The Asia Pacific region is now the world’s largest TV market, and is forecast to pass the one billion TV sets mark this year, according to market analyst Informa Telecoms & Media. The research firm added that the region – mainly driven by China and India – tops the pay-TV subscription market, with 394 million households subscribed to pay-TV services by the end of last year.

When it comes to revenues, however, APAC lags behind other regions. In particular, China and India only rank fourth and fifth, respectively, in pay-TV revenue totals despite their huge markets. In fact, the US generates more than five times the pay-TV revenues of China and India’s combined subscriber base, which is three times larger than that of the US.

Informa’s Media Research Manager Adam Thomas attributes this to the low average revenue per user (ARPU) in both countries. In a statement, he said: “The low-ARPUs found in India, and particularly China, will continue to limit their revenue-generating capability for the foreseeable future. While their sheer size and potential, understandably, often make them the focus for TV executives, there are other markets in the region that are more successfully convincing their audiences to prioritize pay-TV expenditure.”

In its latest research, Informa has ranked Malaysia as APAC’s regional pay-TV leader, based on 2011 pay-TV revenues against its GDP. Malaysia’s pay-TV revenues of about $1 billion last year is equivalent to 0.41% of its GDP. This compares to just 0.06% of GDP generated by Indonesian pay-TV market, and China’s 0.12% ratio. Meanwhile, India has achieved a 0.35% pay-TV revenue to GDP ratio, driven by the rapid growth of its digital satellite services.