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Tag: pay tv

  • China’s Telecom and Pay-TV Revenue Set for Steady Growth, Fueled by 5G and IoT Innovations: 2030 Forecast

    China’s Telecom and Pay-TV Revenue Set for Steady Growth, Fueled by 5G and IoT Innovations: 2030 Forecast

    Revenues generated from telecommunications and pay-TV services in China are set to witness a moderate compound annual growth rate (CAGR) of 1.3% from 2025 to 2030. This growth can be primarily attributed to innovative developments in mobile data and fixed broadband sectors.

    Telecommunications Revenue Forecast

    While the revenues from mobile voice services are expected to experience a downward trend during this period, mobile data service revenues are projected to rise. The declining trend in mobile voice services can be linked to mobile operators packaging voice minutes along with their 5G data plans, a shift in consumer preferences towards Over the Top (OTT) and internet-based communication applications, and a decrease in average revenue per user (ARPU) for voice services.

    On the other hand, the revenues from mobile data services are projected to increase at a CAGR of 4.2%, driven by a constant rise in 5G subscriptions and an ensuing boost in mobile data ARPUs. This growth in mobile data revenue is also expected to benefit from an increase in mobile internet usage and the widespread use of digital and video streaming services facilitated by premium mobile data offerings from mobile network operators (MNOs).

    Subscriptions to machine-to-machine (M2M) and Internet of Things (IoT) services are anticipated to consistently grow between 2025 and 2030, driven by advancements in 5G network infrastructure, smart city projects, industrial automation, and the focus of telecom companies and the government on new M2M/IoT applications.

    Fixed Communication and Pay-TV Services

    In the fixed communication services sector, revenues from fixed voice services are likely to decrease due to a drop in circuit-switched subscriptions and lower fixed voice ARPU. Conversely, the revenues from fixed broadband services are anticipated to increase, fueled by a growing number of users adopting higher-ARPU fiber broadband services and enhancements in gigabit networks nationwide.

    While the growth in cable TV and IPTV segments is projected to be minimal, the total revenue from pay-TV services in China is expected to experience a slight decline due to falling ARPU levels as consumers increasingly turn towards OTT and on-demand streaming platforms.

    Questions & Answers

    What are the factors driving the growth of telecommunications revenues in China?
    The growth of telecommunications revenues in China is largely propelled by advancements in mobile data and fixed broadband sectors, alongside a steady rise in 5G subscriptions and mobile data ARPUs.

    How is the fixed communication services sector expected to perform between 2025 and 2030?
    While revenues from fixed voice services are forecasted to decrease, revenues from fixed broadband services are predicted to grow, driven by an increasing number of users adopting higher-ARPU fiber broadband services and nationwide gigabit network enhancements.

    What is the projected trend for the pay-TV services in China?
    The total revenue from pay-TV services in China is expected to experience a slight decline due to falling ARPU levels as consumers increasingly shift towards OTT and on-demand streaming platforms.

  • Philippines Telecom and Pay-TV Eye $9.7B Revenue Boom by 2029, Fuelled by Mobile Data and Broadband Growth

    Philippines Telecom and Pay-TV Eye $9.7B Revenue Boom by 2029, Fuelled by Mobile Data and Broadband Growth

    The Philippines’ telecommunications and pay-TV service sectors are set to experience a surge in revenue, increasing from USD 8 billion in 2024 to an estimated USD 9.7 billion by 2029, representing a compound annual growth rate (CAGR) of 3.8%. The expected growth can be attributed to the expanding mobile data and fixed broadband service sectors.

    Mobile Voice Service Revenue Facing a Decline

    Despite the overall projected growth in the telecom industry, mobile voice services are anticipated to experience a decline in revenue. This is a result of a consistent drop in the average revenue per user (ARPU) levels of mobile voice services. Consumers are increasingly turning towards internet or application-based communication platforms, and operators are providing complimentary voice minutes in their service plans.

