The Asia Pacific region has embraced the IPTV technology. Transparency Market Research anticipates that countries from Asia Pacific except for Japan are set to enlist 21.2 percent Compound Annual Growth Rate (CAGR) in the year 2014 up to 2020. Countries such as India, South Korea, Indonesia, and China are to be the key to the success of IPTV for the next few years. The growth is evident in China, who has the means to conquer the market because of the ever-growing middle-class income group and its expanding broadband infrastructure. In the next five years, it is expected that IPTV will reach its full potential for having numerous subscribers in this region.
IPTVâ€™s victory across the sector is also because of the influence of Netflix as it forcefully pushes the IPTV Market to create its big leap into 18 Asian markets. CEO Read Hastings announced that Netflix will roll-out in 130 countries at CES 2016, he also added that the company is making its way to create a good relationship between China while hoping that this project will launch this year or in 2017. With it, Netflix added basic and traditional Chinese to the 17 languages it already supports.
The Netflix incursion will be the way of the IPTV to promote its services in the region as per the report from consultancy Media Partners Asia.
â€œFor the next three to five years in the markets that have growth, including Japan, India, Korea, and China, without uncertainty, they will surely invest in local co-productions and get competitive telco partnerships,â€ predict by Vivek Couto, executive director of Media Partners Asia.
He also added that there will be a lot of players that will enter into the picture of SVOD market plus the possibility of seeing players in China expanding across South East Asia as the competition rises.
In 2015, the Chinese OTT market generated $5 billion revenue, 85 percent of it came from advertising while the remaining 15% is from subscriptions. The leading platforms from Tencent Holdings and E-commerce giant Alibaba Group Holding just formed a recent partnership with Walt Disney Co and Baiduâ€™s Qiyi.
IPTVâ€™s expansion in the region will also make way for the rise of smart OTT solutions to deal with competitive pressure, accordingly to Edgeware (Asia Pacific based distributed video delivery provider).
â€œThe year 2016 will set a new meaning for OTT providers as it will be competitive enough in both in acquiring or producing high concept originals, and in delivering relevant content to the consumer the way they prefer without compromising quality to attain the costumers demand,â€ said by Peter Lofting, Edgeware director.
The growth of IPTV markets in Asia is just another reason telcos and IPTV providers need to get into the market. Companies like Netflix are a threat to local telcos that want to provide IPTV services. MatrixStream is one of the worldâ€™s premier OTT IPTV solution providers. MatrixStream solution can enable any telco to start up IPTV service with OTT streaming to multiple devices such as Android phones, Android tablets, Apple iPhones, Apple iPads, PCs, MACs, and HD set-top boxes. Please contact us today if more information is needed.