Forecast: APAC video industry set for significant growth
May 2, 2024
Over the forthcoming half-decade, the Asia Pacific video industry is set to witness significant growth in online spending and advertising, driving new growth worth a total of $21 billion (€19.6bn), according to MPA’s Asia Pacific Video & Broadband Industry 2024.
Linear TV advertising will see growth only in India along with modest net gains in a handful of large Southeast Asia markets. The trajectory of TV is set to be reshaped by Connected TV, with burgeoning CTV ad expenditure playing a pivotal role in both mature and emerging markets.
Premium online inventory provided by broadcaster-owned VoD platforms, in addition to global and regional premium VoD streamers, will continue to attract substantial ad investments in Australia, India, Indonesia, Japan and Korea.
During the pandemic era spanning 2020-2023, incremental video advertising surged to approximately $11 billion, with digital claiming an 85 per cent share and linear TV retaining 15 per cent.
Digital video advertising, spearheaded by platforms like YouTube, Meta, and TikTok, will maintain robust growth and retain majority market share. Growth outside this ecosystem will also be significant and profitable for major local premium platforms.
Incremental consumer spending on video services in APAC topped $16 bilion. between 2020-23, buoyed by pandemic-driven SVoD growth, which accounted for 80 per cent of revenue growth. The next five years will look different as new bundles, pricing models and rationalization evolve.
Japan remains a pivotal market for online video subscription platforms, driven by sustained high-ARPU customer growth and untapped penetration opportunities.
Enhanced penetration in India, Indonesia, and the Philippines is poised to unlock substantial economic value.
In India, the expanding 20-40 year-old demographic presents a ripe market for affordable, paid VoD services, fueling strategic investments in content and distribution.
Thailand’s robust post-paid and fiber broadband penetration bodes well for bolstering unit economics for subscription-based VoD platforms.
South Korea may see consolidation and increased ad integration, potentially enhancing growth prospects.
While spending on linear TV, particularly on legacy pay-TV platforms, is anticipated to continue its decline, high-ARPU, low-churn, aging consumer households remain a valuable segment to be tapped into.