . China and India will be the big players for paid TV, while emerging markets like Vietnam and Indonesia will also contribute strongly.

Informa Survey

Japan will remain dominant in the TV market, with a revenue share of 31 percent in 2009. However, this is expected to fall to 29 percent in 2015, with most of the two percent difference going to China, which will be in tied place at 29 percent in five years time, up from 20 percent last year.

Digital TV has seen strong growth recently, with more expected over the next five years. Digital TV penetration in Asia Pacific was 21 percent at the end of 2009 and is expected to increase to 54 percent by the end of 2015. Four markets within the region will have achieved a 100 percent digital penetration by 2015, with four others achieving a penetration rate of over 70 percent.

Informa Survey

China is the largest provider of digital TV, stealing Japan’s crown in 2007. By the end of 2009 it accounted for 46 percent of the region’s digital TV market share. By 2015 it is expected to have at least 55 percent of the share. India will follow with 20 percent, Japan with nine percent, and South Korea with three percent.

Internet Protocol TV (IPTV) is also experiencing growth, with expectations of 45 percent growth by 2015. Informa Telecoms and Media believes it could become a strong competitor to traditional cable TV, thanks to advances in fibre-optic broadband speeds.

The average revenue per subscriber (APRU) is set to increase in the short-term, but will plummet over time as competition drives prices down.

Informa Survey