Asia set for pay-TV boom

08 September 2009

HONG KONG: Asia's leading pay-TV operators can expect to see profits grow by at least 10% each year over the period to 2015, according to a new study by Media Partners Asia.

The profit surge, to twice the rate of increase enjoyed by pay-TV operators in other parts of the world, will be driven by an upturn in subscriber numbers and higher revenues from a rising take-up of digital and broadband services.

"Many Asian pay-TV operators are either in the middle or on the cusp of a high-growth phase similar to the one that accelerated both public and private market valuations for cable operators in North America between 1997 and 2005," said MPA executive director Vivek Couto.

There are currently 330 million homes across the Asia Pacific region with pay-TV, and MPA forecasts this figure will rise to 435 million by 2015. The total number of broadband users will also reach 350 million by this date.

Revenues are similarly forecast to double to $60 billion (€42bn; £36bn) by 2015, with China and India accounting for half of this total. Indonesia is also set to see "explosive" growth in pay-TV.

Rupert Murdoch's News Corporation has recently revamped its Star Asia operation to focus on India, and MPA expects the high growth prospects in the region to attract other institutional investors, while existing operators like News Corp. and Telstra may choose to cash in with stock market listings.

Data sourced from Media Partners Asia; additional content by WARC staff