APAC video consumer spending grows 9% in 2020, set for steady growth | Media Analysis | Business | News | Rapid TV News
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A booming online SVOD sector has been a key driver for consumer spending on video in Asia Pacific growing 9% year-on-year in 2020 leading aggregate revenues to reach US$58.3 billion, according to new analysis and research released by Media Partners Asia.
MPA Asia Q1 20 April 2021
The analysis shows that growth in 2020 and in the future will be led by the fast-expanding online SVOD sector where consumer spending revenue is forecast by MPA to grow at 15% CAGR over 2020-25 to reach US$31.6 billion by 2025. This represents 40% market share. By contrast, consumer spend on pay-TV is set to grow at 2% CAGR to reach US$47.8 billion, representing 60% market share. Total consumer spending revenue is projected to rise 6% CAGR to US$79.3 billion by 2025.

Drilling deeper int the trends, the research found that during 2020, all markets grew spending on SVOD services with strong activity in peak pandemic periods during the first half of 2020 and robust spending in the second half 2020 due to new launches from major players.

The MPA study also found that China remained the largest market in Asia Pacific for consumer spending on video with US$27.6 billion in revenue, led by SVOD and IPTV services. Japan was second with US$9.2 billion with SVOD representing more than a third of consumer spend while India was third with US$6.5 billion with pay-TV contributing having greater than 90% market share. Korea with US$5.7 billion in revenue in 2020 and Australia with US$2.9 billion in 2020 remain formidable markets; Malaysia led Southeast Asia with US$962 million in revenue with pay-TV contributing more than 90% market share.

“Consumer spending on entertainment and sports through video platforms was robust in 2020 due to growth of SVOD in a peak pandemic year along with new competition and consumer choice in many Asian markets,” said MPA executive director Vivek Couto.

“While SVOD growth will decelerate in 2021, we see a bright future for the SVOD sector and the stacking of various services across sports, entertainment and deeply integrated local services. China, Japan, India and Korea will lead the way while we see the market for SVOD slowly deepening in key markets across Southeast Asia, led by Indonesia, the Philippines and Thailand. Pay-TV will remain vital in Korea (led by IPTV), India, Malaysia and the Philippines.”
www.media-partners-asia.com