Terry Bleakley, Vice President, Commercial Operations, MEASAT Satellite Systems There is a lot more HD content out there than say 12 months ago. New channels such as Li TV and The Food Network, which do not have the legacy of an SD installed base to navigate, have chosen to launch their channels in HD as a differentiator and a key component of their go to market strategy – something we did not see in 2008. In addition, all of the leading tier one pay-TV networks in Asia, such as National Geographic, Discovery, Fox International Channels, Sony Picture Entertainment, AETN, and HBO have launched HD channels. There have also been significant changes in HD technology that are delivering benefits for pay-TV platform operators and increasing HD availability. With the new efficiencies and cost savings of MPEG-4 compression and DVB-S2 modulation, we are seeing more DTH operators expanding the HD bouquet. Two examples of new HD offerings launched in 2009 are Astro’s Beyond service that provides HD content to the Malaysian and Brunei markets, and Sun Direct launched the first HD bouquet for the Indian market. Other more developed pay-TV markets are offering more variety of HD content due to increased availability. For example, Skylife in Korea now have over 50 HD channels, and they expect this to grow to 70 channels by the year end. In terms of affordability, there are a number of factors that are improving the affordability of HD content to the subscribers and to the operator. The cost of HD-ready TV sets continues to drop, which is supported by the fact that over 90 percent of TV’s sold in Asia over the last 24 months are HD ready. The cost to deliver the content has dropped with more efficient compression and modulation techniques. We have noted that HD has seen its biggest growth in high ARPU markets with USD50 to USD70 ARPUs of Japan and Australia are leading the region in both ARPU and HD roll-out. However, in price sensitive markets such as India, where volume is used to make up for ARPU shortfalls we may see a new model develop in future. SunDirect is offering a five Channel HD package for Rs 100. MEASAT has been at the forefront of development of HD in the region. For several years we have actively engaged strategic partners and been a thought leader in developing strategies for HD distribution. MEASAT has commissioned market analysis of the future of HD in the Asian pay-TV market, and we have actively participated in MEASAT and industry forums to show leadership in the category. We have developed relationships with play-out and uplink partners in Middle East, Hong Kong, Singapore and Malaysia to offer content providers different options to get their HD content to the subscriber. Drawing on our expertise in HD content distribution, MEASAT has developed a unique business model to support the roll out of HD channels in the region. As a result of the successful HD initiatives, MEASAT is the leading Asian satellite operator for C-Band distribution of HD content. MEASAT 3 and 3a satellites carry a total of 11 HD Channels, more than any other satellite operator in the region. HD remains a core focus for MEASAT and is one of the key market segments for the growth of the company. We will look to continue to lead HD contribution and distribution services in the region. I would expect to continue to see strong growth of HD content in the region, and would expect HD pay-TV channels to become the norm within the next three to five years due to a number of factors. There are more HD TV sets out there with consumers watching HD content on their Blu Ray players now looking for a similar experience from their pay-TV provider. Secondly, there is also more content being shot in HD, generating a larger library of material available for creating compelling HD channels. In Asia, I feel that we are reaching a tipping point for HD pay-TV services. Our experience shows that channels that are new to market are frequently launching in HD rather than SD in an effort to compete with the more established competition. As a result, a number of the leading pay-TV networks are looking to simultaneously offer both HD and SD content to support their traditional subscriber base while also developing the newer HD subscriber base. Patrick Yeung, Managing Director, GlobeCast Hong Kong More and more pay-TV platforms across the region are launching HD channels, as they tap into the recent tremendous growth of flat screen HD TVs in the home, spurned by price reductions to mass market levels. In addition, HD channels subscription fees are at present only a small premium over that of SD channels, making HD channels much more accessible to viewers. The biggest challenge for a much wider growth in HD subscriber base is no longer availability and affordability, but for the channel owners to bring more interesting content to the viewers that capitalize on the HD quality and experience, as well as local HD content that is more relevant to local viewers. With over 10 years of presence in Asia, GlobeCast is one of the largest service providers for HD broadcast channels in the region, on our cost effective, state-of-the-art platform on the Measat 3 satellite (DVB-S2 MPEG-4 HD). This platform already carries National Geographic HD, NGC Wild HD, The History Channel HD, Sony AXN HD – and more HD channels are planned for 2010. Not only do we bring HD channels all over the world to broadcast in Asia through our reliable global satellite and fibre network, but we also provide complete playout and origination services. We are ready to manage the localization of foreign HD channels in censorship cuts, subtitling and other post-production work for the Asian audience. Finally, we help channels get carriage on pay-TV operator platforms in the region and worldwide thanks to our newly established Content Aggregation and Distribution division. This activity is made possible by our long experience in Asia serving premier broadcasters, solving a great variety of their local distribution problems based on our deep knowledge of the local viewership, as well as the regional industry partnerships we have