Deputy CEO calls for more effective Cable TV regulation

“Today, while more than 260 million homes in Asia are wired,” explained Medeiros, “there is a growing digital divide.” The Asian pay TV industry, he said, generates US$53 billion annually and the sector is growing at 11 percent per year. Only 10 percent of pay TV homes get digital signals; there are wide variations across the region, from 100 percent in Hong Kong to 2.9 percent in India.

“Our industry can make a strong contribution to development goals, but a positive regulatory framework is necessary,” said Medeiros, before discussing the group’s recently published “Regulating for Growth,” which outlines CASBAA’s goals.

The report, he said, examines Asian regulatory practices from an industry point of view, comparing regulatory regimes and industry revenue and investment data. “Does effective regulation generate growth?” he asked. “What is the effect of the regulatory environment on digital development?”

There are, he added, huge benefits from a growing TV industry, which makes a large economic contribution, stimulating associated industry and driving digital development. “A strong pay TV market,” stressed Medeiros, “will stimulate investment and unlock value. With voice and broadband data, pay TV pulls investment in digital infrastructure.”

Pointing to average compound annual growth rates (2003-2006) in monthly cable fees, Medeiros observed that these have risen 14.2 percent in Australia, 10.1 percent in China and 6 percent in the UK, but only 0.4 percent in Taiwan.

“This shows rather starkly how out of step Taiwan has been,” said Medeiros. “Now, some people would look at this and say, ‘hey, great, we paid the least.’ You know, however, that consumers, even the shrewd housewives of Taiwan, do not just look at price; they also focus on value. Taiwanese consumers pay little, but get little value.”

Digitization of pay TV is important, said Medeiros, as it caters to specialty and niche content, such as high-definition TV, new genres and public affairs. It also promotes content creation industries, permitting a variety of packages for all tastes, while creating jobs. “Ultimately,” emphasized Medeiros, “it gives consumers the power of choice.”

Personalized TV and on-demand services are generating new business and enhancing the economic contribution of the industry. “This also leads to support of ancillary industries, causing tax revenues to rise, while protecting the value chain. It ensures that the creators benefit as it limits the scope and scale of revenue losses from piracy.” This is especially important, he continued, for smaller language and cultural communities.

Based on the findings of the study, Medeiros concluded that effective regulation is directly related to growth and development in this sector. “Governments that adopt wise policies spur competition, increase consumer choice and attract substantial investments to a key pillar of the digital economy.”

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