APB PANELLISTS
6 NEWS & VIEWS
January 2015
Multi-channel TV homes growing , and linear TV still has a role to play
by christopher slaughter
It has been a topic of discussion for the past few years , but it is starting to have the appearance of an actual fact : TV Everywhere and over-the-top ( OTT ) services hold the potential to extend viewing for consumers while allowing more opportunities for platforms , networks and content creators to expand their businesses .
But an opportunity offered is not necessarily an opportunity grasped . In the past , we had seen industry players express sentiments towards online video services that ranged from grudging acceptance to skepticism and even outright hostility . Such is the nature of disruption ; people selling apples are seldom happy about their carts being tipped over . After all , this is already a hypercompetitive business ; who wants new competitors fighting for audiences , and subscriber and advertising dollars ?
Add to that the fact that in many cases , these new competitors are able to sidestep many , if not all , of the regulatory ties that bind the pay- TV industry — including censorship rules , local content quotas , language requirements , advertising regulations , and even taxation obligations — and it ’ s no wonder broadcasters grumble .
Audiences , however , do not really care about all of that ; they just want
❝ TV Everywhere and over-the-top services hold the potential to extend viewing for consumers while allowing more opportunities for platforms , networks and content creators to expand their businesses .❞
the content they want , when they want it , in the format they want , on the device they want to use . As the industry has realised that this trend is not going away , the conversation has begun to shift . It is no longer about “ do we actually need to have a digital strategy ”; it ’ s now about “ how long and how much will it take to get our digital strategy implemented ”.
CASBAA recently surveyed our membership across the Asia-Pacific region regarding their attitudes towards OTT and digital delivery , to find out what people were planning , and what their expectations were for the digital space . While 35 % of those surveyed reckon OTT is very important for their business , a total of 85 % of respondents felt it was significant . For our platform members , digital services are seen mainly as a means of adding value for existing pay-TV subscribers , as well as for attracting new subscribers . For content owners
❝ While the future of broadcasting may lie in the hands of TV Everywhere and OTT services , there can be no denying that there is still enormous potential to be realised within linear TV in the region . But success will lie in how well we can balance these two business streams .❞
and distributors , however , the main goal is to extend reach , either within existing markets or in new territories .
There is also a divergence of views regarding pricing for digital services ; pretty consistently , platforms felt ARPU ( average revenue per unit ) from digital services would be modest , in the sub- US $ 10 range . Perhaps unsurprisingly , content owners place a higher value on their content , and are expecting ARPU in the US $ 10- $ 25 range .
The main area where expectations were in alignment , however , was when it came to projections of what sort of contribution OTT revenues would make to the bottom line . Although there are some pay-TV operators who continue to be skeptical that they will make any money online in the short term , most respondents see that there is real revenue potential , but that it will be modest compared to their existing business .
In short : don ’ t write off linear TV any time soon .
In the Asia-Pacific , the growth of multi-channel TV homes has now surpassed five million — 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 lie in the hands of TV Everywhere and OTT services , there can be no denying that there is still enormous potential to be realised within linear TV in the region . But success will lie in how well we can balance these two business streams .
Christopher Slaughter is CEO of CASBAA .
APB PANELLISTS
In the Asia-Pacific , the growth of multi-channel TV homes has now surpassed five million — the largest number by region anywhere in the world today . |
Andrew Anderson
General Manager Group Broadcast Services Seven Network Limited
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Lim Kian Soon
Head of Satellite SingTel
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Joe Igoe CTO MediaCorp |