Asia Pacific
MULTICHANNEL TV ADVERTISING
[2015]
P 186C
P 287C
P Pro.Blue C
CMYK 0/100/95/5 RGB 224/20/38
CMYK 100/75/0/10 RGB 0/60/141
CMYK 80/10/0/20 RGB 0/136/198
About CASBAA
Established in 1991, CASBAA is the Association for digital multichannel TV, content, platforms, advertising and video delivery across geographic markets throughout the Asia Pacific. CASBAA and its members reach over 500 million connections within a regional footprint ranging from China to Australasia, Japan to Pakistan. The CASBAA mission is to promote the growth of multichannel TV and video content via industry information, networking exchanges, and events while promoting global best practices. www.casbaa.com CASBAA Executive Office 802 Wilson House 19-27 Wyndham Street Central, Hong Kong Tel: 852 2854 9913 Enquiry: casbaa@casbaa.com
2
501 million
MULTICHANNEL HOMES
CAN’T BE WRONG.
www.casbaa.com
Contents FAST FACTS................................................ 6 GLOBAL OVERVIEW................................ 10 ASIA PACIFIC VIEWERS.......................... 16 MEASUREMENT GUIDE..........................24 ADVERTISING REVENUE........................28 BEYOND THE BOX..................................50
4
MULTICHANNEL TV 2015
Executive Summary It has been a topic of discussion for the past few years but it appears that TV Everywhere and Over the Top (OTT) services are beginning to truly take off in terms of acceptance and adoption. These alternate modes of video consumption are helping to extend viewing for consumers while allowing more opportunities for platforms, networks, and content creators to expand their businesses. Data from the most recent Ericsson Consumer Insight Report found that 75% of people surveyed across 23 markets including China, Indonesia, Malaysia, Singapore, South Korea and Taiwan are now streaming video. This number illustrates the increased willingness for consumers to pay for the convenience of anywhere access and, as a result, viewing is increasing accordingly as access to more and better content becomes available. As our world becomes progressively more mobile, we are finding viewing habits following suit. Place shifting, where consumers can start a video on one device and continue watching it on another, is now more commonplace as new services enable seamless access to video content. Technology is also allowing for instant access to favourite programs anytime, anywhere with more powerful Internet connections and devices including smartphones, tablets, and laptops making viewing on the go even easier. However, linear television should not be written off just yet. In the Asia Pacific, the growth of multichannel TV homes has now surpassed 500,000,000 – the largest number by region anywhere in the world today. The power of pay TV is also exemplified by the increasing viewing numbers for all and affluent audiences; advertising is on the up in the Asia Pacific and individual markets such as Indonesia, China, Malaysia and India are seeing strong growth. While the future of broadcasting may depend on the hands of TV Everywhere and OTT services, there can be no denying that there is still enormous potential to be realized within linear TV in the region – success will depend on how well we can balance these two business streams. CASBAA would like to thank Jane Buckthought, the Research Committee and the various network research, marketing, and sales teams who made this report possible. 5
Non-Terrestrial TV Connections
61%
54%
PAKISTAN 11.6 MILLION
of homes in Asia now receive Multichannel TV.
92%
INDIA 149 MILLION
FAST FACTS POPULATION................................... 3,579,814,080 TOTAL HOMES..................................... 936,147,053 HOUSEHOLD SIZE...............................................3.8 TELEVISION HOMES........................... 824,757,429 MULTICHANNEL HOMES.................500,639,000 INTERNET USERS............................ 1,228,382,259
Note 1: This data includes multiple connections to non-terrestrial channels in 000s and multichannel homes penetration as a percentage. Note 2: Thailand data under review as market in a state of flux. Source: Casbaa, SNL Kagan, MCN, SARFT, CSM, TAM India, SKY, Gallup Pakistan, Starhub, Kantar, Nielsen, Astra, Astro, Video Research, TmNS.
6
MULTICHANNEL TV 2015
98%
57%
CHINA 255.5 MILLION
30%
JAPAN 15.2 MILLION
SOUTH KOREA 24.5 MILLION
85% 97%
HONG KONG 2.5 MILLION
64%
THAILAND 14.7 MILLION
TAIWAN 7.8 MILLION
61% 20%
VIETNAM 12.7 MILLION
61%
MALAYSIA 4.1 MILLION
63%
PHILIPPINES 3.2 MILLION
11%
INDONESIA 4.4 MILLION
SINGAPORE 0.95 MILLION
36% AUSTRALIA 2.9 MILLION
56%
NEW ZEALAND 0.9 MILLION FAST FACTS
7
8
MULTICHANNEL TV 2015
Growth of Multichannel Homes 501
2014
2013
468
2012
446 407
2011
363
2010
326
2009
291
2008
2007
264
2006
255 228
2005
218
2004 Millions of homes
Source: Casbaa, SNL Kagan, MCN, SARFT, CSM, TAM India, SKY, Gallup Pakistan, Starhub, SingTel, Kantar, Nielsen, OzTAM, Video Research
FAST FACTS
9
GLOBAL OVERVIEW Asia Pacific Leads the Way
Home to more than 500 million pay TV households in 2014, the Asia Pacific region is poised to strengthen its leadership as the largest multichannel video market globally in terms of subscribers. While average revenue per user (ARPU) remains relatively low, the region’s aggregate video subscription revenue is estimated to reach US$36.2 billion by the end of 2014, trailing North America and Western Europe as the third-most-lucrative multichannel economy. The Asia Pacific multichannel market is characterized by aggressive digitization efforts and increasing adoption of emerging IP technologies. In some markets, however, significant problems with piracy and regulatory barriers inhibit growth. SNL Kagan expects operators to pursue widespread digital infrastructure improvements, anchored by initiatives in India and China, that will drive lucrative pay TV revenue and technology gains long term. Competition, historically limited to cable versus direct-to-home satellite platforms, is poised to heat up in Asia as IPTV and digital terrestrial television (DTT) systems mature. Cable dominates the Asia Pacific multichannel landscape, with China and India hosting the largest cable populations in the world. Although increasing competition is set to reduce cable market share over the coming ten years, the platform’s dominance is expected to endure long-term. DTH MARKET SUMMARY Although cable dominates multichannel households in a majority of Asia Pacific markets, DTH holds the highest share of multichannel subscribers in Malaysia, New Zealand, Indonesia and Australia. With 35.8 million active pay DTH subscribers, India is the largest DTH market in the Asia Pacific region, accounting for the majority of the region’s total DTH connections. The market is also home to the top DTH providers in the region by subscriber base, including Dish TV India, Tata Sky, Sun Direct, Videocon D2H, Bharti Airtel and Reliance Communications.
10
MULTICHANNEL TV 2015
Multichannel TV Homes Penetration 2015 85.6% 67.2%
60.9%
60.5% 42.7% 29.8%
ASIA PACIFIC
E.EUROPE
LATIN AMERICA
MIDDLE EAST
N. AMERICA
W.EUROPE
Historically, the Chinese government has prohibited the general population from accessing DTH signals, with the exception of unencrypted state-affiliated channels via the CBTV platform. At present, free-to-air DTH service is available extensively via SARFT’s Huhutong project, which aims to bring TV and radio access to millions of residents living in rural and mountainous areas not covered by cable or terrestrial signals. SNL Kagan expects SARFT-sanctioned pay DTH services will phase in long term after the Huhutong project has established a sufficient DTH base. CABLE MARKET SUMMARY With 224 million cable TV households in China and close to 100 million in India, cable connections dominate the Asia Pacific multichannel landscape. SNL Kagan analysis indicates approximately 80% of pay TV households in the region are connected via cable.