built up over the years. For live events, the major test for us had been during the Beijing Olympics in which, despite all odds, we were one of the very few pioneers who successfully delivered HD signals of the games LIVE via DVB-S2 and in MPEG-4 – a milestone in live event coverage. From our experience, our team has been tried and tested – we’ve gone through the trial by fire. HD is a major step towards giving home viewers the ‘wow’ feeling of being actually present in the scene on the screen. Many content creators see the value of producing their live entertainment events in HD for the HDTV audience. One example was GlobeCast’s delivery of the world’s first 3D Fashion Show for Burberry at the recent London Fashion Show which was beamed to Burberry’s customer events in Tokyo, New York and Los Angeles. For TV channels and content creators, with the various innovative content delivery options available, it’s an exciting time. As HD production costs come down, we are seeing more and more interesting HD content coming to Asia, with even existing channels evolving from SD, to simulcast HD and SD, and all the way to pure HD broadcast. In a few years time, it has a strong potential to become the de facto TV broadcast distribution format. Furthermore, it is also the stepping stone to 3D TV in the home, contributing to new dimensions of viewer experience and enjoyment, and is definitely the growth engine of the TV industry here for some time to come. Paul Jackson, Chief Engineer Asia Pacific, NDS HD services are increasingly available, though some more optimistic rollout plans have been postponed. To appreciate HD, a subscriber needs: an HD compatible set top box (STB) or digital video recorder (DVR) and an HD monitor or TV or just an integrated digital TV. Whichever option, the result is several times more costly than a standard definition DVR, which does not require any additional investment to significantly improve the TV viewing experience. The HD DVR in such markets may be a more compelling offering than an HD STB, as it helps to overcome the relative lack of live HD content. Where HD services are well established (Japan and Korea), there is demand for HD DVRs connected with the main screen and simple HD STBs for viewing in other rooms. NDS solutions are used to enhance the TV viewing experience with an HD Electronic Programme Guide and HD DVR. It is advisable to have an EPG that fits in with the content on offer. HD will initially be used as a competitive differentiator for pay-TV platforms. In the long term, HD may help operators attract and retain additional subscribers but its real benefit will be to increase revenues as operators can obtain higher ARPU’s. Rahul Johri, Senior Vice President and General Manager, India, Discovery Networks Asia Pacific There could not have been a more opportune time for the launch of Discovery HD. India is fast changing. With 60 percent of India’s population under 30-years of age, India presents an unique and compelling advantage – young and aspirational Indian audience. Television viewership patterns are changing. A shift towards well defined and unique content channels is on the rise. Digitisation has empowered viewers. Growing affluence, availability of advanced television sets, improvement in production quality and an inherent demand to access and use the global-best will further act as multipliers. Indian television industry is at a transformation stage on all fronts – content, viewership trends, transmission platforms and overall viewing experience. Digitization will further fuel this change. As industry leaders, we have always pioneered new growth chapter – high definition will be one of the most path-breaking influences of Discovery in India. A nationwide brand appeal, affluent market and aspirational audience are an ideal combination for the launch of this premium service. As the leading pioneer in the HD arena, this launch underscores Discovery’s enduring commitment to offering highest quality content and services that serve the needs of both affiliates and advertisers while enhancing the consumer viewing experience. Growth in high definition (HD) is driven by a virtuous circle – as technology improves, more HD content is produced, an enhanced service can be broadcast and distributed, more HD sets are bought, resulting in greater consumer awareness and expectation of HD and, therefore, ultimately, a greater demand for HD content. I would reiterate that Indian consumer is more than ready for a full HD service. Discovery is one of the most respected brands in India. It has a nationwide appeal and is watched by a cross section of audiences. All our other networks also attract high traction with both affiliate and advertising trade. For us, it is a natural progression to offer HD service. We are the world’s leading HD provider. For the last few years, we have been producing almost all our programmes in HD, including the Indian commissions. Discovery HD will be an ad-free, seamless and pay channel. The emergence and growth of digitisation in India is critically dependent on the broadcasters’ competence to offer differentiated, credible and entertaining content. Discovery HD brings the network’s thrilling factual content to life – sound effects are more realistic, images larger than life and situations more gripping than ever before. Thomas Kressner, Chief Executive Officer, ASN The problem is not really the technology or pricing, but the lack of great content. Content owners and in particular sports properties are making more HD content because they know it gives the best viewer experience. ASN is the only pan Asian HD sports network launched in 2009 and the channel has been received well by viewers, broadcasters. If other markets are to go by, it’s key to the growth of the TV industry particularly as HDTV sells more than any other TVs in most Asian markets. Ricky Ow, Senior Vice President & General Manager, SPE Networks – Asia As the cost of HD technology has become increasing affordable to consumers, penetration of HDTV sets has risen steadily across many markets in the region, and we foresee HDTV