Asia Pacific video industry poised for online boom

The video industry in Asia Pacific is on the apex of a crucial transition, with digital spending and advertising steering an estimated $21 billion (€19.6bn) in growth over the next five years (as per MPA's Asia Pacific Video & Broadband Industry 2024).

While traditional TV advertising is expected to see limited growth, with some exceptions in India and Southeast Asia, the rise of Connected TV (CTV) will redefine the landscape. CTV ad spending is expected to be a key driver in both established and developing markets.

Premium online platforms, including those owned by broadcasters and independent streamers, will continue to attract significant ad dollars in major markets like Australia, India, Indonesia, Japan, and Korea.

The pandemic era (2020-2023) saw a surge in video advertising, with digital platforms capturing a dominant 85% share compared to linear TV's 15%. This trend is expected to continue, with established platforms like YouTube, Meta, and TikTok leading the charge. Local premium platforms are also poised for significant growth.

Consumer spending on video services in APAC surpassed $16 billion between 2020-2023, fueled by a boom in subscription-based VoD (video-on-demand) services. The next five years will likely see new bundle options, pricing models, and industry consolidation.

Market Highlights:

Japan: A key market for online video subscriptions, with high customer value and room for growth.

India, Indonesia, Philippines: Enhanced internet penetration offers significant economic potential for VoD services.

India: The expanding young adult demographic presents a prime target audience for affordable VoD services, leading to increased content and distribution investments.

Thailand: Strong broadband penetration bodes well for subscription-based VoD platforms.

South Korea: Consolidation and potentially more advertising integration could fuel future growth.

While spending on traditional linear TV, especially pay-TV, is expected to decline, older viewers with high average revenue per user (ARPU) and low churn rates remain a valuable market segment.