NEWS & VIEWS
January 2015
7
Emerging markets drive
satellite pay-TV growth
Multimedia news company Shanghai Media Group (SMG) is merging its digital
media arm, BesTV, with its Shanghai Oriental Pearl division, to create a new
Internet and broadcasting company.
SMG consolidates and
aims for global expansion
SHANGHAI – Multimedia news
company Shanghai Media Group
(SMG) is merging its digital media
arm, BesTV, also Microsoft’s Chinese
partner, with its Shanghai Oriental
Pearl division, to create a new In-
ternet and broadcasting company.
According to a BesTV statement
to the Shanghai Stock Exchange,
the new company will be named
Shanghai Oriental Pearl New Media
Company, with SMG reportedly
owning a 45.07% stake in what is
expected to become the “largest
Chinese online media group”.
Li Ruigang, head of SMG, re-
vealed: “SMG will have a series of
global cooperation and explora-
tion ventures. Our ambition is not
limited to the group’s restructuring
but also about building a new im-
age for Chinese media.”
With a new media business
portfolio including IPTV, Internet
TV, smart TV, over-the-top (OTT)
video and mobile TV, BesTV is
covering more than 20 provinces
and cities in mainland China and
South-east Asia.
Its parent company, SMG,
merged with Shanghai Media &
Entertainment Group, Radio and
Television Shanghai in March last
year to become China’s “largest
provincial media group”, with more
than US$7 billion in assets.
SMG also has the world in
its sight, with offices planned in
Silicon Valley to develop Internet
technology and adapt it for the
Chinese market.
PARIS – By 2023, emerging markets 100% of subscription growth.
launches, a growing trend in
Emerging markets have also
such as Asia and Sub-Saharan Africa
emerging markets has been expan-
are likely to account for nearly 80% been the “most active” in rolling
sion into new markets for existing
of the 340 million subscribers of out new platforms, increasing
players, said Euroconsult, adding
subscriber bases, growing rev-
satellite pay-TV services globally.
that the launch of 60 platforms in
These emerging markets are enues and adding TV channels.
the past five years has led to an
also expected to account for nearly Euroconsult consultant Dimitri
oversupply in certain emerging
100% of growth in subscriptions, Buchs, editor of the report, said:
markets including Indonesia, which
revenues and number of satellie “Emerging markets are home to
had the highest number of active
pat-TV channels by 2023, accord- over 80% of the nearly 160 active
players in November 2014. Several
ing to the recently released Satellite [satellite pay-TV] platforms. Over
large, fast-growing satellite pay-TV
Pay-TV: Key Economics & Prospects 95% of platforms launched in the
markets, such as Russia and Brazil,
past three years operate in these
report by Euroconsult.
began to consolidate in 2014 fol-
Globally, the satellite pay-TV markets.”
lowing a slowdown in growth over
Apar t from new platform
industry has observed “strong
the past several years.
growth” over the past
Despite this recent
five years, despite an
M&A acceleration,
“increasingly competi-
Euroc onsult expects
tive” TV landscape where
new projects to con-
IPTV, DTH (direct-to-
tinue to roll out in the
home) and connected
short term, mainly in
entertainment services
the fastest-growing
have “rapidly extended
markets. Future pro-
their reach”, Euroconsult
jects are also expected
reported.
to target new markets,
By 2014, emerging
with Bangladesh ex-
Malaysian satellite pay-TV service Astro: By 2023, emerging
markets accounted for markets such as Asia and Sub-Saharan Africa are likely to account pected to be one of
60% of global subscrip- for nearly 80% of the 340 million subscribers of satellite pay-TV
the next satellite pay-
tions, as well as nearly services globally, according to a recent report by Euroconsult.
TV countries.
Multi-channel TV reaches 500 million homes in APAC
HONG KONG – Multi-channel TV homes across
the Asia-Pacific region stood at a towering 500.6
million, according to a report from CASBAA.
Christopher Slaughter, CEO of CASBAA,
said that the latest report has affirmed Asia-
Pacific’s position as the “growth engine for the
multi-channel TV industry today”. He reiterated:
“When we look at non-terrestrial TV connec-
tions, 61% of homes in Asia now receive multi-
channel TV and the region is poised to strength-
en its leadership as the largest multi-channel
video market globally in terms of subscribers.”
The Multi-channel TV Advertising 2015
report — an annual compendium of regional
facts and figures and advertising research culled
from a variety of sources to provide essential
data for the region’s broadcast industry — also
revealed the continued growth of the pay-TV
advertising market in the region with an esti-
mated +9.4% year-on-year increase for 2014.
Jonathan Barnard, head of Forecasting at
ZenithOptimedia, added: “Television is the
dominant advertising medium in Asia-Pacific,
attracting 40% of all ad expenditure this year,
and ZenithOptimedia forecasts it to grow at an
average of 5% a year until at least 2016.”
Separately, a report from Ericsson illustrated
an increased importance of over-the-top (OTT)
services and digital delivery, with on-demand
content making up an increasing part of con-
sumers viewing habits and a greater acceptance
of paying for non-linear TV content.
The Ericsson Consumer Insight Report 2014
concurred with the findings of CASBAA’s, reflect-
ing a 25% increase in consumer willingness to
pay for anywhere access compared to in 2012,
as well as a general upward trend in the use of
tablets and smartphones to view video content
both in the home and elsewhere.