MUMBAI: In the latest survey of revenue leakage over the last 12 months to the regional pay-TV industry, conducted by the Cable and Satellite Broadcasting Association of Asia (CASBAA) and Standard Chartered Bank, the losses are conservatively estimated to stand at $1.54 billion, as compared to $1.13 billion in 2006.
The cost of pay-TV piracy in
“The fall in the ‘lost revenue’ number is attributed to the reduced cost of a pay-TV subscription in
Meanwhile, a large part of the rise in total revenue losses for 2007 can be attributed to a 20%
According to CASBAA,
While the rest of the world is benefiting from digital roll-outs, Indian consumers have no opportunity to enjoy these fruits. “The systemic shortfall in analogue revenues from local cable operators is a major part of the problem,” said Davies.
The most positive news in the survey, is a dramatic fall in…< Page Break >
the number of illegal connections to pay-TV channels in
Standard Chartered Bank, Head of Media and Entertainment, Lee Beasley commented, “The improvement is almost exclusively thanks to the removal of pirated international channels from the line-up offered by Vietnamese operator VTC. The Government of Vietnam is clearly moving to fulfill its international trade commitments and listening to its own legitimate industry. This is great news, and we hope attention to this issue continues.”
The 2007 survey of pay-TV piracy in
Beasley added, “The pay-TV piracy situation in most of the big markets in the region needs to be seriously addressed, not just by the industry but also by government. Nonetheless, the fact that legitimate paid subscriptions are seeing an average 10% growth is a positive sign of the vast potential for the Asia Pacific pay-TV industry.”
The report also highlights that at least $213 million is being lost in unpaid tax revenues across the region this year.
Meanwhile, in 2007, CASBAA has continued to lobby governments and has extended legal actions against commercial distributors of unauthorised signals in public venues in Hong Kong and against pirate operators in the
With 1.32 million unauthorised connections,
CASBAA notes that, despite a slight improvement in the approach to intellectual property rights by some cable operators in the Thai provinces, there has been a disturbing growth of an emerging and important phenomenon, that of illegal Internet-based card-sharing (via remote servers) for Direct to Home (DTH) services.
“This is a relatively new and sophisticated technical hack that boosts the vulnerability of DTH services to piracy. This needs to be watched carefully and highlights the need for industry vigilance and continued investment in technical protection supported by stringent legal sanctions,” said Davies.