PAY-TV DISTRIBUTION The Future of Pay-TV & Fixed Broadband in Asia

November 2018

ASIA PACIFIC

Executive Director, Research & Consulting Vivek Couto VPs, Research & Consulting Aravind Venugopal Stephen Laslocky Mihir Shah Senior Analysts Adrian Tong AR Srivathsan Analysts Jambi Reyes Matti Reinikainen Milan Ashar Abhinav Pattarkine Research Assistants Myrna Dignadice Swati Rathod Karen Teo VP, Content Mike Savage Creative Director Frances Chan Creative Designer Ian Wong VP, Business Development & Sales Jeffrey To VP, Client Services Lavina Bhojwani Client Services Executive Usman Tasawar Company Directors Rupert Wilkinson, Vivek Couto

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Asia Pacific Pay-TV Distribution 2018 III

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Executive Summary 1-41Methodology & Definitions 2-3Overview 4-8Asia Pacific Pay-TV Ecosystem: Moderating Growth Across Most Markets 7Pay-TV Industry Subscriber Growth 7Pay-TV Industry ARPU Growth 7Pay-TV Industry Revenue Growth 7Net Pay-TV Adds, Asia Pacific Ex-China 8Net Pay-TV Adds, Asia Pacific Ex-China and Ex-India 8Focusing On The Shift From Household to Individual 8Market Projections 9-28Total Households (000) 9TV Homes (000) 9TV Penetration of Total Households (%) 9Pay-TV Subs (000) 10Net Pay-TV Adds (000) 10Pay-TV Penetration of TV Homes (%) 10Pay-TV Subs (includes customers that subscribe to multiple platforms) (000) 11Pay-TV Penetration of TV Homes (includes customers that subscribe to multiple platforms) (%) 11Digital Pay-TV Subs (000) 11Digital Pay-TV Penetration of TV Homes (%) 12Digital Pay-TV Subs (includes customers that subscribe to multiple platforms) (000) 12Digital Pay-TV Penetration of TV Homes (incl. customers that subscribe to multiple platforms) (%) 12Digital Penetration of Total Pay-TV Subs (%) 13Digital Penetration of Total Pay-TV Subs (includes customers that subscribe to multiple platforms) (%) 13HD Pay-TV Subs (000) 13HD Pay-TV Penetration of TV Homes (%) 14HD Penetration of Total Digital Pay-TV Subs (%) 14Pay-TV DVR Subs (000) 14Pay-TV DVR Penetration of Total Digital Pay-TV Subs (%) 15Cable TV Subs (000) 15Cable TV Penetration of TV Homes (%) 15Digital Cable TV Subs (000) 16Digital Cable TV Penetration of TV Homes (%) 16Digital Cable TV Penetration of Total Cable TV Subs (%) 16DTH Satellite Subs (000) 17DTH Satellite Penetration of TV Homes (%) 17IPTV Subs (000) 17IPTV Penetration of TV Homes (%) 18Cable TV Share of Total Pay-TV Subs (%) 18DTH Satellite Share of Total Pay-TV Subs (%) 18IPTV Share of Total Pay-TV Subs (%) 19Digital Cable TV Share of Digital Pay-TV Subs (%) 19DTH Satellite Share of Digital Pay-TV Subs (%) 19IPTV Share of Digital Pay-TV Subs (%) 20Total Pay-TV Industry Revenue (US$ mil.) 20Pay-TV Subscription Revenue (US$ mil.) 20Pay-TV Monthly ARPU (US$) 21

