DTH to contribute half of Asia-Pac pay-TV revenues: report

20 Sep 2006

(Business World via NewsEdge) Deemed as the last-mile service in gaining a foothold in previously underserved markets, direct-to-home (DTH) satellite service is expected to account for about half of the total pay-TV revenues in Asia-Pacific by 2012.

Global consulting firm Frost & Sullivan said in its latest report, titled "Asia Pacific Satellite DTH Market", that the Asia-Pacific region offered the strongest growth potential and opportunities in the next five years for DTH providers.

"By achieving economies of scale and providing quality local content, service providers can capture a huge and profitable consumer base," the report read.

It said the DTH service alone would account for approximately 46.3% or $20.91 billion of total pay-TV revenues in Asia-Pacific in 2012, valued at $45.20 billion.

The Asia-Pacific pay-TV market, covering nine countries, stood at $19.24 billion in combined revenues as of end-2005.

Frost & Sullivan research analyst James Lye said convergence, or the integration of voice, data and video in one packaged solution, would boost the demand for DTH service in the next five years.

"To create new revenue streams, providers need to shift beyond individual technology and service platforms towards an MSO [multi-system operator] model, reaching consumers through any efficient medium," Lye said.

Particularly, he said the Asia-Pacific region offered unique opportunities as newly emergent communities demand telecom services in vast unwired areas.

"By using video content as the flagship offering, DTH providers can gain a strong position in the market and uncover ways of tapping into the lucrative voice and data demand," he said.

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