Asia-Pacific region contributes to prominent growth of global online-video industry
Recent Media Partners Asia (MPA) report cites the Asia-Pacific (APAC) region as the largest generator of online-video activity. Focus on Ad-based and Subscription-based video-on-demand shows industry growth in China, India, Australasia, Southeast Asia, South Korea, and Japan. Bytedance, YouTube Tencent Video, Netflix and iQIYI are ranked as top performers.
Home to 60% of the world’s population, the 4.3 billion residents of the Asia-Pacific region are contributing tremendously to the engagement with and development of online-video content and the industry on a whole. With a reported 16% growth in the industry reaching USD 49.2 billion, Subscription Video On-Demand (SVOD) will contribute 50%, user-generated content-driven Ad-based Video On-Demand (AVOD) will contribute 37% and premium AVOD will account for 13%. It is projected that by 2027, growth will reach USD 72.7 billion at an average rate of 8%.
China remains APAC’s largest single video market with long-form platforms Tencent Video and iQIYI, and short form platforms Bytedance and Kuaishou contributing to 70% of forecasted online video revenue by the end of 2022. Bytedance, parent company to Tiktok and Douyin, generated the largest reported video revenue with almost USD 7 billion in the APAC region, With the increasing consumption of Tiktok content in the Asia-Pacific region, in particular Southeast Asia, Bytedance are setting themselves as contenders against giants such as YouTube and Meta.
However, China’s predominantly inaccessible content platforms give way to popular streaming services Netflix, Disney, and Amazon Prime Video, which make up almost 50% of online-video revenue in the APAC region. MPA forecast the platforms to produce a monetary contribution of USD 5.7 billion, sectioning off Netflix as a top performer at USD 4 billion, Amazon’s Prime Video following with USD 1.4 billion and Disney at UDS 1.3 billion by the end of the year.
Following China, Japan hosts the largest market, generating USD 9.7 billion in 2022 with a forecasted growth of USD 14.7 billion by 2027. Japan, along with South Korea, are critical markets for growth and content. With a total revenue of USD 3 billion, India follows behind with its competitive local platforms against mainstream powerhouses. This has resulted in a projection of more than doubling revenue by 2027.
Upcoming locally owned platforms from Australia and Indonesia are also making their presence known, with services such as Vidio and Stan. Providing high average revenue per customer (ARPU) and high advertising rates (CPM), Australia and Indonesia are becoming top players for providing sports and original content.
Local content production in the APAC region is a significant contributor to increasing activity with online video, leading to mainstream distribution deals and the support of locally based platforms. Accounting for such a large proportion of the world’s population, the APAC region’s contribution to the popularity of the OTT video space will allow content creators, providers, and marketers alike to reach their audiences at a higher rate, resulting in exponential growth figures.
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