Asia Pacific Pay-TV Distribution 2018 IV

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Net Pay-TV Advertising Revenue (US$ mil.) 21Analog Pay-TV Subscription Revenue (US$ mil.) 21Digital Pay-TV Subscription Revenue (US$ mil.) 22SD Pay-TV Subscription Revenue (US$ mil.) 22HD Pay-TV Subscription Revenue (US$ mil.) 22VAS Subscription Revenue (US$ mil.) 23Pay-TV On-Demand (VOD+PPV+NVOD) Revenue (US$ mil.) 23Pay-TV VOD Revenue (US$ mil.) 23Pay-TV DVR Revenue (US$ mil.) 24Pay-TV PPV/NVOD Revenue (US$ mil.) 24Fixed Broadband Subs (000) 24Fixed Broadband Penetration of Total Households (%) 25Cable Broadband Subs (000) 25ADSL Broadband Subs (000) 25FTTx Broadband Subs (000) 26Cable Share of Fixed Broadband Subs (%) 26ADSL Share of Fixed Broadband Subs (%) 26FTTx Share of Fixed Broadband Subs (%) 27Fixed Broadband Monthly ARPU (US$) 27Fixed Broadband Subscription Revenue (US$ mil.) 27Total Pay-TV + Fixed Broadband Industry Revenue (US$ mil.) 28Market Rankings 29-41Pay-TV Subs (000) 29Pay-TV Penetration of TV Homes (%) 29Pay-TV Subs (includes customers that subscribe to multiple platforms) (000) 29Pay-TV Penetration of TV Homes (includes customers that subscribe to multiple platforms) (%) 30Digital Pay-TV Subs (000) 30Digital Pay-TV Penetration of TV Homes (%) 30Digital Pay-TV Subs (includes customers that subscribe to multiple platforms) (000) 31Digital Pay-TV Penetration of TV Homes (includes customers that subscribe to multiple platforms) (%) 31Digital Penetration of Total Pay-TV Subs (%) 31Digital Penetration of Total Pay-TV Subs (includes customers that subscribe to multiple platforms) (%) 32Cable TV Subs (000) 32Cable TV Penetration of TV Homes (%) 32Digital Cable TV Subs (000) 33Digital Cable TV Penetration of TV Homes (%) 33Digital Cable TV Penetration of Total Cable TV Subs (%) 33DTH Satellite Subs (000) 34DTH Satellite Penetration of TV Homes (%) 34IPTV Subs (000) 34IPTV Penetration of TV Homes (%) 35Cable TV Share of Total Pay TV Subs (%) 35DTH Satellite Share of Total Pay TV Subs (%) 35IPTV Share of Total Pay TV Subs (%) 36Total Pay-TV Industry Revenue (US$ mil.) 36Pay-TV Subscription Revenue (US$ mil.) 36Pay-TV Monthly ARPU (US$) 37Pay-TV Net Advertising Revenue (US$ mil.) 37

Asia Pacific Pay-TV Distribution 2018 V

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Analog Pay TV Sub Revenue (US$ mil.) 37Digital Pay TV Sub Revenue (US$ mil.) 38Fixed Broadband Subs (000) 38Fixed Broadband Penetration of Total Households (%) 38Cable Broadband Subs (000) 39ADSL Broadband Subs (000) 39FTTx Broadband Subs (000) 39Cable Share of Fixed Broadband Subs (%) 40ADSL Share of Fixed Broadband Subs (%) 40FTTx Share of Fixed Broadband Subs (%) 40Fixed Broadband Monthly ARPU (US$) 41Fixed BB Subscription Revenue (US$ mil.) 41

Regional Cable TV & Broadband Operators 42-61Sector Highlights 43-44Asia Pacific Broadband Cable TV Development: A Summary 44Asia Pacific Cable TV Subscriber Development 44Leading Operators 45-49Leading Asia Pacific Cable Operators:

Ranked by Cable TV Subs (June 2018) 45Ranked by Digital Cable TV Subs (June 2018) 46Ranked by Fixed Broadband Subs (June 2018) 47Ranked by Cable TV ARPU (June 2018) 47Ranked by Fixed Broadband ARPU (June 2018) 48Ranked by Revenue 48Ranked by EBITDA 49Ranked by EBITDA Margin 49

Market Projections 50-55Cable TV Subs (000) 50Cable TV Penetration of TV Homes (%) 50Digital Cable TV Subs (000) 50Digital Cable TV Penetration of TV Homes (%) 51Digital Cable Penetration of Total Cable TV Subs (%) 51Cable TV Share of Total Pay-TV Subs (%) 51Digital Cable TV Share of Digital Pay-TV Subs (%) 52HD Cable Subs (000) 52Total Cable TV Revenue (US$ mil.) 52Cable TV Monthly ARPU (US$) 53Cable TV Subscription Revenue (US$ mil.) 53Cable TV Share of Total Pay-TV Subscription Revenue (%) 53Cable Broadband Subs (000) 54Cable Share of Fixed Broadband Subs (%) 54Cable Broadband Subscription Revenue (US$ mil.) 54Total Cable Industry Sub Revenue (US$ mil.) 55Market Rankings 56-58Cable TV Subs (000) 56Cable TV Penetration of TV Homes (%) 56Digital Cable TV Subs (000) 56

Asia Pacific Pay-TV Distribution 2018 VI

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Digital Cable TV Penetration of TV Homes (%) 57Digital Cable TV Penetration of Total Cable TV Subs (%) 57Cable Broadband Subs (000) 57Cable Broadband Monthly ARPU (US$) 58Regional Cable Operators 59-61

Regional DTH Satellite Pay-TV Operators 62-74Sector Highlights 63-64Asia Pacific Broadband DTH Development: A Summary 63Leading DTH Markets by pay-TV subscribers by 2023 (excl. China) 64Leading DTH Markets by revenue by 2023 (excl. China) 64Leading Operators 65-67Leading Asia Pacific DTH Operators:

Ranked by DTH Subs (June 2018) 65Ranked by DTH ARPU (June 2018) 65Ranked by Revenue 66Ranked by EBITDA 66Ranked by EBITDA Margin 67

Market Projections 68-71DTH Satellite Subs (000) 68DTH Satellite Penetration of TV Homes (%) 68DTH Satellite Share of Total Pay-TV Subs (%) 69DTH Satellite Share of Digital Pay-TV Subs (%) 69HD DTH Subs (000) 69Total DTH Satellite Revenue (US$ mil.) 70DTH Satellite Monthly ARPU (US$) 70DTH Satellite Subscription Revenue (US$ mil.) 70DTH Satellite Share of Total Pay-TV Subscription Revenue (%) 71DTH Satellite Net Advertising Revenue (US$ mil.) 71Market Rankings 72DTH Satellite Subs (000) 72DTH Satellite Penetration of TV Homes (%) 72DTH Satellite Share of Total Pay TV Subs (%) 72Regional DTH Operators 73-74

Regional IPTV & Broadband Operators 75-91Sector Highlights 76-77Asia Pacific Broadband Pay-TV Development: A Summary 76Leading IPTV Markets by 2023 77Leading Telco Fixed Broadband Markets (ADSL+FTTx) by 2023 77Leading Operators 78-79Leading Asia Pacific IPTV Operators:

Ranked by IPTV Subs (June 2018) 78Ranked by Fixed Broadband Subs (June 2018) 78Ranked by IPTV ARPU (June 2018) 79

Market Projections 80-86IPTV Subs (000) 80IPTV Penetration of TV Homes (%) 80

Asia Pacific Pay-TV Distribution 2018 VII

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IPTV Share of Total Pay-TV Subs (%) 80IPTV Share of Digital Pay-TV Subs (%) 81HD IPTV Subs (000) 81Total IPTV Revenue (US$ mil.) 81IPTV Monthly ARPU (US$) 82IPTV Subscription Revenue (US$ mil.) 82IPTV Share of Total Pay-TV Subscription Revenue (%) 82IPTV Net Advertising Revenue (US$ mil.) 83ADSL Broadband Subs (000) 83FTTx Broadband Subs (000) 83ADSL Share of Fixed Broadband Subs (%) 84FTTx Share of Fixed Broadband Subs (%) 84ADSL Monthly ARPU (US$) 84FTTx Monthly ARPU (US$) 85ADSL Subscription Revenue (US$ mil.) 85FTTx Subscription Revenue (US$ mil.) 85Total Telco Broadband (Broadband+IPTV) Industry Revenue (US$ mil.) 86Market Rankings 87-89IPTV Subs (000) 87IPTV Penetration of TV Homes (%) 87IPTV Share of Total Pay TV Subs (%) 87ADSL Broadband Subs (000) 88FTTx Broadband Subs (000) 88ADSL Share of Fixed Broadband Subs (%) 88FTTx Share of Fixed Broadband Subs (%) 89ADSL Monthly ARPU (US$) 89FTTx Monthly ARPU (US$) 89Regional IPTV Operators 90-91

Regional Broadcasters 92-119Overview 93-96Key Territories: Pay-TV Channel & Content Providers, Revenue Impact 94Leading Pay-TV Broadcasters in Asia Pacific 94Pay-TV Channel Economics 95Leading Markets for Pay-TV Channels in Asia Pacific 96Pay-TV Channel Subscription Fees: Leading Markets, 2023 96Leading Local Advertising Markets, 2023 96Market Analysis 97-110Market Projections 111-113Asia Pacific Pay-TV Channels:

Total Revenue (US$ mil.) 111Subscription Revenue (US$ mil.) 111Advertising Revenue (US$ mil.) 112Advertising Revenue Portion of Total Channel Revenue (US$ mil.) 112Subscription Revenue Portion of Total Channel Revenue (%) 113Total Average Monthly Revenue Per Sub (US$) 113Share of Total Pay-TV Industry Subscription Revenue (%) 113

