Asia Pacific Multichannel TV 2012 - ChinaGoAbroad€¦ · Welcome to the latest CASBAA update on the trends in Multichannel TV distribution, audience numbers . and viewership profiles

Asia Pacific Multichannel TV 2012

About CASBAA

Covering 17 geographic markets and encompassing 420 million connections within a footprint spanning China to Australia and Japan to Pakistan, CASBAA works to be the authoritative voice for multichannel TV promoting even handed and market friendly regulation, IP protection and revenue growth for subscriptions and advertising.

CASBAA’s 130 member organisations include leading cable, satellite, DTH and broadband operators as well as multinational networks and programmers in Asia and worldwide. Member corporations also comprise leading suppliers and manufacturers of cable and satellite technology, related business service providers, communications, advertising & marketing executives, media, government regulatory bodies, telecom companies, new media service providers and network enablers.

Website: www.casbaa.com

CASBAA Executive Office 802 Wilson House 19-27 Wyndham Street Central, Hong Kong Tel: 852 2854 9913 Enquiry: [email protected]

CASBAA Ltd holds all copyrights to this report unless otherwise stated, and no part thereof may be reproduced or replicated without prior explicit and written permission.

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Executive Summary – Asia Pacific Welcome to the latest CASBAA update on the trends in Multichannel TV distribution, audience numbers and viewership profiles.

Our report documents the 12% growth of the industry in the past 12 months, in terms of percentage of connected homes and the increase in dual subscription homes as channel choices increase. Piracy, as always, remains uppermost in our minds and the report provides a breakdown of the latest situation across each of the markets.

Crucially, our industry relies on the consumer, viewers and users. The CASBAA research team has compared the latest information from accredited sources such as Nielsen, Synovate, SNL Kagan, PwC and places them in a global landscape.

Most recent industry reports show TV embracing and engaging with social media while building strong online communities and actively expanding its reach to new devices and channels. TV continues to deliver an intensity of experience and audience reach that other media struggle to match.

More detailed information can be found at www.casbaa.com and CASBAA members can benefit from our regular member reports.

ContentsP.4 Fast FactsP.5 Topline Data: Research Surveys, Asia PacificP.6 Global UpdateP.7 Asia Pacific UpdateP.8 ROI with the multichannel multiplierP.10 The Asia Pacific, Regional AudienceP.12 The New TV LexiconP.13 TV, Online and ‘Second Screening’P.14 Cost of Piracy

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Fast Facts Asia Pacific 2011

Multichannel TV audiences in Asia are driving global

growth

Popula on 3,481,000,954 Total Homes 935,776,540 Average Household size 3.7 TV Homes 761,695,644 Mul channel Homes 407,056,074 Broadband Internet Subscribers 307,643,000 Internet Users 923,152,145 Non-Terrestrial TV Connections

Indonesia 2,047,000

Philippines 2,134,667 Vietnam 3,815,000

Japan 13,792,000

Australia 2,857,000

Thailand 10,310,000

China 203,639,000 Pakistan 9,600,000

New Zealand 890,000

Malaysia 3,240,514 Singapore 1,057,000

India 134,000,000 Hong Kong 2,543,667

Taiwan 7,862,000

South Korea 23,400,000

Source: Casbaa, SNL Kagan, MCN, SARFT, CSM, TAM India, SKY, Gallup Pakistan, Starhub, SingTel, Kantar, Nielsen. Note: This data includes multiple connections to non-terrestrial channels 4

Source: SNL Kagan, MCN, SARFT, CSM, TAM India, SKY, Gallup Pakistan, Starhub, SingTel, Kantar, Nielsen

Over 420 million* non-terrestrial TV connections

*NB: includes multiple connections to non-terrestrial TV channels. For example, homes in Singapore subscribing to SingTel and Starhub or homes in Taiwan subscribing to Chunghwa and another cable operator.

