OTT opportunities emerge in South Asia as 2Mbps+ broadband subs set to double by 2017

MUMBAI: Apple finally opened its iTunes Store in India in December, joining services such as BigFlix, NyooTV, Eros Now, hungama and DittoTV from Zee New Media. In Malaysia, pay-TV provider Astro has launched Astro-on-the-Go to compete with TonTon, Maaduu, DETV and Fine TV.

But will flagging broadband speeds prove an insurmountable barrier for the development of OTT in the region? To answer this question, Farncombe undertook a study of the broadband markets in five key SEA developing countries: India, Indonesia, Malaysia, Philippines, Thailand and Vietnam. Farncombe analysed fixed and mobile broadband service offers, technologies, nominal and actual bitrates and pricing plans.

The company is a professional services firm offering technical and strategic support across all digital media sectors, with a focus on TV. Farncombe‘s study shows that around 30 per cent of the existing fixed broadband residential subscriptions offer speeds that are equal to or higher than 2Mbps - the threshold required by many OTT service providers for delivering video content to connected devices, including TVs.

The company forecasts that this percentage will reach almost 50 per cent by the end of 2017 - with more than 25m fixed broadband connections ? 2Mbps across the six countries by then. India will lead, accounting for 28 per cent of the households in this segment, followed by Vietnam and Thailand.

Farncombe‘s research shows that ADSL technology will remain the dominant fixed broadband technology in the region, but its share will drop from 84 per cent in 2012 to 65 per cent in 2017.

Cable (especially in India) and FTTx will gradually increase their presence in the main cities and will increase with CAGR 2013-17 of 31 per cent and 36 per cent respectively. Wireless Broadband Access (mostly WiMax) and other technologies (e.g. Satellite, Ethernet, etc. ) will remain niche alternatives with limited market shares.

Malaysia emerges in top position in terms of FTTx connections across the six SEA territories, with the average download bitrates increasing at a CAGR of 25 per cent in the final three years to 2017. However, the average bitrates in India, Indonesia and Vietnam are increasing at a CAGR of less than 10 per cent , bringing the average regional speed up to just 1.5Mbps by the end of last year.

Most fixed broadband plans now include unlimited usage, unlike mobile packages, which are typically ‘capped‘ - an issue that still inhibits OTT usage over mobile broadband. Farncombe compared fixed and mobile broadband costs by looking at how much each charged ‘per Mbps‘, taking into account actual bitrates and mobile usage caps. The company found that on average mobile broadband users would have to cap their monthly use at 1-3Gb to obtain the same ‘per Mbps‘ price-performance as a fixed plan.

Similar results were derived across all six markets, demonstrating that despite the significant increase in mobile broadband users - which we expect to reach nearly 0.5 billion subscribers by 2017 with a CAGR of 37% across the six countries - fixed broadband remains a much more cost-effective choice for video use.

As competing two-way platforms will require substantial up-front investment, especially for countries with challenging landscapes like India, Indonesia and the Philippines, OTT platforms can offer significant opportunities for players in these regions to reach audiences and capture market share more cost-effectively and with tighter launch-schedules.

Latest Reads
Pune Times joins hands with the Pune Police to launch the 'City Safe' app, as part of #MakeMyCitySafe initiative

Pune Times, city supplement of leading media house, The Times of India, has joined hands with Pune Police to support an initiative for women’s safety in the city. Pune Times has launched its campaign #MakeMyCitySafe as a big shout out to the youth of Pune to come together to make the city safer...

Technology Software Applications
HAL Robotics ropes in Navanit Samaiyar as board member and advisor

MUMBAI: HAL Robotics has roped in Navanit Samaiyar as its board member and advisor. Samaiyar has a record of setting up, scaling and transforming businesses across a very wide cross section of industries spanning from IT/ ITeS to steel, telecom, engineering goods, earthmoving machinery, logistics...

Technology Hardware Components
Republic TV launches Android app

MUMBAI: Republic TV is on a roll. From rocking the ratings chart in launch week itself to going international, the channel has added one more accomplishment to its kitty. The Republic TV Android app is now live.

Technology Software Applications
STB cos in India, China enhancing features, providing customised solutions, Technavio enlists top vendors

MUMBAI: The global STB market is characterised by intense competition as the market is saturated in developed countries. The market share of these players is declining because of the entry of new players. The STB companies are enhancing the features of STBs and providing customised solutions to...

Technology Hardware Set-top Boxes
India's PFT Clear Media ERP suite to help US' PBS content delivery

MUMBAI: Prime Focus Technologies (PFT), the technology arm of Prime Focus, announced that its CLEAR™ Media ERP Suite has been selected by Public Broadcasting Service (PBS) to enhance their Network Operations Center (NOC) ecosystem efficiencies and sustainability, with the objective of reducing...

Technology Software Applications
Broadcasters, OTTs to gain as Via adds xHE-AAC at special rate

MUMBAI: Via Licensing Corporation, a intellectual property solutions provider, has announced the upcoming availability of Extended High Efficiency AAC (xHE-AAC) as part of the Advanced Audio Coding (AAC) patent pool. The expanded patent pool licence will be available at no additional cost to...

Technology Software Applications
Tata Comm to deliver Motorsport videos on global devices

MUMBAI: Tata Communications will now deliver video content for viewers' all devices over its global network. The two have partnered to power the growth of the network’s internet television platforms.

Technology Software Applications
How to create live video content sans pros, convert radio broadcast into visual show

MUMBAI: ChyronHego will be showcasing its live production, automation solutions at Broadcast India show in Mumbai in mid-October.

Technology Software Applications
Sony renews IP licence deal with TiVo

MUMBAI: TiVo Corporation, a leader in entertainment technology and audience insights, has announced that Sony Corporation, a leader in consumer electronics, has renewed its multi-year intellectual property (IP) licence agreement. The license to TiVo’s patent portfolios covers all of Sony’s...

Technology Software Applications

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories