INDIA & SAARC PAY TV: A Growth Market

Presenter: Waseem HaiderSenior Market Analyst

www.dataxis.com

INDIA & SAARC PAY TV:

A Growth Market

Free Webinar - 5th April 2017

5th April 2017 2

AGENDA

� Presentation of Dataxis▪ Research & BI Tools ▪ Events & Media Services▪ NexTV News India

� SAARC Overview▪ Demographics▪ Pay TV Subscriber and Revenue Growth 2012-16

� SAARC Pay TV Markets: Wrap-up 2016▪ India ▪ Pakistan▪ Bangladesh▪ Sri Lanka▪ Nepal▪ Myanmar

� SAARC Pay TV Markets: Forecasts 2021▪ Pay TV Subscriber and Revenues Forecasts 2016-21

� Conclusion▪ Opportunities and Trends

India & SAARC Pay TV: A Growth Market

5th April 2017 3

Presentation of Dataxis

Research

BI Tool and Knowledge center


Our Analytics and Database services provide detailed country,operator, vendor, application and technology with levelquarterly data and annual forecasts to complement theopinion of our analysts.� Television� Media and Entertainment� Telecom

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5th April 2017 4

Presentation of Dataxis

Events

Media Services


NexTV Series Latin Amercia:Brazil – April 19th 2017South America – Jun 14th & 15th 2017Mexico & Central America – Oct 3rd & 4th 2017Colombia & Andrean – Nov 30th 2017

NexTV Series India & SAARC:Mumbai – April 18th 2017

NexTV Series Central Europe:Berlin – Dec 6th & 7th 2017

NexTV CEO Latin America:Miami – Nov 1st, 2nd 3rd 2017

NexTV CEO Africa:Mauritius – May 10th, 11th & 12th 2017

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5th April 2017 5

NexTV News India

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5th April 2017 6

SAARC OVERVIEW


5th April 2017 7

SAARC: A growth market with only 65% TV penetration

Households and TV Households in SAARC Countries (2016)

� TV penetration is low in most of the SAARC countries compared to developed markets of APAC.

� FTA (DTH or DTT) TV access is quite underdeveloped in SAARC countries, expect to some extent in Indiabecause of government Freedish DTH offer.


5th April 2017 8

SAARC: Opportunity for growth in high GDP per capita countries

� Many SAARC countries still have room for growth in Pay TV market especially Sri Lanka andMyanmar. India and Nepal can increase the overall TV penetration.

TV Penetration rate and GDP per Capita (PPP) in SAARC Countries (2016)


11189

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TV Penetration Pay TV Penetration GDP per Capita (PPP)

5th April 2017 9

SAARC: Double digit growth in almost all SAARC countries

� Pay TV subscriber has grown from 137 million to 210 million during 2012-16 at a 9% CAGR.All the SAARC markets are showing double digit growth in subscriber numbers.


2012 2013 2014 2015 2016

Sri Lanka 387 491 660 954 1130

Nepal 1490 1703 1900 2108 2310

Myanmar 470 620 760 920 1080

Pakistan 11330 12300 13090 14410 17850

Bangladesh 5000 6200 7900 9200 10450

India 118000 129000 142110 154000 177000

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PAY TV SUBSCRIBER GROWTH 2012-16

India Bangladesh Pakistan Myanmar Nepal Sri Lanka

5th April 2017 10

SAARC: Pay TV Revenues of US$ 8 billion in 2016

� Pay TV revenues have grown with a double digit growth for all the SAARC countries.

� India has contributed almost >80% revenues at US$ 6.7 billion in 2016, of the total SAARC pay TV revenues.


2012 2013 2014 2015 2016

Sri Lanka 0.03 0.04 0.05 0.06 0.07

Nepal 0.03 0.03 0.04 0.05 0.06

Myanmar 0.03 0.07 0.09 0.09 0.10

Pakistan 0.48 0.50 0.57 0.64 0.77

Bangladesh 0.14 0.18 0.24 0.31 0.39

India 4.43 4.71 5.33 5.83 6.76

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PAY TV REVENUES 2012-2016 (in US$)

India Bangladesh Pakistan Myanmar Nepal Sri Lanka

5th April 2017 11

INDIA


India

5th April 2017 12

India: DTH players best placed in cities with low cable penetration

� DTH subscribers have grown at a CAGR of 18% between 2012-16. A small spike in subs additions is due tosubscriber’s gain for DTH players albeit smaller than expected because of digitization.