Regional Broadcasters 114-119

Asia Pacific Pay-TV Distribution 2018 VIII

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Regional Digital & Interactive 120-156Sector Highlights 121-122Asia Pacific Digital Pay-TV Projections 122Asia Pacific Digital Pay-TV Penetration: Key Metrics 122Market Analysis 123-138Market Projections 139-145Digital Pay-TV Subs (000) 139Digital Pay-TV Penetration of TV Homes (%) 139Digital Pay-TV Subs (includes customers that subscribe to multiple platforms) (000) 139Digital Pay-TV Penetration of TV Homes (incl. customers that subscribe to multiple platforms) (%) 140Digital Penetration of Total Pay-TV Subs (%) 140Digital Penetration of Total Pay-TV Subs (incl. customers that subscribe to multiple platforms) (%) 140HD Pay-TV Subs (000) 141HD Pay-TV Penetration of TV Homes (%) 141HD Penetration of Total Digital Pay-TV Subs (%) 141Pay-TV DVR Subs (000) 142Pay-TV DVR Penetration of Total Digital Pay-TV Subs (%) 142Digital Cable TV Subs (000) 142DTH Satellite Subs (000) 143IPTV Subs (000) 143Digital Cable TV Penetration of TV Homes (%) 143Digital Cable Penetration of Total Cable TV Subs (%) 144DTH Satellite Penetration of TV Homes (%) 144IPTV Penetration of TV Homes (%) 144Digital Pay-TV Subscription Revenue (US$ mil.) 145HD Pay-TV Subscription Revenue (US$ mil.) 145VAS Subscription Revenue (US$ mil.) 145Market Rankings 146-151Digital Pay-TV Subs (000) 146Digital Pay-TV Penetration of TV Homes (%) 146Digital Pay-TV Subs (includes customers that subscribe to multiple platforms) (000) 146Digital Pay-TV Penetration of TV Homes (incl. customers that subscribe to multiple platforms) (%) 147Digital Penetration of Total Pay-TV Subs (%) 147Digital Penetration of Total Pay-TV Subs (incl. customers that subscribe to multiple platforms) (%) 147HD Pay-TV Subs 148HD Pay-TV Penetration of TV Homes (%) 148HD Pay-TV Penetration of Digital Pay-TV Subs (%) 148DVR Pay-TV Subs (000) 149DVR Pay-TV Penetration of Digital Pay-TV Subs (%) 149Digital Cable TV Subs (000) 149Digital Cable TV Penetration of TV Homes (%) 150Digital Cable TV Penetration of Total Cable TV Subs (%) 150DTH Satellite Subs (000) 150DTH Satellite Penetration of TV Homes (%) 151IPTV Subs (000) 151IPTV Penetration of TV Homes (%) 151Digital Technology Providers 152-156

Asia Pacific Pay-TV Distribution 2018 IX

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Regional Broadcasting & Pay-TV Finance 157-163Sector Highlights 158-159Asia Pacific Broadband Pay-TV Operator Valuations 158Asia Pacific Pay-TV & Broadband Operators by Market Value 159Asia Pacific Pay-TV & Broadband Operators - Stock Price Performance (YTD 2018) 159Sector Analysis 160-163Leading Asia Pacific Pay-TV Operators:

Ranked by Revenue 160Ranked by EBITDA 160Ranked by EBITDA Margin 160Ranked by Revenue 161Ranked by EBITDA 161Ranked by EBTIDA Margin 161

Asia Pacific Pay-TV & Broadcasting Bonds (2017 & 1H 2018) 162Asia Pacific Pay-TV & Broadcasting Loans (2017 & 1H 2018) 162Asia Pacific Pay-TV & Broadcasting IPOs (2017 & 1H 2018) 163Asia Pacific Pay-TV & Broadcasting M&A (2017 & 1H 2018) 163

Regional Regulation 164-168Sector Analysis 165-166Regulatory Bodies 167-168

Australia 169-179Operating Indicators 170Market Highlights 171Broadband Pay-TV Industry Economics 171Market Analysis 172-173Key Pay-TV & Broadband Companies: Operating Indicators 174Foxtel 174Fetch TV 174Telstra 174Optus 174TPG Telecom 174Key Pay-TV & Broadband Companies: Financial Indicators 174Foxtel 174Fetch TV 174Pay-TV & Broadband Market Model: Historicals & Forecasts 175-179

Asia Pacific Pay-TV Distribution 2018 X

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China 180-192Operating Indicators 181Market Highlights 182Broadband Pay-TV Industry Economics 182Market Analysis 183-185Key Pay-TV & Broadband Companies: Operating Indicators 186Shanghai Oriental Pearl Media (BesTV) 186Wasu 186Oriental Cable 186Shenzhen Topway 186Beijing Gehua 186China Cable Network 186China Telecom 186China Unicom 186China Mobile 186Key Pay-TV & Broadband Companies: Financial Indicators 187Shanghai Oriental Pearl Media (BesTV) 187Wasu Media 187Beijing Gehua 187Shenzhen Topway 187China Telecom 187China Unicom 187China Mobile 187Pay-TV & Broadband Market Model: Historicals & Forecasts 188-192

Hong Kong 193-203Operating Indicators 194Market Highlights 195Broadband Pay-TV Industry Economics 195Market Analysis 196-197Key Pay-TV & Broadband Companies: Operating Indicators 198i-Cable 198PCCW 198Hong Kong Broadband Network (HKBN) 198Key Pay-TV & Broadband Companies: Financial Indicators 198i-Cable 198PCCW (PCCW Media only) 198Pay-TV & Broadband Market Model: Historicals & Forecasts 199-203

