The region’s online video advertising and subscription revenue will expand from US$26 billion in 2019 to $52 billion in 2024, a 15% CAGR, the study forecasts. As a result, video streaming will contribute 33% of combined TV and online video revenue in Asia Pacific by 2024, up from 18% in 2019. The sector will maintain a 15% CAGR across the region but excluding China, as revenues rise from $10 billion to $21 billion in the next five years. By 2024, online video will have carved out a 25% share of the Asia Pacific’s video market (excluding China), up from 15% in 2019.

In China, online video revenue will rise 14% each year to reach $70 billion by 2024, thanks to increased subscription payments. The country’s online platforms will expand their share of total video revenues from 29% in 2019 to 44% in 2024, forecasts MPA.

“China remains at the forefront in online video scalability and innovation, although monetisation models are starting to scale in other major markets. The growth of broadband connectivity and digital video platforms is driving new economic value for content creators, aggregators and sports-rights owners at a global and local level, helping seed digital ecosystems. That said, piracy and unpredictable regulation present key impediments to progress,” said Vivek Couto, executive director, MPA.

“Meanwhile, a still lucrative legacy TV industry continues on a low-growth trajectory in many markets, although under increasing pressure. In certain markets, the value erosion across legacy TV is unlikely to be replaced over the medium term but digital video monetisation will grow and margins will recover as costs recalibrate.”

India’s video market should register 8% CAGR from 2019, the fastest growth in the region, said MPA. This growth will push advertising and subscription revenues to almost $20 billion by 2024. TV will still enjoy 6% CAGR in the next five years  but video streaming will surge forward with a 22% CAGR. Online video will account for 16% of video revenue in India by 2024, up from 9% in 2019, the analysts predict.

Online video is growing 10% year-on-year in Japan, which is witnessing declines in its large TV market. Overall, Japan’s video industry should register a 1.2% CAGR in the next five years to achieve $28 billion in advertising and subscription revenue by 2024. In the same period, online’s share of total video revenues will grow from 14% in 2019 to 22% in 2024, mainly driven by advertising.

Video industry revenues should expand at a 4% CAGR from 2019 across Southeast Asia to reach US$11 billion by 2024, with Indonesia, Thailand and Vietnam contributing almost 65%.Indonesia, the largest market in Southeast Asia, is predicted to have 24% CAGR in online video in the next five years.

Asia Pacific video industry revenues, comprising TV and online platforms, are forecast to reach $154 billion in 2024 with a 4.5% CAGR from 2019. Excluding China, regional revenues will grow at a slower 3.7% CAGR over the next five years to exceed US$84 billion.

Overall, the TV industry in APAC will manage a ~1% CAGR from 2019-24 while a “dynamic online video sector” is set to grow 15% each year, said MPA.

Industry investment in video content is expected to grow at a 3% CAGR in Asia Pacific to reach $73 billion by 2024, up from $64 billion in 2019. In the same period, online video content spend will climb at a 10% CAGR to reach $33 billion by 2024, driven by regional growth, cost inflation for Asian entertainment, sports rights and Hollywood content.