Asia Pacific MULTICHANNEL TV ADVERTISING - Asia Video Industry Association

 
Asia Pacific MULTICHANNEL TV ADVERTISING - Asia Video Industry Association
Asia Pacific
MULTICHANNEL TV ADVERTISING

2016
Asia Pacific MULTICHANNEL TV ADVERTISING - Asia Video Industry Association
505
                        P 186C       P 287C        P Pro.Blue C

    About CASBAA
                        CMYK         CMYK          CMYK
                        0/100/95/5   100/75/0/10   80/10/0/20
                        RGB          RGB           RGB
                        224/20/38    0/60/141      0/136/198

    CASBAA is the Asia Pacific region’s largest non-profit media association,
    serving the multi-channel audio-visual content creation and distribution
    industry. Established in 1991, CASBAA has grown with the industry to
    include digital multichannel television, content, platforms, advertising,
    and video delivery. Encompassing some 515 million connections within
    a footprint across the region, CASBAA works to be the authoritative
    voice for multichannel TV; promoting even-handed and market-
    friendly regulation, IP protection and revenue growth for subscription
    and advertising, while promoting global best practices. For more
    information, visit www.casbaa.com

    www.casbaa.com

    CASBAA Executive Office
    802 Wilson House
    19-27 Wyndham Street
                                                                                million
                                                                                MULTICHANNEL HOMES
                                                                                CAN’T BE WRONG.
    Central, Hong Kong
    Tel: 852 2854 9913
    Enquiry: casbaa@casbaa.com

                                                                                www.casbaa.com
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Asia Pacific MULTICHANNEL TV ADVERTISING - Asia Video Industry Association
Executive Summary
                                                          Globally, there are many factors at work    monetization, as advertisers shift
                                                          in reshaping the Pay TV ecosystem,          their spending to online. Initiatives
                                                          including developments in technology,       to improve pay TV measurement in
                                                          changing consumer expectations,             the region are critical, as data-driven
                                                          a proliferation of new content, and         media buying increasingly dominates
                                                          continually shifting advertising            the market. New tools are being
                                                          dynamics.                                   developed to help add contours to the
             Contents                                     The digital revolution is a decade old
                                                                                                      data landscape, but these will require
                                                                                                      collaboration among industry players
                                                          now, and while many Asian markets           in order to be seen by advertisers and
                                                          are still lagging in fixed and wireless     agencies as credible.
                                                          broadband deployments, audiences in
    FAST FACTS .......................................6
                                                          the region are nonetheless following        Times of change are often difficult, and
    GLOBAL OVERVIEW .......................10             global trends. Increasingly, they do not    that is certainly the case in Asia’s pay
                                                          really distinguish between digital and      TV industry today. But by embracing
    ASIA PACIFIC VIEWERS . ................20             traditional media; what they want is        innovation and developing customer-
                                                          flexibility and choice in how and when      centric strategies, we at CASBAA are
    MEASUREMENT GUIDE .................28                 they consume the content they want.         confident our industry can ride out
                                                                                                      whatever turbulence happens to come
    COUNTRY OVERVIEW . ..................34               This is certainly a new Golden Age for      our way.
                                                          TV, with more and better programming
    ADVERTISING REVENUE . ..............43                being produced than ever before,
                                                          both internationally and locally. Risks
    MAKING WAVES WITH OTT ..........63                    are being taken, boundaries pushed,
                                                          and innovation explored, with the very
    ADVERTISING REGULATIONS ......83
                                                          positive consequence that consumer
                                                          demand is fuelled, and the pace of
                                                          change is further accelerating.

                                                          But even with subscription TV’s
                                                          continued growth in the region, there
                                                          are still challenges, particularly around

                                                          CASBAA would like to thank Jane Buckthought, the CASBAA
                                                          Research Committee and the various networks and research
                                                          companies who made this report possible.

4          MULTICHANNEL TV 2016                                                                                                                  5
Asia Pacific MULTICHANNEL TV ADVERTISING - Asia Video Industry Association
Non-Terrestrial TV                                                                                                                            30%
    Connections                                                                                                                99%                  JAPAN

                                                                                                        59%
                                                                                                                                                 15.2 MILLION

    61%
                                                                                                                             SOUTH KOREA
                                                                                                                              24.7 MILLION

                                                                              54%
                                                                                                          CHINA
                                                                                                      265.8 MILLION
                                                                             PAKISTAN
                                                                           11.9 MILLION                       84% 97%
       of homes in Asia                                                                   92%                HONG KONG
                                                                                                              2 MILLION
                                                                                                                                TAIWAN
                                                                                                                              7.9 MILLION
       now receive                                                                        INDIA
                                                                                      149.9 MILLION
       Multichannel TV.
                                                                                                      29% 62%
                                                                                                       THAILAND
                                                                                                      6.9 MILLION
                                                                                                                      VIETNAM
                                                                                                                    13.2 MILLION
                                                                                                                                   20%
                                                                                                                                   PHILIPPINES

                                                                                                           62%
                                                                                                           MALAYSIA
                                                                                                                                   3.3 MILLION

                                                                                                          4.2 MILLION

         FAST FACTS                                                                                           62%
                                                                                                              SINGAPORE
                                                                                                                                            11%
                                                                                                                                         INDONESIA
         POPULATION..........................................3,615,467,000                                   0.95 MILLION                4.6 MILLION
         TOTAL HOMES...........................................946,444,560
         HOUSEHOLD SIZE......................................................3.8
         TELEVISION HOMES.................................834,535,058
         MULTICHANNEL HOMES.........................505,548,304
         INTERNET USERS....................................1,320,205,943

                                                                                                                                     36%
                                                                                                                                     AUSTRALIA
                                                                                                                                     3 MILLION                                56%
                                                                                                                                                                             NEW ZEALAND
    1. Percent of multchannel homes
    2. Millions of connections                                                                                                                                                0.9 MILLION
    3. Thailand government regulations have clarified penetration

6
6                                     MULTICHANNEL TV 2016                                                                                                      FAST FACTS                  7
Asia Pacific MULTICHANNEL TV ADVERTISING - Asia Video Industry Association
Growth of
    Multichannel Homes
                               2015                                                     505

                               2014                                                     501

                               2013                                                     468

                               2012                                                     446

                               2011                                                     407

                               2010                                                     363

                               2009                                                     326

                               2008                                                     291

                               2007                                                     264

                               2006                                                     255

                               2005                                                     228

                               2004                                                     218

                               2003                                                     186

                               2002                                                     181

                                            Millions of homes

    Source: Casbaa, MPA, SNL Kagan, Nielsen, Kantar, GfK,, CSM, TAM India, SKY, Gallup Pakistan, Starhub, Astra, Astro, Video
8
8   Research, TmNS, OzTam, SARFT MULTICHANNEL TV 2016                                                                           9
Asia Pacific MULTICHANNEL TV ADVERTISING - Asia Video Industry Association
ASIA-PACIFIC PAY TV OUTLOOK:
     Making growth waves

     The multichannel industry in the Asia-Pacific region is                                     Multichannel TV Homes Penetration 2016
     positioned for another year of growth, according to SNL                                     568,461,514
     Kagan analysis.
     Aggregate pay TV subscribers from a total of 46 territories are projected to reach
     539.5 million by the end of 2015, penetrating 62.9% of TV households in the region.
     Multichannel video subscription revenue is estimated to reach $36.2 billion by
     the end of 2015, translating to an average $5.59 in monthly video service ARPU.
     Over the next ten years, our model indicates the pay TV population in the region is
     estimated to grow to 777.6 million, generating $74.3 billion in video subscription
     revenue and an ARPU of $7.96 per month.                                                                    112,959,346
                                                                                                                               111,734,228
                                                                                                                                               94,656,383
                                                                                                                                                              77,887,133
     Cable remains the most common multichannel platform in the region, accounting                                                                                         35,357,934
     for an estimated 75.9% of total subscribers and 64.8% of total revenue by the end
     of 2015. While cable’s dominance is expected to last, its share of pay TV subscribers
     and revenue is projected to decline with each passing year as digital direct-to-            ASIA PACIFIC   N. AMERICA     W. EUROPE       E. EUROPE    LATIN AMERICA MIDDLE EAST
                                                                                                                                                            AND CARIBBEAN AND AFRICA
     home and IPTV operators ramp up. By the end of 2015, DTH and IPTV platforms are
     anticipated to grab 12.7% and 11.2%, respectively, of Asia Pacific’s pay TV customers
     and 20.0% and 15.1%, respectively, of pay TV subscription revenue. Pay-digital              India is the single largest DTH satellite multichannel market in the Asia-Pacific region,
     terrestrial television holds a niche position in the region with just 0.1% of subscribers   with an estimated active subscriber base of 45.1 million by the end of 2015, out of
     and revenue. The platform is only available in a handful of markets for pay TV              68.6 million subscribers for the region. Its six licensed operators, namely Dish TV
     delivery, namely Cambodia, Indonesia, Laos, Myanmar, New Zealand and Vietnam                India Ltd., Tata Sky Ltd., Videocon d2h, Sun Direct, Bharti Airtel Ltd. and Reliance
                                                                                                 Communications Ltd., are all among the largest DTH providers in the region. DTH is
     With 255 million cable TV households in China and 102 million in India in 2015, the         the most expensive multichannel platform in the region at an average monthly ARPU
     two markets collectively hold a majority share of Asia Pacific’s cable TV subscribers.      of $9.21 in 2015, compared to $4.86 for cable, $8.09 for IPTV and $6.60 for pay-DTT,
     Regionwide, the cable platform is making aggressive digitization headway, with              according to SNL Kagan analysis. However, DTH ARPU for the Indian market remains
     68.4% of subscribers anticipated to be on a digital connection by the end of 2015.          relatively low at just $3.07 per month. DTH is the dominant multichannel platform in
     Over the coming ten years, our analysis indicates the cable digitization rate will grow     Australia, Indonesia, Malaysia and New Zealand.
     to 93.7%, although it remains a long-term challenge for all markets in the region
     to have fully digitized cable infrastructure. In markets such as Bangladesh, India,
     the Philippines and Thailand, market fragmentation is expected to impede digital
     upgrades due to localized ownership of last-mile networks. Consolidation of local
     small operators into large-scale MSOs is therefore called for to facilitate digitization
     initiatives. In China, for instance, regional cable systems are implementing a
     government-mandated “one province, one network” directive, which has formed
     some of the biggest cable operations in the world.