Multichannel TV is in 53% of TV

homes

Multichannel TV Now in 53% of Homes

Source: Casbaa, SNL Kagan, MCN, SARFT, CSM, TAM India, SKY, Gallup Pakistan, Starhub, SingTel, Kantar, Nielsen

% of homes receiving multichannel TV

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Non-Terrestrial TV Connections

5

Topline 2011: Findings from Research Surveys in Asia

50% of Asian Business Elites in Asia watched an International TV Channel yesterday, 74% watch every week and 81% monthly. (BEAsia: CT IPSOS 2011)

Q3 2011 ratings data reveals a 4.1% increase in Australian subscription television reach compared to the same quarter in 2010. (OZTam: Q3 2011)

56% of multichannel homes in the Philippines have a monthly household income of more than double the average. (Synovate Media Atlas: Philippines 2011)

CSM data from 153 cities across China shows that 72.3% of all viewing is to multichannel TV. (CSM China: Jan-June 2011, 153 cities)

In the first half of 2011 CTR Media Intelligence reported advertising expenditure of US$ 40 billion. (CTR 2011)

77% of all TV viewing by affluent Astro subscribers in Malaysia is to multichannel TV. (AGB Nielsen: People HHI MYR 3,000+ & Astro)

78% of Elites and Affluents in Asia have watched multichannel TV in the last 30 days, for the most senior management it rises to 83% (Synovate PAX: Q3 2010 to Q2 2011 10 Markets)

92% of people with a TV tune into multichannel TV each month, up from 86% in 2008. (TAM India 2011)

Half of all Pakistan’s TV homes have multichannel TV with an 80% reach in urban homes. Foreign entertainment is leading the way. (Medialogic 2011)

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The global TV audience will reach nearly 4 billion people by the end of 2011, with nearly 800 million in Asia.

Advertising continues to grow in all regions, led by the Asia Pacific.

All four categories measured* show growth, with TV leading the pack.

Technology is changing the way we consume and are able to measure TV.

Growth of internet viewing is boosting online television advertising.

Asia Pacific Leads The Way Total Multichannel Homes 2008-2015

Asia Pacific Leads The Way Total Multichannel Homes 2008-2015

-

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

2008 2009 2010 2011 2015 Asia Pacific N. America W.Europe Latin America Middle East E.Europe Total of Non Asia Pacific

Source: SNL Kagan

Asia Pacific

Total Excluding Asia Pacific

7 Source: SNL Kagan

Global Media: % Change Year To Date

Global Media: % change year to date

Source: Nielsen Q2 2011 Global Adview Pulse LiteSource: Nielsen Q2 2011 Global Adview Pulse Lite

Global Media: Television Advertising % Change Year To Date

Global Media: Television Advertising % change year to date

Source: Nielsen Q2 2011 Global Adview Pulse Lite10

Source: Nielsen Q2 2011 Global Adview Pulse Lite

Global Advertising Trend Year on Year % ChangeGlobal Advertising Trend Year on Year % change

Source: Nielsen Q2 2011 Global Adview Pulse Lite8 Source: Nielsen Q2 2011 Global Adview Pulse Lite

* Television, newspapers, magazines and radio.

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There are already more multichannel connections in Asia Pacific than the rest of the world combined. Revenue growth in Asia is experiencing double digit annual increases in China, India, Indonesia, Malaysia, Pakistan, Philippines and Thailand.In 2010, Japan, India, and China were the leading Asian multichannel advertising markets, accounting for nearly 80% of the total. The four biggest media categories* gained 10.7% Y on Y, while TV led with 12%.Multichannel TV in Asia Pacific is outpacing terrestrial TV.

Asia’s Share of Multichannel Homes in 2011

Asia’s Share of Multichannel Homes in 2011

Source: SNL Kagan12

Source: SNL Kagan

Asia Pacific: Total Advertising Year on Year % Change

Asia Pacific: Total Advertising Year on Year % change

Source:Nielsen Q2 2011 Global Adview Pulse14 Source: Nielsen Q2 2011 Global Adview Pulse Lite

Asia Pacific: Growth of Multichannel Homes

Asia Pacific: Growth of Multichannel homes

Source: Casbaa, SNL Kagan, MCN, SARFT, CSM, TAM India, SKY, Gallup Pakistan, Starhub, SingTel, Kantar, Nielsen 17


Multichannel TV Outpacing Terrestial

Asia Pacific Television Advertising Market Growth %

%

Sources : PWC LLP, Wilkofsky Gruen Assoc

Multi-channel TV outpacing terrestrial

40 Source: PWC LLP, Wilkofsky Gruen Assoc

* Television, newspapers, magazines and radio.

