Multichannel markets in the Asia Pacific region are currently experiencing an investment phase, marked by aggressive digitization efforts, rapid adoption of emerging IP technologies and relaxing government regulations. Though poverty and piracy remain formidable market barriers, digital technologies are poised to fuel subscriber population growth while boosting per household revenue potential.

A new survey from Kagan Research, ASIA PACIFIC MULTICHANNEL MARKETS 2005, forecasts that the top 13 Asia Pacific countries' aggregate multichannel subscriber base will grow from 188 mil. in 2004 to 356 mil. by 2015, driven primarily by a high-growth Chinese market. Other industry statistics and projections, based on relevant macro data and Kagan's respected 10-year forecasting model, include:

-- The region's consolidated multichannel penetration is expected to rise from 32.7% of TVHHs in 2004 to 54.4% in 2015, a 4.8% compound annual growth rate (CAGR).

-- Multichannel revenues are forecast to grow from $13.1 bil. in 2004 to $38.0 bil. in 2015, a 10.1% CAGR.

-- IPTV platforms are expected to develop in nine of the region's 13 countries, increasing subscriber share from less than 0.3% in 2004 to 9.4% in 2015. IPTV revenue share is projected to rise from 0.7% in 2004 to 12.9% in 2015.

-- Total digital terrestrial TV (DTT) HHs are forecast to rise from 3.6 mil. in 2004 to 87.7 mil. by 2015, a 33.9% CAGR.

According to Kagan, the Asia Pacific region hosts the most dynamic multichannel markets in the world. "The door to Asia media market investment is wide open. The region hosts a powerful mixture of favorable market conditions as large untapped consumer populations meet strong adoption of emerging digital media systems. Our analysis indicates significant opportunities exist for both local and foreign media firms to develop Asia pay-TV economies from both an infrastructure and programming position," said Ben Reneker, Kagan analyst and head of the company's international research team.

ASIA PACIFIC MULTICHANNEL MARKETS 2005 also addresses the challenge of pay-TV affordability in developing Asian economies. To compare affordability between countries, Kagan uses an exclusive Multichannel Affordability Metric. The analysis concludes that multichannel services are currently most affordable in China and South Korea -- leading to widespread adoption by the masses; while in Thailand and Indonesia affordability barriers reserve the services for wealthy citizens only.

The table below shows Kagan's affordability metrics for the region in 2005. The published report forecasts multichannel affordability through 2015, integrating macro economic analysis with multichannel market maturity.

                            Kagan Research
               Multichannel Affordability Metric (2005)
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               RANK     COUNTRY                     (%)
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               1        China                     0.40%
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               2        South Korea               0.60%
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               3        Taiwan                    0.80%
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               4        Hong Kong                 1.20%
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               5        Singapore                 1.20%
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               6        India                     1.30%
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               7        Australia                 1.50%
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               8        Japan                     1.90%
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               9        New Zealand               2.40%
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               10       Philippines               2.70%
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               11       Malaysia                  2.90%
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               12       Thailand                  3.20%
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               13       Indonesia                 7.20%
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               Copyright 2005 Kagan Research LLC

ASIA PACIFIC MULTICHANNEL MARKETS 2005 assesses the state and future of 13 key Asia Pacific multichannel markets and provides investors with exclusive market forecasts (2005 - 2015) of subscribers, revenues and ARPU for DTH, Cable, Fixed-wireless, IPTV, FTA-DTT and pay DTT platforms -- the most comprehensive evaluation of the fastest-growing media markets in the world.

Selected market assessments and forecasts found in this new study will also be presented at Kagan's TRENdS 05 Digital Media Summit to be held September 12 and 13 at the Four Seasons Hotel in Las Vegas.

For Table of Contents and more information on ASIA PACIFIC MULTICHANNEL MARKETS 2005 visit www.kagan.com.