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Page 1: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Southeast Asia Media Market June 2011

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

Southeast Asia Media Market

Page 2: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Agenda

• Macro overview

• Media market overview

• Trends in online media

• Case studies

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

2110601-WEF Southeast Asia_Factpack_vFinalNDL

Macro overview

Media market overview

Trends in online media

Page 3: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Southeast Asia covers ~0.6B people with ~$2T GDP that has grown at 6% over the last decade

Population (2010, in M)

GDP (2010, US$)

GDP/ capita (US$)

Real GDP CAGR 2000

SE Asia share of the world:

Population

GDP

Media market

Internet users

INDONESIA

PHILIPPINES

BRUNEI

MALAYSIA

SINGAPORE

VIETNAMTHAILAND

CAMBODIA

LAOSBURMA

Source: CIA World Factbook; IMF PWC Global Entertainment and Media Outlook 2010

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

3110601-WEF Southeast Asia_Factpack_vFinalNDL

Southeast Asia covers ~0.6B people with ~$2T GDP that has grown at 6% over the last decade

SE Asia World

Population (2010, in M) 585 6,852

(2010, US$) 1.8T 61.9T

GDP/ capita (US$) 3.1K 11.8K

Real GDP CAGR 2000-10 6% 4%

SE Asia share of the world:

Population

9%3%

95%9%9%

Media market

Internet users

9%

3%

5%

2%

Source: CIA World Factbook; IMF PWC Global Entertainment and Media Outlook 2010-2014; Euromonitor

Page 4: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Six countries account for ~95% of region’s GDP with huge income disparity across countries

Source: International Monetary Fund, World Economic Outlook Database, October 2010

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

4110601-WEF Southeast Asia_Factpack_vFinalNDL

Six countries account for ~95% of region’s GDP with huge income disparity across countries

Source: International Monetary Fund, World Economic Outlook Database, October 2010

GDP per capita (2010E, US$K)

42.6k

0.5k

73x

Page 5: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

All major countries in the region have shown strong growth; trend expected to continue

Source: International Monetary Fund

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

5110601-WEF Southeast Asia_Factpack_vFinalNDL

All major countries in the region have shown strong growth; trend expected to continue

Page 6: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

During Asian crisis (97-98), Indonesia moved to floating

exchange rate system

Exchange rates have stabilized and lending rates have declined over the last decade

1996

1998

2000

2002

2004

2006

2008

2010

Source: Cap IQ, Euromonitor

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

6110601-WEF Southeast Asia_Factpack_vFinalNDL

Exchange rates have stabilized and lending rates have declined over the last decade

1996

1998

2000

2002

2004

2006

2008

2010

Page 7: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Foreign direct investments and exports have grown significantly

Source: World Bank

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

7110601-WEF Southeast Asia_Factpack_vFinalNDL

Foreign direct investments and exports have

Page 8: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Forecasts suggest SEA will continue to have a large working age population

2020F

Men Women

Note: Working population = between 15 and 65 years; Regional aggregate is based on top 6 countries of the regionMalaysia, Philippines, Thailand, Vietnam

Source: Euromonitor; Bain AnalysisThis information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

8110601-WEF Southeast Asia_Factpack_vFinalNDL

Forecasts suggest SEA will continue to have a large working age population

65+

15-64

0-14

Indo

nesia

Vietna

m

Philip

pine

s

Thailand

Malay

sia

Sing

apor

e

Note: Working population = between 15 and 65 years; Regional aggregate is based on top 6 countries of the region- Indonesia, Singapore,

Page 9: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

SEA income levels are rising; likely to drive higher entertainment and media spend

Note: Entertainment and media market numbers include internet access spending; the region; E.g. SEA market built on the basis of 6 major geographies, which form ~90% of SEA’s GDP

Source: Euromonitor, PWC Global Entertainment and Media Outlook 2010-2014, June 2010

0

20

40

60

80

100%

Population distributionby income (%)

2005 2010 2015F

$1.5K-5K

<$1.5K

$15K+

$5K-15K

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

9110601-WEF Southeast Asia_Factpack_vFinalNDL

SEA income levels are rising; likely to drive higher entertainment and media spend