� Three of India’s six DTH players represent almost 65% of the DTH active subscriber base. Besides Dish TV,Videocon d2h and Bharti Airtel, other DTH players in India – Reliance, Tata Sky and Sun Direct.


24%

20%20%

36%

Q416 DTH PLAYERS MARKET SHARE (%)

Dish TV Videocon Bharti Airtel Others

5th April 2017 13

India: Digitisation in Phase III & IV cities with low cable penetration

� Cable TV subscribers growth has only been 6% during 2012-16 mainly because of cableoperators focus on digitization.

� DAS III and IV were/are the great opportunities for the Pay TV growth which hardly hasbeen optimised by DTH and /or cable TV players.


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CABLETVSUBSCRIBERGROWTH2012-16

Total Cable (Analogue+Digital) Digital Cable Subs Analogue Cable Subs

5th April 2017 14

India: Opportunity for DTH players to grow revenues

� Pay TV revenues have grown from US$ 4.4 billion in 2012 to US$ 6.8 billion in 2016at a CAGR of 9%.

� Though both DTH and Cable ARPU are showing some marginal growth but still ARPU are verylow in India for example in comparison to Sri Lanka.


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PAYTVREVENUES&ARPU2012-16(inUS$)

DTH Revenues Cable TV Revenues DTH ARPU Cable TV ARPU

5th April 2017 15

PAKISTAN


5th April 2017 16

Pakistan: DTH players expected to grow their subscriber base

� PEMRA* has awarded 3 DTH licences to – Mag Entertainment, Shahzad Sky and StartimesCommunications in beginning of 2016.

� Overall Pay TV subscribers have grown at a CAGR of 10% during 2012-16 reaching almost18 million subs in 2016.

*PEMRA – Pakistan Electronic Media Regulatory Authority


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PAYTVSUBSCRIBERGROWTH2012-16

Cable TV Subs DTH Subs IPTV Subs Analogue Cable Digital Cable

5th April 2017 17

Pakistan: DTH players opportunity to gain revenues in future

� Pay TV revenues have reached US$ 770 million in 2016 at a CAGR of 10% between 2012-16. IPTVrevenues are negligible and DTH is only started in 2016.


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PAYTVREVENUES&ARPU2012-16(inUS$)

Cable TV Revenues IPTV Revenues DTH Revenues

Cable TV ARPU IPTV ARPU DTH ARPU

5th April 2017 18

BANGLADESH


5th April 2017 19

Bangladesh: Era of Digitalization with some promising opportunities

� Mainly a Cable TV market, Bangladesh has got its first DTH player RealVU in Q116, which is part of aJV between Russian GS Group and Beximo Group of Bangladesh.

� Government of Bangladesh has started switchover of analogue Cable subs and is planning todigitalize cable TV by 2020.


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Cable TV Subs DTH Subs Analogue Cable Digital Cable

5th April 2017 20

Bangladesh: Growth potential for digital services

� Pay TV revenues have reached US$ 390 million in 2016 from US$ 140 million in 2012 at a CAGR of 23% and is expected to grow with the new DTH players’ entry.


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Cable TV Subs DTH Subs Analogue Cable Digital Cable

5th April 2017 21

SRI LANKA


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Sri Lanka: Only SAARC country with decent IPTV numbers

� SLT (Sri Lanka Telecom) has launched PEO TV, its IPTV platform in 2008, which is the highest growingplatform in Sri Lanka with a growth rate of 26% during 2012-16.


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DTH Subs Cable TV Subs IPTV Subs Analogue % Digital %

5th April 2017 23

Sri Lanka: A high ARPU market compared to other SAARC countries

� Pay TV revenues in Sri Lanka have grown to more than double during 2012-16 at a CAGR of 20%. Oneof the highest growing market in SAARC.

� Sri Lanka pay TV ARPU are among the highest compared to other SAARC countries which makes SriLanka a potential growth market.