    Promising Growth in Mobile Data Service Sector

    The mobile data service sector, however, is expected to witness substantial growth, with an anticipated CAGR of 7.1% over the forecast period. This growth is driven by an increase in mobile internet subscriptions, especially the upswing in 5G subscriptions, which will significantly enhance mobile data ARPU levels.

    The adoption of 5G services is expected to escalate rapidly in the coming years, with 5G projected to become the dominant mobile technology generation by subscriber base in 2029. This growth surge in 5G adoption can be credited to the ongoing 5G network expansion initiatives by operators across the country.

    Fixed Communication Services Sector

    In the fixed communication services sector, revenue from fixed voice services is likely to reduce due to a decrease in circuit-switched subscriptions and a decline in fixed voice ARPU levels. However, the fixed broadband service revenue is projected to grow at a CAGR of 4.7% from 2024 to 2029. This growth can be linked to the rising adoption of higher ARPU fiber-to-the-home (FTTH) broadband services.

    The increased adoption of FTTH broadband services in the Philippines is a response to the growing demand for high-speed broadband services and the ongoing expansion of fiber network coverage by operators.

    Projected Growth in Pay-TV Services Revenue

    The revenue from pay-TV services in the country is also predicted to increase over the forecast period, backed by robust growth in IPTV subscriptions and a steady rise in DTH subscriptions.

    Leading Telecom Market Players

    In the mobile services sector, Globe Telecom and PLDT are expected to retain their market leader positions by subscription share throughout the forecast period. This is due to their concentrated efforts on mobile network expansion and modernization. PLDT will continue leading in the fixed broadband sector, largely driven by its extensive fiber network coverage and increasing FTTH subscriber base.

    Questions & Answers

    What is contributing to the growth in the Philippine telecommunications industry?
    The growth in the industry is primarily due to the expanding mobile data and fixed broadband service sectors.

    Why is the mobile voice services revenue expected to decline?
    The projected decline is a result of a consistent drop in mobile voice service ARPU levels as consumers increasingly prefer internet or application-based communication platforms.

    Which telecom operators are expected to remain market leaders in the Philippines?
    In the mobile services sector, Globe Telecom and PLDT are expected to maintain their market leader positions due to their focused efforts on mobile network expansion and modernization.

  • Pay TV firm AVG appoints new CEO

    Pay TV firm AVG appoints new CEO

    Vu Minh Tri, former CEO of Microsoft Vietnam, is the new CEO of pay TV firm AVG. Tri, 49, replaces Mai Duy Long, also 49, who helmed AVG for nearly two years. Tri, who became the CEO of Sony Ericsson Vietnam in 2006, has since taking top positions in the Vietnam operations of Yahoo, Qualcomm and Microsoft.

    He is now the CEO of telecom firm Asim Group and two other companies.

    State-owned MobiFone, the country’s third largest telecommunications firm, had made headlines early in 2016 when it announced it was breaking into the pay TV market with the acquisition of a 95 percent stake in AVG.

    But government inspectors concluded that the deal had violated public investment laws and caused an estimated loss of about VND7 trillion ($307 million) to the state budget.

    In 2019, several senior officials implicated in the MobiFone case were arrested and sentenced to varying jail terms.

  • SK Broadband agrees to merge with t-broad

    SK Broadband agrees to merge with t-broad

    South Korea’s SK Telecom has arranged to merge its fixed broadband subsidiary SK Broadband with the nation’s second largest cable TV operator t-broad to help both companies weather rapid changes in the pay TV market.

    Under the proposed merger, which still requires government approval, SK Telecom would take a 74.4% stake in the combined company.

    Meanwhile t-broad’s parent company Taekwang Industrial would take a 16.8% stake in the company, with the remaining held by financial investors, treasury stock and others.

    The merger ratio has been set at 75:25 based on corporate valuation analysis, the companies said. The two companies have also attracted additional investment of 400 billion won from financial investor MiraeAssetDaewoo.

    As of June 2018, t-broad had around 3.14 million subscribers. Adding SK Broadband’s IPTV subscriber base of 4.54 million recorded at the same period, the combined entity would become a media company with around 8 million subscribers.