R2 = 0.88

Note: Entertainment and media market numbers include internet access spending; Regional aggregates are based on the top countries in the region; E.g. SEA market built on the basis of 6 major geographies, which form ~90% of SEA’s GDP

2014, June 2010

Page 10: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Agenda

• Macro overview

• Media market overview

• Trends in online media

• Case studies

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

10110601-WEF Southeast Asia_Factpack_vFinalNDL

Macro overview

Media market overview

Trends in online media

Page 11: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Summary

SubscriptionTV 13% 11%

Internet 13% 22%

Mobile phones 8% 103%

SEA

Subscriber Growth

(09-14F CAGR)

Penetration (%)

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

11110601-WEF Southeast Asia_Factpack_vFinalNDL

49%

• Satellite and IPTV to grow quickly

• Indonesia and Vietnam to witness rapid growth in all formats (Cable, Satellite and IP)

45%

• National level initiatives and ‘ASEAN ICT master plan 2015’ to boost internet penetration and collaboration between countries for ICT development

79%

• Indonesia, Vietnam and Philippines will see good growth

• With growing smartphone and 3G penetration, mobile phones will gain importance as a media consumption platform

World Avg.Future Growth Drivers

Penetration (%)

Page 12: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

0

20

40

60

80

100%

Sing

apor

e

62

Malay

sia

47

Vietna

m

17

Philip

pine

s

12

Indo

nesia

4

Thailand

4

SEAs

ia

11

73

Subscription TV penetration of TV households (2009

India

Subscription TV penetration is far below global avg. with great dispersion among countries

Note: Regional aggregates are based on the top countries in the region; E.g. SE Asia market built on the basis of 6 major geographies, which form >90% of SE Asia GDP; Rest of Asia excludes the SE Asian countries represented on chart, India and ChiSource: PWC Global Entertainment and Media Outlook 2010-2014

SE Asia

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

12110601-WEF Southeast Asia_Factpack_vFinalNDL

China

42

Russ

ia

24

Braz

il

5

NA

88

MEA

73

Rest

ofAs

ia

49

Euro

pe

48

Latam

24

(2009)

Globalavg.

dia

Subscription TV penetration is far below global avg. with great dispersion among countries

Regional aggregates are based on the top countries in the region; E.g. SE Asia market built on the basis of 6 major geographies, which form >90% of SE Asia GDP; Rest of Asia excludes the SE Asian countries represented on chart, India and China

BRICs Other regions

Availability of large number of free channels driving down penetration

Page 13: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

0

50

100

150%

Sing

apor

e

133

Malay

sia

90

Vietna

m

33

Philip

pine

s

24

Thailand

15

Indo

nesia

10

SEA

22

Braz

50

Internet household penetration (2009)

Note: Regional aggregates are based on the top countries in the region; E.g. SE Asia market built on the basis of 6 major geographies, which form >90% of SE Asia GDP; Rest of Asia excludes the SE Asian countries represented on chart, India and ChiSource: PWC Global Entertainment and Media Outlook 2010-2014

SE Asia

Singapore and Malaysia lead BRIC and other regions in Internet reach

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

13110601-WEF Southeast Asia_Factpack_vFinalNDL

razil

50

China

43

Russ

ia

29

India

7

NA

82

MEA

43

Latam

40

Rest

ofAs

ia

74

Euro

pe

57 Globalavg.

Regional aggregates are based on the top countries in the region; E.g. SE Asia market built on the basis of 6 major geographies, which form >90% of SE Asia GDP; Rest of Asia excludes the SE Asian countries represented on chart, India and China

BRICs Other regions

Singapore and Malaysia lead BRIC and other regions in Internet reach

Page 14: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

ASEAN ICT master plan 2015 and national level initiatives to boost collaboration and adaption

ASEAN ICT Master plan 2015

• ASEAN telecom and IT ministers came together in Jan 2011 to adopt a plan, working towards ICT development in the region, for

- Promotion of ICT as an engine of growth;

- Contribution towards ASEAN integration

Decrease the current gapcountries through collaboration

Boost penetration levels in individual countries

• The countries to work towards making

National level ICT plans

• Various national level efforts are currently underway to penetration in the region

