The APAC video industry grew by 5.5% in 2023 as total revenue reached approximately $145 billion, as per a report by MPA. The 2023 performance was driven by a 13% growth in online video sector sales to $57 billion, partially offset by less than one percent growth in the TV revenue pie to $98 billion. Excluding China, the APAC video industry grew by 3.2% in 2023 with revenue reaching $81 billion, driven by a 13% increase in online video sales to $30 billion while TV declined by two percent to $51 billion. China remains the largest and most regulated video market in APAC, generating $64 billion in revenue in 2023. Ex-China, the largest markets in 2023 were Japan, India, Korea and Australia followed by Taiwan and Indonesia.
“The Asia Pacific video industry continues to experience a secular shift from TV to online in terms of engagement and monetisation. Improved connectivity, rising connected TV (CTV) penetration combined with the growth of local creator economies, investment in premium local content as well as the wide availability of premium sports streaming, will continue to drive dollars and eyeballs online,” Vivek Couto, managing and executive director, MPA, said
Pay-TV subscription fees showed marginally below flat growth in APAC ex-China with revenue declines in important markets such as India and Japan while almost every market in Southeast Asia contracted. Pay-TV advertising grew in India but was decimated in Korea. Free TV advertising was down two percent in 2023 across APAC ex-China with declines in Australia, Indonesia and Korea.
The report indicates that total APAC video industry revenues will grow at a compound annual growth rate of 2.6% between 2023-2028 to top $165 billion by 2028 or at a compound annual growth rate of 3.3% ex-China to top $95 billion. China will be increasingly mature and grow at 1.7% to reach $70 billion by 2028, followed by Japan, India, Korea, Australia and Indonesia.
“New investments made by strategic and private equity in the online video sector in China, India, Indonesia, Japan, Korea and Southeast Asia are helping local and regional companies compete. The online video sector is also starting to rationalise with price increases in the SVOD category along with disciplined content and marketing investment, the introduction of ad tiers, new strategies to drive monetisation and the start of local market consolidation in Korea, Japan and India,” Couto added.
The APAC online video sector is projected to grow at a 6.7% compound annual growth rate to reach $78.5 billion in value by 2028 or 9.2% ex-China to reach $46 billion by 2028. TV industry revenues, including advertising and subscription, will marginally contract at -0.4% compound annual growth rate between 2023-2028 to reach $86.5 billion by 2028 or at -1% compound annual growth rate to $49 billion ex-China.
Scaled TV markets that are expected to still grow but at a much smaller pace include India, Japan, Korea and Indonesia.
Follow us onTwitter,Instagram,LinkedIn,Facebook
