Pay-TV Market Set For Explosive Growth
Exploiting the hitherto underserved Direct-to-Home (DTH) territory will yield rich dividends for service providers in the Asia Pacific region - especially the multisystem operators (MSO) - in the next five years, according to a Frost & Sullivan study.
The study suggests that by providing quality local content and achieving economies of scale, a large and profitable subscriber base can be achieved. Talking numbers, Frost & Sullivan reckons that the total pay-TV market, covering nine Asia-Pac countries, worth $19.24 billion in 2005, will shoot up to $45.20 billion by 2012 - by which time, it would capture 46.3%, or $20.91 billion of total pay-TV revenues.
“The reality of the next decade for DTH service providers is convergence. To create new revenue streams, providers need to shift beyond individual technology and service platforms towards an MSO model, reaching consumers through any efficient medium,” explained Frost & Sullivan research analyst James Lye.
A DTH video service would go a long way towards helping establish a foothold in these previously underserved emerging markets. Also, consumers are looking for integration - voice, data and video services, from a single source. Sizable markets exist in vast tracts of untapped unwired areas.
Key challenges would consist of offering compelling pricing, stringent regulations and in some cases, a dearth of local language content such as sports, news and entertainment material.
India is all set to be a major player in this arena. A study done by MPA earlier this year suggests that it will overtake current Asia leader Japan in the DTH market by 2008, join Japan as Asia’s leading revenue generating pay-TV market by 2015 and overtake it as Asia’s leading revenue-generating market for cable & satellite broadcasters by 2010.
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