10                         MULTICHANNEL TV 2016                                                                                                        GLOBAL OVERVIEW                       11
Asia Pacific MULTICHANNEL TV ADVERTISING - Asia Video Industry Association
GLOBAL OVERVIEW
     Asia-Pacific pay tv summary

     ASIA-PACIFIC REGIONAL      UNITS      2015        2016        2017        2018        2019         2020         2021        2022        2023        2024        2025        2015 -
                                                                                                                                                                                 2025
                                                                                                                                                                                 CAGR

     Population                 (000)      3,771,608   3,803,650   3,835,233   3,866,983   3,897,986     3,929,075   3,959,208   3,989,518   4,019,109   4,049,936   4,080,297   0.8%

     HH                         (000)      1,035,070   1,055,297   1,073,854   1,094,184   1,113,670     1,135,353   1,155,993   1,175,643   1,197,357   1,218,498   1,238,531   1.8%

     TVHH                       (000)      858,128     882,718     906,662     931,372     955,987       982,486     1,008,799   1,034,953   1,063,262   1,091,771   1,119,721   2.7%

     DTH Universe

     Total DTH Subs             (000)      68,646      74,574      80,592      86,342      91,884        97,417      102,854     108,266     113,584     118,882     124,136     6.1%

     Total DTH Revenue          ($ mil)    7,231.41    7,786.92    8,351.03    8,966.97    9,598.17      10,272.63   11,021.31   11,841.34   12,714.92   13,605.54   14,558.37   7.2%

     DTH ARPU                   $          9.21        9.06        8.97        8.95        8.98          9.04        9.17        9.35        9.55        9.75        9.98        0.8%

     Cable Universe

     Analog Cable Subs          (000)      129,588     112,452     100,291     87,701      79,562        70,839      61,995      53,324      45,550      39,050      34,312      -12.4%

     Digital Cable Subs         (000)      280,055     312,868     341,488     369,365     392,194       414,070     435,402     457,336     477,245     495,033     509,891     6.2%

     Basic Cable Subs           (000)      409,643     425,319     441,779     457,065     471,757       484,909     497,397     510,660     522,795     534,083     544,204     2.9%

     % Cable Subs Taking        %          68.4%       73.6%       77.3%       80.8%       83.1%        85.4%        87.5%       89.6%       91.3%       92.7%       93.7%       3.2%
     Digital

     Total Cable Revenue        ($ mil)    23,433.89   25,322.81   27,214.15   29,123.46   31,054.24     32,958.82   34,993.30   37,169.37   39,529.63   42,066.31   44,563.51   6.6%

     Blended video service      $          4.86        5.05        5.23        5.40        5.57          5.74        5.94        6.15        6.37        6.63        6.89        3.5%
     ARPU

     Digital Terrestrial
     Universe

     Pay DTT HH                 (000)      747         932         1,098       1,246       1,374         1,496       1,615       1,718       1,819       1,903       1,971       10.2%

     Pay DTT Revenue            ($ mil.)   52.06       68.33       84.66       100.22      114.98        129.42      143.97      158.25      172.57      186.34      198.89      14.3%

     Pay DTT ARPU               $          6.60        6.78        6.95        7.13        7.31          7.51        7.71        7.91        8.13        8.34        8.56        2.6%

                                                                                             Source: SNL Kagan

12                           MULTICHANNEL TV 2016                                                                                                     GLOBAL OVERVIEW                     13
Asia Pacific MULTICHANNEL TV ADVERTISING - Asia Video Industry Association
GLOBAL OVERVIEW
     Asia-Pacific pay tv summary

     ASIA-PACIFIC REGIONAL       UNITS      2015        2016        2017        2018        2019         2020         2021        2022        2023        2024        2025        2015 -
                                                                                                                                                                                  2025
                                                                                                                                                                                  CAGR

     IPTV Universe

     IPTV Subs                   (000)      60,451      67,636      74,103      79,874      84,958        89,503      93,625      97,505      100,847     104,130     107,271     5.9%

     IPTV Revenue                ($ mil.)   5,458.91    6,356.60    7,228.17    8,125.61    9,016.80      9,932.03    10,857.28   11,817.28   12,813.20   13,855.28   14,959.84   10.6%

     IPTV ARPU                   $          8.09        8.27        8.50        8.80        9.12          9.49        9.88        10.30       10.77       11.27       11.79       3.8%

     Total Multichannel HH       (000)      539,487     568,462     597,573     624,527     649,973       673,326     695,491     718,149     739,046     758,998     777,582     3.7%
     Subs

     DTH Share of                %          12.7%       13.1%       13.5%       13.8%       14.1%        14.5%        14.8%       15.1%       15.4%       15.7%       16.0%       2.3%
     Multichannel HH

     Cable Share of              %          75.9%       74.8%       73.9%       73.2%       72.6%        72.0%        71.5%       71.1%       70.7%       70.4%       70.0%       -0.8%
     Multichannel HH

     DTT Share of Multichannel   %          0.1%        0.2%        0.2%        0.2%        0.2%         0.2%         0.2%        0.2%        0.2%        0.3%        0.3%        6.2%
     HH

     IPTV Share of               %          11.2%       11.9%       12.4%       12.8%       13.1%        13.3%        13.5%       13.6%       13.6%       13.7%       13.8%       2.1%
     Multichannel HH

     Subscriber Share Total      %          100.0%      100.0%      100.0%      100.0%      100.0%       100.0%       100.0%      100.0%      100.0%      100.0%      100.0%      0.0%

     Total Multichannel          ($ mil)    36,176.27   39,534.66   42,878.01   46,316.26   49,784.19     53,292.90   57,015.86   60,986.24   65,230.33   69,713.47   74,280.61   7.5%
     Revenue

     DTH Share of                %          20.0%       19.7%       19.5%       19.4%       19.3%        19.3%        19.3%       19.4%       19.5%       19.5%       19.6%       -0.2%
     Multichannel Revenue

     Cable Share of              %          64.8%       64.1%       63.5%       62.9%       62.4%        61.8%        61.4%       60.9%       60.6%       60.3%       60.0%       -0.8%
     Multichannel Revenue

     DTT Share of Multichannel   %          0.1%        0.2%        0.2%        0.2%        0.2%         0.2%         0.3%        0.3%        0.3%        0.3%        0.3%        6.4%
     Revenue

     IPTV Share of Multichannel %           15.1%       16.1%       16.9%       17.5%       18.1%        18.6%        19.0%       19.4%       19.6%       19.9%       20.1%       2.9%
     Revenue

     Revenue Share Total         %          100.0%      100.0%      100.0%      100.0%      100.0%       100.0%       100.0%      100.0%      100.0%      100.0%      100.0%      0.0%

                                                                                              Source: SNL Kagan
14                            MULTICHANNEL TV 2016                                                                                                     GLOBAL OVERVIEW                     15
Asia Pacific MULTICHANNEL TV ADVERTISING - Asia Video Industry Association
GLOBAL OVERVIEW
     Asia-Pacific Leads the Way

     IPTV MARKET SUMMARY                                                                      Total Multichannel TV Homes 2015-2019

     IPTV should have more than 60 million subscribers across Asia-Pacific markets by                    700
     the end of 2015, but is still in nascent stages of development in many territories as
                                                                                                         600
     telecom providers strive to roll out advanced services over DSL or fiber networks.
     In terms of customer base, China leads the charge in the region with 39.5 million                   500
     subscribers estimated for 2015, nearly two-thirds of the regional total, and China
     Telecom is by far the largest multichannel operator in the world with 36.8 million                  400

                                                                                              MILLIONS
     IPTV connections. Yet IPTV services in China are still regarded as an add-on option                 300
     for fixed-broadband package bundles, with limited content and a lack of advanced
     features, yielding just $4.15 in monthly subscription ARPU. Well-established IPTV                   200
     operations are available from mature markets, including Japan, South Korea and
                                                                                                         100
     Taiwan, with top players such as KT Corp., NTT Group (NTT Plala Inc.) and Chunghwa
     Telecom Co. Ltd. Governments in Australia, New Zealand and Singapore are funding                      0
     fiber rollouts, which are expected to foster the IPTV landscape.                                             2015        2016         2017      2018         2019
                                                                                                               ASIA PACIFIC          EASTERN EUROPE              LATIN AMERICA & CARIBBEAN
     Multiscreen TV Everywhere and over-the-top initiatives are aggressively pursued
                                                                                                            MIDDLE EAST & AFRICA              NORTH AMERICA              WESTERN EUROPE
     by leading pay TV operators in the Asia-Pacific region. As of August 2015, our
     survey indicates 26 operators from 13 markets have rolled out TV Everywhere/
     OTT services, with wide-ranging linear and on-demand content delivered most              Share Of Multichannel TV Homes by Region 2016
     commonly through PCs, smartphones and tablets. While the earliest TV Everywhere
     deployments date back to the October 2009 launch by Australian DTH and
     cable incumbent FOXTEL, the majority of multiscreen platforms only started to                                                   W.EUROPE
     emerge within the past three years, especially in developing markets. In terms                                                     11%
     of content access, many operators are not just offering a pay TV extension with
     free authenticated streaming, but are also targeting non-subscribers by charging                                         N. AMERICA
                                                                                                                                  11%
     an additional fee for watching select programming without having to take a                            MIDDLE EAST
                                                                                                                                                  ASIA PACIFIC
                                                                                                            & AFRICA
     multichannel package.                                                                                                                             57%
                                                                                                               4%

                                                                                                          LATIN AMERICA
                                                                                                         AND CARIBBEAN
                                                                                                               8%

                                                                                                                         E.EUROPE
                                                                                                                             9%

     Global Multichannel Markets is a service of SNL Kagan, a division of SNL Financial LC.   Source: SNL Kagan

16                                    MULTICHANNEL TV 2016                                                                                               GLOBAL OVERVIEW                  17
Asia Pacific MULTICHANNEL TV ADVERTISING - Asia Video Industry Association
GLOBAL OVERVIEW
     Asia-Pacific Leads the Way—TV Everywhere
                                                                                    CONNECTED DEVICE SUPPORTING TV EVERYWHERE SERVICE
     COUNTRY        OPERATOR                       PLATFORM    TVE LAUNCH   SMART      SMARTPHONE        TABLET   GAME      PC/MAC   DEVICE          # OF TV CHANNELS
                                                               DATE         TV                                    CONSOLE            COMPATIBILITY
                                                                                                                                     SCORES
     Australia      FOXTEL                         DTH/Cable   Oct-09       yes        yes               yes      yes       yes      5               up to 74 channels
     South Korea    CJ HelloVision                 Cable       May-10       yes        yes               no       no        yes      4               199 channels
     Japan          NTT Plala Inc.                 IPTV        Aug-11       yes        yes               no       no        yes      4               N/A
     Singapore      StarHub Ltd                    Cable       Jun-12       yes        yes               no       no        yes      4               up to 71 channels
     Taiwan         Vee Telecom Multimedia         Cable       Oct-12       yes        yes               yes      yes       yes      4               N/A
     Japan          SKY Perfect JSAT Corporation   DTH/IPTV    Oct-11       yes        yes               no       no        yes      4               59 channels
     Hong Kong      PCCW                           IPTV        Dec-09       yes        yes               yes      yes       yes      4               6 channels
     Thailand       TOT                            IPTV        Jan-13       yes        yes               no       no        yes      4               145 channels
     Taiwan         Chunghwa Telecom               IPTV        Dec-09       yes        yes               no       no        yes      3               N/A
     New Zealand    SKY Network Television Ltd     DTH         Jan-11       yes        yes               no       no        yes      3               up to 11 channels
     South Korea    KT Corporation                 DTH/IPTV    Apr-11       yes        yes               no       no        yes      3               70 channels
     Japan          J:COM                          Cable       May-12       yes        yes               no       no        yes      3               up to 77 channels
     Singapore      SingTel                        IPTV        Jul-12       yes        yes               no       no        no       3               up to 19 channels
     Malaysia       Astro                          DTH/IPTV    Jun-12       yes        yes               no       no        yes      3               up to 30 channels
     Thailand       TrueVisions                    DTH/Cable   May-13       yes        yes               no       no        yes      3               up to 102 channels
     China          Beijing Gehua                  Cable       Jun-11       yes        yes               no       no        yes      3               up to 46 channels
     India          Dish TV India Ltd.             DTH         Oct-13       yes        yes               no       no        yes      3               27 channels
     India          Tata Sky Ltd.                  DTH         Oct-13       yes        yes               no       no        yes      3               54 channels
     Malaysia       Telekom Malaysia               IPTV        Jul-13       yes        yes               no       no        yes      3               up to 57 channels
     Indonesia      First Media                    Cable       Feb-14       yes        yes               no       no        yes      3               50 channels