India 204-221Operating Indicators 205Market Highlights 206Broadband Pay-TV Industry Economics 206Market Analysis 207-214

Asia Pacific Pay-TV Distribution 2018 XI

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Key Pay-TV & Broadband Companies: Operating Indicators 215Hathway Cable & Datacom 215Den Networks 215IndusInd Media & Communications (IMCL) 215Siti Networks 215GTPL Hathway 215You Broadband India Private Limited 215Dish TV Videocon 215Tata Sky 215Sun Direct TV (P) Ltd 215Bharti Telemedia (Airtel Digital TV) 215Key Pay-TV & Broadband Companies: Financial Indicators 216Hathway Cable & Datacom 216Den Networks 216Siti Networks 216GTPL Hathway 216IndusInd Media & Communications (IMCL) 216Dish TV Videocon 216Tata Sky 216Sun Direct TV (P) Ltd 216Bharti Telemedia (Airtel Digital TV) 216Pay-TV & Broadband Market Model: Historicals & Forecasts 217-221

Indonesia 222-232Operating Indicators 223Market Highlights 224Broadband Pay-TV Industry Economics 224Market Analysis 225-226Key Pay-TV & Broadband Companies: Operating Indicators 227MNC Vision 227LinkNet 227Transvision 227Indihome 227Key Pay-TV & Broadband Companies: Financial Indicators 227MNC Vision 227LinkNet 227Pay-TV & Broadband Market Model: Historicals & Forecasts 228-232

Asia Pacific Pay-TV Distribution 2018 XII

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Japan 233-243Operating Indicators 234Market Highlights 235Broadband Pay-TV Industry Economics 235Market Analysis 236-237Key Pay-TV & Broadband Companies: Operating Indicators 238J:COM 238Sky Perfect JSAT 238Nippon Telegraph and Telephone Corp. (NTT) 238KDDI 238Softbank Group 238Key Pay-TV & Broadband Companies: Financial Indicators 238J:COM 238Sky Perfect JSAT 238Pay-TV & Broadband Market Model: Historicals & Forecasts 239-243

Korea 244-255Operating Indicators 245Market Highlights 246Broadband Pay-TV Industry Economics 246Market Analysis 247-248Key Pay-TV & Broadband Companies: Operating Indicators 249CJ Hello 249D'Live 249HCN 249Tbroad 249KT SkyLife 249KT 249SK Telecom 249LG U+ 249Key Pay-TV & Broadband Companies: Financial Indicators 249KT SkyLife 249CJ Hello 249HCN 249KT Media Group 249Pay-TV & Broadband Market Model: Historicals & Forecasts 250-255

Malaysia 256-265Operating Indicators 257Market Highlights 258Broadband Pay-TV Industry Economics 258Market Analysis 259-260Key Pay-TV & Broadband Companies: Operating Indicators 261Astro Malaysia 261Telekom Malaysia 261

Asia Pacific Pay-TV Distribution 2018 XIII

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Key Pay-TV & Broadband Companies: Financial Indicators 261Astro Malaysia 261Pay-TV & Broadband Market Model: Historicals & Forecasts 262-256

Myanmar 266-269Operating Indicators 267Market Highlights 267Market Analysis 268-269

New Zealand 270-281Operating Indicators 271Market Highlights 272Broadband Pay-TV Industry Economics 272Market Analysis 273-274Key Pay-TV & Broadband Companies: Operating Indicators 275Sky Network TV 275Spark 275Vodafone New Zealand 275Key Pay-TV & Broadband Companies: Financial Indicators 275Sky Network TV 275Pay-TV & Broadband Market Model: Historicals & Forecasts 276-281

Pakistan 282-289Operating Indicators 283Market Highlights 284Broadband Pay-TV Industry Economics 284Market Analysis 285Key Pay-TV & Broadband Companies: Operating Indicators 286PTCL 286WorldCall Telecom 286Pay-TV & Broadband Market Model: Historicals & Forecasts 287-289

Philippines 290-301Operating Indicators 291Market Highlights 292Broadband Pay-TV Industry Economics 292Market Analysis 293-294Key Pay-TV & Broadband Companies: Operating Indicators 295Cignal TV 295Globe Telecom 295PLDT 295SkyCable 295Key Pay-TV & Broadband Companies: Financial Indicators 295Cignal TV 295SkyCable 295Pay-TV & Broadband Market Model: Historicals & Forecasts 296-301

