“The reality of the next decade for DTH service providers is convergence,” explains Frost & Sullivan research analyst James Lye. “To create new revenue streams, providers need to shift beyond individual technology and service platforms towards an MSO model, reaching consumers through any efficient medium.”
Consumers are increasingly looking to a single provider for integrated solutions - offering voice, data and video services. The Asia-Pac region offers unique opportunities as newly emergent communities demand telecommunication services in vast unwired areas. By using video content as the flagship offering, DTH providers can gain a strong position in the market and uncover ways of tapping into the lucrative voice and data demand.
A DTH provider needs to achieve economies of scale, resulting in lower operating costs, breaking key price barriers for consumer adoption, as well as granting easy access to premium content. However, establishing a region-wide service can be hindered by stringent regulations prevalent in many Asia-Pac countries.
“The lack of local language content often limits the potential customer base,” explains Lye. “Premium content will drive initial growth, but content relevant to the local or regional scene will sustain interest and customer loyalty.”
In the highly fragmented Asia Pacific market, it is important to provide not only premium global content, but also superior quality local programs to differentiate the service offerings from other available ones. Key to capturing the regional market is specialized content, inclusive of local sports, news and entertainment, which requires local production capabilities.