     Indonesia      PT MNC Sky Vision              DTH         Jun-14       yes        yes               no       no        yes      3               N/A
     Philippines    Cignal TV                      DTH         Jul-13       yes        yes               no       no        no       2               up to 14 channels
     Australia      FetchTV                        IPTV        Dec-13       yes        yes               no       no        no       2               N/A
     India          Videocon d2h                   DTH         Jul-15       yes        yes               no       no        no       2               70 channels
     India          Bharti Airtel                  DTH         Mar-14       no         no                no       no        no       1
     Hong Kong      i-Cable Communications         Cable       Feb-12       yes        no                no       no        no       1
     Total          25                                                      7          25                23       3         20
     Service penetration by device platform                                 27%        100%              92%      12%       77%

18                          MULTICHANNEL TV 2016                                     Source: SNL Kagan                                   GLOBAL OVERVIEW                  19
THE MULTICHANNEL TV
     VIEWER IN ASIA
     •    Across Asia Pacific, viewing of multi-channel TV services are measured by People    Asia Pacific Average Audience: All Time
          meter TV. Audiences continue to grow each year and 80% of all people watch in       ALL PEOPLE (000s)                                                    AFFLUENT PEOPLE (00014156
                                                                                                                                                                                       s)
          a month.                                                                                                   33506
                                                                                                                                         36151                                        13090
                                                                                                                                                                  11840
     •    Multichannel TV average audience continues to grow and outpace viewing of              29544

          terrestrial channels which are seeing a continuing decline.                                                                                                                                     14156
                                                                                                                                         36151                                        13090
     •    The Ipsos Affluent Survey shows that multi-channel TV audiences in the main            29544
                                                                                                          16389
                                                                                                                     33506
                                                                                                                              15887                14793
                                                                                                                                                                  11840
          cities in Asia are more likely to be more affluent, early adopters, purchase more                                                                                 4035                                    3823
                                                                                                                                                                                                3784
          consumer items, travel more and keep up-to-date with new trends.
                                                                                                          16389               15887               14793
     Asia Pacific Monthly Cumulative Audience                                                       2012                  2013                2014                   20124035              2013
                                                                                                                                                                                              3784             2014
                                                                                                                                                                                                                  3823
     ALL PEOPLE
                                                                            80%
                                                               79%
                                                                     75%          73%               2012                  2013                2014                   2012                 2013                 2014
                                                                            80%
                                                 78% 77%       79%
                                          80%
                                    78%                              75%          73%
                                          80%    78% 77%
                            75%     78%
               76%
                      68%
                            75%
         66% 76%
                      68%                                                                     Asia Pacific Average Audience: Prime Time
         66%                                                                                  ALL PEOPLE (000s)                                                    AFFLUENT PEOPLE (000s)

          2009          2010         2011         2012          2013          2014                                                      67832
                                                                                                                    64163                                                                                27275
                                                                                                57261                                                                                25706
     Asia Pacific Monthly Cumulative Audience
          2009          2010         2011
                                           85%
                                                  2012          2013          2014
                                                                             86%                                                                                 23443

     AFFLUENT PEOPLE                             85%                         86% 72%                                                    67832
                                    86%                        85% 74%                                             64163
                                                                                                         34929               33941                                                                       27275
                      85%                              76%                                      57261                                             31369                              25706
                            80%                  85%                                                                                                             23443
         83% 82%                    86% 73%                          74%          72%
                                                                                                                                                                           9186                8927
                      85%                              76%                                                                                                                                                         8739
         83% 82%            80%           73%
                                                                                                         34929               33941               31369

                                                                                                    2012                  2013                2014                   20129186                8927
                                                                                                                                                                                          2013                 2014
                                                                                                                                                                                                                  8739

                                                                                                                         MULTICHANNEL TV                            TERRESTRIAL TV
                                                                                                    2012                 2013        2014                            2012          2013                       2014

          2009         2010          2011          2012         2013           2014
                                                                                              Prime Time 1800-2359
                                                                                                                         MULTICHANNEL TV                           TERRESTRIAL TV
          2009         2010       2011             2012         2013           2014           Source: Peoplemeter, Asia Pacific includes: India, Taiwan, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, South
                          MULTICHANNEL TV           TERRESTRIAL TV                            Korea, Australia (some overlap of metro and urban data)
                                                                                              All people universe 446,813,395; Affluent universe 170,951,684
                             MULTICHANNEL TV        TERRESTRIAL TV

20                                                                                                                                                                     ASIA PACIFIC VIEWERS                                21
Multichannel TV Monthly Reach                                                                                             Affluent Viewers Strongly Agree That...

                   INDIA                               AUSTRALIA                                  TAIWAN                        INDEX                                                                   WATCH                   DON’T WATCH
                                                                                                                                                                                                        PAY TV                    PAY TV
          95%                96%                   33%               33%                  100%               100%
                                                                                                                                I am always one of the first to use
                                                                                                                                                                                                            114                          70
                                                                                                                                innovative tech products
               MALAYSIA                               SINGAPORE                                PHILIPPINES
                                                                                                                                I have confidence in purchasing products/
          65%                74%                   51%               52%                   20%               39%                services that have been advertised
                                                                                                                                                                                                            112                          87

             HONG KONG                              NEW ZEALAND                               SOUTH KOREA                       I tend to go for premium rather than
                                                                                                                                                                                                            110                          86
                                                                                                                                standard goods/services
          38%                44%                  53%                58%                   87%               87%
                                                                                                                                I have expensive tastes                                                     111                          89

                                     ALL PEOPLE                                        AFFLUENT ADULTS
                                                                                                                                Gaining knowledge and becoming better
                                                                                                                                                                                                            105                          91
     Source: Peoplemeter India. Australia (metro), Taiwan, Malaysia, Singapore,                                                 informed is a priority for me
     Philippines, Hong Kong, New Zealand, South Korea
                                                                                                                                People come to me for advice before
                                                                                                                                                                                                            110                          75
                                                                                                                                buying new things
     Multichannel TV Consumed More Than Other Media

      (MONTHLY) ANY CABLE/SATELLITE TV CHANNEL                                                                          82.1
                        (WEEKLY) ANY CABLE/SATELLITE TV                                                                77.2
                           (DAILY) ANY CABLE/SATELLITE TV                                                54.6
                                     ANY INFLIGHT MAGAZINE                         9.6
                    ANY REGIONAL MONTHLY MAGAZINE                                   18.3
                  ANY REGIONAL TRI-WEEKLY MAGAZINE                           1.7
                       ANY REGIONAL WEEKLY MAGAZINE                              7.3
                         ANY REGIONAL DAILY NEWSPAPER                        2.8
                                           ANY REGIONAL TITLE                            22

                                              MULTICHANNEL TV                            OTHER MEDIA

                                                                                                                               Source: Ipsos Affluent Survey Asia Pacific Q1-Q4 2014
     Source: Ipsos Affluent Survey Asia Pacific Q1-Q4 2014                                                                     Average Base Index: 100. Bangkok or Hong Kong or Jakarta or Kuala Lumpur or Manila or Singapore or Taipei or Seoul or
     Bangkok • Hong Kong • Jakarta • Kuala Lumpur • Manila • Singapore • Taipei • Seoul • Sydney • Melbourne • India           Sydney or Melbourne or India. Viewed Pay TV Yesterday or Not Viewed International Channels in past month

22                                  MULTICHANNEL TV 2016                                                                                                                                              ASIA PACIFIC VIEWERS                             23
Affluent Viewers Are Early Adopters...                                                                                  ...and Decision Makers...

              WATCH PAY TV                                                             DON’T WATCH PAY TV                          WATCH PAY TV                                DON’T WATCH PAY TV
                      (INDEX)                                                                       (INDEX)                            (INDEX)                                         (INDEX)

                      102                                                                             92                                106                                             85
                                                        SMARTPHONE                                                                                           CAR OWNER

                      104                                                                             93                                106                                             81
                                                             TABLET                                                                                      OWN PLATINUM/BLACK
                                                                                                                                                            CREDIT CARD

                        111                                                                           76                                102                                             80
                                                           SMART TV                                                                                       BUSINESS DECISION
                                                                                                                                                               MAKER

                       115                             HOME THEATRE
                                                                                                      75                                104                                             79
                                                       SOUND SYSTEM                                                                                         TOP MANAGER

                      106                                                                             87                                102                                             99
                                                  DIGITAL VIDEO CAMERA                                                                                   HOUSEHOLD MONTHLY
                                                                                                                                                          INCOME US $15,000+

     Source: Ipsos Affluent Survey Asia Pacific Q1-Q4 2014
     Average Base Index: 100. Bangkok or Hong Kong or Jakarta or Kuala Lumpur or Manila or Singapore or Taipei or Seoul or
     Sydney or Melbourne or India. Viewed Pay TV Yesterday or Not Viewed International Channels in past month

24                                  MULTICHANNEL TV 2016                                                                                                                 ASIA PACIFIC VIEWERS       25
...and Travelers Too.

              WATCH PAY TV                                                             DON’T WATCH PAY TV
                      (INDEX)                                                                       (INDEX)

                      120                                                                             49
                                                   TAKE A BUSINESS TRIP
                                                    IN PAST 12 MONTHS

                      140                                                                             28
                                                    6+ BUSINESS TRIPS IN
                                                      PAST 12 MONTHS

                      128                                                                             46
                                                         FLY 1ST OR
                                                       BUSINESS CLASS

                       110                                                                            74
                                                12+ NIGHTS IN A HOTEL IN
                                                    PAST 12 MONTHS

                       121                                                                            62
                                                     3+ LEISURE TRIPS IN
                                                      PAST 12 MONTHS

     Source: Ipsos Affluent Survey Asia Pacific Q1-Q4 2014
     Average Base Index: 100. Bangkok or Hong Kong or Jakarta or Kuala Lumpur or Manila or Singapore or Taipei or Seoul or
     Sydney or Melbourne or India Viewed Pay TV Yesterday or Not Viewed International Channels in past month.

