Asia-Pacific Broadcasting (APB) March 2018 Volume 35, Issue 2 | Page 33

�Despite some gloom in some more-developed video markets , the very real value of satellite in terms of point-to-multipoint content carriage is not going away . �
HTS a hit in Asia-Pacific

An update on the video broadcast market

BY ALAN CRISP

The video broadcast market in Asia remains one of solid growth , with channel counts , capacity leases , and pay-TV subscribers on the up and up , albeit at less dynamic levels than have been seen historically .

At the same time , a number of headwinds will cause market erosion in East Asia , such as greater levels of competition with over-the-top ( OTT ) platforms and increased channel encoding . Simultaneously , increasing levels of disposable income by citizens in South-east Asia and South Asia mean that there is significant room for increase in demand with many new first-time subscribers paying for direct-to-home ( DTH ), cable TV and IPTV subscriptions .
NSR expects opportunities to be strong in the short term through to the long term , if you know where to look .
Growth recently , however , has been rather concentrated by a handful of players , with new platforms being broadcast in Asia , and especially in Southeast Asia seeing strong development in recent years . Much of this is coming from the opening up of countries such as Laos and Myanmar . The latter alone has seen multiple new platforms launched over the past couple of years , with several operators benefiting from multitransponder contracts .
In addition , Indonesia especially , is expected to see some greater demand through the sheer size of the country and number of households getting a TV for the first time . However , this market also sees some saturation , with several DTH platforms operating in the red . The Philippines provides perhaps the best long-term combination of market size , economic growth prospects , and a relatively undeveloped pay-TV market . In terms of technologies moving forward , top-down demand for 4K / Ultra HD ( UHD ) content — while being more prevalent in North America and Western Europe — is adding to satellite capacity requirements in Asia , in particular East Asia . Japanese public broadcaster NHK even intends to broadcast the
2020 Olympic Games from Tokyo in 8K . However , NSR does not believe that the enormous demand requirements for 8K content will result in opportunities across the video broadcast value chain elsewhere . On the other end of the spectrum , it is important to remember that the majority of channels are currently broadcast in standard definition in Asia , meaning there is significant capacity growth potential in the longer term .
Despite some gloom in some moredeveloped video markets , the very real value of satellite in terms of point-tomultipoint content carriage is not going away . The lack of high-speed connectivity for many residents in South-east Asia is resulting in limited forms of competition with OTT platforms like we have witnessed elsewhere , and increasing levels of disposable income are also driving subscribers to DTH and pay-TV content .
However , satellite operators and pay- TV platforms alike will need to enter the market sooner rather than later , as the window for new entrants is slowly closing as the region inches towards maturity .

�Despite some gloom in some more-developed video markets , the very real value of satellite in terms of point-to-multipoint content carriage is not going away . �

Alan Crisp is senior analyst at Northern Sky Research ( NSR ), an international market research and consulting firm specialising in telecommunications technology , with a particular focus on satellite and wireless networks , emerging technology and media applications .
An Supplement
33