GLOBAL OVERVIEW
11
GLOBAL OVERVIEW Asia Pacific Leads the Way
Market fragmentation has posed a fundamental challenge in several of Asia’s cable markets, including India, the Philippines and Thailand, as localized ownership of last-mile networks impedes digital upgrades. Adjustments to ownership regulation enabling consolidation are paving the way for digitization initiatives. In China, regional cable systems are implementing a government-mandated “one province, one network” directive which has formed some of the biggest cable operations in the world. SNL Kagan believes cable’s grip on the Asia Pacific pay TV market will slip over the coming years as DTH and IPTV services capture market share. However, increasing competition is not expected to impede cable revenue growth as advanced services including HD, VOD and DVR drive cable service revenues. IPTV MARKET SUMMARY The Asia Pacific region features the world’s third-largest IPTV economy after North America and Western Europe, with China Telecom hosting the largest single IPTV subscriber population in the world. South Korea’s KT Corporation and Japan’s Sky Perfect JSAT Corporation also rank among the top IPTV providers in the region. SNL Kagan analysis indicates IPTV will be the fastest-growing multichannel platform in the Asia Pacific over the coming years, with China, Japan and South Korea ranking as key markets for growth. Many governments in the region, including those in Australia, New Zealand, Malaysia and Singapore, are funding fiber rollouts, which is expected to foster the IPTV landscape long term. DTT MARKET SUMMARY SNL Kagan does not count free-to-air DTT as multichannel service, given that it is not subscription-based. In the Asia Pacific, digital terrestrial infrastructure provides leverage for pay TV service deployments in Indonesia, New Zealand and Vietnam. These operations form a niche position in the region’s multichannel landscape, accounting for a tiny fraction of the Asia Pacific total pay TV subscriber base. SNL Kagan does not expect widespread pay DTT activities to emerge in the Asia Pacific region long term.
Source: SNL Kagan
12
MULTICHANNEL TV 2015
Total Multichannel TV Homes 2012-2018 600,000,000 500,000,000 400,000,000 300,000,000 200,000,000 100,000,000 0 2012
2013
2014
ASIA PACIFIC MIDDLE EAST & AFRICA
2015
2016
E. EUROPE N. AMERICA
2017
2018
LATIN AMERICA W. EUROPE
Share Of Multichannel TV Homes By Region 2015 LATIN AMERICA 8%
W.EUROPE
MIDDLE EAST & AFRICA 4%
11% N. AMERICA 12%
ASIA PACIFIC 56%
E.EUROPE 9% Source: SNL Kagan
GLOBAL OVERVIEW
13
GLOBAL OVERVIEW Asia Pacific Leads the Way - TV Everywhere
14
COUNTRY
OPERATOR
PLATFORM
TVE LAUNCH DATE
SMART TV
Australia
FOXTEL
DTH/Cable
Oct-09
yes
South Korea
CJ HelloVision
Cable
May-10
yes
Japan
NTT Plala Inc.
IPTV
Aug-11
yes
Singapore
StarHub Ltd
Cable
Jun-12
yes
Taiwan
Vee Telecom Multimedia
Cable
Oct-12
no
Japan
SKY Perfect JSAT Corporation
DTH/IPTV
Oct-11
yes
Hong Kong
PCCW
IPTV
Dec-09
no
Thailand
TOT
IPTV
Jan-13
yes
Taiwan
Chunghwa Telecom
IPTV
Dec-09
no
New Zealand
SKY Network Television Ltd
DTH
Jan-11
no
South Korea
KT Corporation
DTH/IPTV
Apr-11
no
Japan
J:COM
Cable
May-12
no
Singapore
SingTel
IPTV
Jul-12
yes
Malaysia
Astro
DTH/IPTV
Jun-12
no
Thailand
TrueVisions
DTH/Cable
May-13
no
China
Beijing Gehua
Cable
Jun-11
no
India
Dish TV India Ltd.
DTH
Oct-13
no
India
Tata Sky Ltd.
DTH
Oct-13
no
Malaysia
Telekom Malaysia
IPTV
Jul-13
no
Indonesia
First Media
Cable
Feb-14
no
Indonesia
PT MNC Sky Vision
DTH
Jun-14
no
Philippines
Cignal TV
DTH
Jul-13
no
Australia
FetchTV
IPTV
Dec-13
no
India
Bharti Airtel
DTH
Mar-14
no
Hong Kong
i-Cable Communications
Cable
Feb-12
no
Total
25
7
MULTICHANNEL TV 2015
CONNECTED DEVICE SUPPORTING TV EVERYWHERE SERVICE SMARTPHONE
TABLET
GAME CONSOLE
PC/MAC
DEVICE COMPLETION SCORES
# OF TV CHANNELS
yes
yes
yes
yes
5
up to 74 channels
yes
yes
no
yes
4
199 channels
yes
yes
no
yes
4
N/A
yes
yes
no
yes
4
up to 71 channels
yes
yes
yes
yes
4
N/A
yes
yes
no
yes
4
59 channels
yes
yes
yes
yes
4
6 channels
yes
yes
no
yes
4
145 channels
yes
yes
no
yes
3
N/A
yes
yes
no
yes
3
up to 11 channels
yes
yes
no
yes
3
70 channels
yes
yes
no
yes
3
up to 77 channels
yes
yes
no
no
3
up to 19 channels
yes
yes
no
yes
3
up to 30 channels
yes
yes
no
yes
3
up to 102 channels
yes
yes
no
yes
3
up to 46 channels
yes
yes
no
yes
3
27 channels
yes
yes
no
yes
3
54 channels
yes
yes
no
yes
3
up to 57 channels
yes
yes
no
yes
3
50 channels
yes
yes
no
yes
3
N/A
yes
yes
no
no
2
up to 14 channels
yes
yes
no
no
2
N/A
yes
no
no
no
1
150 channels
yes
no
no
no
1
6 channels
25
23
3
20
Source: SNL Kagan
GLOBAL OVERVIEW
15
The Multichannel TV Viewer in Asia •
Across Asia Pacific, viewing of multichannel TV services are measured by people meter TV. Audiences remain strong at 79% of all people watching in the past month.
•
Multichannel TV average audiences are higher than terrestrial.
•
The Ipsos Affluent Survey shows that multichannel TV audiences in the main markets on Asia are more likely to travel more, purchase new technology, and keep up-to-date with new trends.