sales to continue growing. The continued growth in HDTV penetration in Asia has led to more consumers demanding HD content. The trend is also helped on by content providers, as most content is being produced in HD format now. With growing ownership of HDTV sets driving a healthy demand for the HD viewing experience, matched by a steady supply of HD content, we believe the HD wave will continue to expand. SPE Networks – Asia’s flagship action and adventure channel AXN is set to be the region’s first English GE pay-TV channel to go HD in Southeast Asia this May. As AXN viewers tend to be early adopters of new technology, many already own one or more HDTV sets and that drives a demand to watch AXN at a better visual quality. In expanding AXN HD’s presence to Southeast Asia, we are essentially looking to meet consumers’ demand. Prior to the launch of AXN HD in Southeast Asia, the channel rolled out in Korea to great success and it is now carried by the country’s top pay-TV services including DTH operator SkyLife, and all three IPTV platforms Korea Telecom’s Qook TV, LG Dacom’s myLGtv and SK Broadband’s broad&tv. From our experience in Korea, we have found consumers to be happy with what AXN HD has to offer. We believe that same success can be replicated in more markets across Asia and we are doing our part by bringing AXN HD to Southeast Asia markets. We hope that as AXN HD continues to grow in Asia, more players will be spurred to go HD and as a result, move the industry forward. HD narrows the gap between the entertainment experience enjoyed in theatres and on TV. Home entertainment has gone beyond just quality audio with home theatre systems, to visuals of much higher quality in high definition. HD brings a compelling entertainment experience to consumers, in the comfort and convenience of their own homes. Consumers who have made the switch will want to stay on HD, and we believe the HD visual quality is here to stay. The growth of HD continues to drive TV to become the core unit that viewers consume entertainment from. Peter Jackson, Chief Executive Officer, AsiaSat Though the development of HDTV in Asia is behind that of the US and Europe, we are seeing encouraging signs of HDTV growth across the region with the number of HD channels available on pay TV platforms increasing on both new and established platforms. Platform operators are using HD content as the differentiating feature to attract consumers in competitive markets and consumers, who are buying larger flat screen televisions as their prices continue to reduce, are demanding the higher quality viewing experience that HD provides. Standard definition programming looks particularly bad when being watched on screens larger than 37 inches. This coupled with the adoption of HD technology for broadcasting major sports events such as the Olympics and soccer tournaments including the upcoming FIFA World Cup has made HD a new must have consumer product. Government initiatives in driving the transformation from analogue to digital broadcasting and the requirement to have national broadband capability has also accelerated HDTV content development in some Asian countries. Satellite has significant advantages to other delivery methods for point to multipoint distribution services over large geographic areas. In the early days of HD in Asia, broadcasters used to deliver their HD service to single markets via fibre. Today, with the increased demand for HD content from many pay TV platforms across Asia, satellite is the most cost effective means of delivery and when satellite is used as the distribution method the HD content is instantly available to both platform providers and consumers right across the region. While broadcasters have started to expand their offerings to address increased demand from pay TV platforms for HD content, there is substantial demand for satellite capacity to deliver HD channels across the region in a cost effective manner. We expect HDTV to be a key driver of our growth in 2010. Kenji Nagai (General Managing Director and Executive Director-General of Engineering) NHK NHK launched a HD-only satellite channel in 2000 when digital satellite broadcasting commenced in Japan. We have been producing more and more HD content since then, and our main channel ‘General TV’ has achieved 100 percent HD programming. Now that we are only about a year and a half before the digital switchover (Japanese TV is turning digital in July 2011), HD is becoming the standard of program production. The digital signal covers 98.5 percent of the country, and about 70 percent (as of Nov. 2009) of Japanese households have TV sets that can receive digital broadcasting. Many people now have access to HDTV. NHK’s Science and Technical Laboratory (STRL) began research of Hi- Vision (HDTV) from 1964, and started producing HD programs from 1982. In 1988, for the first time, the Olympic Games were broadcast in HDTV by NHK. Since then, Hi-Vision has been adopted around the world offering viewers spectacular image and sound, adding new sense of reality to every kind of TV programs. In 2000, Hi-Vision was approved by ITU as HDTV’s global studio standard. We believe that our R&D has contributed to the growth of HD. HD gave stunning impact to the viewers with its ‘big picture’ – simply sharp and beautiful than conventional SDTV. The importance of HD is that it triggered the demand for picture and sound that are more dynamic, more immediate, and more real. In addition, with HD, content developed primarily for broadcasting can also be used in other platforms. It also offers various post-production advantages. We think that HDTV was able to give prospects to the industry that there are new possibilities in the future of content production as well as future of television. Based on the technical expertise of HD, STRL is now looking at the next stage- Super Hi-Vision (SHV). SHV packs 33 megapixels of visual information which is 16 times the resolution of the current HD, and a sound system of 22.2 multichannel. SHV is also a technology used in the development of ‘no-glasses’ 3DTV, another explore to the future TV.