Telecommunication, Technology & Media - April, 2007

Pay-TV Operators Still Circumspect about Mobile Content

Pay-television market players in Asia have started to see real returns in recent years. New digital services like interactive TV, mobile content and Internet Protocol television (IPTV) are generating huge interest and hype, with technological progress being made all the time and the boundaries between traditional media segments becoming more and more blurred.


In the digital space, Asia's pay-television operators expect interactive TV to generate better financial returns than mobile content over the next two years, according to a recent GIA Asia Pacific survey of 44 companies across the region. 

Interactive TV includes video-on-demand and movies-on-demand and is becoming especially popular in countries like India and Pakistan where there is strong demand for new and premium movies.


Several pay-TV companies in Malaysia, Taiwan, Indonesia, Philippines, Hong Kong and Australia disagree however, saying that mobile content will be the next big thing. "Indonesia has a large installed base of mobile phone users and a competitive mobile operator environment. I believe this creates a potential for large uptake of video to mobile phone services" said one Jakarta-based operator.

In Korea, with its extremely high Internet penetration, operators are betting on IPTV as the big winner, and it is gaining traction in Taiwan as well.

As yet the business models that will capture real revenue remain largely unknown, in what will eventually be a multi-billion dollar digital business.



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