- Indonesia: Launched a $9.2Baimed to increase broadband penetration to 30%

- Vietnam: The IT Master plan introduced in early 2011 aims at expanding infrastructure to almost all rural villages

- Thailand: Introduced the national broadband policy in 2010 requiring ~0.7B to cover 80% of the population by 2015 and 95% by 2020

- Malaysia: Govt. investing heavily in construction of Next Generation Network to increase broadband penetration

- Singapore: 10 year iN2015 master2015, through heavy investment in a National Broadband Network

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

14110601-WEF Southeast Asia_Factpack_vFinalNDL

ASEAN ICT master plan 2015 and national level initiatives to boost collaboration and adaption

ASEAN telecom and IT ministers came together in Jan 2011 to adopt a plan, working towards ICT development in the region, for

Promotion of ICT as an engine of growth; recognition of ASEAN as a global ICT hub

ASEAN integration and bridging the digital divide

Decrease the current gap in Internet and Mobile penetration between through collaboration

Boost penetration levels in rural areas to overcome the existing gap within individual countries

The countries to work towards making ICT access more affordable

Various national level efforts are currently underway to increase broadband in the region

$9.2B plan for ‘Meaningful Broadband deployment’ in 2011 increase broadband penetration to 30% in four years

: The IT Master plan introduced in early 2011 aims at expanding broadband infrastructure to almost all rural villages and hamlets by 2020

: Introduced the national broadband policy in 2010 requiring investment of ~0.7B to cover 80% of the population by 2015 and 95% by 2020

: Govt. investing heavily in construction of Next Generation Network to increase broadband penetration; working towards increasing HSBB access

: 10 year iN2015 master-plan to achieve 90% broadband penetration by , through heavy investment in a National Broadband Network

Page 15: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

0

40

80

120

160%

Sing

apor

e

144

Vietna

m

133

Malay

sia

122

Thailand

110

Philip

pine

s

92

Indo

nesia

90

SEA

103

Russ

i

156

Mobile penetration (2010)

All major SE Asian countries are ahead of the global average in mobile penetration

Note: SE Asia market built on the basis of 6 major geographies, which form >90% of SE Asia GDPSource: Wireless Intelligence 2011

SE Asia

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

15110601-WEF Southeast Asia_Factpack_vFinalNDL

Globalavg.

ussia

156

Braz

il

108

India

63

China

63

Euro

pe

128

NA

98

Latam

97

MEA

69

Asia-P

acific

67

All major SE Asian countries are ahead of the global average in mobile penetration

Note: SE Asia market built on the basis of 6 major geographies, which form >90% of SE Asia GDP

BRICs Other regions

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Smart mobile device sales and 3G subscribers in SE Asia will become 5x in 5 years

0

10

20

30

2010

7

11F

11

12F

16

13F

21

14F

27

15F

33

SEA* premium communicationdevices shipments

40M

34%

(10-15F)CAGR

Mobile phones will gain importance as a media consumption platform as more and more people own smart mobile devices connected to high speed networks

* Includes Indonesia, Malaysia, Philippines, Singapore, Thailand and VietnamNote: Premium communication devices offer a rich communication experience beyond voice such as integrated email, social networking support and VoIPSource: Gartner; Wireless Intelligence; Bain analysis

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

16110601-WEF Southeast Asia_Factpack_vFinalNDL

Smart mobile device sales and 3G subscribers in SE Asia will become 5x in 5 years

0

100

200

300

400

500M

2010

81

11F

128

12F

186

13F

255

14F

332

15F

404

SEA 3G connections

38%

(10-15F)CAGR

Mobile phones will gain importance as a media consumption platform as more and more people own smart mobile devices connected to high speed networks

* Includes Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnama rich communication experience beyond voice such as integrated email, social networking support and VoIP

Page 17: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Print forms ~45% of ~$18B SEA media market; Internet growing fastest though on small base

0

10

20

$30B

SEA media and entertainment market bysegments

2005

14

2008

18

*Market does not include internet and mobile access revenue; Regional aggregate are based on the top countries in the region;the basis of 6 major geographies, which form ~90% of SEA GDP Source: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

17110601-WEF Southeast Asia_Factpack_vFinalNDL

Print forms ~45% of ~$18B SEA media market; Internet growing fastest though on small base