Asia Pacific Monthly Cumulative Audience ALL PEOPLE
76% 66% 76%
79%
75% 69%
78% 80%
79% 77%
78% 80%
79% 77%
79%
76% 76%
75%
69%
66%
2009
2010
2011
2012
2009
2010
2011
2012
Asia Pacific Monthly Cumulative Audience AFFLUENT PEOPLE 83% 82% 83% 82%
16
85% 85%
85%
86% 80%
86% 73%
80%
85%
2013 2013 86% 86% 75%
76%
75%
76%
73%
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
MULTICHANNEL TV
TERRESTRIAL TV
MULTICHANNEL TV
TERRESTRIAL TV
13090
33506
11840
29544
Asia Pacific Average Audience: All Time ALL PEOPLE (000S) 16389
15887
AFFLUENT PEOPLE (000S) 4035
33506
2013
16389
2012
2013
15887 4035
2012
3784
11840
29544
2012
13090
2013
3784
2012
2013
Asia Pacific Average Audience: Prime Time ALL PEOPLE (000S)
AFFLUENT PEOPLE (000S)
64163 57261
25706
23443
34929
33941 9186
8927
64163 57261
25706
23443
2012 34929
2013
2012
2013
33941
MULTICHANNEL TV
TERRESTRIAL TV 9186
8927
Prime Time 1800-2359 Source: Peoplemeter, Asia Pacific includes: India, Australia, Taiwan, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, South Korea
2012
2013 MULTICHANNEL TV
2012
2013 ASIA PACIFIC VIEWERS
TERRESTRIAL TV
17
Multichannel TV Monthly Reach INDIA
AUSTRALIA
TAIWAN
92% 94%
33% 37%
100% 100%
MALAYSIA
SINGAPORE
PHILIPPINES
60% 70%
45% 59%
21% 42%
HONG KONG
NEW ZEALAND
SOUTH KOREA
51% 62%
52% 56%
87% 87%
ALL PEOPLE
AFFLUENT ADULTS
Source: Peoplemeter India. Australia, Taiwan, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, South Korea
Multichannel TV Consumed More Than Other Media 78.9
(MONTHLY) ANY CABLE/SATELLITE TV CHANNEL
74.5
(WEEKLY) ANY CABLE/SATELLITE TV (DAILY) ANY CABLE/SATELLITE TV
52.5 6.4
ANY INFLIGHT MAGAZINE ANY REGIONAL MONTHLY MAGAZINE ANY REGIONAL TRI-WEEKLY MAGAZINE ANY REGIONAL WEEKLY MAGAZINE ANY REGIONAL DAILY NEWSPAPER ANY REGIONAL TITLE
15.5 1.1 6.2 1.7 19.3 54
ANY LOCAL TITLE MULTICHANNEL TV
OTHER MEDIA
Source: Ipsos Affluent Survey Asia Pacific Q3-Q4 2013 Average Base Index: 100. Bangkok or Hong Kong or Jakarta or Kuala Lumpur or Manila or Singapore or Taipei or Seoul or Sydney or Melbourne or India
18
MULTICHANNEL TV 2015
Affluent Viewers Strongly Agree That... INDEX
WATCH PAY TV
DON’T WATCH PAY TV
I am always one of the first to use innovative tech products
113
91
I have confidence in purchasing products/ services that have been advertised
115
90
I tend to go for premium rather than standard goods/services
120
86
I have expensive tastes
107
95
Gaining knowledge and becoming better informed is a priority for me
106
96
People come to me for advice before buying new things
109
94
Source: Ipsos Affluent Survey Asia Pacific Q3-Q4 2013 Average Base Index: 100. Bangkok or Hong Kong or Jakarta or Kuala Lumpur or Manila or Singapore or Taipei or Seoul or Sydney or Melbourne or India Viewed International Channels Yesterday
ASIA PACIFIC VIEWERS
19
Affluent Viewers Are Early Adopters... WATCH PAY TV
DON’T WATCH PAY TV
(INDEX)
(INDEX)
110
93 SMARTPHONE
119
87 TABLET
118
88 SMART TV
124
HOME THEATRE SOUND SYSTEM
105
83
97 DIGITAL VIDEO CAMERA
Source: Ipsos Affluent Survey Asia Pacific Q3-Q4 2013 Average Base Index: 100. Bangkok or Hong Kong or Jakarta or Kuala Lumpur or Manila or Singapore or Taipei or Seoul or Sydney or Melbourne or India Viewed or Not Viewed International Channels Yesterday
20
MULTICHANNEL TV 2015
...and Decision Makers... WATCH PAY TV
DON’T WATCH PAY TV
(INDEX)
(INDEX)
105
97 CAR OWNER
112
92 OWN PLATINUM CREDIT CARD
105
96 BUSINESS DECISION MAKER
111
93 TOP MANAGER
104
90 HOUSEHOLD MONTHLY INCOME US $15,000+
ASIA PACIFIC VIEWERS
21
...and Travelers Too. WATCH PAY TV
DON’T WATCH PAY TV
(INDEX)
(INDEX)
133
77 TAKE A BUSINESS TRIP IN PAST 12 MONTHS
149
66 6+ BUSINESS TRIPS IN PAST 12 MONTHS
143
70 FLY 1ST OR BUSINESS CLASS
127
81 12+ NIGHTS IN A HOTEL IN PAST 12 MONTHS
132
78 3+ LEISURE TRIPS IN PAST 12 MONTHS
Source: Ipsos Affluent Survey Asia Pacific Q3-Q4 2013 Average Base Index: 100. Bangkok or Hong Kong or Jakarta or Kuala Lumpur or Manila or Singapore or Taipei or Seoul or Sydney or Melbourne or India Viewed or Not Viewed International Channels Yesterday
22
MULTICHANNEL TV 2015
ASIA PACIFIC VIEWERS
23
TV Audience Measurement 2014 RESEARCH COMPANY
PEOPLEMETER PANEL SIZE (HOMES/ HOUSEHOLDS)
Nielsen TAM on behalf of OzTAM
“3,500 (Metropolitan), 1,413 (National subscription TV)”
Metro areas (5 cities) & nationally for Subscription TV
Nielsen TAM on behalf of Regional TAM
2,135 (Regional)
Queensland, Northern NSW, Southern NSW, Victoria, Tasmania & Regional Western Australia
Cambodia
Kantar Media
810 Diary
Phnom Penh, Siem Riep & Battambang
China
CSM
33,000
“National 1 / Provincial 25 / City 148 “
Hong Kong
Nielsen
800
HK Region
India
TAM Media Research
10,150
Urban India
Indonesia
Nielsen
2,273 (Terrestrial), 300 (Pay TV)
Terrestrial: 11 cities, Pay TV: Jakarta
Japan
Video Research Ltd
6,600 National panel & separate Subscription TV Panel 600 *
Tokyo & Osaka
Malaysia
Nielsen
1,100
Peninsular Malaysia
New Zealand
Nielsen
600
National
Pakistan
Medialogic Pakistan
1000+ HH ,6000+ Individuals
Top 20 Cities Incl. 3 Metros
Gallup Pakistan
National Panel: 4,000 HH , 5500 Individuals (3,600 Urban HH & 400 Rural HH)*
National (Urban+Rural)
Nielsen
“National Panel 3,500. (2,000 Urban homes (NUTAM) and 1,500 Rural homes (RTAM)) “
National (Urban+Rural)
Nielsen
“Metro Panel 2,220. (1,190 Mega Manila homes (MEGATAM) and 1,030 homes for 8 other Metros)”
Metro Cities
COUNTRY
Australia
Philippines
Philippines
PANEL COVERAGE
Kantar Media
1,350
National Urban
Kantar Media
900
National Rural
Singapore
Kantar Media
800
National
South Korea
Nielsen
4,320
National
TNmS
3,200
National
Taiwan
Nielsen
2,000
National
Thailand
Nielsen
1,800
National
Vietnam
Kantar Media
3065(diaries) & 1070 (peoplemeter) "National (6 cities”)
DTT MEASURED
COMMERCIAL BREAK RATINGS FOR PAY TV CHANNELS
COMMERCIAL SPOT LOGS FOR PAY TV CHANNELS
PAY TV REACH & FREQUENCY AVAILABLE
Yes
Yes
No
No
Yes
Yes
No
Yes
Yes
Yes
