Broadcasting Trends in Asia-Pacific: What to expect in 2022
There’s no denying that video consumption habits have changed in the face of evolving consumer preferences and the ongoing pandemic. But what exactly does that mean for broadcasters?
We spoke with Charu Verma , Senior Analyst, Strategy & Market Intelligence for Video to find out how this disruption is impacting broadcasters in Asia-Pacific and what trends we can expect in the years ahead.
How has the pay-TV sector evolved across Asia-Pacific?
Like other parts of the world, the pay-TV sector in APAC isn’t immune to changing viewing patterns. Consumers in this region expect a multiscreen video experience, and the ability to watch their favourite content when and where they want to - not just during scheduled air times. This shift from passive to active media consumption is impacting business models and broadcasters are looking for new ways to cater to these needs.
Asia-Pacific is anticipating 2.20 billion digital video viewers by 2025 [1]
Today, traditional pay-TV operators not only need to distribute content to the widest possible audience—including remote audiences that are difficult to reach through terrestrial networks—they also need to negotiate a fragmented distribution landscape. That means leveraging innovative solutions to expand reach without sacrificing experience.
It’s also important to know that despite fierce competition and pressure from streaming services, direct-to-home (DTH) television continues to hold its ground. This is why forward-thinking broadcasters are increasingly offering hybrid services that blend the advantages of traditional DTH offerings with content streaming. This includes the use of connected TVs to attract new audiences and increase monetisation.
As we look ahead, the big question is how can broadcasters merge satellite distribution with other streaming integration solutions to not only retain existing customers but also entice new subscribers who are seeking a more diverse multi-channel experience?
What role does satellite technology play in this evolution?
Satellite technology, in tandem with linear TV, remains an important bedrock for accelerating video content delivery across APAC. It’s a win-win solution that ensures programmers can continue generating revenue while meeting the growing demand across expanding geographic locations.
“Satellite offers a big footprint that allows it to reach a wider audience quickly, including audiences in remote locations that terrestrial networks are unable to reach. Due to the inherent benefits of satellite technology, it can also support higher-quality, bandwidth-intensive content a lot more affordably than fibre or terrestrial networks can.” - Gregg Daffner, President of the Asia-Pacific Satellite Communications Council (APSCC).
What can the broadcasting sector expect beyond 2022?
Video consumption in APAC has been growing steadily and APAC is one of the largest pay-TV regions in the world.
According to the Media Partners Asia (MPA), the total APAC pay-TV subscribers is projected to reach beyond 715 million by 2025. That creates revenue topping US$60 billion! [2]
The region is also home to the world's largest mobile-first population:
9 out of 10 viewers use smartphones to stream videos [3] and premium video consumption in Southeast Asia grew by 6% quarter-on-quarter in the July to September period of 2021. This is double the 3% expansion of the overall online video sector. [4]
Despite the rising popularity of over-the-top(OTT) and watching TV online, linear broadcast television continues to be the most popular method of consuming video content in APAC.
As consumers seek to expand their existing linear TV services (rather than cut cable completely), pay-TV growth is forecasted to be valued at $26 billion across all services between 2025 and 2029 [5].
What makes Asia-Pacific different from other markets?
Numerous factors differentiate Asia’s digital entertainment market, including [6]:
What does the future of broadcasting look like?
It’s obvious that television has transformed into a multi-platform market consisting of linear and digital streaming and on-demand offerings. This has resulted in a highly fragmented media ecosystem with an influx of segmented offerings demanded by different audiences.
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Over 80% of TV households have one or more connected TV devices, and the average household has as many as 4.1 devices per connected TV household.
In fact, this penetration rate is higher than that of cable TV. A recent survey on TV convergence also revealed some interesting audience insight:
Nearly 3 in 4 respondents consider “TV” as linear and streaming. In addition, as the option for stacking streaming subscriptions to cable or satellite remains available, consumers are also receptive to the idea of paying for traditional TV. [8]
At the same time, rising internet adoption and an increasingly competitive market have encouraged more broadcasters to launch their own direct-to-consumer (DTC) platform or OTT content to supplement existing offerings. Within the OTT segment, competition is fierce between SVOD and advertising-based Video-on-Demand (AVOD) players. Though SVOD uses a flat monthly rate to appeal to customers, it still faces the challenge of retaining customers. At the same time, premium content owners are less likely to turn to AVOD due to its lower revenue-generating opportunities compared to alternatives.
We must also remember that the OTT segment is oversaturated and this is creating disrupted viewing experiences. The unfortunate aftermath of this is high viewer dropout rates and subscription switches. Niche OTTs, on the other hand, are experiencing success in this environment. Their unique programs complement pay-TV services, and research shows that mainstream broadcasters are starting to realise the subscriber retention value. [5]
The evolving landscape also means broadcasters have a need for speed. The ability to react quickly to new market requirements and content preferences is a key differentiating factor. To support that, broadcasters are streamlining their operations and video delivery processes. Unlike in the past when it would take months or years to acquire, deploy, and integrate new systems, broadcasters are adopting quick go-to-market solutions that can be up and running faster than ever.
How is SES improving viewing experiences across APAC?
Faced with rising costs, competition, and complexity, both broadcasters and platform operators are seeking solutions that maximise both cost-effectiveness and agility. With over 30 years of experience providing the broadcast market with premium video services, SES is well equipped to help our customers adapt to this evolving and disruptive market.
Our mission is to make it possible for broadcasters to deliver content everywhere. We achieve this by providing our customers with a wide range of value-adding solutions, reaching audiences across multiple platforms and screens, and in any part of the world.
SES has offered these services to reputable companies across Asia-Pacific:
As players in the video and broadcasting industry advance their strategies in hopes to meet evolving industry conditions, SES is eager to help broadcasters grow their audiences, increase revenues, and deliver exceptional viewing experiences – no matter where they are.
If you want to discover how SES can help you transform your video businesses, do not hesitate to contact our team of industry experts and chat with a real person.
[1] 2 billion people in Asia-Pacific will be digital video viewers by 2022. eMarketer.
[2] APAC pay-TV revenue to reach US$60bn by 2025. BroadcastPro.
[3] Predictions 2022: TV, CTV, and Video. ExchangeWire
[4] Premium Video Grows in Southeast Asia as Chinese Content Strikes a Chord in Thailand, Says Study. Variety.
[5] APAC: Pay TV market still leader and VOD start to saturating. Prensario Zone
[6] Live TV still dominates most TV viewing in Asia, S&P Global
[7] The Fastest Growing Video Advertising Platform Is Now CTV, Forbes
[8] The Convergence of Linear and Digital TV Advertising, Digital Remedy
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