APOS INDUSTRY VIEW Vivek Couto Executive Director & Co-Founder, MPA 27 April, 2016
The State Of The Industry: Now & The Future 2% 11% 22% 31% 47% CAGR 9% 39% CAGR 6% 51% 51% 47% 2011 2016 2021 US$77 bil. US$119 bil. US$157 bil. Free To Air Revenue Pay-TV Revenue Online Video Revenue 2
By 2021, Digital Will Start Eating Into Traditional TV Share 80 7.3% 70 60 50 US$ bil. 40 30 1.5% 20 9.6% 6.2% 3.6% 5.1% 10 0 2016 2021 2016 2021 2016 2021 2016 2021 2016 2021 2016 2021 China Japan India SEA Australia Korea TV Digital CAGR 2016-21 3
Video Industry s Share Of Incremental Revenue Shifting To Digital Free To Air 6% Incremental Revenue of US$38 bil. (2016-2021) Pay-TV 36% Digital 58% 4
China Heavy Skew To Digital Free To Air 2% Incremental Revenue of US$21 bil. (2016-2021) Pay-TV 18% Digital 80% 5
Japan FTA Still Strong, But Digital To Gain Long Term Free To Air 12% Incremental Revenue of US$2 bil. (2016-2021) Pay-TV 18% Digital 70% 6
Australia SVOD and Online Video Set Pace Free To Air 15% Incremental Revenue of US$2 bil. (2016-2021) Pay-TV 30% Digital 55% 7
Korea Convergence Of Pay-TV & Internet TV Free To Air 2% Incremental Revenue of US$2 bil. (2016-2021) Pay-TV 68% Digital 30% 8
Southeast Asia FTA s Pipeline Into Content Remains Firm Free To Air 37% Incremental Revenue of US$4 bil. (2016-2021) Pay-TV 45% Digital 18% 9
India Pay-TV Retains Long Term Prospects Free To Air 1% Incremental Revenue of US$6 bil. (2016-2021) Pay-TV 82% Digital 17% 10
Fixed Broadband Networks Haves And Have Nots 110% NGN Drives Broadband Growth Fixed Broadband Penetration of Households 90% 70% 50% 30% 10% NGN Yet To Scale -10% 2016 2021 2016 2021 2016 2021 2016 2021 2016 2021 2016 2021 2016 2021 2016 2021 2016 2021 2016 2021 Singapore Korea Japan China Vietnam Malaysia Thailand Philippines Indonesia India Legacy Next Gen Cable (Docsis 3.1 + FTTx) 11
Mobile Broadband To Drive Digital Video Growth 200% 180% Wireless Broadband Penetration of Population 160% 140% 120% 100% 80% 60% 40% 20% 0% 2016 2021 2016 2021 2016 2021 2016 2021 2016 2021 2016 2021 2016 2021 2016 2021 2016 2021 2016 2021 Korea Singapore Thailand Japan China Vietnam Malaysia Indonesia India Philippines 12
The True Cost Of SVOD To The Consumer 50 45 40 35 30 US$ 25 20 15 10 5 0 Japan Korea Singapore Malaysia Thailand Indonesia Vietnam Philippines India China SVOD ARPU Wireless Broadband ARPU Pay-TV ARPU 13
China & Social Media Driving The Digital Sector US$35 bil. US$8 bil. US$5 bil. Total APAC Online Video Industry (2021) Ex-China (2021) Ex- Facebook and YouTube (2021) 14
Key Themes 15
The Role Of Telcos 16
Telco Bundle: Content Commoditization, Or a Long Term Hedge? 6-18 months of iflix subscription with IndiHome subscription I get content when I want it, I am happy to pay for it OR Free Netflix subscription with Optus s broadband plans Why pay for content when I can get it for free? Uula subscription at Y467/ month for Softbank subscribers 17
Evolution Of Packages 18
Evolution of Packages: 2000s Basic Package Extended Basic Package Premium Package Big bundles used to drive premium uptake, ARPUs 19
Evolution of Packages: 2010-2013 Extended Basic Package Mini Basic Package Extended Basic Package 1 Premium Package Mini Basic Package 1 Extended Basic Package 2 Premium Package Mini Basic Package 2 Extended Basic Package 3 Premium Package Extended Basic Package 4 Extended Basic Package 5 Customization and flexibility were key driving factors for subscriber acquisition and differentiation, but induced complexities 20
Evolution of Packages: 2015-2016 Mini Packages OTT Packages Broadband Packages Upsell Skinny bundles starting to take off Shift selected genres to OTT Premium Package Focus on broadband 21
Build & They Will Come? 22
The Online Video Sector Already A Crowded Space Pay-TV Operators Telcos B2C Leaders Content Creators/Broadcasters 23
The Emergence Of Super App/OTT Aggregators 24
The Emergence of Super App/OTT Aggregators Amazon Prime aggregates video content from 24 different video services Wynx movies aggregates video content from 5 different video services 25
Capturing Millennial Audiences 26
Capturing Millennial Audiences The Search For a Scalable Strategy Monetisation strategy Content creation strategy Platforms to use Monetization currently limited. Talent looking to other avenues to generate revenues 27
Role Of Social Media 28
Social Media Long Term Ambitions In Video 29
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