CABLE/ SATELLITE MEASURED
SOFTWARE
TABLETS, SMARTPHONES, INTERNET
Yes
User choice*
Yes - Desktop & Laptop
No
Yes
User choice*
Yes - Desktop & Laptop
No
No
No
Infosys+
No
Yes
No
No
Yes
Infosys+
Yes
Yes
Yes
No
No
Yes
Arianna
Yes - Laptop/ Desktop
Yes
No
Yes
Yes
Yes
Media X*Press
No
Yes
No
No
No
Yes
Arianna
No
Yes
No
No
No
Yes
RVCS
No
Yes
No
Yes
Yes
Yes
Arianna
No (under discussion)
Yes
Yes
Yes
Yes
Yes
Arianna
No
Yes
N/A
Yes (80 channels)
Yes (80 channels)
Yes
InfoSys+ (Kantar)
No
Yes
N/A
Yes
Yes
Yes
Reporter
No
Yes
No
Yes
Yes
Yes
Arianna
Plan for online campaign ratings Q1 2015
Yes
No
Yes
Yes
Yes
Arianna
Yes
Yes
Yes
Yes
Yes
InfoSys+
No
Yes
No
Some
Some
Yes
InfoSys+
No
Yes
Some
No
No
Yes
InfoSys+
No
Yes
Yes
Yes
Yes
Yes
Arianna
Yes - Desktop & Laptop
Yes
Yes
Yes
Yes
Yes
Infosys
No
Yes
Yes
Yes
Yes
Yes
Arianna
No
Yes
Yes
Yes
Yes
Yes
Arianna
No
Yes
Yes
Yes
Yes
Yes
Infosys+
No
Survey: Audience Measurement SURVEY
RESEARCH COMPANY
SAMPLE SIZE
PANEL COVERAGE
METHODOLOGY
Media Atlas China
Ipsos
30,600
National / Provincial / City
 Door to door / CATI
Media Atlas Hong Kong
Ipsos
5,000
National
CATI/Online/F2F
Affluent Asia
Ipsos
18,800
10 APAC Markets
CATI / Online
BE Asia
Ipsos
3,500
8 Asian Markets
CATI, Postal & Online
Media Index
Nielsen
6,000+
Hong Kong
Face-to-face/Online
Consumer & Media View
Nielsen
100,000+
Australia
Online
12,000
New Zealand
Face-to-face
23,000^
Indonesia, 11 cities
Face-to-face
10,000
Malaysia, Peninsular
Face-to-face
10,000
Philippines, National Urban
Face-to-face
4,200+
Singapore
Face-to-face
9,000+
Thailand
Face-to-face
China CNRS
CTR
100,000
60 1-4 tier cities
F-F /self completed/ On-line
India
IMRB
51,000
National
F-F /self completed
South Korea
Hankook
9,000
National
F-F /self completed
Sri Lanka
IMRB
3,000
National
Vietnam
Kantarmedia
13,560
6 cities
F-F /self completed
Survey Notes: Australia,OzTAM: Peoplemeter. 5 City Metro Markets: Sydney, Melbourne, Brisbane, Adelaide & Perth & nationally for Subscription TV. RegionalTAM Australia, User Choice* Gold Standard accredited software suppliers for OzTAM & RegionalTAM Data : TV Map (Broadcast M.A.P), R8ting Library for MediaWise (Day 8 Technology), AdQuest eTAM (Landsberry & James), Pinergy (MediaCom), Arianna (NielsenTAM), TARDIIS (Starcom MediaVest Group), AdvantEdge (TechEdge) Cambodia. Kantar Media. China,CSM: Peoplemeter & Diary. 1 national meter panel, 79 city meter panels, 11 provincial meter panels, 69 diary city panels, 14 diary provincial panels India,TAM Media Research: Peoplemeter. 225 urban cities covered (from Jan 2013). Indonesia, Nielsen: Terrestrial: 11 cities: Jakarta, Surabaya, Medan, Semarang, Bandung, Makassar, Yogyakarta, Palembang, Denpasar, Banjarmasin and Surakarta. Pay TV: Greater Jakarta.
26
Japan,Video Research Ltd: Peoplemeters in Tokyo & Osaka. Non-continuous measurement,2 week sweeps conducted every two months (12 weeks/year). Subscription TV panel is separate from national terrestrial TV panel of 6,600 homes, 52 weeks reporting /year MULTICHANNEL TV 2015
CAB/SAT MEASURED
DTT
SOFTWARE
REACH & FREQUENCYÂ
Yes
No
Telmar
No
Yes
Yes
User choice
No
Affluent 25-64
Yes
No
User choice
Yes
Elite
Yes
No
User choice
DEMOGRAPHIC
OVERVIEW
12 - 64
Media and Product Consumption
12 - 64
12 - 64 14+
Media and Product Consumption
10+ 10+ 15+ 10+ 15+ 12+ 15-69 15-55 ABC 11-64
15-55
Pakistan,Medialogic: 9 key cities - Karachi, Lahore, Islamabad, Faisalabad, Multan, Hyderabad, Sukkur, Gujranwala and Peshawar * Pakistan, Gallup Pakistan: National diary panel include all 3 Metros (Karachi, Lahore, Islamabad/Rawalpindi: 2,100 individuals) , 5 Large Cities (Faisalabad, Hyderabad, Multan, Peshawar, Quetta : 1,100 individuals), 10 Small Cities & Towns (Gujrat,Jacobabad,Kasur,Mardan,Pashin,Rajanpur,Rohri,Sahiwal,Sargodha,Thatta : 1,500 individuals) , Rural 800 individuals Philippines: NUTAM (National Urban), Mega TAM (Metro Manila & suburbs), MCTAM (Metro cities). South Korea, TNmS: Peoplemeter Panel and also DMB measurement, Car navigation device (310 panel) and Smartphone of Android OS (700 panel). And Return Path Data panel size is 10,000 homes of KT IPTV (Seoul, Incheon, Busan, Gwangju, Daejeon, Daegu, Ulsan, Gyungi Province, Kangwon Province, North Chungcheong Province, South Chungcheong Province, North Gyeongsang Province, South Gyeongsang Province, North Jeolla Province, South Jeolla Province, Jeju Island) Vietnam,Kantarmedia : People meter & Diary, 1 National diary panel, 3 cities diary panel: Danang, Hai Phong & Nha Trang, 3 People meter cities: HCMC, Hanoi and Can Tho ^: CMV Indonesia sample include CMV + Fusion with TV data Note: Please contact the research company for a complete report on measurement.
MEASUREMENT GUIDE
27
ADVERTISING REVENUE
A Guide to TV Ad Revenue in the Region
28
MULTICHANNEL TV 2015
ADVERTISING REVENUE A Guide to TV Ad Revenue in the Region VIETNAM
Asia THAILAND Pacific Share of TV Advertising 2013
TAIWAN SOUTH KOREA VIETNAM SINGAPORE THAILAND PHILIPPINES TAIWAN PAKISTAN SOUTH KOREA NEW ZEALAND SINGAPORE MALAYSIA PHILIPPINES JAPAN PAKISTAN NEWINDONESIA ZEALAND INDIA MALAYSIA HONGJAPAN KONG CHINA INDONESIA AUSTRALIA INDIA HONG KONG 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% CHINA AUSTRALIA MULTICHANNEL TV TERRESTRIAL TV 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% MULTICHANNEL TV
TERRESTRIAL TV
Asia Pacific TV Advertising Growth Percentage 18.5
18.2
18.5
18.2
12 10.3 8.4
12 10.3
8.4
5.5 4
4.8
4
2010
2011 2011
2012
3.8
3.5 4.8
3.8
3.5 2013
2014
2012MULTICHANNEL 2013 2014 TV
10.1
11
10.6
9.9
5.5
2010
11
10.6
9.9
2015
10.5
10.1 4.4 4.4
2016
10.5
4.3
3.6 3.6 2017
2015TERRESTRIAL 2016 TV2017
4.3 2018 2018
Source: PWC LLP, Informa Telecoms and Media 2014
[
MULTICHANNEL TV TERRESTRIAL TV While growth prospects for traditional pay TV are slowing in a number of markets, the need for innovation around delivering enhanced consumer experiences needs to take center stage.
