Asia Pacific online video revenue to soar over next five years | Media Analysis | Business | News | Rapid TV News
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Research from Media Partners Asia (MPA) has revealed good times ahead for its region’s online video industry with 16% year-on-year growth in 2022 to reach US$49.2 billion scaling potentially to US$73 billion by 2027.
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The Asia Pacific Online Video & Broadband Distribution 2022 noted a number of ket drivers of the market such as the growing availability of high-quality local content online with travelability - led by Korea, Japan, China, India, Thailand and Taiwan – and premium sports rights for the likes of football and cricket transitioning online in markets such as Australia, India, Indonesia, Korea, Singapore and Thailand. MPA also noted that “growth at any cost models” were fast transitioning towards more rational models, anchored to monetisable reach through telcos and organic, direct customer funnels.

The study forecasts online subscription video-on-demand (SVOD) will grow by 19% in 2022 to US$24.6 billion in revenues with China contributing 51%. Apart from China, the Asia Pacific SVOD sector is set to grow revenues by 25% year-on-year to US$12.0 billion in 2022. SVOD revenue is projected to reach US$19.1 billion by 2027 in APAC ex-China and US$36.5 billion with China.

Advertising video-on-demand (AVOD) is forecast to generate US$24.6 billion in 2022 in APAC, up 13% Y/Y. APAC ex-China drove US$13.4 billion, up 24% Y/Y. YouTube leads with an estimated 42% share of the APAC ex-China AVOD market in 2022. AVOD is forecast to grow at an 8% CAGR over 2022-27 to reach US$37.6 billion in APAC. APAC ex-China is projected to grow at a CAGR of 12% to reach US$23.7 billion, while APAC ex-China UGC AVOD share is expected to reduce from 80% in 2022 to 76% in 2027 as the premium AVOD category, led by broadcaster video-on-demand platforms, expands.

Looking at the companies that will be driving the market, MPA noted that the top 20 online video platforms will account for two-thirds of total APAC online video revenue in 2022. Non-Chinese leading vendors include YouTube, Netflix, Amazon Prime Video, Disney+/Disney+ Hotstar, key local players in Japan, Korea, Australia and SEA such as Yahoo! Japan, TVer, Stan, Vidio and Viu.

“Investors are increasingly focused on enhanced scale, improved monetisation and real profitability across global, local and regional online video platforms,” said MPA executive director Vivek Couto Commenting on the findings of the report. “In this context, the role of Asia Pacific continues to have a critical role in the future of the global online video industry. The region remains the largest growth contributor to global online video customers and users today and is emerging as a significant contributor to revenue growth. With the US and Europe fast maturing and China inaccessible, APAC’s large markets – India, Indonesia, Japan, Korea and Thailand – will be increasingly important to global platforms.”