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SCMP Reporter

Survey shows 10 Asia-Pacific markets expected to lose US$1b to copycats

Cable and satellite-television operators should digitalise their transmission systems and revise business models to combat piracy, according to an industry body and CLSA.

A joint report by the Cable and Satellite Broadcasting Association of Asia (Casbaa) and CLSA released yesterday showed revenue lost  to piracy in 10 key Asia-Pacific markets this year was expected to hit US$1.06 billion - up 11 per cent  from last year. The cost to governments in the region in lost taxes, licence fees and other revenue is predicted to reach US$155 million.

'High revenue leakage in India, Thailand, Vietnam and the Philippines is of a particular concern,' the report said.

Revenue loss in India is expected to increase  19 per cent   to US$632 million, the region's highest.

In Hong Kong, where  pay-television users  rose 30 per cent last year to 1.1 million, revenue loss was estimated at US$24.3 million. The report said pirate users remained flat at 90,000.

'The pie in the Hong Kong market is larger due to PCCW Now Broadband TV and SuperSun entering  the market but illegal users are still coming from the i-Cable Communications service,' said Simon Dewhurst, a director of investment banking of CLSA Asia-Pacific. 'The new entrants are using new digital and internet-based platforms to ensure the signal is not leaked to illegal users.'

Mr Dewhurst urged i-Cable to end its analogue signal transmissions and upgrade its set-top boxes to avoid piracy.

Cable and satellite-television operators should upgrade their infrastructure to the digital platform to deal with the challenge of technology convergence, he said. 'The operators have no choice but to  [go digital] and seek to become a complete service provider in the market.'

But inadequate regulations are posing a hurdle for operators to invest in new technology.

For example, Mr Dewhurst said there was no government plan on the horizon to criminalise pay-television  piracy. 'Companies like i-Cable don't have confidence  investing due to the existing regulatory framework,'  he said.

Casbaa chairman Marcel Fenez urged the government to act.

'Although the Hong Kong government wants the city to become a media hub, the treatment  of pay-television piracy offenders is not consistent with that goal. It seems the government does not protect intellectual property rights seriously,' Mr Fenez said.

Bootleg blues

Losses in 10 Asia-Pacific markets expected to rise 11pc

Cost to governments predicted to reach US$155 million

Revenue loss in Hong Kong estimated at US$24.3 million



TV operators urged to go digital in piracy war