MARCEL FENEZ Global Leader, Entertainment & Media, PwC
[
ADVERTISING REVENUE
29
ADVERTISING REVENUE A Guide to TV Ad Revenue in the Region Global Ad Market Jumps 3.7% in 2013 Asia Pacific drives growth with a 7.4% increase in spending. GROWTH OF ADVERTISING SPENDING BY REGION IN 2013 VS 2012 (%) 3.7 3.7 2.1 2.1 7.4 7.4 -2.8 -2.8 14.4 14.4 2.2 2.2 GLOBAL GLOBAL EUROPE EUROPE
N. AMERICA N. AMERICA LATIN AMERICA LATIN AMERICA
ASIA PACIFIC ASIA PACIFIC MIDDLE EAST & AFRICA MIDDLE EAST & AFRICA
Emerging Markets Lead Growth Indonesia, Malaysia, and Philippines increasingly seen as stable investment markets. GROWTH OF ADVERTISING SPENDING BY APAC MARKETS 2013 VS 2012 (%) INDONESIA INDONESIA CHINA CHINA MALAYSIA MALAYSIA PHILIPPINES PHILIPPINES HONG KONG HONG KONG ASIA PACIFIC ASIA PACIFIC SINGAPORE SINGAPORE NEW ZEALAND NEW ZEALAND JAPAN JAPAN THAILAND THAILAND TAIWAN TAIWAN AUSTRALIA AUSTRALIA SOUTH KOREA SOUTH KOREA
20.8 18.5 15.9 9.2 7.5 9.2 7.5 7.4 4.2
7.4
2.9 4.2 1.7 2.9 0.91.7 0.0
0.9
-1.3 0.0 -1.3 -2.3 -2.3
Source: Nielsen Global AdView Pulse Q4 2013 Based on net figures estimated with Nielsen Global AdView weighting factors
30
MULTICHANNEL TV 2015
15.9
18.5
20.8
Industry & Services Boost Budgets in APAC Industry & Services companies in APAC invested 34.6% more on advertising in 2013, led by impressive increases in property advertising. APAC AD INVESTMENT TREND 2013 VS 2012 (%) IND.&SERV. IND.&SERV.
34.6
DISTRIB.
15.4
DISTRIB.
MEDIA FMCG ENTERT.
10.1
MEDIA
ENTERT.
2.3 1.2
DURABLES TELECOM. -1.1
2.5 2.3 1.2
CLOTH. & ACCES. -1.9 TELECOM.
-1.1
HEALTHC. -2.8 CLOTH. & ACCES.
-1.9
HEALTHC.
10.1 8.7
2.5
FINANCIAL
AUTOMOTIVE -5.8
15.4
8.7
FMCG
FINANCIAL DURABLES
34.6
-2.8
AUTOMOTIVE -5.8
Asia Pacific Second Strongest TV Ad Revenue Growth TV is one of the few media types to see growth in all regions. 4.7
GROWTH OF TV AD SPENDING BY REGION, FULL YEAR 2013 VS 2012 (%) 2.5
4.7 6.7
2.5
1.1
6.7
16.6
1.1 2.9 GLOBAL EUROPE
2.9
N. AMERICA LATIN AMERICA
GLOBAL EUROPE
ASIA PACIFIC MIDDLE EAST & AFRICA
N. AMERICA LATIN AMERICA
16.6
ASIA PACIFIC MIDDLE EAST & AFRICA
Source: Nielsen Global AdView Pulse Q4 2013 Based on net figures estimated with Nielsen Global AdView weighting factors
ADVERTISING REVENUE
31
ADVERTISING REVENUE A Guide to TV Ad Revenue in the Region
The pay TV advertising market continues to grow in Asia Pacific, with an estimated +9.4% YOY for 2014; this compares to +7.6% for the total advertising market. We predict a CAGR of +10.5% for pay TV over the next 5 years. TV is predicted to maintain a strong 40% of all advertising spend by 2019 in Asia Pacific; only slightly down from the 41% we see today. There is opportunity for the industry to continue to expand beyond the traditional TV set as we estimate online video will increase to 11% of total advertising spend and mobile video to 5%. From virtually no advertising spend against online & mobile video in 2005; we estimate that US$ 3.8 billion will be invested in 2014 in Asia Pacific. Looking forward, this is expected to increase to US$ 12.3 billion in 2019. This represents a CAGR of 26.5% over the next 5 years. In addition to the advertising opportunities, this growth in digital video has an impact on content marketing for advertisers, agencies and broadcasters.
CRAIG HARVEY Head of Research, IPG Mediabrands Hong Kong 32
MULTICHANNEL TV 2015
Share of Media GLOBAL
ASIA PACIFIC 100%
100%
80%
80% 60% 27%
36%
40%
39%
2014
2019
36%
20%
41%
40%
2014
2019
0%
0%
TV
26% 40%
40% 20%
60%
INTERNET
NEWSPAPERS
MAGAZINES
RADIO
OUTDOOR
The Rise of Online and Mobile Video Percent share of media GLOBAL
ASIA PACIFIC 60%
60%
40%
11%
11%
9%
40% 30%
30%
30% 20%
10%
50%
50%
30%
32%
28% 20%
5% 10% 0%
4%
1% 6%
9%
2014
2019
ONLINE VIDEO
FTA TV
10% 0%
2% 8%
11%
2014
2019
MOBILE VIDEO
PAY-TV
Source:: Magna Global Advertising Forecasts (June 2014), IPG Mediabrands
ADVERTISING REVENUE
33
ADVERTISING REVENUE A Guide to TV Ad Revenue in the Region Video: From Zero to Hero in Asia Pacific 14,000 US$ MILLIONS
12,000 10,000
3,747
8,000 6,000 4,000
817
2,000
8,575
3,061
09 20 10 20 11 20 12 20 13 20 14 20 15 20 16 20 17 20 18 20 19
08
20
07
20
06
20
20
20
05
0
ONLINE VIDEO
MOBILE VIDEO
Source: Magna Global Advertising Forecasts (June 2014), IPG Mediabrands
34
MULTICHANNEL TV 2015
IPG Mediabrands: APAC TV Advertising Revenue ASIA PACIFIC
2014 TOTAL (US$ MILLIONS)
2014 % OF TOTAL ADVERTISING REVENUE
2014 % OF TOTAL TV REVENUE
FTA
PAY TV
TOTAL
FTA
PAY TV
FTA
PAY TV
Asia Pacific
48,563
13,117
149,956
32%
9%
79%
21%
Australia
3,334
499
12,374
27%
4%
87%
13%
China
13,368
5,322
50,858
26%
10%
72%
28%
Hong Kong
985
46
3,415
29%
1%
96%
4%
India
245
2,575
7,051
3%
37%
9%
91%
Indonesia
4,232
19
7,837
54%
0%
100%
0%
Japan
18,663
1,306
43,099
43%
3%
93%
7%
Malaysia
774
321
2,950
26%
11%
71%
29%
New Zealand
491
57
1,811
27%
3%
90%
10%
Pakistan
32
169
316
10%
53%
16%
84%
Philippines
986
54
1,623
61%
3%
95%
5%
Singapore
687
69
2,122
32%
3%
91%
9%
South Korea
1,713
1,413
8,885
19%
16%
55%
45%
Taiwan
147
760
2,194
7%
35%
16%
84%
Thailand
2,215
348
4,410
50%
8%
86%
14%
Vietnam
691
159
1,011
68%
16%
81%
19%
FTA
PAY TV
TOTAL
4.6%
9.4%
7.6%
2014 vs. 2013 % Change
Note: Data excludes revenue from regional campaigns. Source: Magna Global Advertising Forecasts (June 2014), IPG Mediabrands
ADVERTISING REVENUE
35
ADVERTISING REVENUE A Guide to TV Ad Revenue in the Region Global Ad Expenditure & Share 2014 186591 US$ Millions 186591
146842 107222
146842
107222 41511 41511
26063 4722 26063
10704
N
AM ER N A IC M A ER IC AS A IA PA AS I C A IF PA IC C IF IC W EU RO W E PE UR LA O TI PE N LA AM TI ER N A IC M A ER C IC & A E C EU & RO E E PE UR O M PE ID D M LE ID EA DL ST E RE EA ST ST R O ES F W TO O F RL W D O RL D
