News

The latest MPA report released the Asia-Pacific market is critical to the development of the global online video industry

  Media Partners Asia (MPA), a well-known consulting and research firm, recently released the “Asia Pacific Online Video & Broadband Distribution 2022″ research report. According to the report, the Asia-Pacific region is now the region with the largest share of global online video business growth.
  As the U.S. and European markets mature rapidly, the report notes, the large markets in Asia-Pacific — India, Indonesia, Japan, South Korea and Thailand — are increasingly important to the growth of global streaming platforms.
  The report’s research scope covers ad-based video on demand (AVOD) and subscription video on demand (SVOD) services, covering regions including China, India, Oceania, Southeast Asia, South Korea and Japan. The report shows that the overall market revenue in the Asia-Pacific region will increase by 16% this year to $49.2 billion. Among them, SVOD accounted for 50%, ad-supported VOD driven by user-generated content accounted for 37%, and high-end AVOD accounted for 13%. The industry will grow at a CAGR of 8% and is expected to reach $72.7 billion in 2027, with little change in the proportion of SVOD and AVOD.
  ByteDance, which owns Douyin and Tiktok, has its video business set to lead the Asia-Pacific region in 2022 revenue, estimated to be close to $7 billion. The top five video companies by revenue in the Asia-Pacific region are: ByteDance, YouTube, Tencent Video, Netflix and iQiyi, of which Chinese companies occupy three seats.
  ”YouTube and Meta are being challenged by ByteDance. TikTok is still growing rapidly in Southeast Asia, and the foundation for traffic monetization is forming. YouTube remains dominant in Japan and South Korea,” the report said.
  In China, long video platforms Tencent Video and iQiyi, as well as short video platforms ByteDance and Kuaishou, are industry leaders. These four platforms are expected to account for about 70% of China’s online video business revenue in 2022. China will remain the largest single video market in the Asia-Pacific region. The compound annual growth rate in China is expected to be 5%, and the total revenue in 2027 is expected to exceed 30 billion US dollars, which is equivalent to 42% of the total revenue in the Asia-Pacific region.
  In the Asia-Pacific region outside China, 50% of online video business revenue is split by YouTube, Netflix, Disney and Amazon Prime Video. The revenue of the above-mentioned companies in the Asia-Pacific region predicted by MPA in 2022 is: Netflix $4 billion; Amazon Prime Video $1.4 billion; Disney $1.3 billion.
  The report also revealed an important message: Japan and South Korea are key markets for both industry growth and content production. These two regions have high average revenue per user (ARPU) and advertising rates (cost per thousand), but the household penetration rate of online video services is much lower than Australia or the United States, Japan’s penetration rate is 49%, and South Korea’s penetration rate The rate was 42%. Japan is the largest OTT revenue market in the Asia-Pacific region excluding China, with revenue expected to reach US$9.7 billion in 2022. Revenue in the Japanese market is expected to grow to $14.7 billion in 2027.
  India’s streaming video market is in a “second growth phase,” with total revenue expected to be around $3 billion in 2022. That figure is expected to more than double to $7 billion by 2027. In India, competition between international giants and new local players will further intensify, MPA said. The top five platforms in the Indian market – YouTube, Meta, Disney+ Hotstar, Amazon Prime Video and Netflix – together will account for 82% of the total revenue of the online video business in India in 2022.
  In the SVOD business in Asia Pacific, Netflix, Disney and Amazon are the market leaders. In the Asia-Pacific region outside China, Netflix is ​​expected to account for 33% of SVOD revenue this year (slightly lower than 35% in 2021); Amazon Prime Video accounts for 12%; Disney (including Disney + Hotstar) is 11%.
  Disney’s Disney+ and Disney+Hotstar services are building large-scale, localized content investments and generating revenue in markets such as Australia, India, Indonesia and Thailand, and are also expanding in regions with high ARPU and strong home markets, such as Japan .
  Amazon Prime Video leads the SVOD space in Japan and is also growing rapidly in India. The company now plans to expand in key Southeast Asian markets starting in the fourth quarter of 2022.
  At the same time, successful local platforms have emerged in Australia, Indonesia, Japan and South Korea. According to the report, “Indonesia’s Vidio platform is leveraging content production synergies, as well as a local library of popular entertainment and sports content, to drive a potentially large-scale SVOD business. Australia’s Stan platform SVOD is at a similar stage, but it faces challenges from international Greater competition from giants relies more on their own copyrighted content and purchased content.”
  In South Korea, the Tving platform from the local CJ ​​Entertainment Group, SK Telecom and the Wavve platform launched by several large South Korean TV stations, its SVOD platform The scale has also reached a certain level. However, the report predicts that there will be consolidation of platforms in the Korean market, such as the Korean drama encyclopedia APP Seezn recently announced that it will merge with Tving. “The Japanese market is also likely to consolidate, with Hulu Japan and UNext having become the most important local SVOD platforms in Japan,” the report said.