Asia Pacific Pay-TV Distribution 2018 XIV

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Singapore 302-310Operating Indicators 303Market Highlights 304Broadband Pay-TV Industry Economics 304Market Analysis 305Key Pay-TV & Broadband Companies: Operating Indicators 306Starhub 306Singtel 306M1 306MyRepublic 306Key Pay-TV & Broadband Companies: Financial Indicators 306Starhub 306Singtel (Singapore) 306M1 306Pay-TV & Broadband Market Model: Historicals & Forecasts 307-310

Sri Lanka 311-320Operating Indicators 312Market Highlights 313Broadband Pay-TV Industry Economics 313Market Analysis 314-315Key Pay-TV & Broadband Companies: Operating Indicators 316Dialog TV 316Sri Lanka Telecom 316Key Pay-TV & Broadband Companies: Financial Indicators 316Dialog TV 316Sri Lanka Telecom 316Pay-TV & Broadband Market Model: Historicals & Forecasts 317-320

Taiwan 321-332Operating Indicators 322Market Highlights 323Broadband Pay-TV Industry Economics 323Market Analysis 324-325Key Pay-TV & Broadband Companies: Operating Indicators 327China Network Systems (CNS) 327Kbro 327Taiwan Broadband Communications (TBC) 327Taiwan Mobile 327Chunghwa 327Key Pay-TV & Broadband Companies: Financial Indicators 327China Network Systems (CNS) 327Kbro 327Taiwan Broadband Communications (TBC) 327Taiwan Mobile 327Chunghwa 327Pay-TV & Broadband Market Model: Historicals & Forecasts 328-332

Asia Pacific Pay-TV Distribution 2018 XV

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Thailand 333-343Operating Indicators 334Market Highlights 335Broadband Pay-TV Industry Economics 335Market Analysis 336-337Key Pay-TV & Broadband Companies: Operating Indicators 338AIS 338Jasmine 338True Corp. 338Key Pay-TV & Broadband Companies: Financial Indicators 338True Visions (True Corp.) 338True Online (True Corp.) 338Pay-TV & Broadband Market Model: Historicals & Forecasts 339-343

Vietnam 344-355Operating Indicators 345Market Highlights 346Broadband Pay-TV Industry Economics 346Market Analysis 347-349Analysis of Key Pay-TV & Broadband Companies: Operating Indicators 350VSTV (K+) 350SCTV 350VTV Cable 350MobiTV 350MyTV 350Vietnam Posts and Telecommunications Group (VNPT) 350FPT Telecom 350Viettel Telecom 350Pay-TV & Broadband Market Model: Historicals & Forecasts 351-355

Pay-TV & Broadband Packs: Australia 356-360Pay-TV Prices & Packs 357Fetch TV 357-358Foxtel 359Internet Prices & Packs 360Optus 360Telstra 360 Pay-TV & Broadband Packs: China 361-367Pay-TV Prices & Packs 362-367Oriental Cable Network 362-365Shenzhen Topway 366-367

Asia Pacific Pay-TV Distribution 2018 XVI

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Pay-TV & Broadband Packs: Hong Kong 368-378Pay-TV Prices & Packs 369-377i-Cable Communications 369-375Now TV (PCCW) 376-377Internet Prices & Packs 378HKBN 378PCCW 378 Pay-TV & Broadband Packs: India 379-493Pay-TV Prices & Packs 380-486Airtel Digital TV (Bharti Telemedia Ltd) 380-385Dish TV India 386-395Hathway Cable & Datacom 396-426Siti Networks 427-464Sun Direct TV 465-468Tata Sky 469-474Videocon D2H 475-486Internet Prices & Packs 487-493ACT Fibernet 487Den Boomband (Den Networks) 488Hathway Cable & Datacom 488Siti Networks 489You Broadband 490-493

Pay-TV & Broadband Packs: Indonesia 494-508Pay-TV Prices & Packs 495-507First Media (LinkNet) 495-499Indihome (Telkom) 500-503MNC Vision 504-507Internet Prices & Packs 508First Media (LinkNet) 508IndiHome (Telkom) 508MyRepublic 508 Pay-TV & Broadband Packs: Japan 509-522Pay-TV Prices & Packs 510-521Hikari TV (Nippon Telegraph and Telephone Corp.) 510-511J:COM TV (Jupiter Telecommunications) 512-515Sky PerfecTV! (Sky Perfect Communications) 516-521Internet Prices & Packs 522J:COM Net (Jupiter Telecommunications) 522 Pay-TV & Broadband Packs: Korea 523-535Pay-TV Prices & Packs 524-534CJ HelloVision 524-528Olleh TV Skylife 529-534Internet Prices & Packs 535CJ Hello 535SK Broadband 535

Asia Pacific Pay-TV Distribution 2018 XVII

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Pay-TV & Broadband Packs: Malaysia 536-544Pay-TV Prices & Packs 537-543Astro 537-541HyppTV (Telekom Malaysia) 542-543Internet Prices & Packs 544Telekom Malaysia 544