Michel Tcherevkoff/The Image Bank by Getty Images

Million

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Multichannel multiplier As part of its on-going research, CASBAA commissioned Universal McCann (UM) to analyze a TV campaign worth a notional budget of US$1.5m using syndicated peoplemeter data across seven Asian markets. UM initially ran the campaign using the entire budget on free-to-air channels (FTA), they then re-allocated variable percentages of the budget between Multichannel TV and FTA. Nine audiences were tested and all showed the same results: Increased reach and frequency, more impressions and a lowering of CPT. With a reach in over 50% of all TV homes in Asia, Multichannel TV can no longer be ignored. The numbers demonstrate that multichannel TV makes undeniable fiscal sense when reach and return on investment are optimized.

Reach increases as the advertising budget is reallocated from 100% on Free to Air TV to a proportion on Pay-TV

33

45 52 52 54 56

14.1

20.2 23.6 24.1 26.2 28.0

0

10

20

30

40

50

60

70

100 % FTA 90%|10% 80%|20% 70%|30% 60%|40% 50%|50%

1+ Reach % 3+ Reach %

ADVERTISING BUDGET ALLOCATION FTA vs Multichannel TV

Audience: All 4+

Reach increases as the advertising budget is reallocated from 100% on Free to Air

TV to a proportion on Multichannel TV

See your ROI grow with no additional

investment. Add Multichannel

TV to your campaign and

double the impressions

See your ROI increase with no extra investment Add Pay-TV to your TV campaign and double your campaign

eyeballs

537,551,041

756,003,708 899,484,408

1,048,509,783 1,210,929,718

1,353,659,180

100 % FTA

TV Impressions

ADVERTISING BUDGET ALLOCATION

Audience: All 4+

90%|10% 80%|20% 70%|30% 60%|40% 50%|50%FTA vs Multichannel TV

Using a combination of FTA & Pay-TV lowers cost per thousand by up to 60%

100

71 60

51 44

40

100 % FTA


Audience: All 4+ CPT Index Vs 100% FTA

90%|10% 80%|20% 70%|30% 60%|40% 50%|50%

FTA vs Multichannel TV

Using a combination of FTA & Multichannel

TV lowers cost per thousand by up to 60%

Reach increases as the advertising budget is reallocated from 100% on Free to Air TV to a proportion on Pay-TV

33

45 52 52 54 56

14.1

20.2 23.6 24.1 26.2 28.0

0

10

20

30

40

50

60

70

100 % FTA 90%|10% 80%|20% 70%|30% 60%|40% 50%|50%

1+ Reach % 3+ Reach %

ADVERTISING BUDGET ALLOCATION FTA vs Multichannel TV

Audience: All 4+

Using a combination of FTA & Pay-TV lowers cost per thousand by up to 60%

100

71 60

51 44

40

100 % FTA


Audience: All 4+ CPT Index Vs 100% FTA

90%|10% 80%|20% 70%|30% 60%|40% 50%|50%


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Pay-TV can boost the number of PMEB impressions with no additional cost to nearly 300 million

101,984,157

137,994,163

296,502,419

100 % FTA 90% | 10% 50% | 50%

TV Impressions


Audience: PMEB (Professionals, Managers, Execs & Business Owners )


Multichannel TV can boost the number of

PMEB impressions with no additional cost to nearly 300

million

Using a combination of FTA & Multichannel TV to target Men can increase reach from

32% to 55%

Using a combination of FTA & Pay-TV to target Men can increase reach from 32% to 55%

32

44

55

13.1

19.0

27.3

100 % FTA 90% | 10% 50% | 50%

1+ Reach 1+ Reach % 3+ Reach %


Audience: Men


Targeting 15-24 year olds, using a combination of FTA & Pay-TV can double the number of impressions to 168

million youth

88,778,993

110,188,047

168,756,949

100 % FTA 90% | 10% 50% | 50%

TV Impressions


Audience: 15-24 year olds


Targeting 15-24 year olds, using a

combination of FTA & Multichannel TV can double the number

of impressions to 168 million

Source: Peoplemeter R&F. CSM, OzTAM, TAM Media Research, Nielsen, Kantar Media & UM. Data based on Q1 2011 | Budget of US$1.5 million Markets: Australia, Hong Kong, Philippines, India, Malaysia, Taiwan & Singapore. Multichannel TV Networks: Discovery, Turner, Sony, NBCU, Viacom, Fox. FTA (free to air) channels: Australia:Channel7,Channel9,Channel10. HK:TVB Jade, ATV Home, TVB Pearl, ATV World. India:DD1. Malaysia:TV3,TV2,TV9. Philippines: ABS, GMA. Singapore: Channel 5,Channel 8,Channel U. Taiwan: FTV, CTV, CTV, TTV. Universes: 4+ (347,993,367), PMEB (104,471,420), Men (180,948,423), 15-24 (64,572,253) More information: www.casbaa.com/atac

