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HONG KONG: Pay television piracy continues unabated in the
Asia-Pacific region, with total loss in revenue estimated
to be $1.13 billion in 2006, out of which India’s dubious
contribution is a whopping $ 668 million.
According to study on piracy in Asia-pacific released by
Cable and Satellite Broadcasting Association of Asia (Casbaa)
here today ahead of their three-day annual convention, for
the fourth consecutive year pay TV piracy has shown an increase
with illegal pay TV subscription across the region growing
by 20 per cent in 2006 to 5.2 million.
The report, undertaken in association with Standard Chartered
bank, also highlights that pay TV piracy will result in net
estimated tax revenue loss of $ 158 million to the region’s
governments in 2006.
In particular, the piracy situation in India (considered
the biggest accessible market, though), Hong Kong and Vietnam continues to worsen,
the report said.
Asked by Indiantelevision.com whether the Indian and foreign
players operating in India have undertaken any concrete anti-piracy
initiatives in India instead of just blaming the government,
Casbaa CEO Simon Twiston Davies said, “The industry is
constantly in talks with the government and the regulator
on the issue.”
He added that Casbaa has also exhorted the government to
“review” existing regulations and strengthen digital
infrastructure.
The grey market deficit in India due to under-reporting by
cable operators has grown from $ 632 million in 2005 to $
667 million in 2006.
Thailand also suffers from rising cost of piracy and at $
160 million revenue loss has the second highest rate of piracy
in the Asia-Pacific region
Other markets facing an uphill pay TV piracy
battle include Vietnam and the Philippines. The “Greenfield” market
of Vietnam has the worst ratio of piracy in the region with one legal pay TV subscriber
for every 15 illegal connections.
In the Philippines, estimated net piracy costs due to illegal
distributors, largely in provinces, has risen by 24 per cent
in 2006.
Indonesia is not far behind with revenue leakage of $ 23.8
million as government and industry insiders indicate a substantive
piracy growth.
Singapore
is the only market covered by the report that brings some cheer to the industry
reeling under piracy.
As a result of ongoing digitization of cable networks, the
number of pirated pay TV subscriptions remains low with a
15.8 per cent decline in piracy costs.
Macau, covered in the study for the first time, has the unenviable
distinction of having the region’s second highest piracy
rate with 10 pirated connections for every one legal subscriber.
The study notes that the Macau
government’ anti-piracy measures announced last year have been inadequate
to arrest rising piracy.
The new study estimates that the cost of piracy in Hong Kong
for 2006 will be $ 32.4 million, a hike of 29 per cent over
last year.
“This could have a genuine impact on Hong Kong’s
reputation as an intellectual property rights hub,” Davies
said.
Pointing out that
pay TV piracy is “corrosive” in nature and undermines investments in
various markets of the Asia-Pacific region, Davies, however, said growth prospects
remain good in the region.
Interestingly, piracy also results in huge losses to governments
too with the study estimating that at least $ 158 million
being annually lost to regional governments. The losses corporate
profit tax ($ 127 million) and VAT/GST ($ 31 million).
The governments in the region taking the maximum hits due
to loss in tax revenue include those in Thailand ($ 59 million),
the Philippines ($ 38 million), Australia ($ 14 million) and
Vietnam ($ 12 million). The India figure for this segment
was not available.
No wonder, Standard Chartered head of media and entertainment
Lee Beasley said, “Pay TV piracy should raise an alarm
not only in the pay TV industry, but also for a range of Asian
governments.”
Meanwhile, the annual Casbaa convention where industry people
from the broadcasting and cable industry, investors and regulatory
authorities from round the globe are converging kicks off
Wednesday.
Apart from the usual rounds of seminars and debates
on issues of relevance, a tech exhibition too is being organized. | 
