Hong Kong – Leveraging economic growth, investment and competition, Asia’s pay-TV and broadband industries have grown at an average annual rate of 22% in the past five years, and generated more than US$53b in sales in 2007. The figure is projected to rise at a compound annual growth rate (CAGR) of 11% to hit US$86b by 2012, and on a longer term, to grow at a CAGR of 8% to reach US$120b by 2017. That’s according to Media Partners Asia’s (MPA) recently-released Asia Pacific Pay-TV and Broadband Markets 2008 report which measures consumption and value of multi-channel video and broadband services over distribution networks including cable, satellite, fiber, ADSL and mobile, across 16 markets in the region. MPA executive director Vivek Couto said, “Digitization and broadband penetration is growing rapidly in Asia, boosted by growing economies of scale in platform operation; technological change and lower equipment costs; and the availability of wider programming options. Near-term risks include softening economic growth as well as deteriorating global credit conditions and equity markets, while longer-term risks converge around regulation. Encouragingly, the broad fundamentals of the region in general, and markets such as India in particular, remain strong.” The report also suggests that in the short term, lower economic growth may dampen pay-TV and broadband demand in mature markets and restrict advertising growth, as global financial concerns are likely to reduce available capital in emerging markets. It also states that the risks may be averted with robust regional economic growth which will bolster demand, advertising prospects, financing options, and mergers and acquisitions (M&A). In addition, findings indicate that there is scope for progressive change to regulations which have continued to limit rewards and returns for media investors and distributors as well as profitable growth and investment, and increase uncertainty in the long term in key regional markets including Taiwan, China and India.