MUMBAI: The Video-on-Demand (VoD) services market has witnessed a nine per cent market growth in Asia during 2008-2009, according to a study released by The Cable and Satellite Broadcasting Association of Asia (Casbaa).

The new growth rate is the highest reported over the last eight years by Casbaa and partner Euroconsult of France.

Despite some high regulatory barriers, several markets have been particularly dynamic in terms of capacity requirements including India, China and Indonesia.

The VoD Asian Satellite Services report suggests that while the growth cycle has been partially challenged by economic uncertainty, the impact on Asian satellite services has been relatively limited with video broadcasting, the primary growth engine. Indeed, the growth in TV broadcasting transponder demand increased from 25 per cent in 2003 to 37 per cent in 2008.

In recent years, the growth has been focused on direct-to-home (DTH) TV broadcasting in emerging markets, particularly India.

However, regionally from 2002–2008, the number of DTH platforms in Asia increased from 13 to 28 platforms. The number of TV channels that are broadcast on DTH platforms soared from 925 to 2,600.

While India remains the fastest growing market, with more than 11 million DTH subscribers, nine other Asian countries have more than 500,000 DTH connections.

Nevertheless, an oversupply of Asian capacity is still a structural challenge. The fill rate has only recently reached 60 per cent for the first time last year and is still below a world average of around 70 per cent. This reflects the sustained competition between satellite operators.

Casbaa CEO Simon Twiston Davies says, “There is still terrific upside for our region. The total number of satellites in operation over the region was just over 80 in 2008. The fact is that restrictive regulations in many Asian countries continue to constrain the market. But de-regulation like digitisation is an inexorable force that is presenting commercial enterprises as well as consumers, with greater choice than ever. And it is choice that is driving the demand.”