Hong Kong – Media owners and investors focused on Asia Pacific can take comfort from the defensive nature of the region’s pay-TV and broadband industries, according to a new report from Media Partners Asia (MPA). According to MPA, industry revenue growth will decelerate to 12% in 2009 after a compound annual growth rate (CAGR) of 19% during 2003 – 8, and will trend down to a CAGR of 10% over the next five years and 7% over the next decade to 2018. This still represents a robust growth rate, underscored by increased pay-TV and broadband penetration; widespread adoption of digital TV (DTV); the rollout of broadband digital networks; and healthy long-term ad growth in key markets. Net new subscribers in Asia hit a record 26.6 million in 2008, fuelled by India and China in particular. This number, according to MPA, will decelerate to below 24 million in 2010, and thereafter average 15 – 20 million over the medium term. At the same time, digital migration will continue to accelerate at a significant rate with 30 – 40 million new digital set-top boxes (STBs) installed into consumer homes on an annual basis. MPA projections indicate that pay-TV penetration in the Asia Pacific will grow from 43% in 2008 to reach 52% by 2013 and 54% by 2018. The digitization of distribution platforms along with competition between infrastructural networks will be a key driver of pay-TV industry growth. MPA analysis suggests that regional analog pay-TV penetration will fall from 31% in 2008 to 16% by 2013, while digital pay-TV penetration will climb from 12% to 35% over the same five-year period. The number of pay-TV with at least one STB, less than 30% in 2008, will grow to around 70% by 2013, creating a big opportunity for linear channels and a foundation for HDTV, VOD and PVR. The report, entitled Asia Pacific Pay-TV and Broadband Markets 2009, covers the distribution of analog and digital multi-channel TV services as well as broadband, telephony and high definition digital TV (HDTV), video-on-demand (VOD) and personal video recorders (PVR) over cable, direct-to-home (DTH) satellite, and IPenabled DSL and fiber networks, in 16 Asian markets.