Market Insight

New country: Taiwan data and forecasts added to Television Media

November 24, 2016  | Subscribers Only

David Scott David Scott Associate Director – Research and Analysis, Service Providers & Platforms
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  • Cable dominates the pay TV market in Taiwan whilst IPTV is gaining momentum as an alternative
  • Cable operators face increasing challenges from rival platforms, free DTT services and emerging media such as online-video streaming services
  • Digital cable TV penetration continues to rise in Taiwan as operators aggressively digitise their networks and provide innovative value-added digital services to attract subscribers
  • Chunghwa Telecom is the leading pay TV operator in Taiwan with just over 1.3 million subscribers by the end of September 2016.

IHS Markit Technology has added coverage of Taiwan to its Television Media Intelligence Service. The coverage of Taiwan’s television market comprises detailed data tables containing key metrics at national, operator and platform level. These include historical subscriber and revenue data dating back to 1996. In addition, the platform-level pay and free-TV subscriber and household data is complete with five-year market forecasts.

IHS Markit also takes into account multi-set usage, providing all summary data for both primary (living room) TV sets and total (all) sets. This allows users to distinguish between Taiwan’s main form of television in the home and secondary forms, where used.

As with all other data available via the IHS Markit Television Media Intelligence Service, our Taiwan dataset provides consistent metrics – households, subscribers and revenues – and is available in local currency, Euros and US dollars. The result is directly comparable data across countries, regions and worldwide totals, providing both a segmented and whole view of the Taiwanese TV market.

Our analysis

The Taiwan TV industry is relatively unaffected by any major disruptions such as fluctuations in the economy which continues to benefit TV operators in the country by ensuring stable market demand.

Cable dominates the pay TV market whilst IPTV is also gaining traction, growing from a small base. There are no prominent DTH satellite operators in Taiwan. Chunghwa Telecom is the leading pay TV operator in terms of subscribers. It launched its IPTV pay TV service in 2004, passed the one million-subscriber milestone in 2011, and reached just over 1.3 million subscribers by the end of September 2016.

The other major pay TV services in Taiwan are cable multiple system operators (MSOs) including China Network Systems (CNS) and KBRO, which continue to experience subscriber growth on the back of successful bundling strategies and relatively cheap subscription rates. IHS Markit forecast the average revenue per user (ARPU) of a cable pay TV service will increase to NT$635 (US$20) in 2016, up from NT$617 (US$19) in 2015. CNS cable system operators reside in Keelung, Kaohsiung City, Northern Taoyuan, Tainan City, Taipei City and The New City. Its subscriber base grew from 1.2 million subscribers in September 2015 to 1.25 million by the end of September 2016. By comparison, KBRO provides its service to just under 1.1 million subscribers, an increase of 20,000 subscribers in the 12 months to the end of September 2016.

Digital cable TV penetration continues to rise in Taiwan as operators aggressively digitise their networks and continue to provide innovative value-added digital services to attract subscribers. Taiwan’s cable pay TV penetration rate reached nearly 63% of TV households by the end of September 2016, up from 61% a year earlier. However, cable operators face challenges from rival platforms, free digital terrestrial television (DTT) services and emerging media such as online-video streaming services. IPTV penetration reached almost 16 % of TV homes by the end of September 2016.

The 1.8 million primary free DTT homes in Taiwan by the end of September 2016 is in decline as take up of pay TV continues. Primary TV homes and penetration rates refer to total homes of each service/platform/technology to only the primary TV set used in the house. This methodology removes the double counting of homes with more than one service or platform so that relevant totals never exceed 100% of TV households. Primary free DTT penetration in Taiwan fell to just under 22% by the end of September 2016, down from 24% a year earlier.

Other major operators in the Taiwan pay TV market include cable MSOs Taiwan Broadband Communications, TFN Media (Taiwan Mobile) and Taiwan Optical Platform, all of which feature in IHS Markit’s new Taiwan television profile. Furthermore, we profile all major free-to-air television channels operating in Taiwan – namely, public broadcasters Public Television Service (PTS) and Chinese Television System (CTS), as well as commercial free-to-air TV broadcasters Taiwan Television (TTV), China Television (CTV) and Formosa Television (FTV).

IHS Markit welcomes any feedback on the new Taiwan data and forecasts from TV Media Intelligence Service subscribers which will help to ensure we provide the most realistic and accurate reflection of the Taiwanese TV market available.

Geography
Asia Pacific Taiwan
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