4722
10704
INTERNET 24% INTERNET 24%
NEWSPAPER 15% NEWSPAPER 15% MAGAZINE 7% MAGAZINE 7%
OUTDOOR 7%
CINEMA 0.5 % CINEMA 0.5 %
OUTDOOR 7% RADIO 7% RADIO 7%
TV 39% TV 39%
Source: Zenith Optimedia Advertising Expenditure Forecasts June 2014 (TV, print, radio, cinema, outdoor, Internet)
36
MULTICHANNEL TV 2015
Asia Pacific Ad Expenditure Growth & Share 2014 Year on year change at current prices (%)
12.3 12.3
6.7
6.5
6
6.5
6.7
6.5
6
6.5
7.4 7.4
09 v 08
10 v 09
11 v 10
12 v 11
13 v 12
14 v 13
15 v 14
09 v 08 -5.1
10 v 09
11 v 10
12 v 11
13 v 12
14 v 13
15 v 14
-5.1
INTERNET 24%
NEWSPAPER 18%
INTERNET 24%
MAGAZINE NEWSPAPER 4% 18% MAGAZINE 4%
OUTDOOR 10%
CINEMA 0.5 % CINEMA 0.5 %
OUTDOOR 10% RADIO 4% RADIO 4%
TV 40% TV 40%
Source: Zenith Optimedia Advertising Expenditure Forecasts June 2014 (TV, print, radio, cinema, outdoor, internet)
ADVERTISING REVENUE
37
ADVERTISING REVENUE A Guide to TV Ad Revenue in the Region
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. Meanwhile online video offers high-quality content that viewers can watch whenever they want and – using smartphones and tablets – wherever they want. Video advertising as a whole will remain the best way to build brand awareness and engagement for many years to come. JONATHAN BARNARD Head of Forecasting, ZenithOptimedia
Top 20 Countries by Advertisers’ Major Media Expenditure (US$ Million at Current Prices) 2014 USA
175,380
RUSSIA
10,704
CHINA
46,001
ITALY
8,701
JAPAN
44,139
INDONESIA
8,289
GERMANY
24,643
MEXICO
6,589
UK
22,390
ARGENTINA
6,246
BRAZIL
16,571
SWITZERLAND
5,814
FRANCE
13,193
INDIA
5,792
AUSTRALIA
12,511
SPAIN
5,772
SOUTH KOREA
11,670
BELGIUM
5,102
CANADA
11,211
NETHERLANDS
5,097
Source: Zenith Optimedia Advertising Expenditure Forecasts June 2014
38
MULTICHANNEL TV 2015
Television Advertising Expenditure Share 2014
A AY LAY N SIA SIA EW EW ZE Z AL EAL AN AN D D PA P KI AKI ST S AN TAN PH PH IL I IP LIP SO SOPIN PIN ES U U ES TH TH KO KO RE RE A A AL
M
D IN IA D
PAY-TV PAY-TV
N
M
AU
ST
AU
0%
IN
S RA TRA H H LIA LIA O O N N G G KO KO N N G G
90% 100% 80% 90% 70% 80% 60% 70% 50% 60% 40% 50% 30% 40% 20% 30% 10% 20% 0% 10%
IA
100%
FREE TV FREE TV
Television Advertising Expenditure 2014 US Million ($) at Current Prices3928 AUSTRALIA CHINA AUSTRALIA 3928 HONG KONG 796 CHINA INDIA 2100 HONG KONG 796 INDONESIA 4823 INDIA 2100 JAPAN INDONESIA 4823 MALAYSIA 842 JAPAN NEW ZEALAND 531 MALAYSIA 842 PAKISTAN 254 NEW ZEALAND 531 PHILIPPINES 1253 PAKISTAN 254 SINGAPORE 675 PHILIPPINES 1253 SOUTH KOREA 4493 SINGAPORE 675 TAIWAN 858 SOUTH KOREA THAILAND 2200 4493 TAIWAN 858 VIETNAM 835 THAILAND 2200 VIETNAM 835
16421 16421 18608 18608
Source: Zenith Optimedia Advertising Expenditure Forecasts June 2014
ADVERTISING REVENUE
39
ADVERTISING REVENUE A Guide to TV Ad Revenue in the Region
Indonesia with its shining growth performance this year, will take pole position in 2015. Growth in the world economy slowed slightly in 2013 and so did media investments recording a modest 3.5% increase in measured global ad investment to stand at USD511 billion at today’s exchange rates. However we forecast 2014 ad growth to rise to 4.5% and yield a USD535 billion despite various PEST* factors. (*Political, Economic, Social & Technological). Asia Pacific’s contribution to the global ad dollars will net out at 33% in 2014, sliding past North America with what will look like a photo finish. Clearly, we can now herald the region as the lead contributor to the world ad economy with significant contributions coming from China and Japan. Early predictions for 2015 on media spend growth for Asia Pacific indicates a revival to about 7.1% over 2014. With new leaders at the helm in India and Indonesia, watch out for renewed confidence and marketing boosts in 2015 for these two markets. ASEAN’s growth performance in 2014 was considerably reduced from what was a bullish 2013, the degrowth coming from Malaysia, Singapore, Philippines, Thailand and Vietnam. From political turmoil to leadership instability, the region was struggling to match up to 2013 – Thailand being the worst hit. The onus was laid on Indonesia to lift the sub-region with its healthy 20% YOY growth. As predicted, Indonesia emerged the shining star this year. The rise of China continued and will yield just about 10% growth, it is expected to end at US$76bn. Its neighbours in South Korea struggled to get back to their heyday, which was several years ago. Hong Kong meanwhile has the world’s highest percapita ad investment and in 2014 should be the first ever to pass USD 1,000!
40
MULTICHANNEL TV 2015
In most regions, TV investment growth and share of media is stagnating or declining. In Asia Pacific the same is declining since 2012 and has grown only by 3% in 2014. Amongst this slowdown, Indonesia is the only market where we saw TV growing by 20% while Singapore saw a negative trend. Overall digital media growth in APAC is slowing down to about 22%. But as a region it will still deliver the most promising growth on digital spends in 2014 and 2015. We see Australia, China and Indonesia with declining growth rates year-on-year as the saturation effect takes on. In China the digital share of media is now at a staggering one-third of total media spend and has overtaken even Western Europe. The phenomenal growth in online video has skyrocketed spends on the digital platform. The exponential growth of mobile devices has made advertisers recognize the power of this screen and shift dollars to it. As inflation in FTA costs is slowly coming to control, we also observe decline in growth for radio, magazines and press.