26                                  MULTICHANNEL TV 2016                                                                     27
TV Audience Measurement 				                                                                                     2015-2016
                                                                                                                                        COMMERCIAL      COMMERCIAL
                                                                                                                CABLE/                  BREAK RATINGS   SPOT LOGS        PAY TV REACH               TABLETS,
                                      PEOPLEMETER PANEL SIZE (HOMES/                                            SATELLITE    DTT        FOR PAY TV      FOR PAY TV       & FREQUENCY                SMARTPHONES,
 COUNTRY       RESEARCH COMPANY       HOUSEHOLDS)                    PANEL COVERAGE                             MEASURED     MEASURED   CHANNELS        CHANNELS         AVAILABLE    SOFTWARE      INTERNET
 Australia     Nielsen TAM on behalf 3,500 (Metropolitan),                Metro areas (5 cities) & nationally   Yes          Yes        No              No               Yes           User choice* No
               of OzTAM              1,413 (National subscription TV)     for Subscription TV
 Australia     Nielsen TAM on behalf 2,135 (Regional)                     Queensland, Northern NSW,             Yes          Yes        No              No               Yes           User choice* No
               of Regional TAM                                            Southern NSW, Victoria,
                                                                          Tasmania & Regional Western
                                                                          Australia
 Bangladesh    MRB Bangladesh         550 Homes, 2200 individals          Dhaka Metro, Dhaka Other              Yes          No         Yes             Yes              Yes           Media XPress No
                                                                          Urban, Dhaka Rural, Chittagong
                                                                          Metro and Chittagong Rural
 Cambodia      Kantar Media           795 Diaries                         Phnom Penh, Siem Riep &               Yes          Yes        Yes             Yes              Yes           Infosys+     No
                                                                          Battambang
 China         CSM                    34,175                              National 1 / Provincial 25 /          Yes          Yes        No              No               Yes           Infosys+     Yes
                                                                          City 138
 Hong Kong     Nielsen                800                                 HK Region                             Yes          Yes        No              No               Yes for       Arianna      Yes - Laptop/
                                                                                                                                                                         subscribers                Desktop
 Hong Kong     CSM Media Research     2,000 (Return Path Data Panel)      HK Region; Now TV subscriber          Now TV        No        No              Yes              Yes           InfoSys+     Yes - & Eye
                                                                          base                                  channels only                                                                       device
 India         TAM Media Research     11,100 Homes, 12,200                Urban India (including LC1            Yes           No        Yes             Yes              Yes           MediaX*Press No
                                      PeopleMeters                        Towns)
 India         BARC                   22,000 Homes, 25,000 Bar-O-         All India (Urban + Rural)             Yes          Yes        Yes             Yes              Yes           BMW          No
                                      Meters
 Indonesia     Nielsen                2,273 (Terrestrial), 300 (Pay TV)
                                                                      Terrestrial: 11 cities,                   Yes          No         No              No               Yes           Arianna      No
                                                                      Pay TV: Greater Jakarta
 Japan         Video Research Ltd     6,600 National panel & separate Tokyo & Osaka                             Yes          No         No              No               Yes           RVCS         No
                                      Subscription TV Panel 600 *
 Malaysia      Nielsen                1,100 TV households in          Across 11 states in Peninsular            Only Astro   No         Yes, 29         Yes, 29 channels Yes           Arianna      Plan for digital
                                      Peninsular Malaysia             Malaysia, covering both urban             PayTV, not              channels                                                    ad ratings
                                                                      and rural                                 NJOI (Free                                                                          (DAR) Q4
                                                                                                                Sat)                                                                                2015 - website
                                                                                                                                                                                                    browser only
 Malaysia      Kantar Media            2,700 homes at present, aim        Across all 13 states in Peninsular    Yes (Astro   No         Yes all channels Yes all channels Yes          Infosys+     Planned
                                      5,000 by Y/E 2015. Return Path      & East Malaysia, covering Urban       PayTV and                                                                           integration of
                                      Data panel representing Astro       & Rural                               NJOI)                                                                               Astro On The
                                      subscriber base.                                                                                                                                              Go viewing in
                                                                                                                                                                                                    Q4 2015
 New Zealand Nielsen                  600                                 National                              Yes          Yes        Yes             Yes              Yes            Arianna     No
 Pakistan    Medialogic Pakistan      1000+ HH ,6000+ Individuals         Top 20 Cities Incl. 3 Metros          Yes          N/A        Yes (80         Yes (80          Yes           InfoSys+     No
                                                                                                                                        channels)       channels)                      (Kantar)
 Pakistan      Gallup Pakistan        National Panel: 2,500 HH , 3500 National (Urban+Rural)                    Yes          N/A        Yes             Yes              Yes           Reporter     No
                                      Individuals (2,000 Urban HH &
                                      500 Rural HH)*
 Philippines   Nielsen                National Panel 3,500.           National (Urban+Rural)                    Yes          No         Yes             Yes              Yes           Arianna      Launch of DAR
                                      (2,000 Urban homes (NUTAM)                                                                                                                                    Q3 2015
                                      and 1,500 Rural homes (RTAM)

28                            MULTICHANNEL TV 2016                                                                                                                     MEASUREMENT GUIDE                               29
TV Audience Measurement 				                                                                                                                2015-2016
                                                                                                                                                                               COMMERCIAL           COMMERCIAL
                                                                                                                                           CABLE/                              BREAK RATINGS        SPOT LOGS             PAY TV REACH                          TABLETS,
                                                   PEOPLEMETER PANEL SIZE (HOMES/                                                          SATELLITE          DTT              FOR PAY TV           FOR PAY TV            & FREQUENCY                           SMARTPHONES,
 COUNTRY          RESEARCH COMPANY                 HOUSEHOLDS)                    PANEL COVERAGE                                           MEASURED           MEASURED         CHANNELS             CHANNELS              AVAILABLE    SOFTWARE                 INTERNET
 Philippines      Nielsen                          Metro Panel 2,220.              Metro Cities                                            Yes                No               Yes                  Yes                   Yes                Arianna
                                                   (1,190 Mega Manila homes
                                                   (MEGATAM) and 1,030 homes
                                                   for 8 other Metros)
 Philippines      Kantar Media                     National Panel 2,270            National (Urban + Rural)                                Yes                Yes, part of     Yes                  Yes                   Yes                InfoSys+           Planning Stage
                                                   (1370 Urban homes (Urban PH)                                                                               TAM panel
                                                   and 900 Rural homes (Rural PH))
 Singapore        Kantar Media                     800                             National                                                Yes                Some             No                   No                    Yes                InfoSys+           No
 (end June
 2016)
 Singapore        GfK                              1200 Households and 2000                     National                                   Yes                Yes              TBC                  TBC                   Yes                Evogenius          Yes
 (start July                                       individuals on pc/ mobile
 2016)                                             devices
 South Korea      Nielsen                          4,320                                        National                                   Yes                Yes              Yes*                 Yes*                  Yes                Arianna      N/A
 South Korea      TNmS                             3,200                                        National                                   Yes                Yes              Yes                  Yes                   Yes                Infosys      No
 Sri Lanka        LMRB                             500 homes / ~ 1,800 individuals              National                                   Establishment      Age                                   Yes                   Yes                Media Xpress YES
                                                                                                                                           Survey/F2F         4+,ABCD
 Taiwan           Nielsen                          10,000                                       National                                   Face to Face/      12-65            Yes                  Yes                   Yes                Clear         YES
                                                                                                                                           Online                                                                                            Decision(IMS)
 Thailand         Nielsen                          2200 (Sat 1020, local cab 180,  National                                                Yes                Yes              Yes                  Yes                   Yes                Arianna       No
                                                   True 400, Digital 450, Analogue
                                                   150)
 Vietnam          Kantar Media                     3065(diaries) & 1070            National, 6 cities                                      Yes                Yes              Yes                  Yes                   Yes                Infosys+           No
                                                   (peoplemeter)

     Survey Notes:								                                                                                                                       (Seoul, Incheon, Busan, Gwangju, Daejeon, Daegu, Ulsan, Gyungi Province, Kangwon Province, North Chungcheong Province, South
                                                                                                                                                 Chungcheong Province, North Gyeongsang Province, South Gyeongsang Province, North Jeolla Province, South Jeolla Province, Jeju
     Australia,OzTAM: Peoplemeter. 5 City Metro Markets: Sydney, Melbourne, Brisbane, Adelaide & Perth & nationally for Subscription TV.         Island)
     Japan,Video Research Ltd: Peoplemeters in Tokyo & Osaka.Non-continuous measurement,2 week sweeps conducted every two months
     (12 weeks/year). Subscription TV panel is separate from national terrestrial TV panel of 6,600 homes, 52 weeks reporting /year              Vietnam,Kantarmedia : People meter & Diary, 1 National diary panel, 3 cities diary panel: Danang, Hai Phong & Nha Trang, 3 People
                                                                                                                                                 meter cities: HCMC, Hanoi and Can Tho. Please contact the research company for a comprehensive report on measurement.
     Pakistan,Medialogic: 9 key cities - Karachi, Lahore, Islamabad, Faisalabad, Multan, Hyderabad, Sukkur, Gujranwala and Peshawar
     Pakistan, Gallup Pakistan: National diary panel include all 3 Metros (Karachi, Lahore, Islamabad/Rawalpindi: 2,100
     individuals) , 5 Large Cities (Faisalabad, Hyderabad, Multan, Peshawar, Quetta : 1,100 individuals), 10 Small Cities & Towns
     (Gujrat,Jacobabad,Kasur,Mardan,Pashin,Rajanpur,Rohri,Sahiwal,Sargodha,Thatta : 1,500 individuals) , Rural 800 individuals
     Philippines: NUTAM (National Urban), Mega TAM (Metro Manila & suburbs), MCTAM (Metro cities).
     South Korea, Nielsen: National and monitoring 78 Pay TV channels
     South Korea, TNmS: Peoplemeter Panel and also DMB measurement, Car navigation device (310 panel) and Smartphone of Android OS
     (700 panel). And Return Path Data panel size is 10,000 homes of KT IPTV
     India: TAM and BARC to cooperate in the future

30                                    MULTICHANNEL TV 2016                                                                                                                                                              MEASUREMENT GUIDE                                            31
Audience Measurement 					2015-2016
                                                                                                                                             CAB/SAT                                               REACH &
     AREA           RESEARCH COMPANY     SURVEY          SAMPLE SIZE   PANEL COVERAGE          METHODOLOGY             DEMOGRAPHIC           MEASURED              DTT               SOFTWARE      FREQUENCY

     Hong Kong      Ipsos                Media Atlas     5,000         National                CATI/Online/F2F         12 - 64               Yes                   Yes               User choice   Yes
                                         Hong Kong

     10 Asia        Ipsos                Affluent Asia   18,800        10 Markets              CATI / Online           Affluent 25-64        Yes                   No                User choice   Yes
     Markets

     8 Asia         Ipsos                BE Asia         3,500         8 Markets               CATI, Postal &          Elite / Top           Yes                   No                User choice
     Markets                                                                                   Online                  Business

     Hong Kong      Nielsen              Media Index     6,000+        Hong Kong               Face-to-face/           12 - 64
                                                                                               Online

