Study structure and methodology

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2 Study structure and methodology This report is entitled Terrestrial TV in South East Asia, , and was completed in September It analyzes the terrestrial TV market, progress in digital terrestrial TV implementation and DTT pay-tv operators in developing subscription based television services in eight South East Asian countries: Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Thailand and Vietnam The study includes detailed historical subscriber data from 2012 and subscriber forecasts until The report has been divided into eight chapters: one for each of the eight markets analyzed and a final section providing consolidated regional figures and our conclusions. For each of the countries surveyed, the report includes yearly figures tracking television household penetration, market structure- providing a glimpse of various platforms in the contry, number of terrestrial TV subscribers, profiles of broadcasters, digital terrestrial TV implementation by the regulator, DTT pay TV subscribers and our conclusion. All subscription data included in the report reflects customers/households legally adopting pay-tv services, and it excludes unauthorized access and/or under-reported customers. Historical figure for number of HHs, TV HHs, pay-tv HHs, free-to-air HHs and pay-tv platforms were obtained from public sources. In those cases where data was not available, it was estimated by Dataxis. Forecasts for the period were made in All historical and forecasted figures are available in Dataxis s Data Base.

3 Executive Summary The terrestrial television growth in South East Asia has been triggered by digitization implementation initiated by the regulator in these markets. Some of the markets have launched pay-dtt service to compete with existing alternate pay-tv platforms, while others are capitalizing on advertising revenue from FTA broadcasting. The regulators have finalized policies and regulation for terrestrial digitization, which has resulted in broadcasters adopting standards (DVB-T2, DTMB and ISDB-T) for digitization. With DVB-T2 as a preferred technology choice for digitization in 6 regions. The regulators governing broadcasting laws in these regions have set up ASO date and with digitization implementation underway, leading broadcasters are launching new genres of channels and services. Exhibit 1. DTT standard adopted. SEA region Source: Dataxis

4 Although the industry trend globally is pay-tv experiencing sustained growth and eating away into the market pie of terrestrial homes, it is worth noting that the terrestrial television in South East Asian markets are evolving and promises a steady growth in the coming years. In eight years between 2005 and 2013, the eight markets saw combined terrestrial households contribution to TV households from being present in 91% of TV households to being available in 72% of homes. This equaled to an addition of nearly 20.6 million terrestrial homes during the period, growing from 64 million terrestrial homes at the end of 2005 to over 86 million eight years later. Dataxis expects this upward trend to continue and by 2020, over 93 million terrestrial TV households will be digitized in these regions and Dataxis forecasts that 4% of these households will subscribe to pay-tv DTT service, while the rest will be DTT FTA homes. Indonesia has exhibited the largest share of terrestrial TV homes in South East Asia. At the end of 2013, Indonesia had 33 million terrestrial homes, followed by Vietnam, Philippines, Thailand, Myanmar, Malaysia, Cambodia and Laos. Graph 1. Terrestrial homes. In million. SEA region Source: Dataxis

5 Towards 2020 it is expected that all terrestrial TV homes of the region would be digital. Dataxis notes that Thailand, Philippines and Malaysia markets have no DTT pay-tv operations and operators have not revealed any plans for the future. Revenue from DTT pay-tv services from rest of the markets will reach USD 278 million in This report was developed in September This report is targeted at giving the reader an overview of the terrestrial TV in South East Asia to be sufficiently informed. The currency conversion rate used through the report is respective historic regional currency to USD rates as applicable and 2013 regional currency rate for projected years.

6 Table of Contents 1. Cambodia 1.1. Cambodia overview Exhibit 2. Cambodia geography map 1.2. Television Penetration Graph 2. Households and TV households. In Million. Cambodia TV Market Background Exhibit 3. Cambodia TV market Television Regulation Table 1. Overview of TV frequency usage. Cambodia 1.5. Terrestrial TV Table 2. Terrestrial TV broadcasters summary. Cambodia Digital Terrestrial TV transition plan Table 3. Digital Terrestrial TV transition approach. Cambodia Key terrestrial TV broadcasters profile Royal Cambodian Army Television (TV5) Television Kampuchea (TVK) Cambodian Television CTV 9 Table 4. CTV 9 advertising rate card for 30 seconds. Jan- Dec Phnom Penh Municipal Television (TV3) Bayon TV Cambodian Television Network (CTN) Hang Meas Apsara TV