2009

18

2014F

Video GamesFilm

Print

TV

Radio

InternetMusic

Out of Home

26

6%

9%

16%

5%3%5%

59%-4%

(05-09)7%

CAGR

5%

10%

8%

5%9%9%

17%2%

(09-14F)7%

CAGR

*Market does not include internet and mobile access revenue; Regional aggregate are based on the top countries in the region; e.g. SEA market built on

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This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Print and TV occupy the top two spots across countries with print leading in most

*Market does not include internet and mobile access revenue; Regional aggregate are based on the top countries in the region;the basis of 6 major geographies, which form ~90% of SEA GDP Source: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

18110601-WEF Southeast Asia_Factpack_vFinalNDL

Print and TV occupy the top two spots across countries with print leading in most

Print

Video Games

TV

Radio

Internet

Film

Out of Home

Music

*Market does not include internet and mobile access revenue; Regional aggregate are based on the top countries in the region; e.g. SEA market built on

Page 19: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

While traditional media is thriving, ad spend on Internet is growing rapidly

* Internet includes digital publishing and online TVNote: Print Publishing include traditional Newspaper, magazines, B2B publishing, and consumer and educational books (excludesmarket built on the basis of 6 major geographies, which form ~90% of Region’s GDP Source: PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

19110601-WEF Southeast Asia_Factpack_vFinalNDL

While traditional media is thriving, ad spend on Internet is growing rapidly

Note: Print Publishing include traditional Newspaper, magazines, B2B publishing, and consumer and educational books (excludes digital revenues); SE Asia market built on the basis of 6 major geographies, which form ~90% of Region’s GDP

Traditional media

Page 20: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Agenda

• Macro overview

• Media market overview

• Trends in online media

• Case studies

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

20110601-WEF Southeast Asia_Factpack_vFinalNDL

Macro overview

Media market overview

Trends in online media

Page 21: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Online users have grown rapidly, consumption per user close higher than India and China

Average

Notes: Internet users are people with access to the WW network via home, work computers, internet cafes or mobile phones; Average hoonline include only 15+ Internet Audience; Data for SEA countries and Global is for Dec 2010, data for India and S Korea is for May 2010

Source: Euromonitor; comScoreThis information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

21110601-WEF Southeast Asia_Factpack_vFinalNDL

Online users have grown rapidly, consumption per user close higher than India and China

0

5

10

15

20

25

Vietna

m

23

Sing

apor

e

22

Philip

pine

s

17

Malay

sia

16

Indo

nesia

15

Average hours spent online per user/month (2010)

Global

IndiaChina

Internet users are people with access to the WW network via home, work computers, internet cafes or mobile phones; Average hours spend Internet Audience; Data for SEA countries and Global is for Dec 2010, data for India and S Korea is for May 2010

Page 22: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Social networking and video accounts for a significant amount of time spent online

0

20

40

60

80

100%

Singapore

Video

SocialN/W

Others**

Malaysia

Estimated share of time spentonline (2010-2011*)

Notes: Include only 15+ Internet Audience; *Include data from time period ranging Jun 2010 to Jan 2011 ; **Include IM, eamongst other online categories

Source: comScore; Bain Analysis; Lit search

“In markets like

“It was in 09 when

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

22110601-WEF Southeast Asia_Factpack_vFinalNDL

Social networking and video accounts for a significant amount of time spent online

Internet Audience; *Include data from time period ranging Jun 2010 to Jan 2011 ; **Include IM, e-mail, search/navigation,

“In markets like Philippines and Indonesia, social networking is one of the most popular Web activities consuming 1/3rd of time spent online”

Comscore, Apr 2010

“It was in 09 when Filipinos staked claim as heavyweights in social media, winning the title ‘social networking capital of the world’ ”

ABSCBNnews, Jul 2010

Page 23: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Online video in Singapore and Malaysia has high reach with high engagement in Singapore

Notes: Include only 15+ Internet Audience; *Include data from time period ranging Jun 2010 to Jan 2011 Source: comScore

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

23110601-WEF Southeast Asia_Factpack_vFinalNDL

Online video in Singapore and Malaysia has high reach with high engagement in Singapore

