The shift from traditional television to online video streaming is accelerating in Asia, and it’s predicted that online video earnings in this region will surge from $64 billion in 2024 to $89 billion by 2029, representing a 40% increase. Conversely, the revenue for traditional TV is projected to decline by around $8 billion over the same five-year span, as per a recent report by Media Partners Asia.
Experts predict that streaming services will surpass traditional TV viewing in the region by 2027, primarily fueled by growth in China and India. By the end of the decade, Subscription Video on Demand (SVOD) is expected to account for more than half of the total revenues in the Asia-Pacific video industry, increasing from approximately 44% in 2024.
As a gamer, I’ve noticed an unprecedented surge towards online gaming. Subscriber bases for streaming video on demand (SVOD) services are expanding rapidly, and the advertising ecosystem is becoming more robust than ever before. This transformation is evident as giants like Netflix and Amazon Prime Video introduce ad-tier options, while local players are crafting compelling ad proposals in various markets.
In simple terms, the streaming markets of Asia-Pacific (APAC) will continue to be smaller compared to the U.S., but the difference is gradually decreasing. By 2029, it’s predicted that U.S. streaming earnings could reach $140 billion, while APAC might hit $89 billion. The Motion Picture Association (MPA) anticipates that in 2024, the revenue generated from APAC represented about a quarter of the total sales for major U.S. video platforms like YouTube (including ad and subscription income), Netflix, Amazon Prime Video, and Disney (excluding consumer products).
In many mature markets of the West, subscription video services have reached a saturation point, leading to consolidation efforts. However, the opposite trend was observed in 2024 across APAC, as the number of new SVOD subscriptions more than doubled compared to 2023. This growth was primarily driven by countries like India, China, Japan, Thailand, Indonesia, Korea, and Australia. Both local and international players contributed to this surge, causing experts to predict that SVOD subscriptions will increase from 644 million in 2024 to 870 million by 2029, as reported by the Motion Picture Association (MPA).
According to the report’s authors, this growth is fueled by affordable advertising rates for new categories, an increase in sports programming, and the introduction of fresh content markets.
The Market Research firm MPA identifies six major sectors, collectively responsible for around 90% of the anticipated video industry growth in the region over the next five years: India (accounting for 26%), China (23%), Japan (15%), Australia (11%), Korea (9%), and Indonesia (5%). The categories with the most rapid revenue growth during this period will be user-generated content platforms and social video series, generating approximately $10.7 billion, followed by Streaming Video on Demand (SVOD) at $8.4 billion, and Premium Advertising-Based Video on Demand (AVOD) at around $5.0 billion. In 2024, advertising comprised 52% of the total APAC video revenue; this is expected to rise to 54% by 2029 due to the continued growth of Premium AVOD.
As a dedicated gamer, I’ve noticed some shifts happening in the gaming world too. The big six global platforms – YouTube, Netflix, Meta, Disney, Amazon Prime Video, and TikTok – have been dominating the APAC online video market, holding about 67% of the revenue share in 2024, excluding China. However, it seems like a power shift is on the horizon. Local operators are making their mark, especially in key regions like India, Indonesia, Japan, Korea, and Thailand. By 2029, it’s projected that these local players will have increased their influence, potentially reducing the big six’s share to around 62%. Exciting times ahead!
According to Couto’s analysis, the online video market is booming due to increased viewer engagement and revenue generation. Yet, the decrease in traditional TV income and difficulties in making a profit from local streaming are hastening consolidation and mergers & acquisitions within the industry, particularly in India, Japan, Korea, Australia, and Southeast Asia. Although streaming profitability is becoming more common in certain regions, the primary goal continues to be improving monetization methods and streamlining operational efficiency.
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2025-01-13 10:54