×
You will be redirected back to your article in seconds

Asia’s Online Video Market to Hit $46 Billion by 2022, Dwarfing Theatrical (Report)

The online video market in Asia is set to grow nearly threefold over the next five years, reaching more than $46 billion by 2022, according to a new report. China will account for more than half of the total.

The report by consultancy Media Partners Asia, titled “Asia Online Video & Broadband Distribution,” says that revenues, comprising net advertising and subscription fees, will grow at a 21% compound annual rate across the region between 2017 and 2022, climbing from $17.6 billion in 2017.

Significantly, different business models are likely to persist side by side. Local operators are expected to survive despite competition from global video streaming giants, and local content will be crucial.

The scale of the Chinese online video market, and, in particular, its subscription segment, defies current market conventions.

The MPA study forecasts that advertising on Chinese video platforms will hit $13 billion by 2022, even as advertising revenues shrink as a proportion of the overall Chinese business. The value of subscriptions in China is projected to reach $17.3 billion by the same date. Together they represent a $30-billion online market. That dwarfs the $6.4 billion recorded by China’s theatrical movie sector in 2016.

The report says that China’s success in the sector reflects wide-scale investment in original and acquired OTT content, including content with early and exclusive windows; a weak market for traditional pay-TV; infrastructure improvements and adoption of smart TVs and set-top boxes; and consumer use of seamless payment systems, some developed by the Internet leaders that are also owners of the most popular online video services.

“Services anchored to nimble, robust and sustainable business models – built around strong execution and scalable content consumption – are rising to the top” across Asia, said the report’s author, MPA executive director Vivek Couto. “Access to local and Asian content is increasingly essential in almost all markets, while demand for recent windows for franchise-based Hollywood product is also robust.

“Content curation, packaging and pricing remain critical, along with brand equity. Leading local and regional players ex-China will start to capitalize on a massive online video advertising opportunity, hitherto dominated in the main by YouTube.”

Outside China, the landscape is more varied, with Japan and Australia the most developed, and other key territories, including India and Korea, still currently very fluid. Those two developed markets are also where Netflix is strongest in the region. MPA estimates that Netflix is on course to have 4.7 million subscribers within the Asia Pacific region by the end of 2017, with Australia accounting for perhaps 3 million of those.

In smaller territories, notably the Philippines, Thailand, Malaysia, Korea and India, the uptake of premium video goes hand in hand with the levels of cooperation between OTT operators and local telecoms and broadband providers. The telcos provide bandwidth and pre-paid solutions. Piracy remains an ongoing problem for the industries in Singapore and Malaysia.

Multinational Asian OTT video operators, including Hooq and Iflix, are competing with Netflix and Amazon, not just through telco connections, but also through programming strategies and content production investment. Some consolidation of the groups, however, seems a possibility, the report says.

Surprisingly, perhaps, given the rapid expansion of the OTT sector, pay-TV’s branded content players are unlikely to be killed off completely, the report predicts. Channels and branded destinations have ongoing strength in movies and sports, in particular. Couto points to signs of success for the new digital offerings of Fox Plus, Disney and Cartoon Network in the Philippines, and HBO in Hong Kong.

More Biz

  • China's Alibaba to Take Majority Control

    Alibaba to Take Majority Control of Alibaba Pictures

    Chinese e-commerce giant Alibaba is to take majority control of its films unit Alibaba Pictures. The $160 (HK$1.25 billion) deal was announced on Monday. The companies said that Alibaba will increase its stake in Hong Kong- and Singapore-listed Alibaba Pictures, through a share subscription. It will lift the parent company’s stake from 49% to 51%, [...]

  • Guy Moot

    Is Sony/ATV’s Guy Moot Headed for Top Job at Warner/Chappell?

    Ever since Jon Platt announced in September that he will be stepping down from his post at the helm of Warner/Chappell Publishing to take the top job at Sony/ATV when Martin Bandier’s contract is up at the end of March, speculation has been rife about who will take over for him. One name has been [...]

  • The King Eric Clapton A Life

    Rashida Jones, Lili Zanuck Talk Grammy Nominations and the Music-Documentary Gold Rush

    Nothing takes you back to time and a place like the music of a particular era. That’s one big reason why music documentaries are flourishing at a time of enormous demand for high-end docu productions. This year’s five Grammy Award nominees for best music film reflect the appetite for stories about renowned and beloved musical figures, [...]

  • il bussetto best business card holder

    Office-Appropriate Gifting: The Best Gifts For Your Colleagues and Bosses

    You can do better than a handshake or bottle of wine to wish your boss a Happy Holiday this season. Here are 10 gifts that show your appreciation for your colleagues or manager, while also helping you stand out from the card and cookie-wielding pack. 1. Personalized Beer Growler Whether they are using it for [...]

  • viceroy-los-cabos-review

    Winter Hotel Guide: Where The Stars Stay in Los Angeles, New York and Beyond

    Whether for a business meeting, a private event, or an intimate celebration for family and friends, these are the hotels that Hollywood keeps on its list. From storied properties that are rich in film and fashion lore, to new players on the hospitality scene, here’s where to book your next stay. 1. Hotel Shangri-La (Santa [...]

  • best tech gifts ipad apple

    Retail Analysts Reveal Top Tech Gifts of 2018

    It’s shaping up to be a busy holiday season for tech and electronics companies, as gaming consoles, streaming devices and televisions top the list of most anticipated gifts, according to retail analysts. New data from Adobe Analytics forecasts that the holiday shopping season (the period from November 1 to December 31) will see more than [...]

  • best harry potter gifts art

    Harry Potter 20th Anniversary: The Best Gifts For Harry Potter Fans

    2018 marked a big milestone for “Harry Potter,” as the franchise celebrated the 20th anniversary of “Harry Potter and the Sorcerer’s Stone” release in the U.S. Since that first book was summoned onto store shelves, the Wizarding World has become a phenomenon not just in America, but around the world, spawning a successful film franchise, [...]

More From Our Brands

Access exclusive content