Pay-TV & Broadband Packs: New Zealand 545-547Pay-TV Prices & Packs 546Sky Network TV 546Internet Prices & Packs 547Spark 547Vodafone 547

Pay-TV & Broadband Packs: Philippines 548-564Pay-TV Prices & Packs 549-563Cignal TV 549-556SkyCable 557-563Internet Prices & Packs 564PLDT 564Globe Telecom 564

Pay-TV & Broadband Packs: Singapore 565-575Pay-TV Prices & Packs 566-574Singtel 566-569StarHub 570-574Internet Prices & Packs 575Singtel 575StarHub 575 Pay-TV & Broadband Packs: Sri Lanka 576-579Pay-TV Prices & Packs 577-579Dialog TV 577-579 Pay-TV & Broadband Packs: Taiwan 580-593Pay-TV Prices & Packs 581-591China Network Systems 581-582Chunghwa Telecom 583-586Kbro 587-588Taiwan Broadband Communications 589-591Internet Prices & Packs 592-593China Network Systems 592Chunghwa Telecom 592Kbro 592Taiwan Broadband Communications 593

Asia Pacific Pay-TV Distribution 2018 XVIII

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Pay-TV & Broadband Packs: Thailand 594-600Pay-TV Prices & Packs 595-599AIS Playbox (AIS) 595TrueVisions (True Corp.) 596-599Internet Prices & Packs 600AIS 600TrueOnline (True Corp.) 600

Pay-TV & Broadband Packs: Vietnam 601-612Pay-TV Prices & Packs 602-612SCTV 602-605K+ (VSTV) 606-607MyTV (VNPT) 608-612

EXECUTIVE SUMMARY

Methodology & Definitions 2-3

Overview 4-6

Asia Pacific Pay-TV Ecosystem: Moderating Growth Across Most Markets 7-8Pay-TV Industry Subscriber Growth 7Pay-TV Industry ARPU Growth 7Pay-TV Industry Revenue Growth 7Net Pay-TV Adds, Asia Pacific Ex-China 8Net Pay-TV Adds, Asia Pacific Ex-China and Ex-India 8Focusing On The Shift From Household to Individual 8

Market Projections 9-28

Market Rankings 29-41

Asia Pacific Pay-TV Distribution 2018 2

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Methodology & Definitions

Media Partners Asia (MPA) analysis and forecasts are based on a number of factors, including: (1) Surveys and interviews with the main pay-TV distribution platforms in 17 Asia Pacific markets; (2) Interviews with other key groups in the industry value chain (including broadcasters, investors, regulators and technology suppliers); (3) Proprietary databases managed by MPA, collating historical information as well as analysis of households, incomes, geographical pay-TV and broadband distribution patterns and industry profitability, together with key metrics for distribution and content.

MPA defines pay-TV as the distribution of TV channels for a subscription fee, often combined with ancillary services, including high definition (HD) TV, video-on-demand (VOD), pay-per-view (PPV), near video-on-demand (NVOD) and digital video recorders (DVRs). Such services are distributed over analog and digital cable, direct-to-home (DTH) satellite and via closed network IP-enabled DSL and fiber (FTTx) broadband, as well as, in certain instances, digital terrestrial TV (DTT).

MPA calculates pay-TV penetration by number of TV households subscribing to at least one pay-TV service, with some homes subscribing to more than one (e.g. cable and IPTV). Illegal pay-TV subscribers are excluded from our numbers. Our analysis of cable distribution typically focuses on distribution of pay-TV channels. Therefore, pure terrestrial retransmission-based cable homes are excluded, most notably in Japan. We also exclude free-to-air (FTA) digital satellite networks, most notably in India, Indonesia, Malaysia and Thailand, as well as OTT online video, including subscription-based VOD (SVOD) services.

Broadband subscriptions comprise: (1) Fixed broadband access, which covers cable modem, retail ADSL, VDSL and FTTx technologies (including fiber-to-the-home, fiber-to-the-building and fiber-to-the-curb); (2) Mobile, which includes 3G, 3.5G/HSDPA, WiMax or its equivalent, and LTE (long-term evolution) networks. Fixed broadband connections are typically defined as having download internet speeds of 512Kbps or more.

MPA’s measurement of pay-TV advertising is stated in net terms (i.e. after discounts and excluding agency commission). Our analysis covers gross and net numbers from Nielsen, GroupM and ZenithOptimedia, as well as key local groups (CEASA in Australia, SAIC in China, Dentsu in Japan, the Korea Advertisers Association). We also base our analysis on numbers from: dominant operators in markets such as Australia, Hong Kong, Indonesia, Malaysia, New Zealand, the Philippines, Singapore and Thailand; dominant channel providers in markets such as India, Japan, Korea and Taiwan; key pan-regional and local channel brands.