     Australia      Nielsen              Consumer &      100,000+      Australia               Online                  14+
                                         Media View

     New            Nielsen              Consumer &      12,000        New Zealand             Face-to-face            10+                                                           Clear
     Zealand                             Media View                                                                                                                                  Decisions

     Indonesia,     Nielsen              Consumer &      23,000^       Indonesia, 11 cities    Face-to-face            10+
     11 cities                           Media View

     Peninsular     Nielsen              Consumer &      10,000        Pen Malaysia Only       Face-to-face            15+                   Fuse with TAM         No                Clear         Clear Decision
     Malaysia                            Media View                                                                                          data                                    Decision
     Only

     Philippines,   Nielsen              Consumer &      10,000        National Urban          Face-to-face            10+
     National                            Media View
     Urban

     Singapore      Nielsen              Consumer &      4,200+        Singapore               Face-to-face            15+
                                         Media View

     Thailand       Nielsen              Consumer &      9,000+        Thailand                Face-to-face            12+
                                         Media View

     Bangladesh     MRB Bangladesh       National        15,800        National                Face-to-face            15+                   Yes                   No                ThinkMedia    Yes
                                         Media
                                         Survey(NMS)

     China          CTR                  China CNRS      100,000       60 1-4 tier cities      F-F /self               15-69
                                                                                               completed/On-
                                                                                               line

     India          IMRB                 India           51,000        National                F-F /self               15-55 ABC
                                                                                               completed

     South Korea    Hankook              South Korea     9,000         National                F-F /self               11-64
                                                                                               completed

     Sri Lanka      IMRB                 Sri Lanka       3,000         National                                        15-55

     Vietnam        Kantar Media         Vietnam         13,560        6 cities                F-F /self               15+                                                           4 Choices     Yes
                                                                                               completed

                                                                                              Note: Please contact the research company for a comprehensive report on measurement.

32                                 MULTICHANNEL TV 2016                                                                                                           MEASUREMENT GUIDE                                 33
Asia Pacific Pay-TV &
     Broadband Industry:
     2015 Review

     Macro malaise, underlined by softer econonic growth,
     weakening consumption and currency depreciation, has
     limited media advertising growth for much of 2015 but the
     consumption of pay-TV & broadband services remains
     robust. Analysis and research from Media Partners Asia
     (MPA) showcases the following key trends:

     Asia Pacific
     • With the exception of Australia, India and the Philippines, pay-TV subscriber
        additions continue to decelerate in much of Asia Pacific though regional
        penetration remains robust, reaching 61% in 2015.

     • The bundled broadband and pay-TV proposition has started to bolster
        subscriber growth with customers often paying for broadband as the primary
        service with pay-TV as a hard bundle or as a value-add. This is increasingly
        evident in Indonesia and Thailand.

     • Fixed broadband adoption has started to grow rapidly from a low base across
        Southeast Asia and India while mobile broadband is also rapidly scaling up
        across Asia Pacific, driven by smartphone usage. Fixed broadband household
        penetration reached 33% in 2015, while wireless broadband per capita
        penetration soared to 36%.

     • In general, most pay-TV operators are experiencing a slowdown in Southeast
        Asia markets due to macro issues and, in certain cases, market dynamics and
        structural barriers to growth. The slowdown is occuring at the same time as the
        growth of low-cost multichannel services (i.e. Astro’s Njoi in Malaysia) and the
        continued expansion of free satellite services – both organized (i.e. Thailand)
        and unorganized (Indonesia).

34                         MULTICHANNEL TV 2016                                            COUNTRY OVERVIEW   35
• Also growing at a significant pace in Australia is Astro-owned IPTV wholesaler
      Pay-TV Net Adds                         Pay-TV Net Adds
                          2015                                    2015                        Fetch TV. The company has benefited from wider content availability and an
      (000’)                                  (000’)
                                                                                              aggressive push from third-party telcos, led by Optus.
      China               9,035               Sri Lanka           185

      India               5,079               Japan               155

      Korea               1,747               Thailand            150                      India
      Pakistan            590                 Malaysia            80
                                                                                           • TV advertising growth has been strong this year but new customer growth across
      Vietnam             525                 Hong Kong           30                          satellite and cable platforms has been modest relative to previous years with a little
      Indonesia           488                 Singapore           25                          over 5 million net new additions, largely driven by digital satellite.
      Australia           339                 Taiwan              10
                                                                                           • Addressability is growing through digitalization, with close to 50% of India’s pay-TV
      Philippines         320                 New Zealand         5                           households having a digital set-top box (STB) at end-2015.
                                              Total APAC          18,763
                                                                                           • More growth through digitalization and infrastructural investment is likely to come
                                                                                              through the expansion of HITS (a new service for local cable operators in Phases 3
                                                                                              and 4 of digital migration) and R-JIO (a fiber broadband service that requires last-
     • Pay-TV is increasingly saturated in Hong Kong, Japan, Malaysia, Singapore and         mile partnership with cable operators).
        Taiwan. The focus has shifted in these markets to pricing power and new on-
        demand services.                                                                   • The market also needs to factor in Free Dish, a free satellite service with
                                                                                              penetration of up to 15 million homes.
     • The subscription-enabled OTT proposition (i.e. SVOD) from both Netflix and pay-
        TV operators and broadcasters has started to gain traction in strong broadband
        markets such as Australia and Japan as well as China and Korea, but faces
                                                                                           Korea
        significant barriers in most other markets due to piracy, and lack of payment
        gateways and infrastructure.                                                       • IPTV operators continue to grow at a healthy pace as MPA projects KT, SKB and LG
                                                                                              will add a combined 1.65 million new customers in 2015.

                                                                                           • Hybrid DTH-IPTV operator KT SkyLife (KTS) has also showed a rebound in growth
     Australia                                                                                in 2015.
     • New repackaging and competition is driving pay-TV subscriber growth.
                                                                                           • The Korean cable industry remains under pressure from cord-cutting and
     • Foxtel, MPA estimates, will add an average of 20,000 new subs a month, closing        competitive pressure.
        2015 with ~240,000 new subs though up-selling will remain modest, leading to
        ARPU erosion.

     • IPTV will factor in the mix more widely after Q4 as Telstra launches new bundled
        video and broadband services.

36                         MULTICHANNEL TV 2016                                                                                                 COUNTRY OVERVIEW                       37
Malaysia                                                                                        Pay-TV Penetration                         Pay-TV Penetration
                                                                                                                          2015                                       2015
                                                                                                     (%)                                        (%)
     • Astro, the leading pay-TV operator in Southeast Asia, will add ~40-50,000 new pay
        subs in 2015 with ARPU up a robust 2%, reasonable momentum in a year when                    Korea                162%                  New Zealand          51%
        Malaysia’s macro fundamentals are weak and consumer sentiment is soft.                       Hong Kong            104%                  Vietnam              37%

     • Njoi, Astro’s low-cost multichannel service, will drive overall growth, as it nears a 1.5    Taiwan               91%                   Australia            35%
        million customer base potentially by end-2015.                                               India                84%                   Thailand             29%

                                                                                                     Singapore            82%                   Japan                29%

                                                                                                     China                61%                   Sri Lanka            19%
     Philippines                                                                                     Pakistan             53%                   Philippines          16%

     • The Philippines is the one market in Southeast Asia experiencing relatively robust           Malaysia             53%                   Indonesia            11%
        macro fundamentals, boosting telecoms, pay-TV and advertising industry growth.                                    Average APAC Penetration (TV HH)           61%

     • While SkyCable is adding a modest level of new customers every year, its ARPU
        remains healthy. Rival Cignal is expected to add ~250,000 new customers this year
                                                                                                    Indonesia
        but ARPU growth will be muted until up-selling and packaging improves and takes
        effect from 2016 onwards.                                                                   • The market has suffered a deep slowdown due to macro issues, piracy and the
                                                                                                       growth of free satellite.

                                                                                                    • Pay-TV platforms that have grown in 2015 have typically bundled multichannel
                                                                                                       services with cable and fiber broadband. These have exaggerated the true growth
      Mobile Broadband                          Mobile Broadband
                                                                                                       of the pay-TV industry.
                           2015                                       2015
      Net Adds (000’)                           Net Adds (000’)

      China                183,950              Australia             2,028
                                                                                                    Thailand
      India                35,020               Taiwan                1,866

      Japan                24,093               Malaysia              1,651                         • Free satellite, together with digital terrestrial, continues to limit pay-TV upside in
                                                                                                       Thailand. That said, TrueVisions. Has repackaged its product effectively to grow
      Indonesia            14,513               Phillippines          1,282
                                                                                                       total net new additions.
      Thailand             10,291               Sri Lanka             745
      Vietnam              8,362                Hong Kong             633                           • However, much of True’s pay-TV growth is being driven by low-ARPU mass services
                                                                                                       and broadband bundles with little upside for premium pay-TV services, which have
      Korea                6,278                New Zealand           612
                                                                                                       suffered sustained customer decline.
      Pakistan             4,151                Singapore             452

                                                Total APAC            295,928

38                          MULTICHANNEL TV 2016                                                                                                            COUNTRY OVERVIEW                    39
Fixed BB                               Fixed BB
                         2015                                   2015
     Penetration (%)                        Penetration (%)

     Singapore           101%               Malaysia            33%

     Korea               100%               Vietnam             30%

     New Zealand         89%                Thailand            25%

     Hong Kong           83%                Sri Lanka           11%

     Japan               74%                Philippines         9%

     Australia           72%                Indonesia           8%

     Taiwan              70%                India               6%

     China               46%                Pakistan            6%

                         Average APAC Penetration (HH)          33%

     Mobile BB                              Mobile BB
                         2015                                   2015
     Penetration (%)                        (000’)

     Singapore           186%               Australia           54%

     Hong Kong           183%               Thailand            48%

     Korea               140%               Vietnam             45%

     New Zealand         113%               Indonesia           27%

     Japan               79%                Sri Lanka           15%

     Taiwan              68%                India               8%

     China               57%                Philippines         8%

     Malaysia            54%                Pakistan            6%

     Average APAC Penetration Per Capita                        36%

     Founded in 2001, Media Partners Asia (MPA) is the leading provider of advisory,
     consulting and research services, focusing on media and telecommunications
     industries in Asia Pacific. For more information go to
     www.mparesearchconsulting.com.