    But the two companies could face difficulty securing competition regulatory approval for the merger due to this figure.

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  • Ericsson, Google partner on pay TV

    Ericsson, Google partner on pay TV

    Ericsson and Google are partnering to extend the reach of the Ericsson cloud-based MediaFirst TV Platform into the Android TV ecosystem, Google’s operating system for the set-top-box.

    Ericsson MediaFirst is a software-defined, media-optimized end-to-end portfolio suite for the creation, preparation, management and delivery of next generation pay-TV to any screen with an immersive TV viewing experience.

    The integration of Ericsson MediaFirst TV Platform with Android TV will provide an additional pathway to extend MediaFirst cloud-based TV services, including 4K-UHD live TV channels, video-on-demand, catch-up TV and cloud DVR to an even wider subscriber base.

    According to Ericsson, the partnership with Google will give operators the opportunity to benefit from Android TV’s growing presence on connected TV operating systems, without the need for additional hardware costs.

    Operators will be able to partner with manufacturers of Android TV devices to deliver new hardware-based functionality as well as niche over-the-top programming, or deploy additional applications within the Android operating system.

    Additionally, the collaboration will enable Ericsson to deliver multiple, flexible, pre-integrated set-top box solutions that support hybrid configurations for satellite, cable, terrestrial, and fixed and mobile broadband TV.

    “By expanding our range of set-top box options, we are giving Ericsson MediaFirst TV customers the opportunity to deliver cutting-edge, large scale video services and respond to the surge in adoption of smart devices, broadband connectivity and cloud-based delivery,” said Shiva Patibanda, head of business line TV platforms at Ericsson.

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  • APAC pay TV faces slowing growth

    APAC pay TV faces slowing growth

    The Asia-Pacific pay-TV industry is expected to grow at a 5.8% average annual rate from 2016 to 2021, according to Media Partners Asia (MPA).

    MPA projects pay-TV industry sales across 18 major markets in Asia Pacific to climb from $54 billion in 2016 to $72 billion by 2021, rising thereafter to $81 billion by 2025.

    The pace of pay-TV subscriber and revenue growth is slowing however, weakened by an economic slowdown and increasing competition from both legal and illegal alternatives.

    Pay-TV subscriber growth declined or substantially decelerated in Hong Kong, Indonesia, Malaysia and Singapore in particular.

    At the same time however, India and Korea remain two of the region’s largest and most scalable pay-TV opportunities. Revenue growth will also accelerate in Australia and the Philippines, largely thanks to subscriber growth.

    However, MPA analysts have lowered subscriber growth forecasts across much of Southeast Asia, especially for Indonesia, Malaysia and Singapore, although ARPU should remain resilient in both Malaysia and Singapore.

    The pay-TV industry in China, meanwhile, remains the largest in the region and is becoming increasingly digitalized. Pay-TV growth opportunities for broadcasters are limited however, due to increasing regulation as well as competition from free and paid online video services.

    Elsewhere in the region, subscription-based video-on-demand (SVOD) services have had a negligible impact on pay-TV so far, despite the global launch of Netflix earlier this year, in addition to increasing competition among lower-priced regional and local SVOD services.

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  • Indonesia Wants Netflix to Open Office, Pay Tax

    Indonesia Wants Netflix to Open Office, Pay Tax

    If Netflix wants to obtain a but, the company must obey local regulations, such as opening an office and hiring employees. Furthermore, it must also obey tax regulations, which means every transaction with Netflix in Indonesia will be taxed.

    According to Kompas.com, the obligation to have a business license also applies to other over-the-top Internet-based services, such as Google and Facebook.

    These permanent businesses are required to pay corporate income tax and value added tax for every transaction made in Indonesia.

    Netflix’s video-streaming service went live in more than 130 countries, including Indonesia, last Wednesday as chief executive Reed Hastings aimed to counter slowing growth in the US.

    Indonesian users can choose from three monthly subscription plans on Netflix, with the basic plan priced at Rp 109,000 ($8) per month.

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