The Asia-Pacific video enterprise is poised for vital development, with on-line platforms driving earnings growth whereas standard TV faces headwinds, according to a model new report from Media Companions Asia (MPA).
The evaluation company duties $16.2 billion in incremental earnings all through 14 APAC markets between 2024 and 2029. Whereas on-line video is predicted to generate $24.1 billion in new earnings, standard TV will see an $8 billion decline all through this period.
Six markets will dominate the projected growth by 2029, with India major at 26%, adopted by China (23%), Japan (15%), Australia (11%), Korea (9%), and Indonesia (5%). Standard TV suppliers, considerably in India and Japan, are seeing faster-than-anticipated decline, though MPA authorities director Vivek Couto notes some stabilization ahead.
“TV channel suppliers in India generated about $4.5 billion in earnings remaining yr. We see that rising in route of $5 billion over the following few years,” Couto instructed Choice. “However, the universe has shrunk, and there’s a far more vital transition to streaming.”
The streaming sector observed substantial good factors in 2024, considerably in India, the place Netflix has established its largest Asian subscriber base. “Streaming had pretty an impactful yr in India because of the subscription enterprise grew,” Couto well-known.
Shopper-generated content material materials (UGC) and social video platforms are positioned to grab crucial share of newest earnings at $10.7 billion, with SVOD suppliers together with $8.4 billion and premium AVOD bringing in $5 billion. The report identifies YouTube (excluding China), Meta, TikTok operator ByteDance and Chinese language language platforms as key drivers inside the UGC/social section.
UGC and social video platforms are leveraging AI for content material materials creation and selling specializing in. “They’re really using these huge platforms to leverage AI for content material materials creation, considerably with creators,” Couto outlined. YouTube is diversifying earnings streams by Premium subscriptions and procuring choices, whereas sustaining selling growth.
Selling continues to dominate earnings streams, contributing 65% to on-line video growth as compared with subscription’s 35% share. By 2029, selling is forecast to represent 54% of full APAC video earnings, up from 52% in 2024. Selling’s contribution to on-line video growth is pushed by growing advert tiers all through major platforms. Prime Video is rolling out selling all through India, Japan, and Australia, whereas Netflix is specializing in markets like Australia, Japan, and Korea. Native avid gamers are benefiting from Associated TV (CTV) monetization, with the Disney-Jio media merger anticipated to drive vital growth.
CTV penetration – projected to achieve 85-90% in Australia, Korea and Japan by 2029, with India, Indonesia and Thailand anticipated to hit 25-50% penetration within the an identical interval – is reshaping content material materials strategies. “With CTV rising, you’re going to see potential acceleration of people making an attempt to program for households,” Couto talked about. “It’s not almost sports activities actions or personalized leisure.”
The SVOD panorama observed substantial good factors in 2024, with new subscriptions leaping better than sixfold as compared with 2023. The sector is projected to develop from 644 million subscriptions in 2024 to 870 million by 2029, supported by new ad-supported tiers and expanded sports activities actions content material materials. The growth is supported by growing fiber broadband and middle-class earnings growth in rising markets. “Netflix’s India earnings is in the intervening time beneath 10% of its APAC earnings, as compared with over 20% in Japan,” Couto revealed.
Whereas worldwide avid gamers YouTube, Netflix, Meta, Disney, Amazon Prime Video and TikTok commanded 67% of on-line video earnings exterior China in 2024, their collective share is predicted to decrease to 62% by 2029 as native suppliers purchase flooring in India, Indonesia, Japan, Korea and Thailand.
Enterprise consolidation is accelerating, considerably in Korea, Japan, and Indonesia. “We’re starting to see indicators of profitability emerge for key avid gamers in Japan,” Couto talked about. “You’ll see that in India and Indonesia over the following three years, the place you’ll have standalone worthwhile streaming firms.”
The rise of retail media poses new challenges and alternate options. “Apart from CTV, retail media is the big issue,” Couto talked about. “It’s accounting for as quite a bit as 50% of newest growth over the following 4 to five years in markets like China, India, Indonesia, Japan, and South Korea.”
Native rivals stays sturdy, with platforms like TVING in Korea “giving Netflix a extremely sturdy run for its money,” according to Couto, whereas sustaining profitability stays a key focus all through the world.