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PAYTVREVENUES&ARPU(inUS$)

DTH Revenues IPTV Revenues Cable TV Revenues

IPTV ARPU DTH ARPU Cable TV ARPU

5th April 2017 24

NEPAL


5th April 2017 25

Nepal: Nepal Digital Cable (NDC) to launch DTH platform

� Nepal has already started the digital switchover in 2016 but is delayed because of theunpreparedness of the cable operators and government. Nepal wanted to be fully digital in 2020.


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5th April 2017 26

Nepal: DTH revenues double digit growth

� Nepal Pay TV revenues doubled during 2012-16, growing at a CAGR of 15%.


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PAY TV REVENUES & ARPU (in US$)

Cable TV Revenues DTH Revenues Cable TV ARPU DTH ARPU

5th April 2017 27

MYANMAR


5th April 2017 28

Myanmar: Canal+ to launch pay TV service with Forever Group

� Myanmar is a special market in SAARC as it has a pay DTT operator besides a pay DTH offer, comingfrom Forever Group (DTT) and SkyNet Group (DTH).


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5th April 2017 29

Myanmar: Revenue growth opportunity with entry of foreign players

Myanmar is one of the most interesting market in SAARC, because of opening of the market forforeign players. Revenues are predicted to grow once new players will start operating.


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DTT Revenues DTH Revenues DTT ARPU DTH ARPU

5th April 2017 30

FORECASTS


5th April 2017 31

Forecasts: Myanmar & Bangladesh among the highest growing

� SAARC Pay TV subscriber growth will be 270 million at a CAGR of 4% in 2021. Myanmar andBangladesh will be the highest growing markets with a 10% CAGR followed by Sri Lanka at 8%.


2016 2017 2018 2019 2020 2021

Others 73 80 86 92 98 104

Myanmar 1080 1230 1380 1530 1720 1930

Nepal 2310 2520 2750 2860 3100 3360

Sri Lanka 1130 1320 1450 1610 1700 1780

Bangladesh 10450 11700 13350 15000 16900 18300

Pakistan 17860 19700 21220 23800 25500 27200

India 177000 181000 189000 197000 210000 215000

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PAYTVSUBSCRIBERFORECASTS2016-21

India Pakistan Bangladesh Sri Lanka Nepal Myanmar Others

5th April 2017 32

Forecasts: Revenues will double to US$ 16 billion during 2016-21

India with US$ 13 billion pay TV revenues in 2021 will contribute almost 80% in the total pay TVrevenues for SAARC.


2016 2017 2018 2019 2020 2021

Nepal 0.06 0.07 0.08 0.10 0.11 0.13

Sri Lanka 0.07 0.09 0.10 0.11 0.12 0.12

Myanmar 0.10 0.12 0.15 0.17 0.21 0.25

Bangladesh 0.39 0.48 0.60 0.76 0.93 1.10

Pakistan 0.77 0.91 1.01 1.13 1.24 1.34

India 6.76 7.74 8.90 10.16 11.38 12.77

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PAYTVREVENUESFORECASTS2017-21(inUS$)

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5th April 2017 33India & SAARC Pay TV: A Growth Market

CONCLUSION

5th April 2017 34

Conclusion: Opportunities and Trends

� Double-digit Growth Market

➢ SAARC pay TV revenues will double in 2021 to US$ 16 billion. Almost all the SAARC countries areshowing double-digit growth during the forecasting period 2016-21.

➢ In-roads of DTH operations in Pakistan and Bangladesh brings some potential opportunities forestablished and new DTH players.

➢ With the overall market size of SAARC Pay TV market increasing, pay TV operators can expect a fairshare of revenues, provided government policies and the industry act together.

� Era of Digitalization

➢ SAARC countries are working/planning digitization of the Pay TV base, which is a big growthopportunity for both existing and new players.

➢ DTH players have an edge in almost all the SAARC countries because of digitization drive and highrural population with low cable penetration.

➢ The ongoing digitization in turn is expected to facilitate a gradual increase in pay TV ARPU in arather low pay TV ARPU markets of SAARC.


5th April 2017 35

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5th April 2017 36

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India & SAARC Pay TV:A Growth Market

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Waseem HaiderSenior Market [email protected]



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INDIA & SAARC PAY TV: A Growth Market

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