Report: APAC online video market to double in next 5 years
April 23, 2019
The Asia Pacific online video market will double in size over the next five years, according to analysis by Media Partners Asia (MPA), as the explosion of screens and smart devices, driven by mobile broadband connectivity, drives digital growth and scalability across the region.
In Asia Pacific, online video advertising and subscription revenue will expand from $26 billion in 2019 to $52 billion in 2024, a 15 per cent CAGR, MPA forecasts. As a result, online video will contribute 33 per cent of combined TV and online video revenue in Asia Pacific by 2024, up from 18 per cent in 2019. Excluding China, online video will maintain a 15 per cent CAGR in the region to increase revenues from $10 billion in 2019 to $21 billion by 2024. This will extend online video’s share of the video market in APAC ex-China from 15 per cent to 25 per cent over the same time-frame.
Commenting on the MPA analysis, executive director Vivek Couto said: “China remains at the forefront in online video scalability and innovation, although monetisation models are starting to scale in other major markets. The growth of broadband connectivity and digital video platforms is driving new economic value for content creators, aggregators and sports-rights owners at a global and local level, helping seed digital ecosystems. That said, piracy and unpredictable regulation present key impediments to progress. Meanwhile, a still lucrative legacy TV industry continues on a low-growth trajectory in many markets, although under increasing pressure. In certain markets, the value erosion across legacy TV is unlikely to be replaced over the medium term but digital video monetisation will grow and margins will recover as costs recalibrate.”