7 1.7. Pay-DTT Pay DTT operator profile One TV Exhibit 4. One TV presence in Cambodia Table 5. One TV pay-dtt subscription plans. Cambodia PPCTV Table 6. PPCTV pay-dtt subscription plans. Cambodia CFOCN Cambodia Supreme Communications Media Limited Exhibit 5. Stake holders in Cambodia supreme communications Media Limited Conclusion Graph 3. Analog and Digital Terrestrial households. In Million. Cambodia Graph 4. Digital Terrestrial pay-tv subscribers. In Million. Cambodia Graph 5. Digital Terrestrial pay-tv revenue. In USD Million. Cambodia Indonesia 2.1. Overview of the country Exhibit 6. Indonesia geography map Television Penetration Graph 6. Households and TV households. In Million. Indonesia Television market Structure Exhibit 7. Overview of television market structure. Indonesia Graph 7. Market share of Television Broadcasters. Indonesia. Q1-2014

8 2.4. Television Regulation Indonesian Broadcasting Commission Digital Terrestrial regulation Exhibit 8. Digital terrestrial Migration Schedule. Indonesia Table 7. Zone-wise schedule of digital switch-over in Indonesia Exhibit 9. Terrestrial digital TV Business Model. Indonesia Exhibit 10. Digital TV Multiplex Licensing Areas (in 15 Regional Zones) Exhibit 11. Digital TV Service area and Multiplex license area Terrestrial TV Table 8. FTA terrestrial broadcasters. Indonesia Graph 8. Audience share for FTA TV stations during prime time. Indonesia. Dec Digital terrestrial TV Digitization progress Table 9. Zone-wise DTTB multiplex operators. Indonesia. Table 10. Commitment to provide STBs from the MUX operator for five service zones. Indonesia Key FTA Terrestrial operators Profile TVRI Media Nusantara Citra (MNC) RCTI MNCTV GlobalTV Sindo TV Network

9 Emtek Group Exhibit 12. Emtek shareholding in subsidiary companies. Indonesia SCTV Exhibit 13. SCTV Analog and Digital Broadcast Map in Indonesia Indosiar O Channel CT Corp Visi Media Asia (VIVA) Exhibit 14. Network Station System of ANTV and TVOne. Indonesia Regional FTA Broadcasters Metro TV Jawa Pos Bali Post Group Jak TV Kompas TV Tempo TV 2.7. Pay-DTT operator profile NexMedia Table 11. NexMedia Pay DTT Tariff plans. Indonesia DTT STB supplier s environment 2.9. Conclusion Graph 9. Analog and Digital Terrestrial households. In Million. Indonesia Graph 10. Terrestrial pay-tv households. In Million. Indonesia Graph 11. DTT pay-tv revenue. In USD Million. Indonesia

10 3. Laos 3.1. Laos overview Exhibit 15. Laos geography map. Table 12. Socio Economic Indicators. Laos Television penetration Graph 12. Households and TV households. In Million. Laos TV Market Background 3.4. Television Regulation 3.5. Terrestrial TV 3.6. Digital Terrestrial TV transition plan 3.7. Key Terrestrial TV broadcaster profile Laos National TV (LNTV) 3.8. Digital Terrestrial Pay-Tv DTT- pay TV operator profile Laos Digital TV 3.9. Conclusion Graph 13. Analog and Digital Terrestrial households. In Million. Laos Graph 14. Digital Terrestrial pay-tv subscribers. In Million. Laos Graph 15. Digital Terrestrial pay-tv revenue. In USD Million. Laos

11 4. Malaysia 4.1. Overview of the country 4.2. Television penetration Graph 16. Households and TV households. In Million. Malaysia Advertising Spending Graph 17. TV advertising expenses comparison with other medium of advertising. Malaysia. In USD Million. Malaysia Market structure 4.5. Television Regulation Table 13. MCMC licensing category. Malaysia. Table 14. Register of individual CAM licenses. Malaysia Digital Terrestrial TV Exhibit 16. DTT implementation timeline. Malaysia Exhibit 17. MCMC DTT implementation Model. Malaysia Terrestrial TV Table 15. FTA TV stations-broadcast minutes. Malaysia Q Terrestrial TV broadcasters Alt Media (Media Prima) Exhibit 18. Media Prima FTA channel market positioning. Malaysia Radio Televisyen Malaysia (RTM) TV Alhijrah 4.7. Conclusion Graph 18. Analog and Digital Terrestrial households. In Million. Malaysia

12 5. Myanmar 5.1. Overview of the country Exhibit 19. Myanmar geography map. Table 16. Densely populated districts in Myanmar Table 17. Myanmar Socio Economic Indicators Television penetration Graph 19. Households and TV households. In Million. Myanmar Public television funding 5.4. Market Structure Table 18. Media Groups owning FTA channels. Myanmar Exhibit 20. Dataxis representation of FTA channels ownership. Myanmar Exhibit 21. Overview of television market structure. Myanmar Exhibit 22. Coverage of FTA Television Media. Myanmar. Feb Television Regulation The Television and Video Act Digital Terrestrial regulation Exhibit 23. Phases of terrestrial digitization. Myanmar Terrestrial TV 5.7. Key FTA Terrestrial operators Profile MRTV (Myanmar Radio and Television) MWD TV (Myawaddy Television) Forever Group Myanmar National TV