Using a combination of FTA & Pay-TV to target Men can increase reach from 32% to 55%

32

44

55

13.1

19.0

27.3

100 % FTA 90% | 10% 50% | 50%

1+ Reach 1+ Reach % 3+ Reach %


Audience: Men


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The Asia Pacific Regional AudienceProfile of Affluent Adult Viewers

With and Without Multichannel TV %

27

4742

2328

13

2531

47 47

60

4843

32

46 44

Profile of Affluent Adult Viewers With and Without Multichannel TV %

Market Australia Taiwan Malaysia Singapore Philippines India Hong Kong

HH Income/ Social Group

Occupation Group 1/2

NT$ 70,000 RM 3,000 S$5,000 SEC ABC SEC A/B HK$30,000

Source: Local Peoplemeter (Jan-Jun 2011)*Asia Pac: 7 markets (India, Australia, Taiwan, Malaysia, Singapore, Philippines, Hong Kong)18

Terrestrial TV Multichannel TV

Multichannel TV viewers are the most affluent

Multichannel TV attracts more viewers every year

Terrestrial TV continues

to lose viewership

Total Day Average Audience ‘000

2,669 2,776 2,604 2,695

7,6798,868

9,97911,137

2008 2009 2010 Jan-Jun 2011

10,64912,701 12,447 12,517

18,078

21,60924,169

27,194

2008 2009 2010 Jan-Jun 2011

Total Affluent PeopleTotal People

Total Day Average Audience ‘000

Multichannel TV grows +50% Multichannel TV grows +45%

Source: Local Peoplemeter 2008 – YTD 2011; Universe/Sample: 2008: Total People (255,622,024/53,603); Total Affluent (100,350,064 /22,757)2009: Total People (302,300,865/61,278); Total Affluent (112,164,749/25,558) 2010: Total People (321,655,444/62,416); Total Affluent (120,364,006/26,182) Jan-Jun 2011: Total People (339,483,524/62,679); Total Affluent (129,030,431/26,659)Asia Pac: India, Australia, Taiwan, Malaysia, Singapore, Philippines**Data starts from 1st Feb 2009; Mega Manila used for 2008


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% Share of Viewing

13

23

48

64

55

66

28

87

77

52

36

45

34

73

Taiwan Malaysia New Zealand Philippines South Korea Hong Kong China

% Share of viewing

Source: Peoplemeter (Jan-Jun 2011) SOV in Pay Homes

Market Taiwan Malaysia New Zealand

Philippines South Korea

Hong Kong China

HH Income/ Social Group

NT$100,000+ MYR3,000+ NZ$40,000+ ABC1 KR4,400 HK$30,000+ RMB2600+


Viewers paying for TV, watch more TV

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The Asia Pacific Regional Audience"Intend to buy in the next 12 months”

82 86 79

90

122 125 132

117

US$500+Ave Spend on Cosmetic,Fragrance &

Aftershave

Laptop / Notebook* SLR Digital camera* LCD/Plasma TV*

Terrestrial TV Only Multichannel TV

Source: Synovate PAX Q3 2010 to Q2 2011 PAX Average Base Index: 100. Viewed Yesterday

“Intend to buy in the next 12 months”

Elites and Affluents Who Watched TV Yesterday (Index)

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The Multichannel audience is more affluent and more prepared to spend

Multichannel TV Viewers are

more receptive to advertising

Viewers Who Strongly Agree That...

Elites and Affluents Who Watched TV Yesterday

61.2

94.4 85.2

139

117 126

12+ Int'l Air Trips In Past 12 Months

21+ Nights Spent In Hotels In Past 12 Months

Travel By Business Class or First Class Most Often

Terrestrial TV Only Multi-channel TV

Source: Synovate PAX Q3 2010 to Q2 2011 PAX Average Base Index: 100. Viewed Yesterday

Elites and Affluents Who Watched TV Yesterday

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Index Multichannel TV viewers are your best customers

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The New Lexicon

Internet-connected TV: Television systems (typically HDTV) that display some or more Internet content, such as TVs networked to broadband enabled set-top boxes, media centres, PCs or other consumer devices. These systems are often interactive via wireless keyboard, mouse or even voice activation.

