Asia-Pacific Primed For Digital Take-Off

Simon Murray, editor of the report, said: “Digital penetration has been held back by weak economies, but also by interfering governments. Many governments especially the Chinese one, are taking a proactive approach to converting analogue signals to digital. However, some governments continue to interfere, thus scaring companies away from investment in digital platforms.”

At the end of the last calendar year, there were 10.4 million homes in the Asia Pacific region receiving digital signals. This is 4 million more than at the end of 2002 and the number is set to multiply in coming years. By 2005, there will be some 30 million digital homes rising to 127 million in 2010.

DTV projections Japan remains the region’s leading digital power, accounting for 46% of all switched-on homes in 2003. However, the vast population and technological advances in China will ensure that it attains primacy by 2010. Informa estimates that by the end of the decade, China, India and Japan will account for 80% of digital households in Asia Pacific (102 million subscribers).

Despite the impressive numbers, it should be acknowledged that penetration levels remain low. It is projected that only 21% of Asia Pacific households will receive digital signals by 2010. Digital penetration will only be higher than 50% of TV households in six of the region’s countries, with South Korea leading the way with 65%.

The study claims that there will be 605 million TV households in Asia Pacific by 2010, an increase of 120 million since 1995. Of this total, 43% will subscribe to cable (analogue and digital), 3% to digital DTH packages, 1% to DSL entertainment and 2% will receive DTT signals. This implies that 49% of TV households will only take analogue terrestrial signals, more evidence of the growth potential of digital in the region.

Subscription revenues Digital providers and governments clearly have much to do to ensure that the TV landscape of Asia Pacific resembles that of North America and Western Europe. However, digital developments between now and 2010 are bound to have a significant effect on subscription income with an increasing number of households willing to pay for the wider choice offered by non-analogue platforms.

Informa predicts that subscription revenues will almost double between 2003 and 2010. Japan, China, India and South Korea are expected to account for 84% of the $33 billion total.