Fixed line operators and service providers in the Asia Pacific region passed two significant milestones in June, as IPTV-enabled households topped ten million and the number of homes subscribing to digital TV surpassed 150 million.

Despite global macro-economic difficulties, the latest figures from analysts at Informa Telecoms & Media show that during 2009 more than 35 million homes in the region upgraded from analog to digital TV, while 26 million new homes subscribed to pay TV, comprising 14 million to cable, nine million to DTH and three million to IPTV.

According to Adam Thomas, media research manager at Informa, these sectors will continue to grow impressively over the next five years. “By 2015 there will be well over 400 million digital TV homes, including 40 million taking IPTV, which in turn will generate revenues of more than $40bn,” Thomas said. “There are increasingly positive signs for digital TV in the region. Competition between the platforms is intensifying and this is pushing digital upgrades up the agenda of many operators.”

Informa forecasts that a 21 per cent digital TV penetration rate at end-2009 will increase to 54 per cent in the Asia Pacific region by the end of 2015, when digital penetration will have reached 100 per cent in four markets – Australia, Hong Kong, New Zealand and Singapore. Another four markets are also expected to have achieved a penetration rate of 70 per cent or more by 2015 – Japan, Malaysia, South Korea and Taiwan.

“While globally IPTV has failed to make any real impact it does remain important in the Asia Pacific region,” said Thomas. “We expect IPTV subscribers to grow by 25 million over the next five years, which means that it will become a significant rival to cable and DTH in some markets, notably via SingTel’s Mio TV in Singapore and Korea Telecom’s Qook in South Korea.”

But despite this generally positive picture, Informa predicts that digital upgrades will not be easy to achieve in some markets. “In the cable sector in particular, subscribers are taking some convincing of the need to upgrade from analogue to digital. Although there is good news in China where the government’s proactive approach to converting analogue to digital is promoting upgrades,” Thomas added.

Digital TV penetration (%)

Source: Informa Telecoms & Media

Hong Kong, November 23-24, 2010