The Asia-Pacific pay-TV industry is expected to grow at a 5.8% average annual rate from 2016 to 2021, according to Media Partners Asia (MPA).
MPA projects pay-TV industry sales across 18 major markets in Asia Pacific to climb from $54 billion in 2016 to $72 billion by 2021, rising thereafter to $81 billion by 2025.
The pace of pay-TV subscriber and revenue growth is slowing however, weakened by an economic slowdown and increasing competition from both legal and illegal alternatives.
Pay-TV subscriber growth declined or substantially decelerated in Hong Kong, Indonesia, Malaysia and Singapore in particular.
At the same time however, India and Korea remain two of the region’s largest and most scalable pay-TV opportunities. Revenue growth will also accelerate in Australia and the Philippines, largely thanks to subscriber growth.
However, MPA analysts have lowered subscriber growth forecasts across much of Southeast Asia, especially for Indonesia, Malaysia and Singapore, although ARPU should remain resilient in both Malaysia and Singapore.
The pay-TV industry in China, meanwhile, remains the largest in the region and is becoming increasingly digitalized. Pay-TV growth opportunities for broadcasters are limited however, due to increasing regulation as well as competition from free and paid online video services.
Elsewhere in the region, subscription-based video-on-demand (SVOD) services have had a negligible impact on pay-TV so far, despite the global launch of Netflix earlier this year, in addition to increasing competition among lower-priced regional and local SVOD services.