CASBAA: Online video shaping the future of TV

The Cable & Satellite Broadcasting Association of Asia (CASBAA) has released the full version of a study of Online Video in China, Japan & Korea. According to CASBAA, China, Japan and Korea will drive the next wave of online video development. China will draw further attention as it emerges as the largest wired broadband market in the world with 190 million connections in 2012.

CASBAA research shows that home access accounts for 74.1 per cent of all connections in China, whilst Internet Cafés are the source of access for almost 40 per cent of the youth market. Some 75 per cent of respondents to a survey conducted by the China Internet Network Information Centre (CNNIC) indicate that they share the network video of all kinds with other 'netizens'.

Meanwhile, 33.2 per cent of South Koreans are watching movies online in some form and, according to a recent survey by the Korean Film Council, this is having a devastating effect on the domestic DVD and movie industries. Some 47 per cent of the all respondents had illegally downloaded feature movies without paying, or paid less than 50 cents per title during the past year.

Nevertheless, according to CASBAA, online video advertising represents a strong growth opportunity as audiences migrate to the web. Tudou, a popular video sharing site in China, claimed that advertising revenue reached $1.65 million in the first half of 2008. Other sites drawing big audiences include Nico Nico Douga (Smiley Smiley video) in Japan, and Pandora TV in Korea.

Ultimately China's online population will surpass Korea‚s more developed digital advertising market, but the sophistication and maturity of the Japanese market will support its continued growth. Overall, online advertising for China, Japan and Korea is forecasted to grow from $10.3 billion in 2009 to U15.1 billion in 2012.

Despite the current uncertainties over rights, regulation and business models of online video services, the emerging online video landscape offers opportunities for content owners, broadcasters, advertisers and subscription television players."It is time for the TV industry to review new strategies to provide offerings to this new breed of customers," said Simon Twiston Davies, CEO of CASBAA.

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