The Asia-Pacific video trade is poised for important growth, with on-line platforms driving income progress whereas conventional TV faces headwinds, in keeping with a brand new report from Media Companions Asia (MPA).
The analysis agency initiatives $16.2 billion in incremental income throughout 14 APAC markets between 2024 and 2029. Whereas on-line video is anticipated to generate $24.1 billion in new income, conventional TV will see an $8 billion decline throughout this era.
Six markets will dominate the projected progress via 2029, with India main at 26%, adopted by China (23%), Japan (15%), Australia (11%), Korea (9%), and Indonesia (5%). Conventional TV suppliers, notably in India and Japan, are seeing faster-than-anticipated decline, although MPA govt director Vivek Couto notes some stabilization forward.
“TV channel suppliers in India generated about $4.5 billion in income final 12 months. We see that rising in the direction of $5 billion over the following few years,” Couto advised Selection. “Nonetheless, the universe has shrunk, and there’s a way more important transition to streaming.”
The streaming sector noticed substantial features in 2024, notably in India, the place Netflix has established its largest Asian subscriber base. “Streaming had fairly an impactful 12 months in India as a result of the subscription enterprise grew,” Couto famous.
Person-generated content material (UGC) and social video platforms are positioned to seize the biggest share of recent income at $10.7 billion, with SVOD companies including $8.4 billion and premium AVOD bringing in $5 billion. The report identifies YouTube (excluding China), Meta, TikTok operator ByteDance and Chinese language platforms as key drivers within the UGC/social section.
UGC and social video platforms are leveraging AI for content material creation and promoting focusing on. “They’re actually utilizing these large platforms to leverage AI for content material creation, notably with creators,” Couto defined. YouTube is diversifying income streams via Premium subscriptions and buying options, whereas sustaining promoting progress.
Promoting continues to dominate income streams, contributing 65% to on-line video progress in comparison with subscription’s 35% share. By 2029, promoting is forecast to characterize 54% of complete APAC video income, up from 52% in 2024. Promoting’s contribution to on-line video progress is pushed by increasing advert tiers throughout main platforms. Prime Video is rolling out promoting throughout India, Japan, and Australia, whereas Netflix is focusing on markets like Australia, Japan, and Korea. Native gamers are benefiting from Related TV (CTV) monetization, with the Disney-Jio media merger anticipated to drive important progress.
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 in the identical interval – is reshaping content material methods. “With CTV rising, you’re going to see potential acceleration of individuals making an attempt to program for households,” Couto stated. “It’s not nearly sports activities or customized leisure.”
The SVOD panorama noticed substantial features in 2024, with new subscriptions leaping greater than sixfold in comparison 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 content material. The expansion is supported by increasing fiber broadband and middle-class revenue progress in rising markets. “Netflix’s India income is at present underneath 10% of its APAC earnings, in comparison with over 20% in Japan,” Couto revealed.
Whereas world gamers YouTube, Netflix, Meta, Disney, Amazon Prime Video and TikTok commanded 67% of on-line video income exterior China in 2024, their collective share is anticipated to lower to 62% by 2029 as native companies achieve floor in India, Indonesia, Japan, Korea and Thailand.
Business consolidation is accelerating, notably in Korea, Japan, and Indonesia. “We’re beginning to see indicators of profitability emerge for key gamers in Japan,” Couto stated. “You’ll see that in India and Indonesia over the following three years, the place you’ll have standalone worthwhile streaming companies.”
The rise of retail media poses new challenges and alternatives. “Aside from CTV, retail media is the massive factor,” Couto stated. “It’s accounting for as a lot as 50% of recent progress over the following 4 to 5 years in markets like China, India, Indonesia, Japan, and South Korea.”
Native competitors stays robust, with platforms like TVING in Korea “giving Netflix a really robust run for its cash,” in keeping with Couto, whereas sustaining profitability stays a key focus throughout the area.