Lopez Holdings


SkyCable spurs cable TV rise in RP
With the rising consumer power in the Asian region, the entertainment and media markets are experiencing tremendous growth. While the US still holds about 40-50% of the global market, the burgeoning entertainment business in Asia is closing in. Analysts predict that Asia will continue to be the major growth area for the industry in the next few years, with the continued rise of entertainment consumption predicted to produce millions more of voracious television viewers in the next five years.

The massive demand for TV entertainment, coupled with the technological advancement of the region, has led to the proliferation of new media platforms. Trends show that these new media will supplement and not replace traditional or existing media such as free TV, cable TV or satellite TV.

SkyCable, the leading cable TV provider, shares this optimistic outlook for the pay TV industry in the Philippines. According to AGB Nielsen NUTAM 07 survey, television penetration rate is at almost 90% with an estimated 13.8M households with television sets. While cable penetration in the Philippines is at only 15%, which is not as high as neighboring Asian countries, SkyCable sees the substantial local market potential. "The low cable TV penetration rate and the relative affordability of cable TV as a form of entertainment point to real opportunities for the cable TV industry," said Ray Montinola, SkyCable vice president for Marketing.

The first to offer Filipinos cable TV as well as tiered programming to fit various niche audiences and socio-economic segments, SkyCable continues to aggressively drive industry growth. Just recently, the company launched its latest, innovative offerings such as the Digibox and pre-paid cable TV packages. The SkyCable Digibox provides subscribers with digital TV quality as well as expanded control of their viewing experience. Another innovation is its "sachet-type" offering with pre-paid cable TV service that bring cable TV to the lower income demographic, yet another growth area for the company.

"We aim to continue to provide our subscribers with the best pay TV service and program choices," said Juno Chuidian, SkyCable's vice president for Programming, Packaging and Merchandising. "After introducing new digital technology and affordable packages, we are currently re-evaluating our program line-up to ensure that we provide the best content for our subscribers," she added.

The Pay TV industry growth in the region has not been missed by TV content providers. Program sales in Asia have been robust, with the demand for quality content growing at a steady pace. This has led Hollywood studios to focus on the region for distribution and even production of local content. "With the large number of new and original programming offerings of various TV content providers, we are strategically reviewing our programming mix and will soon announce exciting enhancements," said Chuidian.

SkyCable is currently one of the cable providers that carry the most number of channel choices in the region while maintaining one of the lowest subscription rates in Southeast Asia.

The company projects to post a positive bottom line this year. With the projected continued profitability, the country's largest cable provider hopes to offer its shares to the public, with a planned public offering in 2009. 

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Lopez Holdings Corporation 
16/F North Tower, Rockwell Business Center Sheridan, Sheridan St. corner United St., 1550 Bgy. Highway Hills, Mandaluyong City, Philippines

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