일반산업
Review of Pay-TV market and CATV growth
2010-06-07KIM, Nam-Hoon
목차
요약
ARPU is being improved by increased licence fees and digitalization, but
profitability is continuously falling
Digitalization is not rapid, and despite improved ARPU, profitability gradually continues to fall
In order to overcome a slowdown in growth momentum caused by subscriber saturation and competitive service, CATV digitalization is underway, but its competitive service, IPTV, has delayed SO(Service Operator)’s digitalization
The net number of subscribers which reached 90,000 on average on a monthly basis in 2008 fell to 70,000 in 2009. In particular, in the second half of 2009, marketing efforts strengthened by telecommunications service providers has led a decrease in potential demand
Nonetheless, MSO’ licence fee raise and increased number of digital TV households has led to continuous sales increase. However, profitability has fallen due to a slowdown in high speed internet growth and advertising profit increase and program fee raise.
Besides, considering that facility investment amounts to 40% of the average annual sales per SO, profitability improvement will be limited
Without rapid change in CATV, a slowdown in growth and profitability would
be unavoidable
Rapid growth of IPTV subscribers and successful satellite broadcasting has created a negative impact on the position of CATV SO
The number of IPTV subscribers was 470,000 in the first half of 2009, but sharply increased by 1.27million to 1.74 million at the end of 2009 due to bundle products marketing strengthened by telecommunications service providers. Accordingly, IPTV growth exceeded CATV digitalization growth
The net growth which reached 300,000 on a monthly basis has sharpy fell to 50,000 per month due to telecommunications service providers’ focus on smartphone marketing. However, since they can make use of bundle products and capital power to increase their subscribers, SO’s position will be weaker
Proactive measures against bundle products of competitive companies and scale-up are required
Since telecommunications service providers are moving faster than SOs through bidirectionality based IPTV’s open contents environment and IPTV coverage expansion in combination with satellite broadcasting, contents and stable service provision are not gradually considered as SO’s competitive edge any more.
In addition, as there are risks to caused by regulation changes such as possible change of IPTV tariff approval and possible advance into the market by newspapers and telecommunications service providers due to arrival of a comprehensive cable channel, scale-up through M&A is required
The introduction of a comprehensive cable channel has a positive impact on CATV MSO and telecommunications service providers in terms of securing contents.
Telecommunications service providers, SO consortium and newspapers will join the selection of a comprehensive cable channel provider,
but newspapers/telecommunications service providers are likely to be selected
in terms of industry vitalization
ARPU improvement will continue, but bundle products based price competition will lead to profitability drop
A form of TV viewing will not change easily, but VOD based convenience and bidirectional capability will increase the market penetration of IPTV. Accordingly, CATV should create a growth engine and improve profitability through its combination with non
profitability is continuously falling
Digitalization is not rapid, and despite improved ARPU, profitability gradually continues to fall
In order to overcome a slowdown in growth momentum caused by subscriber saturation and competitive service, CATV digitalization is underway, but its competitive service, IPTV, has delayed SO(Service Operator)’s digitalization
The net number of subscribers which reached 90,000 on average on a monthly basis in 2008 fell to 70,000 in 2009. In particular, in the second half of 2009, marketing efforts strengthened by telecommunications service providers has led a decrease in potential demand
Nonetheless, MSO’ licence fee raise and increased number of digital TV households has led to continuous sales increase. However, profitability has fallen due to a slowdown in high speed internet growth and advertising profit increase and program fee raise.
Besides, considering that facility investment amounts to 40% of the average annual sales per SO, profitability improvement will be limited
Without rapid change in CATV, a slowdown in growth and profitability would
be unavoidable
Rapid growth of IPTV subscribers and successful satellite broadcasting has created a negative impact on the position of CATV SO
The number of IPTV subscribers was 470,000 in the first half of 2009, but sharply increased by 1.27million to 1.74 million at the end of 2009 due to bundle products marketing strengthened by telecommunications service providers. Accordingly, IPTV growth exceeded CATV digitalization growth
The net growth which reached 300,000 on a monthly basis has sharpy fell to 50,000 per month due to telecommunications service providers’ focus on smartphone marketing. However, since they can make use of bundle products and capital power to increase their subscribers, SO’s position will be weaker
Proactive measures against bundle products of competitive companies and scale-up are required
Since telecommunications service providers are moving faster than SOs through bidirectionality based IPTV’s open contents environment and IPTV coverage expansion in combination with satellite broadcasting, contents and stable service provision are not gradually considered as SO’s competitive edge any more.
In addition, as there are risks to caused by regulation changes such as possible change of IPTV tariff approval and possible advance into the market by newspapers and telecommunications service providers due to arrival of a comprehensive cable channel, scale-up through M&A is required
The introduction of a comprehensive cable channel has a positive impact on CATV MSO and telecommunications service providers in terms of securing contents.
Telecommunications service providers, SO consortium and newspapers will join the selection of a comprehensive cable channel provider,
but newspapers/telecommunications service providers are likely to be selected
in terms of industry vitalization
ARPU improvement will continue, but bundle products based price competition will lead to profitability drop
A form of TV viewing will not change easily, but VOD based convenience and bidirectional capability will increase the market penetration of IPTV. Accordingly, CATV should create a growth engine and improve profitability through its combination with non