×

APOS: Asian Video Market Set for Strong Growth (Study)

Online video is set to grow rapidly in Asia for the next five years, according to a new study of the region’s TV, video and online markets. The study excludes the largely separate mainland China market.

Media Partners Asia forecasts that online video will expand to 20% of total video industry revenues by 2023, up from 9% in 2017. That is likely to be propelled by new spending on content by online companies, which increase overall content spending in the region by 5% per year.

“The growth of subscription and ad-supported video services from Amazon, Facebook, Netflix and Google will propel these Facebook, Apple, Amazon, Netflix, and Google, companies to a combined 63% share of Asia Pacific online video revenues ex-China by the end of 2018,” said Media Partners Asia executive director Vivek Couto.

The report, to be presented this week at the MPA-hosted APOS conference in Indonesia, shows Google-owned YouTube to have 70-90% slice of a large and fast-growing online video advertising business in Australia, Japan, Southeast Asia and India. In addition, Amazon and Netflix have scaled quickly with subscription video offerings in Australia, India and Japan but have a long way to go in Southeast Asia and Korea.

The analysis could be changed by the potential all-in premium offerings from Disney, 21st Century Fox and Time Warner, which are expected to launch in the next five years. Amazon Prime Video has also yet to scale up in Australia and key markets across Southeast Asia.

Total content investment in TV and online video is expected to expand from $23.1 billion in 2017, to $30.1 billion by 2023. Online video platforms will account for 17%. For traditional TV players, increased content investment is mainly focused on sports rights, across Australia and India in particular, and entertainment on free TV across Southeast Asia.

Online video advertising, dominated by YouTube to date, continues to grow at a stellar pace, was worth $3.6 billion in 2017 and could hit $10.7 billion by 2022. Online video subscription fees are growing rapidly from a very low base, up 41% in 2017 to reach $1.7 billion, and forecast to grow at 12% per year to hit $4 billion by 2023.

Japan and Australia will remain the leading markets for online video, contributing more than 55% to Asia Pacific revenues ex-China in 2023. The third-largest market will be India, which will also be the fastest growing with a 26% average growth over 2018-23.

Popular on Variety

More Biz

  • Shazam

    Apple Music Launches 'Shazam Discovery' Chart, Focused on New Artists

    Apple Music today launched the “Shazam Discovery Top 50,” a weekly, global ranking of 50 artists that it describes as “on the move and trending” — in other words, new and emerging artists. While the company wouldn’t say much specifically about how the chart is tabulated, it uses “Shazam’s proprietary algorithms [to offer] a unique predictive view [...]

  • The Chainsmokers Production Company

    Chainsmokers’ Catalog Acquired by Fast-Growing Hipgnosis Songs

    The Chainsmokers’ writer and publishing rights have been acquired by the fast-growing Hipgnosis Songs and its investment adviser, The Family (Music) Limited, for an undisclosed amount, the company announced today. The company has acquired 100% of the Chainsmokers’ interest in 32 of the duo’s songs, including ASCAP (American Society of Composers, Authors and Publishers) income in [...]

  • Hollywood Recession Business Placeholder

    How an Economic Downturn Could Ravage Hollywood

    Trade-war fears, stock market volatility and, most recently, bond market signals that point to a pending recession are rattling investors, igniting concerns that another devastating downturn may be just around the corner. As those worries reverberate all the way from Wall Street to Hollywood, the entertainment industry is in for an unsettling reminder of the [...]

  • RuPaul Charles - Outstanding Reality -

    RuPaul Charles to Receive Variety's Vanguard Award at Mipcom

    “RuPaul’s Drag Race” leader RuPaul Charles has been tapped to receive the Variety Vanguard Award at the Mipcom international TV sales conference, set for Oct. 14-17 in Cannes. The award recognizes television industry leaders who have made a significant contribution to the global business of entertainment. Charles has hosted and executive produced the VH1 franchise “RuPaul’s Drag [...]

  • iQIYI headquarters building in Beijing

    Chinese Streamer iQIYI Squeezed by Changing Content Context

    Chinese video streaming giant iQIYI saw its losses deepen, in the April to June second quarter of its financial year. The company grew subscriptions, but was hit by rising content costs and lower advertising revenue Its parent company, Chinese search leader, Baidu saw its year on year profits drop, though it recovered from loss in [...]

  • Plume of black smoke rising from

    Universal Music Says ‘Many’ Suing Artists’ Masters Were Not Damaged in 2008 Fire

    UPDATED: Late Friday the attorneys representing Soundgarden, Steve Earle and the estates of Tom Petty and Tupac amended their lawsuit against Universal Music Group over damages to their music archives as a result of a 2008 fire. While most of the amended complaint updated details in the original document — adding information about UMG’s alleged [...]

  • Lady Gaga

    Variety Earns 14 Folio: Eddie & Ozzie Award Nominations

    Variety has received 14 Folio: Eddie & Ozzie award nominations for its coverage of the entertainment industry over the past year. The awards gala, which will take place at The Hilton Midtown in New York City on Oct. 30, celebrates publications that have demonstrated impressive investigative journalism, in addition to thoughtful digital and print design. [...]

More From Our Brands

Access exclusive content