DEEPIKA NIKHILENDER Leader - Business Planning Asia Pacific, Mindshare Asia Pacific
ADVERTISING REVENUE A Guide to TV Ad Revenue in the Region Asia Pacific Net Advertising Revenue Overview FULL YEAR 2013
42
BY COUNTRY
Total Advertising spends in US$ M
Advertising Expenditure as a % of Asia Pacific
Total spends on TV in US$ M
TV as a % of total spends
Australia
12,352
7.5
3,750
30.4
Bangladesh
292
0.2
121
41.4
China
69,207
41.9
34,824
50.3
Hong Kong
7,150
4.3
2,367
33.1
India
6,423
3.9
2,802
43.6
Indonesia
2,061
1.2
1,352
65.6
Japan
43,078
26.1
18,947
44.0
Malaysia
1,653
1.0
439
26.6
New Zealand
1,848
1.1
575
31.1
Pakistan
778
0.5
610
78.4
Philippines
2,673
1.6
2,240
83.8
Singapore
1,671
1.0
563
33.7
South Korea
9,473
5.7
3,147
33.2
Taiwan
1,875
1.1
854
45.5
Thailand
3,303
2.0
1,931
58.5
Vietnam
1,523
0.9
1,348
88.5
BY REGION
Total Advertising spends in US$ M
Advertising Expenditure as a % of Asia Pacific
Total spends on TV in US$ M
TV as a % of total spends
Asia Pacific (All)
165,360
100
75,871
45.9
North Asia
130,783
79.1
60,139
46.0
South Asia
7,493
4.5
3,533
47.1
Asean
12,884
7.8
7,874
61.1
Australia/NZ
14,200
8.6
4,325
30.5
MULTICHANNEL TV 2015
Asia Pacific Net Advertising Revenue Overview FORECAST 2014 BY COUNTRY
Total Advertising spends in US$ M
Advertising Expenditure as a % of Asia Pacific
Total spends on TV in US$ M
TV as a % of total spends
Australia
11,966
6.8
3,826
32.0
Bangladesh
323
0.2
139
43.0
China
75,979
43.4
35,533
46.8
Hong Kong
7,824
4.5
2,645
33.8
India
7,229
4.1
3,216
44.5
Indonesia
2,456
1.4
1,621
66.0
Japan
43,805
25.0
19,354
44.2
Malaysia
1,747
1.0
462
26.4
New Zealand
1,919
1.1
610
31.8
Pakistan
723
0.4
558
77.2
Philippines
2,698
1.5
2,284
84.7
Singapore
1,628
0.9
549
33.7
South Korea
9,763
5.6
3,187
32.6
Taiwan
2,008
1.1
896
44.6
Thailand
3,325
1.9
1,939
58.3
Vietnam
1,738
1.0
1,550
89.2
BY REGION
Total Advertising spends in US$ M
Advertising Expenditure as a % of Asia Pacific
Total spends on TV in US$ M
TV as a % of total spends
Asia Pacific (All)
175,131
100
78,369
44.7
North Asia
139,379
79.6
61,615
44.2
South Asia
8,275
4.7
3,913
47.3
Asean
13,592
7.8
8,405
61.8
Australia/NZ
13,885
7.9
4,436
31.9
North Asia: China, Hong Kong, Taiwan, South Korea & Japan South Asia: India, Pakistan, Bangladesh South East Asia: Indonesia, Malaysia, Philippines, Singapore, Thailand & Vietnam Australasia: Australia & New Zealand US$ conversions are subject to fluctuation from the time of analysis. Source: GroupM, TYNY Autumn Report August 2014, Actual full year 2013 expenditure including agency commission and 2013 & 2014 forecasts
ADVERTISING REVENUE
43
FIGHTING FOR THE FUTURE
Pay TV’s share of media advertising dollars in Asia Pacific should be significantly higher than the 9% it garnered in 2013. Stronger macro foundations combined with structural improvement (i.e. new ratings systems and the growth of addressable digital distribution) in large, accessible pay TV advertising market, (i.e. India), are encouraging for the future. Improving macro foundations will also prove significant for important pay TV ad markets such as Australia, Korea and Taiwan – the last being especially key as the ad market has been in the doldrums for some time. Southeast Asia is the one big cluster where pay TV advertising has the most scope to improve as local multichannel operators take a bigger chunk of FTA TV budgets and capitalize on better ratings and systems, which have long remained inadequate. Return-path ratings data developed by the largest pay TV distribution platforms in Malaysia, Singapore and Indonesia, will also have a role to play. During 2014, economies have been rocky but Media Partners Asia’s (MPA) view is that economic growth will remain fairly dynamic in most Asian markets over the medium term as both new and old governments help drive structural reform and market driven liberalization. This will help foster income growth and the expansion of middleclass households, which in turn will broadly sustain consumer spend on pay TV and support advertising growth. In terms of industry trends, rising media fragmentation and complexity continues to pose a big challenge to pay TV companies, who have to sustain impact and audience share, while maintaining revenue and profit. The pay TV companies that can deliver integration with their own multimedia platforms, to amplify the viewing experience and bring more value to brand-owners – pre, during and post broadcast – will succeed more often in the fragmented world. However, fragmentation will also lead to cheaper media. 44
MULTICHANNEL TV 2015
TRACKING TRENDS According to MPA analysis, pay TV advertising is already a significant force in markets such as China, India, Korea and Taiwan. In Australia, growth has ebbed and flowed, but MPA still predicts an incremental upside in this market. Return path ratings data, leveraging set top boxes, will become important in markets such as Malaysia, Indonesia and Singapore in addition to Australia, India and Korea. This will enable local platforms and channels to capitalize on analytics and grow advertising. Pan-regional advertising dollars will become increasingly challenged with the rise of online media and lower CPMs on rival digital platforms such as YouTube.
Pay TV Penetration vs. Pay TV Share of Total Advertising 2014 % PAY TV SHARE OF TOTAL ADVERTISING
% PAY TV PEN./TVHH
Australia
7.2%
30%
China
11.0%
53%
Hong Kong
3.3%
89%
India
40.4%
80%
Indonesia
2.0%
11%
Japan
1.3%
29%
Korea
15.8%
100%
Malaysia
10.5%
55%
New Zealand
3.7%
52%
Philippines
7.3%
14%
Singapore
4.8%
68%
Taiwan
29.8%
89%
Thailand
3.0%
28%
Vietnam
14.6%
28%
Source: Media Partners Asia
FIGHTING FOR THE FUTURE
45
FIGHTING FOR THE FUTURE
Key market highlights from MPA’s analysis include: • India. Improved political stability will help boost corporate advertising expenditure and buoy TV advertising in particular. MPA analysis indicates that India’s TV advertising market will grow by 9.5% in 2014, improving to 11.0% growth in 2015. Pay TV advertising expanded by 9.0% in 2013 to reach ~US$2.3 bil., equivalent to more than 40% share of the total ad market. Pay TV advertising is projected by MPA to grow by 9.7% in 2014 and 11.3% in 2015.
% PAY TV PEN./TVHH
In January 2014, TRAI introduced a set of policy guidelines for TV rating agencies. The onus is on According to the new guidelines, TV rating agencies will have to register with the pay channels Ministry and comply with ownership rules. to justify the These rules do not allow more than a 10% increase through cross holding between the rating agencies and broadcasters, advertisers and media programming. buyers. A minimum panel size of 20,000 is to be implemented. Kantar Media, the WPP company which has a 50% stake in TAM Media Research, India’s only operational rating agency, is set to become redundant. While the future of TAM is uncertain, broadcasters and agencies are hopeful that new metrics will be introduced by BARC, a new agency, by end-2014. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Korea Hong Kong
India Singapore New Zealand Malaysia China Japan
Australia
Thailand
Vietnam Philippines
Indonesia 0%
5%
Source: Media Partners Asia
46
Taiwan
10% 15% 20% 25% 30% 35% 40% % PAY TV SHARE OF TOTAL ADVERTISING 2014
MULTICHANNEL TV 2015
45%
FIGHTING FOR THE FUTURE
47
FIGHTING FOR THE FUTURE
• Korea. Net pay TV advertising grew by 3% in 2013 to reach ~US$1.3 billion in net terms with cable accounting for more than 90% of this pie. Cable ad dollars were up only 1% in 2013 but ad sales on DTH and IPTV platforms grew at a significant pace from a low base. The ad market is expected to grow by 3-4% in 2014 and pay TV by 6% though there are risks to this forecast because of economic volatility. Pay TV advertising continues to gain share relative to freeto-air networks, accounting for 42% of the total TV advertising pie in 2013. The pay TV channels market is dominated by: (1) CJ E&M; (2) Pay channels from SBS, MBC and KBS; (3) Pay channels from MSOs such as Tbroad and C&M; and (4) New “comprehensive” channels from media groups such as Joongang and Chosun. In 2013, CJ channels had 17% audience share in pay-homes followed by 26% for comprehensive channels; 19% for terrestrial owned pay channels; 14% for cable MSO owned pay channels; and 24% for the remainder.