Internet Audience; *Include data from time period ranging Jun 2010 to Jan 2011

Online Video

Page 24: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Social networking has high reach among SEA online users…

Notes: Include only 15+ Internet AudienceSource: comScore

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

24110601-WEF Southeast Asia_Factpack_vFinalNDL

Social networking has high reach among SEA

Social Networking

Page 25: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

…with high user engagement in most countries in the region

Notes: Include only 15+ Internet AudienceSource: comScore

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

25110601-WEF Southeast Asia_Factpack_vFinalNDL

…with high user engagement in most countries

Social Networking

Page 26: Southeast Asia Media Market - Reports - World Economic …reports.weforum.org/wp-content/uploads/future-of-conte… ·  · 2012-02-29Southeast Asia Media Market ... Philippines,

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied

Agenda

• Macro overview

• Media market overview

• Trends in online media

• Case studies

This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain's prior written consent

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Macro overview

Media market overview

Trends in online media

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Kompas, one of Indonesia’s widely read newspaper been focusing on the digital platform

Astro All Asia Networks (AAAN), Malaysia’s leading multimedia services provider taken initiatives to focus on the online platform

Detik.com, leading news portal in Indonesia like web, SMS and WAP

Media Prima, a media investment group through Mobile TV

Use of social media to create public awareness in Malaysia

Use of Web 2.0 by companies to promote their businesse.g. Air Asia, Tiger beer, Digi

Use of user-generated content their audience

Many startups have emerged especially in Singapore and Malaysia

Singapore, Malaysia and Thailand have proposed government funds to support the creation of digital content in the coming years

Summary

Traditional media companies have extended

offerings to new media platforms

1

2

Companies have leveraged user-generated content

for consumer engagement

5

6

Media companies have successfully leveraged Internet and mobile to create new business

3

4

Social media has been used as an effective tool

to reach masses

Government support continue to drive content

creation

There are multiple startups with innovative

business models

7

8

9

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27110601-WEF Southeast Asia_Factpack_vFinalNDL

, one of Indonesia’s widely read newspaper - started an Internet platform and has been focusing on the digital platform

All Asia Networks (AAAN), Malaysia’s leading multimedia services provider - has taken initiatives to focus on the online platform

, leading news portal in Indonesia - distributes media content though platforms

, a media investment group – has engaged in alternate revenue stream

to create public awareness in Malaysia

Use of Web 2.0 by companies to promote their business, products or services - for Telco

generated content by multiple companies to engage consumers and widen

startups have emerged with new technology platforms or business models, especially in Singapore and Malaysia

Singapore, Malaysia and Thailand have proposed government funds to support the creation of digital content in the coming years

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Kompas has successfully transformed itself from purely traditional print to digital and social era

• Kompas, the most widely read newspaper in Indonesia, started publication in 1965 with circulation of ~5000 copies

• It started on online platform in 1997 (Compass Online)

- Acted as web version of the print edition

• It changed its name to Kompass.com in 1998

- Started focusing more on content development, design, and new marketing strategies

• Print edition circulation reached 530k in 2004

• Revamped its website in 2008- To make it richer, fresher, more

elegant and user-friendly and advertiser-friendly

Overview

Source: Marketwire, Dec 2010; Lit. Search

• Kompas has created a community of citizen journalism

- Kompasiana also has members from among journalists and community leaders, observers and experts from various fields

- Members share information, opinions and ideas

• Kompasiana has become a form of communicative and enlightening social media informative

1

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28110601-WEF Southeast Asia_Factpack_vFinalNDL

Kompas has successfully transformed itself from purely traditional print to digital and social era

Achievements

Kompas has created a community of citizen journalism, Kompasiana

Kompasiana also has members from among journalists and community leaders, observers and experts from various fields

Members share information, opinions and ideas

Kompasiana has become a form of interactive, communicative and enlightening social media informative

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Astro All Asia Networks (AAAN) has actively taken initiatives to focus on the online platform

• AAAN is Malaysia’s leading multimedia services provider- Started in 1996 with 22 channels- Currently broadcasts over 119

pay-TV channels to ~3M households

• It is involved in origination, aggregation and distribution of TV programs in Malay, Chinese, English and Indian languages

“The Group’s focus on growing and creating innovative interactive content has seen exponential growth in transactions through its digital platform.”