40                        MULTICHANNEL TV 2016                                         GLOBAL OVERVIEW   41
advertising
                            revenue

42   MULTICHANNEL TV 2016         ADVERTISING REVENUE   43
ADVERTISING REVENUE
                            Asia Pacific Share of TV Advertising

                                                                                  US$ Millions
                                            0         2000        4000        6000   8000 10000             12000   14000 16000
                                 Australia
                                    China
                              Hong Kong
                                     India
                               Indonesia
                                    Japan
                                 Malaysia
                            New Zealand
                                 Pakistan
                              Philippines
                               Singapore
                             South Korea
                                   Taiwan
                                 Thailand
                                 Vietnam

                                                                    Multichannel TV               Terrestrial TV

                            Source: Global entertainment and media outlook 2015-2019, PwC, Ovum

44   MULTICHANNEL TV 2016                                                                   ADVERTISING REVENUE                   45
Asia Pacific Multichannel TV Advertising Revenue (US $ Millions)

                               2010              2011              2012       2013       2014       2015       2016       2017       2018         2019        2014-2019CAGR

      Australia                356.497           373.647           416.516    475.82     542.671    571.689    610.746    651.826    695.212      745.808     6.566

      China                    170.724           201.306           227.576    255.422    292.788    326.657    370.429    411.394    462.396      521.12      12.222

      Hong Kong                44.02             54.155            66.719     78.581     77.146     80.805     85.32      89.385     94.491       98.999      5.115

      India                    1655.012          1826.747          2036.872   2304.881   2682.306   3060.46    3469.283   3889.947   4358.251     4863.809    12.64

      Indonesia                15.347            23.977            37.685     59.041     96.361     137.959    184.273    238.495    301.725      368.708     30.784

      Japan                    433.138           492.253           559.655    634.638    715.303    785.732    863.074    938.931    1022.453     1094.934    8.888

      Malaysia                 48.012            50.458            52.906     56.994     62.412     67.628     74.508     84.65      95.795       105.427     11.055

      New Zealand              26.733            30.42             34.757     38.157     41.29      44.16      47.627     50.812     54.147       57.252      6.755

      Pakistan                 50.775            60.676            62.264     69.289     76.289     84.624     92.785     101.772    112.201      123.533     10.119

      Philippines              72.994            91.204            108.686    122.716    147.519    180.126    225.394    272.64     328.65       398.324     21.977

      Singapore                31.375            37.401            39.071     42.193     47.033     51.674     56.836     61.979     67.706       73.867      9.448

      South Korea              746.71            1003.143          1114.725   1123.463   1173.12    1226.38    1280.463   1336.419   1395.623     1458.705    4.454

      Taiwan                   475.844           635.631           599.074    603.658    634.445    654.747    682.562    704.404    738.388      756.109     3.571

      Thailand                 63.521            92.711            124.862    144.684    170.486    192.262    223.352    254.112    291.418      329.594     14.093

      Vietnam                  17.447            25.375            33.748     42.04      51.144     60.268     70.213     80.556     91.737       104.305     15.319

      Asia Pacific             4208.149          4999.104          5515.116   6051.577   6810.313   7525.171   8336.865   9167.322   10110.193    11100.494   10.264

     Source: Global entertainment and media outlook 2015-2019, PwC, Ovum

46                                MULTICHANNEL TV 2016                                                                                        ADVERTISING REVENUE             47
Television                    Digital       Newspapers
                                                                                                                Magazines Globally
                                                                                              TV still remains dominant       Radioand in Asia-Pacific
                                                                                                                                            Outdoor with Digital

     The Pay TV advertising market continues to grow in Asia-Pacific, with an estimated       spend continuing to100%
                                                                                                                  grow
     +6.1% growth in 2015. We predict a CAGR of +8.5% for Pay TV over the next 4 years;
     this compares to 5.2% for the total advertising market.                                                                       Television
                                                                                                                                       80%                       Digital       Newspapers
                                                                                                                                   Magazines                     Radio         Outdoor
     CAGR growth of Pay TV advertising will be driven by developing and emerging
                                                                                                                                                           60%

                                                                                                                                      % Share of Media
     markets in Asia-Pacific, notably Malaysia, Indonesia and India. From a volume                                                                        100%                    40%
                                                                                                                                                                   31%
     perspective though, Pay TV advertising revenues will be driven by China, India, Japan
     and South Korea.                                                                                                                                      40%
                                                                                                                                                           80%

                                                                                                   Global
     Total TV is predicted to maintain a strong 38% of all advertising spend by 2019 in                                                                    20%
                                                                                                                                                           60%     39%            37%

                                                                                                                        % Share of Media
     Asia-Pacific; although spend on Digital will closely follow at 37%. Globally, by 2019,                                                                        31%            40%
     Digital spend will be higher than TV spend at 40% and 37% respectively.
                                                                                                                                                            0%
                                                                                                                                                           40%
                                                                                                                                                                  2015           2019
     The opportunity for the industry to expand its footprint beyond traditional TV is
     more evident than ever as spend into Digital Video continues to accelerate. Within                                                                    20%     39%            37%
     Asia-Pacific, growth in Mobile Video is predicted at 43% per annum up to 2019; with
     Online Video expected to grow at 11.5% per annum. By 2019, we estimate that                                                                            0%
     Mobile Video advertising spend will overtake Online Video spending.
                                                                                                                                                                  2015           2019
                                                                                                                                   Television                    Digital       Newspapers
     In addition to the advertising opportunities, this growth in Digital Video has an
                                                                                                                                   Magazines                     Radio         Outdoor
     impact on content marketing for advertisers, agencies and broadcasters.
                                                                                                                                                          100%

                                                                                                                                   Television                    Digital       Newspapers
                                                                                                                                       80%

                                                                                                   asia-pacific
                                                                                                                                   Magazines                     Radio         Outdoor

                                                                                                                                                           60%

                                                                                                                                       % Share of Media
                                                                                                                                                          100%                    37%
                                                                                                                                                                   29%
                     Craig Harvey, Head of Research,
                                                                                                                                                           40%
                                                                                                                                                           80%
                        IPG Mediabrands Hong Kong
                                                                                                                                                           20%
                                                                                                                                                           60%     41%            38%

                                                                                                                         % Share of Media
                                                                                                                                                                   29%            37%

                                                                                                                                                            0%
                                                                                                                                                           40%
                                                                                                                                                                  2015           2019
                                                                                              Source: Magna Global Advertising Forecasts (June 2015), IPG Mediabrands
                                                                                                                                                           20%     41%            38%

48                         MULTICHANNEL TV 2016                                                                                                             0%             ADVERTISING REVENUE   49
                                                                                                                                                                  2015           2019
Advertisers continue to invest into Digital Video in APAC, with Mobile                                                                                                                                            IPG Mediabrands: APAC TV Advertising Revenue
     Video expected to overtake Online Video in 2019
                                                                                                                                                                                                                                                                                                    2015
                                                                                                                                                                                                                                                                                                                 2015 % OF
                                                                      Online Video                                            Mobile Video                                                                                                                  2015 TOTAL                           % OF TOTAL
                                                                                                                                                                                                                                                                                                                  TOTAL TV
                                                                                                                                                                                                                                                          (US$ MILLIONS)                         ADVERTISING
                  10,000                                                                                                                                                                                                                                                                                          REVENUE
                                                                                                                                                                                                                                                                                                  REVENUE
                   9,000
                   8,000                                                                                                                                                                                                                        FTA           PAY TV        TOTAL                FTA   PAY TV   FTA   PAY TV
                   7,000                                                                                                                                                                                 5,087          Asia Pacific             46,271       13,346        147,226              31%   9%       78%   22%
       US$ millions

                   6,000
                                                                                                                                                                                                                        Australia               3,125         459           11,991               26%   4%       87%   13%
                   5,000
                   4,000                                                                                                                                                                                                China                   12,756        5,033         49,675               26%   10%      72%   28%
                   3,000                                                                                                                               1,216
                                                                                                                                                                                                                        Hong Kong               1,038         50            3,500                30%   1%       95%   5%
                   2,000                                                                                                                                                                                 4,231
                                                                                                                                                       2,736                                                            India                   241           2,864         7,737                3%    37%      8%    92%
                   1,000
                                                                       -                                                                                                                                                Indonesia               3,383         19            6,688                51%   0%       99%   1%
                       0
                                                                                                                                                                                                                        Japan                   17,686        1,334         42,110               42%   3%       93%   7%
                                                                                       11
                         05

                                        06

                                                   07

                                                              08

                                                                           09

                                                                                       10

                                                                                       12

                                                                                       13

                                                                                       14

                                                                                       15

                                                                                       16

                                                                                       17

                                                                                       18

                                                                                       19
                                                                                    20
                      20

                                     20

                                                 20

                                                         20

                                                                      20

                                                                                20

                                                                                    20

                                                                                    20

                                                                                    20

                                                                                    20

                                                                                    20

                                                                                    20

                                                                                    20

                                                                                    20
                                                                                                                                                                                                                        Malaysia                746           271           2,882                26%   9%       73%   27%

                                                                                                                                                                                                                        New Zealand             580           99            1,850                31%   5%       85%   15%
     Developing and emerging markets in APAC will register high growth
                                                                                                                                                                                                                        Pakistan                32            172           328                  10%   52%      16%   84%
     rates over the next 4 years
                                                                                                                                                                                                                        Philippines             995           41            1,658                60%   2%       96%   4%

                                  Pay TV CAGR % (2015 vs. 2019)2                                                                                                                                                        Singapore               604           60            2,008                30%   3%       91%   9%
         18.0%                                                                                                                                                                                                          South Korea             1,655         1,595         8,866                19%   18%      51%   49%
         16.0%                   14.8% 15.6%                      15.6%
         14.0%                                                                                                                                                                                                          Sri Lanka               93            4             182                  51%   2%       96%   4%
                             12.4% 12.1%         12.4%                       11.8%
         12.0%                                                                                                                                                                                                          Taiwan                  136           729           2,149                6%    34%      16%   84%
         10.0% 8.5%       7.8%                       8.1%
                     7.7%                                                                                                                                                                                               Thailand                2,468         315           4,344                57%   7%       89%   11%
          8.0%
          6.0%                                                            5.1%
                  3.7%                       3.2%         4.1% 3.2%                                                                                                                                                     Vietnam                 733           301           1,258                58%   24%      71%   29%
          4.0%
          2.0%                                                        0.8%
          0.0%                                                                                                                                                                                                                                  FTA           PAY TV        TOTAL
                                                                     India
                                                         Hong Kong

                                                                                                                                     Philippines
                                                                                                                                                   Singapore
                                                 China

                                                                                         Japan

                                                                                                                                                                                                  Thailand
                                                                             Indonesia

                                                                                                                                                                                                             Vietnam
                                     Australia

                                                                                                                                                                                         Taiwan
                                                                                                            New Zealand
                                                                                                 Malaysia

                                                                                                                                                               South Korea
                                                                                                                          Pakistan

                                                                                                                                                                             Sri Lanka
                      Asia-Pacific

                                                                                                                                                                                                                        2015 vs. 2014           2.1%          6.1%          6.3%
                                                                                                                                                                                                                        % Change

                                                                                                                                                                                                                       Source: Magna Global Advertising Forecasts (June 2014), IPG Mediabrands
     Sources : Magna Global Advertising Forecasts (June 2015) IPG Mediabrands                                                                                                                                          Note: Data excludes revenue from regional campaigns

50                                                       MULTICHANNEL TV 2016                                                                                                                                                                                                              ADVERTISING REVENUE                 51
Advertising Revenue CAGR 2015-2019                                                                      APAC TV Advertising Revenue CAGR by Market

                                               GLOBAL                                    ASIA PACIFIC                                                      FTA TV                               PAY TV