Pay TV Penetration vs. Pay TV Share of Total TV Advertising 2014 % PAY TV SHARE OF TOTAL TV ADVERTISING
% PAY TV PEN./TVHH
Australia
20.4%
30%
China
28.5%
53%
Hong Kong
10.6%
89%
India
92.8%
80%
Indonesia
2.9%
11%
Japan
3.9%
29%
Korea
39.8%
100%
Malaysia
34.0%
55%
New Zealand
11.9%
52%
Philippines
10.4%
14%
Singapore
15.6%
68%
Taiwan
81.4%
89%
Thailand
5.0%
28%
Vietnam
18.6%
28%
Source: Media Partners Asia
48
MULTICHANNEL TV 2015
% PAY TV PEN./TVHH
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Korea Taiwan
Hong Kong
India Singapore New Zealand China
Malaysia
Japan Australia Vietnam Thailand Philippines Indonesia 0%
10%
20% 30% 40% 50% 60% 70% 80% % PAY TV SHARE OF TV ADVERTISING 2014
90%
100%
Source: Media Partners Asia
• Malaysia. Dominant pay TV operator Astro’s pay TV advertising sales grew 16% in 2013 to reach ~US$102 mil.; additional revenue that accrued to external/ turnaround channels was marginally flat at US$20-25 mil. Pay TV advertising remains a significant growth opportunity. According to MPA analysis, Astro only has a 31-32% share of the TV advertising market in 2013 in spite of 47% TV viewership share. With an expanding customer base, and the growing appeal of its mass-market local content (key shows now consistently reach over 1 mil. viewers per episode), Astro will invariably generate higher audience share, and grab more advertising share. One key lever is that advertisers value the bundles that Astro provides across all its media platforms, including pay TV, radio, publications and digital. • Philippines. FTA remains the default TV medium for advertisers who want a broad reach, while pay TV remains ideal for targeted audiences. Media buyers indicate that pay TV channels could be getting nearly twice their current share of total TV ad budgets (7-8% in 2013) due to their targeted reach. The onus is on pay channels to justify the increase through programming. Broadcasters are therefore looking at creating more content unique to pay channels through local production. Fox International Channels (FIC), for instance, has created a local channel (Fox Filipino) and may invest in local production to compete with popular dramas on FTA. In March 2014, NBC Universal announced a local reality series to be aired on the E! channel. Broadcasters are also launching more local feeds to secure local advertising. Net pay TV advertising revenues will reach only US$80 million in 2014 and have significant scope for future growth.
49
BEYOND THE BOX Highlights from The Ericsson Consumer Insight Report 2014 Device Viewing 25% increase in willingness to pay for anywhere access compared to 2012. TV-screen 2014 TV-screen 2012 Desktop 2014 TV-screen Desktop 2012 TV-screen Laptop 2014 Desktop Laptop 2012 Desktop Smartphone Laptop 2014 Smartphone Laptop 2012 Tablet 2014 Smartphone Tablet 2012 Smartphone Tablet 2014 0
2
4
6
8
10
12
14
16
18
Tablet 2012 AVERAGE HOURS WATCHING VIDEO ON EACH DEVICE PER WEEK 0
2
4
8 AT6 HOME
10 AWAY 12 FROM 14HOME 16
18
Base: Base 9 Markets [Those who have and use respective device]; Source: Ericsson ConsumerLab TV & PER MediaWEEK 2014 Study AVERAGE HOURS WATCHING VIDEO ON EACH DEVICE
Changes in Viewing
AT HOME
AWAY FROM HOME
CONSUMER TV/VIDEO ON A MORE WEEKLYviewing BASIS habits, On demand content make CONSUMPTION up for an increasing part ofTHAN consumers especially streaming. 100% 90% CONSUMER CONSUMPTION ON A MORE 83% TV/VIDEO SCHEDULED BROADCAST TV THAN WEEKLY BASIS 77% 80% 100% 70% 90% 60% 80% 50% 70% 40% 60% 30% 50% 20% 40% 10% 30% 0% 20% 10% 0%
61% 83%
STREAMED VIDEO SCHEDULED BROADCAST TV
75% 77%
STREAMED VIDEO BROADCAST TV RECORDED
75%
47% 61% 31% 47% 31% 2011
2011
28% DVD, BLU-RAY, ETC. RECORDED BROADCAST TV
25% 28%
DVD, BLU-RAY, ETC. 2012 2013
2012
2013
25% 2014
2014
Base: Base 9 Markets (Brazil, China, Germany, South Korea, Spain, Sweden, Taiwan, UK, US) [Showing: Use several times a week or more]; Source: Ericsson ConsumerLab TV & Media 2014 Study
50
MULTICHANNEL TV 2015
Viewing Situations Younger TV viewers have more flexible viewing habits. They watch more in nontraditional viewing situations than older viewers. 16-24 16-24 25-44 25-44 45-59 45-59 60-69 60-69
IN IN WHAT WHAT SITUATIONS SITUATIONS DO DO YOU YOU WATCH WATCH ANY TYPE OF TV/VIDEO CONTENT ANY TYPE OF TV/VIDEO CONTENT – – AT AT LEAST LEAST WEEKLY? WEEKLY?
ININ BB GG EDED ETET BB FO ATAT TITNINEFEO GG RREE HH O O U U TH TH MM PP EE EEDD MM UU OO RR WW RRNN ININ HH ILIL ININ GG EE GG CC OO MM MM UU ATAT TITI NN WW GG OO RRKK /S/S CC HH OO OO OO LL UU TT AANN ININ DD TH TH AABB EE OOUU ATAT CC TT ITIT HH YY OO TH TH MMEE EE DD EVEV UURR EN EN ININ RREE AA I I GG LALA TTF F NNGG TITI RRI I VVEE EN E S’S’ NDD HH S’S’ OO OO MM RR II ESES FAFA NNBB LLLL EDED ININ BB GG EFEF AAS S OO LELE RREE EPEP
100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0%
Base: Base 23 markets; Source: Ericsson ConsumerLab TV & Media 2014 Study
Place Shifting Easy to use streaming S-VOD services encourage place-shifing. DON’T DON’T KNOW KNOW 3% 3%
36% 36% PLACE PLACE SHIFT SHIFT WEEKLY WEEKLY
AT AT LEAST LEAST DAILY DAILY 17% 17% NEVER NEVER 35% 35%
WEEKLY WEEKLY 19% 19%
LESS LESS OFTEN OFTEN 20% 20%
MONTHLY MONTHLY 6% 6%
PLACE PLACE SHIFTING SHIFTING HABITS HABITS
Source: Ericsson ConsumerLab TV & Media 2014 Study
ADVERTISING REVENUE
51
[Stay Connected] facebook.com/casbaa @casbaaHK linkedin.com/company/casbaa Go to www.casbaa.com for an e-book download.
52