Asia-Pacific Video Market Set for $16.2 Billion Growth by 2029, Report Finds

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The video industry across the Asia-Pacific region is set to experience substantial growth, primarily fueled by rising revenues on digital platforms as traditional television encounters challenges, as suggested in a recent study conducted by Media Partners Asia (MPA).

Over the years spanning from 2024 to 2029, a research company predicts that a total of $16.2 billion in additional income will be generated across 14 markets in the APAC region. In contrast, online video content is anticipated to bring in a staggering $24.1 billion in fresh revenue, whereas traditional TV platforms are projected to experience a downturn of approximately $8 billion during this same period.

Over the next decade, I predict that six key markets will spearhead growth, with India taking the lead at a staggering 26%, closely trailed by China (23%), Japan (15%), Australia (11%), Korea (9%), and Indonesia (5%). Traditional television providers, notably in India and Japan, are experiencing a swifter than expected dip. However, MPA executive director Vivek Couto hints at some positive signs of recovery on the horizon.

Last year, TV channel providers in India made approximately 4.5 billion dollars in earnings. We anticipate this figure to climb towards 5 billion dollars in the coming years, according to Couto’s statements to EbMaster. He also mentioned that there is a notable contraction in the market and a substantial shift towards streaming services.

2024 was a significant growth period for the streaming industry, with notable increases observed in India. Notably, Netflix built its biggest Asian subscriber base in India, according to Couto’s observation. He stated, “The streaming sector experienced impressive growth in India due to the expansion of the subscription business.

User-generated content (UGC) and social video platforms are set to generate a significant portion of new income, estimated at around $10.7 billion. This is followed closely by Streaming Video on Demand (SVOD) services contributing approximately $8.4 billion, and Premium Ad-supported Video On Demand (AVOD) adding $5 billion. The report highlights YouTube (excluding its Chinese operations), Meta, TikTok’s parent company ByteDance, and Chinese platforms as the main forces driving growth in the UGC/social video segment.

UGC (User-Generated Content) and social video platforms are capitalizing on AI technology for both content production and targeted advertising. Essentially, they’re employing these massive platforms to boost AI capabilities in the creation process, especially when it comes to content creators. For instance, YouTube is expanding its income sources by introducing Premium subscriptions and shopping features, all while continuing to foster growth in advertising.

The majority of online video revenue comes from advertising, accounting for approximately 65%, while subscriptions make up the remaining 35%. By 2029, it’s predicted that advertising will account for 54% of the total APAC video revenue, an increase from its current 52% in 2024. The growth in advertising revenue is attributed to the expansion of ad tiers on major platforms like Prime Video, which has recently introduced ads in India, Japan, and Australia, as well as Netflix, targeting markets such as Australia, Japan, and Korea. Local players are also profiting from Connected TV (CTV) monetization, with the Disney-Jio media merger expected to stimulate substantial growth.

The increasing adoption of Connected TV (CTV) – projected to reach between 85-90% in Australia, Korea, and Japan by 2029, and between 25-50% in India, Indonesia, and Thailand during the same period – is transforming content strategies. As CTV expands, we can expect a possible surge in efforts to create content tailored for families, according to Couto. It’s not just about sports or individualized entertainment anymore.

2024 marked a significant surge for the Streaming Video on Demand (SVOD) market, as new subscriptions soared over six times greater than in 2023. This sector is forecasted to flourish from 644 million subscriptions in 2024 to 870 million by 2029, fueled by the introduction of ad-supported plans and an increase in sports content. The growth can be attributed to the expansion of fiber broadband and rising middle-class income levels in developing countries. As reported by Couto, Netflix’s earnings from India represent less than 10% of its total revenue in the APAC region, compared to more than 20% in Japan.

By the year 2029, it’s anticipated that the market share held by global giants such as YouTube, Netflix, Meta, Disney, Amazon Prime Video, and TikTok (excluding China), which accounted for approximately 67% of online video revenue in 2024, will drop to around 62%. This decline is attributed to the growing influence of local services in countries like India, Indonesia, Japan, Korea, and Thailand.

The pace of mergers and acquisitions within the industry is quickening, notably in South Korea, Japan, and Indonesia. Couto noted, “We’re witnessing early indications of profitability among key Japanese players.” He further predicted, “This profitability will become evident in India and Indonesia over the next three years, as these countries will host independent streaming services that can sustain profits.

Retail media’s emergence brings forth fresh hurdles and prospects. In essence, Couto stated, “Besides Connected TV (CTV), retail media is a significant trend.” It’s projected to make up almost half of the growth in markets like China, India, Indonesia, Japan, and South Korea within the next four to five years.

Competition within the local market stays fierce, as contenders such as TVING in South Korea are reportedly giving Netflix tough competition by some experts, while maintaining profitability continues to be a top priority across the entire region.

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2025-01-08 05:17