                              2015            2019           CAGR              2015        2019      CAGR                                2015            2019           CAGR           2015     2019     CAGR
                              $US M           $US M                            $US M       $US M                                         $US M           $US M                         $US M    $US M
      FTA Television           143,176        165,008        3.6%              46,271      50,510    2.2%     Asia-Pacific               46,217          50,510         2.2%           13,346   18,493   8.5%

      Pay Television          54,740          66,840         5.1%              13,346      18,493    8.5%     Australia                  3,125           2,787          -2.8%          459      532      3.7%

      Total TV                197,916         231,848        4.0%              59,617      69,003    3,7%     China                      12,756          14,039         2.4%           5,033    6,760    7.7%

      Online Video            11,089          21,454         17.9%             2,736       4,231     11.5%    Hong Kong                  1,038           1,312          6.0%           50       68       7.8%

      Mobile Video            4,257           21,340         49.6%             1,216       5,087     43.0%    India                      241             253            1.2%           2,864    4,575    12.4%

      Total Video             15,346          42,794         29.25             3,952       9,318     23.9%    Indonesia                  3,383           5,078          10.7%          19       33       14.8%

      TOTAL                   512,994         626,672        5.1%              147,227     180,609   5.2%     Japan                      17,686          17,345         -0.5%          1,334    2,103    12.1%
      ADVERTISING
      MARKET                                                                                                  Malaysia                   746             896            4.7%           271      484      15.6%

                                                                                                              New Zealand                580             596            0.7%           99       112      3.2%
     Source: Magna Global Advertising Forecasts (June 2014), IPG Mediabrands
     Note: Data excludes revenue from regional campaigns                                                      Pakistan                   32              39             5.1%           172      275      12.4%

                                                                                                              Philippines                995             1,369          8.3%           41       56       4.1%

                                                                                                              Singapore                  604             711            4.1%           60       71       4.1%

                                                                                                              South Korea                1,655           1,769          1.7%           1,595    1,811    3.2%

                                                                                                              Sri Lanka                  93              132            9.2%           4        7        15.6%

                                                                                                              Taiwan                     136             135            -0.1%          729      753      0.8%

                                                                                                              Thailand                   2,468           3,015          5.1%           315      384      5.1%

                                                                                                              Vietnam                    733             1,034          9.0%           301      469      11.8%

                                                                                                             Source: Magna Global Advertising Forecasts (June 2014), IPG Mediabrands
                                                                                                             Note: Data excludes revenue from regional campaigns

52                                  MULTICHANNEL TV 2016                                                                                                                         ADVERTISING REVENUE             53
Share of Global Adspend by Region in 2016 (US$ Million)
     Television is the dominant advertising medium in Asia Pacific, but its share of the
     Asia Pacific ad market has been declining since 2011 as advertisers have followed
     consumers on to the internet. Consumers in Asia Pacific spent an average of 158              200,839
     minutes a day watching television in 2014, down from 166 minutes in 2011, while the
                                                                                                                   159,137
     amount of time they spent using the internet increased by 63% between 2011 and
                                                                                                                                    115,340
     2014 to 97 minutes a day. Over the same period television’s share of total adspend
     dropped from 41.7% to 40.0%, while the internet’s share increased from 16.3% to                                                                  42,263
                                                                                                                                                                        23,229               11,671
     25.2%. By 2017 we expect television to account for 36.4% of adspend in Asia Pacific                                                                                           4,759
     and the internet to account for 34.2%; at this rate it won’t be long before the internet
     overtakes television.                                                                         North Asia Pacific               Western           Latin            Central &   Middle    Rest of
                                                                                                  America                           Europe           America            Eastern    East &     world
                                                                                                                                                                        Europe     North
     Despite its loss of market share, we expect television advertising in Asia Pacific to                                                                                         Africa
     continue to grow over the next few years, because the total market is expanding
     rapidly. Television adspend totalled US$56.4 billion in 2014, up from US$37.6 billion
     ten years earlier, and we predict it will reach US$61.3 billion in 2017.

     However, one of the driving forces behind the rise of internet advertising is the
     rapid growth of online video. The young, affluent consumers who spend the least            Share of Global Adspend by Region 2015 (%)
     time watching television are the heaviest users of online video, which is proving a
     very effective medium for advertising to a valuable audience. Online video adspend
     grew 60% in Asia Pacific in 2014, and we estimate it will be a tenth of the size of TV      (Growth by region in 2015 %)
     adspend in Australia and China in 2015. Online video has quickly become a vital                 (+3.6%)         (+3.1%)         (+6.1%)           (-4.3%)         (+8.4%)     (+2.3%)   (+7.3%)
     partner to television, for viewers, broadcasters and advertisers.                               36.4
                                                                                                                                       28.2
                                                                                                                      20.9

                                       Jonathan Barnard,
                                                                                                                                                                          7.3
                                      Head of Forecasting,                                                                                              4.2
                                                                                                                                                                                    0.9        2.0
                                        Zenith Optimedia
                                                                                                   North           Western Asia Pacific Central &                       Latin      Middle    Rest of
                                                                                                  America          Europe                Eastern                       America     East &     world
                                                                                                                                         Europe                                    North
                                                                                                                                                                                   Africa

                                                                                                Source: Zenith Optimedia Advertising Expenditure Forecasts June 2015

54                         MULTICHANNEL TV 2016                                                                                                                   ADVERTISING REVENUE                  55
Global Share of Ad Expenditure 2016

                                                                                                       Growth (%) in Asia Pacific Adspend
                                                                                                                       12.7
                                                                  Newspapers
                                                                     13%
                                         Internet
                                                                Newspapers Magazines
                                           30%                                                                                       6.9
                                                                   13%       6%                                                                   6.7                         6.3                      6.2
                                       Internet                                                                                                                6.0                         6.1                  5.6
                                                                               Magazines
                                         30%
                                                                                 6%

                                                                        Television
                                    Outdoor
                                                                           37%
                                     7%
                                                                      Television
                                  Outdoor
                                                                         37%
                                    7%
                             Cinema
                                0.5
                                      Radio                                                              -4.9
                            Cinema     6%                                                                2009         2010          2011         2012         2013            2014         2015        2016    2017
                              0.5
                                     Radio
                                      6%
     Asia Pacific Share of Ad Expenditure 2016                                                         Growth (%) in Asia Pacific Television Adspend

                                                                  Newspapers                                                             14.2
                                                                                           Magazines
                                                                     14%
                                                                                             3%
                                           Internet             Newspapers
                                                                                          Magazines                                                10.3
                                             32%                   14%
                                                                                            3%
                                         Internet
                                           32%                                                                                                                 6.2
                                                                                                                                                                         4.7
                                                                             Television                                                                                              3.6
                                                                                                                                                                                                 2.6    2.9    2.8
                                                                                37%                       2.3       2.0
                                                                            Television
                                         Outdoor
                                          10%                                  37%

                                        Outdoor
                                         10%
                                                                                                                              -3.4
                                    Cinema
                                            Radio
                                       0.5
                                             4%                                                         2007       2008       2009      2010       2011      2012       2013        2014     2015       2016   2017
                                   Cinema
                                           Radio
                                     0.5
                                            4%

     Source: Zenith Optimedia Advertising Expenditure Forecasts June 2015                              Source: Zenith Optimedia Advertising Expenditure Forecasts June 2015

56                                 MULTICHANNEL TV 2016                                                                                                                  ADVERTISING REVENUE                          57
Television Expenditure in Asia Pacific 2015                                                                  Television Advertising Expenditure % Share 2016

             Japan                                                                               17,597                11.7                                          8.7          12.5       10.0
             China                                                                           16,369                                   27.0
     South Korea                             4,855                                                                                                                                                  48.7      43.2
        Indonesia                         3,899
          Australia                      3,530
              India                   2,735                                                                                                          97.0
                                                                                                                       88.3                                         91.3           87.5      90.0
          Thailand                   2,633
                                                                                                                                      73.0
       Philippines                1,511
                                                                                                                                                                                                             56.8
          Vietnam               969                                                                                                                                                                 51.3
      Hong Kong                 835
            Taiwan              818                                                                                                                   3.0
         Malaysia               789                                                                                Australia         Hong           India*      Malaysia        New Philippines     South   Vietnam
        Singapore              583                                                                                                   Kong                                     Zealand               Korea
     New Zealand              497
          Pakistan            310
                                                                                                                                                              Pay TV                      Free TV

      Television Share of Total Adspend in Asia Pacific 2015 (%)                                                   Top Online Video Ad Markets in Asia Pacific in 2015
                                                                                                87.6
                                                                                                                                                                       Adspend (US$ million)
                                                                65.6 64.5                64.9
                                       58.1                                                                                    China                                                                            1,697

                                              41.3                                                                         Australia                         320
                                39.1                                             38.9 39.6             38.7 38.2
            30.0 32.7 30.2                           32.5
                                                                             28.5                                             Taiwan              100
                                                            25.2
                                                                                                                    New Zealand               33

                                                                                                                     South Korea             23

                                                                                                                         Singapore           20
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      Source: Zenith Optimedia Advertising Expenditure Forecasts June 2015                                         Source: Zenith Optimedia Advertising Expenditure Forecasts June 2015

58                                  MULTICHANNEL TV 2016                                                                                                                             ADVERTISING REVENUE                59
Growth in Asia Pacific Online Video Adspend %

                                                      % Growth

             63.8
                                     60.1

                                                             47.6

                                                                            37.0

                                                                                   27.4

             2013                   2014                    2015            2016   2017

     Source: Zenith Optimedia Advertising Expenditure Forecasts June 2015

60                                 MULTICHANNEL TV 2016                                   ADVERTISING REVENUE   61
with OTT

62   MULTICHANNEL TV 2016              GLOBAL OVERVIEW   63
MAKING WAVES WITH OTT
     Growth of OTT Subscription in Asia Pacific (US $ Millions)

                                                                                                                                                               2014-
                                    2010              2011                 2012      2013      2014      2015      2016      2017       2018        2019       2019CAGR

      Australia                     37.835            42.582               61.163    87.247    114.721   140.369   168.577   200.555    237.29      281.337    19.651
      China                         0                 47.348               72.306    103.528   134.751   165.973   197.195   228.418    259.641     290.863    16.636
      Hong Kong                     0                 0                    0         0         0         0         0         0          0           0          -
      India                         0                 2.086                11.774    20.221    31.057    43.1      55.389    67.3       81.684      96.067     25.338
      Indonesia                     0                 0                    0         0         0         0.007     1.983     3.959      5.935       7.911      -
      Japan                         90.293            95.727               126.228   172.146   245.855   311.004   379.003   443.004    516.911     590.817    19.167
      Malaysia                      0                 0                    0         0         0.148     1.794     3.44      5.086      6.732       8.378      124.169
      New Zealand                   7.702             8.351                12.978    19.249    26.701    34.98     43.712    51.93      61.119      70.308     21.366
      Pakistan                      0                 0                    0         0         0         0         0         0          0           0          -
      Philippines                   0                 0                    0         0         0         0         0         0          0           0          -
      Singapore                     0                 4.016                6.808     9.256     12.375    16.382    21.076    26.1       32.48       38.858     25.715
      South Korea                   0                 10.677               12.94     27.333    43.796    67.781    93.72     116.939    145.921     174.904    31.909
      Taiwan                        0                 0                    0         0         0         0         0         0          0           0          -
      Thailand                      0                 0                    0         0         0.109     1.671     3.233     4.795      6.357       7.919      135.64
      Vietnam                       0                 0                    0         0         0         0         0         0          0           0          -
      Asia Pacific                  135.83            210.787              304.197   438.98    609.513   783.061   967.328   1148.086   1354.07     1567.362   20.792