Company Website

Overview

Source: Company Website; Annual Report

AMP Radio Networks

• AMP radio has 54% audience share

• It continues to leverage new media platforms grow market share

• It was the first radio broadcaster in Malaysia to radio streaming iPhone applications (80k downloads in ’10)

• AMP’s online platform is attracting ~1M unique every month (70% y-o-y growth)

Innovative content offerings on online platform

2

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29110601-WEF Southeast Asia_Factpack_vFinalNDL

Astro All Asia Networks (AAAN) has actively taken initiatives to focus on the online platform

BPL broadcastsAMP Radio Networks

Stadiumastro Fantasy

• Collaborated with ESPN Start Sports to secure a new 3-year agreement beginning 2010 to exclusively broadcast the BPL (Barclays Premier League) in Malaysia

• Coverage take a 360 degree approach, customers to watch all 380 matches being simulcast over the internet and mobile means

AMP radio has 54% audience share

It continues to leverage new media platforms to grow market share

It was the first radio broadcaster in Malaysia to create radio streaming

applications (80k downloads in

AMP’s online platform is attracting

1M unique visitors every month (70%

y growth)

• Launched digital sports initiative, Stadiumastro.com and its mobile platform, m.stadiumastro.com in 2009

• Covers an array of international and local sports content

• ~3M page views and 200k unique visitors each month

• Stadiumastro Fantasy, launched a month later, reached ~92k members

Innovative content offerings on online platform

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Detik.com distributes media content though platforms like web, SMS and WAP

Overview

Source: Company Website; Lit Search

• Indonesia’s leading news media company

- Started in 1998 as a simple news site

- Grew to a full fledged news media company in 2004 with >100 people staffed in its newsroom

• Reports news on politics, economy, finance, business, capital market, entertainment, and sport

• Delivers content on various platforms: web, SMS, WAP and others

- New products are blog, forum and map

• Provides online marketing services & banner placement on the website

“Introduced in 2002, the contributed significantly to Detikcoms growth

Detikcom is leading news portal in Indonesia;Mobile services a significant driver to growth

“Detikcom currently operators, content providers as well as 26 regional newspapers across Indonesia for news syndication”

“Currently, the which is also

3

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30110601-WEF Southeast Asia_Factpack_vFinalNDL

Detik.com distributes media content though platforms like web, SMS and WAP

•Has >10M page views daily

•Detik.com has a mobile content service, Internet-based TV content service, a blog service and a discussion forum

“Introduced in 2002, the mobile services skyrocketed in early 2004 and contributed significantly to Detikcoms growth.”

www.agrakom.com

Detikcom is leading news portal in Indonesia;Mobile services a significant driver to growth

“Detikcom currently has working relationships with all of the cellular operators, content providers as well as 26 regional newspapers

Indonesia for news syndication”www.agrakom.com

“Currently, the largest general news portal in Indonesia is detik.com, which is also first online news site in Indonesia.”

www.speaking-out.org, 2008

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Media Prima has engaged in alternate revenue stream through Mobile TV

Media prima and YTL enter into a partnership to provide Mobile TV...

• Media Prima is Malaysia’s leading media investment group

- Owns 100% equity interest in TV3, 8TV, ntv7 and TV9; 90% equity in The New Straits Times Press; three radio networks: Fly FM, Hot FM and One FM

• As an expansion into digital media, Media Prima partnered with YTL communications

• YTL will host Media Prima’s existing local content on its next generation TV service*

- This will make Malaysian content available to the region, and propel Malaysia as a regional, digital broadcast hub

• This is a foundation of an advanced two-sided business model, where a next generation TV network serves as a distribution platform for content as well as new application services

Note: *YTL’s next generation TV service is potentially the most advanced, digital TV service that will seamlessly integrate traditioand Internet content, while automatically recommending, recording and organizing the customer’s favorite showsSource: Lit search

4

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31110601-WEF Southeast Asia_Factpack_vFinalNDL

Media Prima has engaged in alternate revenue stream through Mobile TV

“With this partnership, users will essentially have mobile broadband, mobile voice, home TV and mobile TV all in one account”

Mobiletvworld, Nov 2010

“Collaboration will create opportunities for new distribution channels for Media Prima’s TV Networks and content…we will ultimately grow to serve a market that go beyond the 28M people…and establish our position as country’s premier content provider”

Mr. Amrin, Group MD, Media Prima

…which will provide alternate distribution channel for content creators

“With this collaboration, content and technology are coming together to encourage those who have never felt the need to embrace broadband, to now do so.”