Social Television: Technology that supports communication and interaction while watching television, or social media interaction related to TV content. (It can also refer to the study of television-related social behavior.)

TV Everywhere: Premium content (movies, TV shows etc) are accessible online via a variety of display devices including PC, mobile and TV, usually on a subscription basis.

Live TV Prompts Online Conversation

Source: thinkbox UK : Far from killing off television as predicted, the internet, thanks to social networks, has helped to keep TV at the heart of home entertainment. As a result, TV advertising has cemented its status at the heart of consumer marketing.

Live social media conversations about TV programmes, through the likes of Twitter and Facebook, add value to ads running in the programmes.

The short, emotive words used makes social conversations ideal for sentiment analysis and can reveal a great deal of insight into consumers’ views and opinions.

Television companies and advertisers that embrace this will be the ones to succeed and prosper.

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TV, Online and ‘Second Screening’The growth of connected devices will soon add a new dimension to what the industry has come to know as TV advertising. Traditional TV won’t lose its share of ad spend; instead additional revenue will come from the various new channels that ads can appear on. Connected TVs offer brands the ability to connect the massive offline spend with the rapidly emerging online video market. TV advertising is about to merge with the exciting and innovative medium that is online. This will be happening in living rooms throughout the world.

Source : ‘Adjust Your Set ‘ 2011

Non TV Media Perform Better With TV Support

TV has a ‘halo’ effect which improves the

performance of other advertising

Non TV Media TV Alone Either Media Plus

TV

Aided Brand Awareness 59 100 135

0

20

40

60

80

100

120

140

160 Indexed on TV

Source: Millward Brown

Social Media ‘Social TV’ allows viewers to instantly comment on favourite shows via the web or mobile phone. Mobile internet users communicate in real-time during broadcasts. Now ‘second screening’ is common place and young people are happy to add to the TV experience and use one to enhance their enjoyment of the other.

“Until 12 months ago, TV was struggling to reach the younger market as more and more channels were becoming available. Social TV has changed this completely by turning programmes into online events where you have to watch them as they happen”.

Reggie James: founder Digital Clarity

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Cost of PiracyCASBAA’s annual “Cost of Multichannel TV Piracy” survey estimates several major forms of piracy. However, as of now there is no accurate way to measure the huge role played by online piracy. Governments and Industry need to work together to change consumer behavior.

Piracy breakdownPiracy breakdown

1360

412

252

103

14

Grey Market Estimation

Illegal Distributors

Individual Connections

Subscriber Under-declaration

Satellite Overspill

2 Source: Casbaa

US$ Millions

Source: CASBAA

Cost of PiracyCost of Piracy

1539

1,754

1,9422,088 2,142

0

500

1000

1500

2000

2500

2007 2008 2009 2010 2011

US$ Millions

1 Source: Casbaa

Source: CASBAA

Estimated Tax Losses from Multichannel TV Piracy 2011

Estimated Tax Losses From Pay TV Piracy 2011

94

65

3530

17

0

25

50

75

100

Thailand Pakistan Philippines Taiwan Indonesia

US$ Millions

3 Source: PwC

Source:

Investment and enforcement can cure “traditional” forms of piracy, but the fastest-growing challenge is online piracy, which remains uncountable. Governments need to update their legal regimes to staunch the torrent of revenue leakage.

• Major investments in encryption and CA technology by Multichannel TV providers have made many systems far more secure.

• Some Southeast Asian governments are beginning to address Multichannel TV theft at the commercial level.

• Digitization of the remaining analogue markets is a high priority. Completion of addressable digitization in major Indian cable markets would be a major boost.

However, ongoing antipiracy efforts by industry, and by governments who want to protect their creative industries, are necessary. Regional governments must attack the problem of transnational criminal syndicates operating internet key sharing networks.

News, publications and data provision

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Decode the world of multichannel TV

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Asia Pacific Multichannel TV 2012 - ChinaGoAbroad€¦ · Welcome to the latest CASBAA update on the trends in Multichannel TV distribution, audience numbers . and viewership profiles