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Online Video Set For Further Massive Growth in Asia (Report)

The value of the online video sector in Asia Pacific is set to swell from an estimated $13 billion this year to $35 billion by 2021. That is a growth rate of 22%, according to regional media consultancy Media Partners Asia.

Its report – Asia Pacific Online Video Distribution – shows China representing 76% of the total, with the next four territories Japan, Australia, South Korea and India, accounting for a combined 17%.

In the online subscription video-on-demand (SVoD) segment, MPA expects total paying customers to grow from 177 million by 2016 to 360 million by 2021, with China representing the majority. SVoD revenue will reach $13 billion by 2021, a 28% compound annual growth rate from $3.7 billion in 2016. China will again contribute the majority, representing more than 80% by 2021.

Online video advertising sales will reach approximately $22 billion by 2021 versus $9 billion in 2016, a 19% CAGR. China will represent more than 70% of the online video advertising pie by 2021. That will also help online video advertising grow as a proportion of Asia Pacific digital ad spend from less than 15% in 2015 to 22% by 2021.

“The growth of broadband, combined with slow but progressive change in content licensing, is driving demand for online video services. However, the distribution of driver local content online is modest, especially outside of China, India and Korea,” said MPA executive director Vivek Couto. “This is evident in Southeast Asia, where broadband penetration is growing rapidly but from a low base in most markets. Telecom operators in these markets are investing in broadband networks and integrating with online video platforms to help drive subscriptions. This allows online video operators to utilize carrier billing, overcoming market limitations in payment infrastructure. It’s a bet to drive online video consumption in the short term and ARPUs in the long term.”

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Asia Pacific fixed broadband subs will reach 345 million in 2016, and grow to 425 million by 2021. Average broadband household penetration will grow from 35% in 2016 to 41% in 2021. Mobile broadband will reach 79% of the Asia Pacific population by 2021, versus 46% in 2016.

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