Dr.Francis, Executive Chairman, YTL

YTL’s next generation TV service is potentially the most advanced, digital TV service that will seamlessly integrate traditional television and Internet content, while automatically recommending, recording and organizing the customer’s favorite shows

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Malaysia has shown examples of active usage of social media for creating public awareness

1M Malaysians reject 100-story mega tower

• Government proposed a 100-story mega tower worth RM5B to boost tourism against RM250M for all the schools (2011 budget)

• A Facebook page titled “1M Malaysians reject 100-storey Mega Tower” attracted 30k fans in just four days and has ~300k fans now

• The page generated more than 200 topics of discussion and was reported by news agencies

• Online campaign led to offline campaign as well

Source: Lit. Search

5

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Malaysia has shown examples of active usage of social media for creating public awareness

Malaysian PM seeks questions from public through Twitter

• Malaysian PM, on 11 Jan 2011, answered questions of general public through Twitter between 1630 and 1800 hours

• #tanyanajib became a worldwide trending topic on Twitter that day

• Users posted questions ranging from public transportation to “who irons your clothes” to questions on 1Malaysia

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In Malaysia, companies and brands use Web 2.0 to promote their business, products or services

• Came up with a"travel wish list" Twitter application to encourage Facebook users to join; they were also given a chance to win free air tickets

• Started with a blog in 2008 to interact with the customers, and to react and respond to their displeasures

• Tiger beer made use of Malaysia’s top blog aggregator and organized a ‘Stand out’ blogger party to launch its repackaged products

• With restrictions on advertising alcohol products on TV, Tiger flooded Facebook, Twitter and youtube with party footages and articles to promote itself to its critical audienceD

etai

ls o

f ca

mpai

gns

Res

ults • AirAsia’s Facebook fan page has

>190K fans

• Twitter account has >20K followers

• According to a survey, perception of Tiger as 'a beer for good times and fun' increased by 14%; consumption among young adults increased 6%

Air Asia Tiger Beer

Source: Lit search

6

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33110601-WEF Southeast Asia_Factpack_vFinalNDL

In Malaysia, companies and brands use Web 2.0 to promote their business, products or services

made use of Malaysia’s top blog aggregator and organized a ‘Stand out’

to launch its repackaged products

With restrictions on advertising alcohol products on TV, Tiger flooded Facebook, Twitter and youtube with party footages and articles to promote itself to its critical audience

According to a survey, perception of Tiger as 'a beer for good times and fun' increased by 14%; consumption among young adults increased 6%

• Digi Telco diversified its marketing into social media

• Company assembled a team of employees to monitor the brand’s social media experiences

• It also created Twitter account (to solve customer issues) and fan page on Facebook (to update fans with upcoming deals)

• Has high level of interaction with >600 daily tweets & >28k fans on its Facebook page

Digi TelcoTiger Beer

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User generated content (UGC) reaching mass audience; being leveraged well by companies

User generated content is being widely accessed by the SEA population…

• Majority of the people in SEA are accessing user generated content

- High reach of blogs amongst Internet users Reach in Indonesia and Malaysia stood at 60-

70%and 58% in ‘10, up by 8% from ’09- Sharing photos on Social Networking websites is a key

trend in SEA with Penetration of photo websites users in SEA ~80-90% (2010)

- Indonesia, S’pore amongst the top 10 Twitter markets by % reach

• High consumption of the user generated content - ~4% of time spent online in Indonesia and

Philippines in 2010 was on Photo websites (vs. 1% globally)

- >60% of the videos watched online in Malaysia and S’pore in May 2010 were on Youtube

Source: Lit search

7

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34110601-WEF Southeast Asia_Factpack_vFinalNDL

User generated content (UGC) reaching mass audience; being leveraged well by companies

