The video industry in Asia is expected to experience steady growth in the coming years, with a new study from Media Partners Asia forecasting an annual growth rate of 2.6% over the next five years. By 2028, the industry is projected to reach an impressive $165 billion, building on the 5.5% growth it achieved in 2023.
The Shift to Online Video
Media Partners Asia’s report, titled “Asia Pacific Video & Broadband Industry 2024,” highlights a significant trend in the region – the move from traditional TV to online platforms. This shift, termed a “secular shift” by the authors, is driven by factors such as improved connectivity, increased connected TV penetration, and the growth of local content creators. Additionally, the availability of premium sports streaming has contributed to the popularity of online video, attracting both viewers and advertising dollars.
Key Players and Markets
China remains the largest and most regulated video market in the region, generating a revenue of $64 billion in 2023. Excluding China, the largest markets in 2023 were Japan ($32 billion), India ($13 billion), Korea ($12 billion), and Australia ($9.5 billion), followed by Taiwan and Indonesia, both around $3 billion.
Growth Projections
According to Media Partners Asia’s growth projections, the total video industry revenues in the Asia-Pacific region will expand at a compound annual growth rate of 2.6% between 2023-2028, reaching $165 billion by 2028. China is expected to grow at a rate of 1.7% to reach $70 billion by 2028. The forecast for the non-China portion is more optimistic, with a growth rate of 3.3% and revenues estimated to reach $95 billion by 2028.
The Rise of Online Video
The report highlights the projected growth of the region’s online video market, which is expected to have a compound annual growth rate of 6.7%. By 2028, online video revenues are projected to reach $78.5 billion in the Asia-Pacific region. Excluding China, the growth rate is even higher at 9.2%, with revenues estimated to reach $46 billion.
Advertising in the Online Video Space
While traditional TV may not dominate as it once did, ad-supported online models such as social video, free ad-supported streaming services (FAST), and premium ad-supported video on demand (AVOD) platforms are expected to drive advertising growth. In 2023, advertising contributed 51% to online video revenues and is projected to grow to 54% by 2028. The contribution is even higher at 63% in the Asia-Pacific region, excluding China.
Key Companies to Watch
In 2023, eight companies accounted for 65% of online video revenue in the Asia-Pacific region: Amazon Prime Video, ByteDance (including TikTok), Disney, YouTube (owned by Google), iQiyi, Meta (video), Netflix, and Tencent. Outside of China, Media Partners Asia identified several companies with significant growth potential, including Jio Cinema in India, Zee and Sony (if their merger is approved) in India, Foxtel’s Kayo and Nine’s streaming video on demand (SVOD) platforms in Australia, TVer and U-Next in Japan, Tving in Korea, Vidio in Indonesia, and Viu across Southeast Asia.
The Future Outlook
Media Partners Asia’s report concludes that strategic investments and private equity in the online video sector across Asia are helping local and regional companies compete. The sector is also seeing rationalization, with pricing adjustments in subscription video on demand (SVOD) services, disciplined content and marketing investment, the introduction of advertising tiers, new monetization strategies, and market consolidation in Korea, Japan, and India.
In 2023, the Asia-Pacific video industry experienced overall growth, driven by a 13% increase in online video sales to $57 billion. However, TV revenue only grew by less than 1% to $98 billion. Excluding China, the industry grew by 3.2% in 2023, with revenues reaching $81 billion. Online subscription video on demand (SVOD) grew by 15% to $28 billion while the ad-supported video on demand (AVOD) market grew by 11% to $29 billion. The authors note that some regions, like India, Japan, Korea, and Indonesia, may still see net growth, but there are also significant risks in TV advertising in these territories.
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