MPA’s analysis of subscription revenues accrued by channel suppliers and content providers is a direct reflection of how much pay-TV distribution networks spend on programming, based on fixed and variable fees. These fees consist of: (1) Investment in internal and turnaround TV channels; (2) Rights agreements for sports and movies; (3) Content origination and self-produced channels; (4) Investment in VOD content.

A number of terms and acronyms are used across the report. Descriptions and definitions are provided below:

ARPU Average revenue per userCAS Conditional access system, commonly used to encrypt pay-TV transmissionDTH Direct-to-home satelliteDVR Digital video recorderDTT Digital terrestrial TVxDSL Digital subscriber lines, which use modulation to pack data onto copper wiresFTA Free-to-air TVFTTx Fiber-to-the-x, referring to broadband network architecture that uses optical fiber to provide last mile high- speed internet communication

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LCO Local cable operatorLTE Long-Term Evolution, a standard for high-speed wireless communication for mobile phonesMSO Multi-system cable operatorOTT Over-the-top, which describes data sent via an open network rather than via a closed networkPPV Pay-per-viewSTB Set-top box, commonly used in pay-TV transmissionSVOD Subscription-based video-on-demand, delivered via open (i.e. OTT) networksTVOD Transaction-based video-on-demandUHD Ultra-high definition TV (includes the 4K and 8K standards in this report)VAS Value-added services (includes all forms of VOD and PPV as well as DVR services in this report)VOD Video-on-demand

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Overview

The Asia Pacific pay-TV industry is in slow, secular decline. Key stakeholders are adjusting to new realities as the industry shifts to IP-based distribution and the role of high speed broadband becomes pervasive. As a result, the growth of online video distribution is driving fundamental changes in content consumption and investment across key markets. This, together with piracy, will continue to adversely impact traditional pay-TV industry growth. At the same time, linear pay-TV channels are securing distribution across online video or OTT platforms in Southeast Asia, Japan and Korea. This trend may accelerate in the future, as product bundles and aggregators become reimagined.

Broadly, fixed broadband and pay-TV penetration are converging and fixed broadband will actually overtake pay-TV in the home across Asia Pacific by 2021, a trend that will also occur in emerging markets such as Indonesia. Furthermore, the gap between mobile broadband and pay-TV & fixed broadband is widening, thereby further altering industry dynamics as mobile emerges as a major means for mass content distribution and accelerates the shift in content consumption from household to individual.

Key themes and trends across Asia Pacific pay-TV & fixed broadband include:

» Subscriber growth. Media Partners Asia (MPA) analysis indicates that total pay-TV subs in Asia Pacific will grow by 3% in 2018 to reach 645 mil. This represents 57% penetration of total TV homes, adjusted for multiple subscriptions in a home. MPA projections indicate that total Asia Pacific pay-TV subs will grow at a CAGR of 2% between 2018-23 to reach ~696 mil. by 2023, representing 55% penetration, adjusted for multiple subscriptions.

Adjusted pay-TV penetration will decline largely due to China with the growth of cable cord cutting accelerating and an increasing proportion of cable households subscribing to IPTV concurrently. IPTV in China is pervasive because of its competitive bundled offerings with fixed broadband and mobile plans. Between 2015 and 2017, IPTV in China added more than 75 mil. subs. We estimate it will add another 26 mil. in 2018 and momentum will thereafter remain robust as China adds another 50 mil. IPTV subs over the next five years.

However, China remains a utility-oriented pay-TV market with limited access for commercial pay channels and international investors.

Ex-China, net customer additions across Asia Pacific will significantly slow from 10.4 mil. in 2017 to 6.5 mil. in 2018. India will account for 47% of net annual Asia-China pay-customer TV additions in 2018, followed by Indonesia (12%), Philippines (12%), Korea (10%), Pakistan (7%) and Sri Lanka (3%).

Ex-China, MPA projections indicate that total pay-TV subs will grow from 267 mil. in 2018 to 288 mil. by 2023, representing a CAGR of 2% with adjusted penetration remaining flat at 57%.

While still robust, net new customer additions are slowing in India across cable & satellite platforms with a sharp slowdown across DTH satellite in particular due to market consolidation. In Korea, IPTV growth is significant, offsetting cord cutting across cable & DTH satellite.

In markets such as Indonesia and Philippines, pay-TV and telecom operators have aggressively discounted ARPUs and bundled pay-TV with home broadband services to maintain a growth trajectory – examples include Cignal and Gsat on DTH in the Philippines and Telkom in Indonesia. This is likely unsustainable in Indonesia as customers have started to subscribe to OTT & broadband / voice bundles as opposed to pay-TV & broadband bundles.

For more information please contactlavina@media-partners-asia.com