     Source: Global entertainment and media outlook 2015-2019, PwC, Ovum

64                                 MULTICHANNEL TV 2016                                                                                        MAKING WAVES WITH OTT      65
WAVE MAKERS
     The Ericsson ConsumerLab TV & Media                                                                       Half of viewing time is TV series & movies
                                                                                                               Average number of self-reported weekly hours of active TV/video
     Report 2015                                                                                               viewing, by gender:

     50% of consumers state they watch streamed on-demand video content at least once
     a day. They estimate that they spend 6 hours a week watching streamed TV series,                                    TV series according to a fixed TV schedule                                               4.8
     programmes and movies on-demand, this has doubled since 2011.                                                                                                                                             4.0

                                                                                                                           Movies according to a fixed TV schedule                                            3.9
     The popularity of Linear TV remains high, mainly due to its access to premium                                                                                                                            4.3
     viewing, live content and its social value. Linear TV is watched more by older age
                                                                                                                                          Other TV programs according                                    3.0
     groups, whilst those aged 16-34 spend 53% of all video viewing on a smartphone,                                                              to a fixed TV schedule                               2.8
     laptop or tablet.
                                                                                                                                        Streamed on-demand TV series                                   3.0
                                                                                                                                                                                                     2.5
     Average number of self reported weekly hours of active
     TV/video viewing:                                                                                                                       Recorded movies, TV series                                  3.0
                                                                                                                                                    and other TV shows                                  2.9
                                                                                       6,0 h/week                                                                                                       2.3
                                                                                                                                           Streamed on-demand movies
                                                                                                 Streamed                                                                                               2.5
                                                                                                 on demand
                                                                                                 TV programs
                                                                                                                                                                                                       2.3
                                                                                                                                                                        Live news
                                                                                                                                                                                                       2.6

                                                                                                                                                                             Other                   1.9
                                                                                                                                                                                                    1.8
                                                                                                 Streamed on                                         Streamed on-demand                          1.3
                                                                                                 demand TV                                               other TV programs                       1.3
                 2,9 h/week                                                                      series
                                                          121%
                                                         increase
                                                                                                                                      Educational or instruction videos                          1.1
                                                                                                                                                                                                 1.3
                        Streamed on                                                                                                                                                               1.0
                                                                                                                                                                      Live sports
                        demand TV series                                                                                                                                                                 3.1
                        and programs
                                                                                                 Streamed
                                                                                                                                                                                                0.7
                                                                                                                                                                      Live events
                                                                                                 on demand                                                                                      1.2
                       Streamed on
                       demand movies
                                                           90%
                                                         increase
                                                                                                 movies
                                                                                                                                                                            e-sport            0.4
                                                                                                                                                                                               1.1

                        2011                                                                     2015                                                Female                                          Male
     BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly         BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil, Canada, China,
     Source: Ericsson ConsumerLab TV & Media 2015 Study                                                        Colombia, France, Germany, Greece, Ireland, Italy, Mexico, Portugal, Russia, Spain, South Korea, Sweden, Taiwan, Turkey, UK,
                                                                                                               Ukraine, US
                                                                                                               Source: Ericsson ConsumerLab TV & Media 2015 Study

66                                  MULTICHANNEL TV 2016                                                                                                                        MAKING WAVES WITH OTT                                         67
Daily media habits                                                                                                     On-demand frequency
     Percentage of people watching different media types at least once per day (global                                      Percent of people using each on-demand service on a daily vs. weekly basis, US 2015
     average of self reported frequency of viewing)                                                                         [self-reported]

     100%                                                                                                                                                                                                   41%
                                                                                                                                          YouTube                                                                                  71%
                                                                                                                                             Netflix                                        27%
                                                                                                                                                                                                                        52%
       75%
                                                                                                                                 Amazon Prime                      6%
                                                                                                                                                                                   19%
                                                                                                                                                Hulu                  8%
       50%                                                                                                                                                                        19%
                                                                                                                                 HBO Go/HBO                       5%
                                                                                                                                         Now                                13%
       25%                                                                                                                               ABC.com                4%
                                                                                                                                                                          12%
                                                                                                                                   Apple iTunes                  4%
                                                                                                                                                                       9%
         0%
                                                                                                                                        Xfinity On-               5%
                     2010               2011              2012              2013              2014               2015                     demand                       9%

                                                                                                                                            Crackle           1%                                             At least daily
                                                                                                                                                                       9%
                              Scheduled linear TV                               Recorded linear TV                                                              3%
                                                                                                                                                Vevo                 8%                                      At least weekly
                              Streamed on demand video                                                                                U-verse On-                4%
                              (YouTube, short clips, movies, TV-series & programs)                                                       demand                       6%
                                                                                                                                              Twitch           3%
                                                                                                                                                                    6%
                                                                                                                                               Vudu           2%
     BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil*, China,
                                                                                                                                                                    5%
     Germany, Spain, South Korea*, Sweden, Taiwan, UK, US, * excluded in 2010 figures, ** 3 years moving average ¼, ½, ¼
                                                                                                                             FiOS on demand                   2%
     [Showing: Use once per day or more]                                                                                                                            3%
     Source: Ericsson ConsumerLab TV & Media 2010-2015 Study
                                                                                                                             Pirate streaming                1%
                                                                                                                                                                   2%
                                                                                                                            Pirate File sharing              1%
                                                                                                                                                                   2%

                                                                                                                            BASE: US Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly
                                                                                                                            Source: Ericsson ConsumerLab TV & Media 2015 Study

68                                   MULTICHANNEL TV 2016                                                                                                                                  MAKING WAVES WITH OTT                         69
A shift from fixed to mobile devices
     Share of self-reported total weekly TV/video viewing time, per year, done on
     respective device **

                                   100%
       Smartphone,
     tablet & laptop
                                     75%

                                     50%
          TV screen
          & desktop
                                     25%

                                       0%
                                                  2010         2011        2012         2013        2014         2015

             TV Screen                Desktop                 Laptop                Smartphone                     Tablet
                                      screen                  screen                screen                         screen

     61%                                                               42%
     of consumers watch TV &                                           think it is very important
     video on their smartphones,                                       to watch their TV & video
     an increase of 71% since 2012                                     content wherever they are

     BASE: Population aged 16-59 with broadband at home who watch any type of TV/Video at least weekly in Brazil*, China,
     Germany, South Korea*, Spain, Sweden, Taiwan, UK and US. * excluded. in 2010 figures, ** 3 years moving average ¼, ½, ¼
     Source: Ericsson ConsumerLab TV & Media 2010-2015 Study

70                                   MULTICHANNEL TV 2016                                                                      MAKING WAVES WITH OTT   71
ASIA-PACIFIC OTT: WHAT’S NEW?
                                                                                              Asia-Pacific OTT viability key stats
     By Abigail Cruz, SNL Kagan                                                               by December 2015 (continued)
                                                                                              Asia-Pacific comparison table
     IPTV MARKET SUMMARY
                                                                                               Market             Multichannel        BB HHs/HHs        gap b/n BB and
     The Asia-Pacific region is gradually becoming a favorable landscape for medium- to                           subs/HHs (%)        (%)               MC pen (%)
     long-term over-the-top video streaming development. By end-2015, broadband
                                                                                               AUSTRALIA          36.0                77.0              41.0
     adoption is expected to maintain notable market traction in several markets
                                                                                               CHINA              68.0                41.3              (27.0)
     including Australia, New Zealand, Singapore and Japan. On the other hand, India
     may continue to have one of the region’s highest penetration rate disparities             INDIA              52.2                7.5               (45.0)
     between broadband and pay TV services, projected to reach 7.5% and 52.2% by               JAPAN              29.0                69.0              40.0
     year-end, but in light of the implementation of various OTT initiatives by local and      NEW ZEALAND        53.0                91.2              38.2
     out-of-market OTT players, India may eventually become one of Asia Pacific’s liveliest
                                                                                               SINGAPORE          76.4                94.3              18.0
     OTT playing fields. Much as are other countries in the region such as Malaysia,
     Philippines and Hong Kong, these markets are taking a positive turn for OTT as more       SOUTH KOREA        153.0               98.0              (55.0)

     online video streaming services are introduced.                                           TAIWAN             76.0                75.3              (0.7)

                                                                                               INDONESIA          6.0                 7.0               1.0

                                                                                               MALAYSIA           62.0                34.2              (28.0)

     Asia-Pacific OTT viability key stats by December 2015                                     PHILLIPPINES       14.4                14.0              (0.4)
     Asia-Pacific comparison table                                                             HONG KONG          86.3                90.0              4.0

     Market             Occupied           Multichannel      Broadband                        Given the OTT growth in the Asia-Pacific region, SNL Kagan has expanded its
                        Households         Subscribers       Households
                                                                                              coverage of OTT in the region from an initial eight markets to 12 as of September
     AUSTRALIA          8,539,453          3,044,660         6,564,966                        2015, now including Indonesia, Malaysia, Philippines and Hong Kong. In this article,
     CHINA              433,745,557        294,341,055       179,066,029                      SNL Kagan outlines select OTT service launches during the first half of 2015, as well
     INDIA              283,517,700        147,856,492       21,148,860                       as OTT launches expected in the
                                                                                              second half.
     JAPAN              54,459,475         15,621,442        37,558,828

     NEW ZEALAND        1,598,936          844,059           1,457,996                        Australian OTT had a busy first quarter, with three OTT services launched. Global
     SINGAPORE          1,278,839          977,654           1,205,999                        player Netflix Inc. began its Asia-Pacific expansion with launches in Australia and
                                                                                              New Zealand in March 2015, following the January launches of FOXTEL’s Presto and
     SOUTH KOREA        18,941,487         28,919,281        18,540,021
                                                                                              StreamCo’s Stan.
     TAIWAN             8,515,696          6,442,780         6,415,856

     INDONESIA          70,171,478         4,158,250         4,876,795                        Subscription prices of the three services are similar, with Netflix’s basic plan priced at
                                                                                              A$8.99 and Stan at A$10.00 per month for unlimited access to TV and movies. Presto
     MALAYSIA           7,239,839          4,464,682         2,475,567
                                                                                              provides more subscription options to the Australian market by offering movie- and
     PHILLIPPINES       22,384,704         3,226,783         3,111,854                        TV-focused monthly plans, each priced at A$9.99, and a combination of TV and
     HONG KONG          2,489,027          2,148,200         2,230,494                        movies for A$14.99. Quickflix, an established OTT player in Australia, shares the
                                                                                              A$9.99 price point.

72                         MULTICHANNEL TV 2016                                                                                              MAKING WAVES WITH OTT                         73
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