13 5.8. Pay-DTT operator profile TV- Forever Media TV 5.9. Conclusion Graph 20. Analog and Digital Terrestrial households. In Million. Myanmar Graph 21. Terrestrial pay-tv households. In Million. Myanmar Graph 22. DTT pay-tv revenue. In USD Million. Myanmar Philippines 6.1. Overview of the country Exhibit 24. Philippines geography map. Table 19. Philippines demographic and economy snapshot Television penetration Graph 23. Households and TV households. In Million. Philippines Advertising Spending Graph 24. TV advertising expenses comparison with other medium of advertising. Philippines. In USD Million. Philippines Market structure 6.5. Television Regulation Terrestrial Digitization Regulation Exhibit 25. Digital terrestrial transition timeline. Philippines

14 6.6. Terrestrial TV Exhibit 26. FTA Broadcasters in Philippines. June Public Terrestrial TV Broadcasters People s Television Network Inc (PTNI) Intercontinental Broadcasting Corporation (IBC) Radio Philippines Network (RPN) Commercial Terrestrial TV Broadcasters ABN-CBN Broadcasting Corporation GMA Network Inc TV Other commercial FTA broadcasters Eagle Broadcasting Corporation (EBC) First United Broadcasting Corporation (FUBC) 6.7. Conclusion Graph 25. Analog and Digital Terrestrial households. In Million. Philippines Thailand 7.1. Overview of the country 7.2. Television penetration Graph 26. Households and TV households. In Million. Thailand Market structure

15 7.4. Television Regulation Exhibit 27. NBTC Digital Roadmap. Thailand Exhibit 28. Updated NBTC Digital Roadmap. Thailand DTT License Winners Exhibit 29. DTT channels, commercial and non-commercial. Thailand Table 20. NBTC digital terrestrial channel auction winners. December Digital TV network operators Terrestrial TV regulation Advertising Regulation 7.5. Terrestrial TV Analogue terrestrial TV Table 21. FTA TV. Thailand Graph 27. Terrestrial Channel- advertising Market share (%). Thailand Graph 28. Terrestrial Channel- Audience share (%). Thailand Digital terrestrial TV 7.6. Terrestrial Broadcaster Profile BEC- Channel BBTV- channel Modernine TV National Broadcasting Services of Thailand (NBT) Royal Thai Army- channel Thai PBS

16 7.7. New Digital TV license winner profiles Amarin Television Bangkok Business Broadcasting and NBC Next Vision (subsidiary of NMG) Bangkok Media and Broadcasting (PPTV) DN Broadcast GMM Grammy Mono Broadcast Spring News Television Triple V Broadcast True DTT WorkPoint Entertainment Voice TV 7.8. Conclusion Graph 29. Terrestrial TV households. In million. Thailand Vietnam 8.1. Vietnam overview 8.2. Television penetration Graph 30. Households and TV households. In Million. Vietnam TV Market Background Exhibit 30. Vietnam TV market.2013

17 8.4. Television Regulation Digitization Approach Advertising Regulation 8.5. Terrestrial TV 8.6. Digital terrestrial TV transition plan Exhibit 31. Analog terrestrial TV switch off roadmap Exhibit 32. Roadmap of digital switchover 8.7. Key terrestrial TV broadcasters profile Vietnam Television (VTV) VTC Digital terrestrial Table 22. VTC DTT channels offered AVG- An Vien TV Table 23. AVG DTT subscription plan Provincial and local broadcasters 8.8. Conclusion Graph 31. Analog and Digital Terrestrial households. In Million. Vietnam Graph 32. Digital Terrestrial pay-tv subscribers. In Million. Vietnam

18 9. Regional Summary 9.1. Terrestrial homes over households with television Graph 332. TV households Vs terrestrial TV households. In million. South East Asia FTA analog and digital terrestrial reception Graph 343. FTA analog terrestrial reception Vs FTA DTT reception. In million. South East Asia DTT pay-tv subscribers Graph 36. DTT pay-tv subscribers. In million. South East Asia Graph 37. DTT pay-tv operator market share by subscribers. In percentage. South East Asia. Q Graph 38. Pay-TV subscribers Vs DTT pay-tv subscribers. In million. South East Asia DTT pay-tv revenue Graph 39. DTT pay-tv revenue. In USD million. South East Asia

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