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Asian Consumers Still Cool Toward Premium Video (Report)

Premium online video services have started to gain traction in Asia Pacific but have a long way to go before achieving mass adoption, according to a new consumer survey.

The survey, based on a sample of 10,000 broadband video users in eight territories, excluding CHina, was conducted by consumer research specialist BDRC Continental, on behalf of consultancy Media Partners Asia. MPA last week put out its own research forecasting that Asia’s OTT market with China included could be worth over $40 billion by 2022.

The take-up of premium online video services, including both ad-supported and subscription-based offerings, remains relatively low, the survey suggested. That reflects the early stages of transition for user behavior as well as business development in both developed and emerging markets, MPA said.

Australia and Hong Kong are currently the strongest markets. But it noted that current and past customers in Malaysia, Singapore and Taiwan “tended to regard all or almost all premium online video services in a negative light.”

Netflix is putting in a strong performance in Australia, and has started to show deeper usage patterns in niche segments across Southeast Asia and Taiwan. iQiyi has also enjoyed a good start in Taiwan. Freemium offerings from local broadcasters are also showing promise. MyTV Super from Hong Kong broadcaster TVB has momentum, while Toggle, from Singapore broadcaster Mediacorp, has attracted a respectable audience. PCCW has managed to scale usage and adoption across its OTT offerings in Hong Kong,” said Aravind Venugopal, MPA vice president.

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