The transition from television to online video is accelerating across Asia. Over the next five years, online video revenue in the region is expected to grow from $64 billion in 2024 to $89 billion by 2029, an increase of 40%. Meanwhile, a new report from consulting firm Media Partners Asia says traditional TV revenue is expected to shrink by $8 billion over the same period.
The report’s authors predict that streaming in the region will overtake television by 2027, with China and India leading the way, with SVOD’s share of total Asia-Pacific video industry revenue expected to rise from 44% in 2024 to 20% by the end of the decade. It is predicted that this will rise to more than 54%. .
“The move online is accelerating even more,” says MPA Executive Director Vivek Cuto. “Subscriber growth in SVOD will deepen and become more powerful as Netflix and Amazon Prime Video offer ad tier services and local players build very strong ad propositions in many of these markets. We are seeing the local advertising ecosystem develop.”
Although the APAC video market continues to look smaller than the US domestic streaming market, the gap is narrowing. By 2029, U.S. streaming revenue is expected to grow to $140 billion, with Asia Pacific reaching $89 billion. MPA estimates that in 2024, revenue generated in APAC will account for the following percentage of total revenue for major U.S. video platforms: YouTube 25 percent (including ads and subscriptions). Netflix, 12 percent; Prime Video, 10 percent. Disney, 10% (entertainment and sports, but excludes consumer products);
While subscription video is beginning to saturate in many developed markets in Europe and the US and the move toward consolidation is accelerating, SVOD subscriptions will accelerate significantly across APAC in 2024, with net new subscriptions expected to rise in 2023. It was more than six times that of the previous year. Led by India, China and Japan, SVOD subscriptions in Thailand, Indonesia, South Korea and Australia, driven by local and global players, will grow from 644 million in 2024 to 800 million by 2029, according to MPA. It is said that there will be 70 million people.
“This growth is supported by new low-cost advertising inventory, expanded sports offerings, and new content markets,” the report’s authors said.
The MPAs are India (26 percent), China (23 percent), Japan (15 percent), Australia (11 percent), South Korea (9 percent), and Indonesia (5 percent). The fastest-growing business model category by new value during this period was user-generated content platforms and social video series ($10.7 billion), followed by SVOD ($8.4 billion) and premium AVOD ($5 billion). In 2024, advertising accounted for 52% of total video revenue in APAC. With the continued expansion of premium AVOD, this share is expected to increase to 54% by 2029.
MPA also predicts a slight power shift going forward, with local carriers chipping away at larger U.S. companies. The world’s six largest video services (YouTube, Netflix, Meta, Disney, Amazon Prime Video, and TikTok) held a 67% share of the APAC ex-China online video revenue market in 2024. However, this share is expected to decline to 62% by 2029 as local companies emerge in India, Indonesia, Japan, South Korea and Thailand.
Coote added of the report’s findings: “The online video market is experiencing rapid growth due to increased engagement and monetization. However, declining traditional TV revenues and challenges in achieving profitability with local streaming have led to strong growth, especially in India, Japan, South Korea, Australia, and Southeast Asia. “Industry consolidation and M&A activity is accelerating. While the profitability of streaming is emerging in certain markets, optimizing monetization strategies and streamlining operational efficiency remains the focus.”