…with local companies using it to engage mass audience

• Politikana, prominent Indonesian UGC news and opinion website grew to 5K+ users in 5 months

- Salingsling (owner of Politikana) is planning additional ~40 similar websites

• Southeast asia.org, a tourism campaign launched by 10 countries in SEA is an interactive website to carry text, videos, comments and reviews from travelers

• Singapore's MobileOne launched UG video-sharing service called MeTV in ‘07 allowing mobile subscribers to upload and share

• Diana Rikasari, an Indonesian fashion blogger has so far reached 7M users with 10K users/day

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SEA has multiple startups with innovative business models in the field of online media

• Social network service, operated by SK Telecom with

• Generates revenue through sale of dotori, or "acorns", which are virtual goods (background music, pixelated furniture and virtual appliances)

• A Malaysian based company with a search engine that sentiment expressed in news and elsewhere online

• Can help brands change advertising campaigns

• A S’pore based ‘Neoteny Labsplatform for business owners to communicate daily specials, promotions etc.

• Promotes messages to nearby customers

• Malaysia/Singapore based online event mgmtallows attendees match and meet using a ‘Business Matching engine’

• Helps create online profiles, collect ticket payment and send SMS reminders

• A mobile application currently available on the iPhone and iPod Touch to organize ‘hangouts’ with friends

• ‘Neoteny Labs’ fund has invested

• S’pore based ‘Game Ventures’ makesgames

• One of the portfolio companies

Source: Lit search

8

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SEA has multiple startups with innovative business models in the field of online media

Social network service, operated by SK Telecom with 0.5M users (2009) in Vietnam

Generates revenue through sale of dotori, or "acorns", which are used to purchase (background music, pixelated furniture and virtual appliances)

A Malaysian based company with a search engine that monitors public opinion and expressed in news and elsewhere online

help brands change advertising campaigns as public perception shifts

Neoteny Labs’ portfolio company with mobile/web advertising for business owners to communicate daily specials, promotions etc.

nearby customers (within 1 mile) of business at <$1 a day

online event mgmt. platform which help organize events and meet using a ‘Business Matching engine’

Helps create online profiles, collect ticket payment and send SMS reminders

currently available on the iPhone and iPod Touch allowing people to organize ‘hangouts’ with friends

has invested in the company

makes and markets competitive multiplayer social

One of the portfolio companies under ‘Neoteny Labs’ fund

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• The ‘Media Development Authority of Singapore’ promotion of media industry as a whole and

- Announced in 2010 a commitment to S’pore partner) to up to $5 million each

- Set up of a $6.6M fund to support content projects, 3D infrastructure, production and postproduction facilities and training initiatives Singapore

Malaysia

Thailand

• Created ICONity, the Online Social and Community Content Creation GrantScheme under the Multimedia Super Corridor

- Enhancement and the development of cool applications

- Development of local versions of online social content and communitiesFlickr, Facebook via online user generated content programme

- Reducing demand for foreign content to lower foreign exchange loss and demand for int’l bandwidth

Government support through funds to drive digital content in the coming years

Source: Government documents/websites; Lit search

• Government set aside a fund of $6.6M in 2010base for digital content in the next few years

- The fund is part of its $0.6B budget

• Govt. targets to increase Thailand’s proportion12% to 20% of GDP by 2012 under its

9

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36110601-WEF Southeast Asia_Factpack_vFinalNDL

Media Development Authority of Singapore’ has been continually involved in the promotion of media industry as a whole and funding for digital content specifically

Announced in 2010 a commitment to fund worthy animation projects (projects having a up to $5 million each

to support content projects, 3D infrastructure, production and post-production facilities and training initiatives for 3D film maker in 2008

Online Social and Community Content Creation GrantMultimedia Super Corridor (National ICT initiative), for:

development of cool applications and great services

Development of local versions of online social content and communities like Youtube, Flickr, Facebook via online user generated content programme

demand for foreign content to lower foreign exchange loss and suppress the

Government support through funds to drive digital content in the coming years

$6.6M in 2010, to develop Thailand as a production in the next few years

$0.6B budget allocated to boost the country’s creative industries

Thailand’s proportion of creative economy value from under its ‘Creative Thailand’ policy