The Asia-Pacific Video Industry: Growth and Challenges

The video industry in the Asia-Pacific region is set for substantial growth, driven by online platforms that are boosting revenue, while traditional television is encountering challenges, as highlighted in a recent report by Media Partners Asia (MPA).

Projected Revenue Growth

MPA forecasts an additional $16.2 billion in revenue across 14 APAC markets from 2024 to 2029. Online video is anticipated to contribute $24.1 billion in new revenue, whereas traditional TV is expected to experience an $8 billion decline during the same timeframe.

Key Markets Driving Growth

Six markets are projected to lead this growth by 2029, with India at 26%, followed by China (23%), Japan (15%), Australia (11%), Korea (9%), and Indonesia (5%). Traditional TV providers, especially in India and Japan, are facing a more rapid decline than expected, although MPA’s executive director Vivek Couto suggests some stabilization may occur.

Revenue Insights from India

“TV channel providers in India generated about $4.5 billion in revenue last year. We see that growing towards $5 billion over the next few years,” Couto shared with Variety. “However, the universe has shrunk, and there’s a much more significant transition to streaming.”

Streaming Sector Growth

The streaming sector experienced notable growth in 2024, particularly in India, where Netflix has built its largest subscriber base in Asia. “Streaming had quite an impactful year in India because the subscription business grew,” Couto remarked.

User-Generated Content and Revenue Streams

User-generated content (UGC) and social video platforms are expected to capture the largest share of new revenue at $10.7 billion, with SVOD services contributing $8.4 billion and premium AVOD generating $5 billion. The report identifies key players in the UGC/social segment, including YouTube (excluding China), Meta, TikTok’s ByteDance, and various Chinese platforms.

AI in Content Creation

UGC and social video platforms are harnessing AI for content creation and targeted advertising. “They’re really using these big platforms to leverage AI for content creation, particularly with creators,” Couto explained. YouTube is diversifying its revenue through Premium subscriptions and shopping features while continuing to grow its advertising revenue.

Advertising’s Dominance

Advertising remains the primary revenue driver, accounting for 65% of online video growth compared to 35% from subscriptions. By 2029, advertising is projected to represent 54% of total APAC video revenue, up from 52% in 2024. This growth is fueled by expanding ad tiers across major platforms, with Prime Video and Netflix rolling out advertising in various markets. Local players are also benefiting from Connected TV (CTV) monetization, with the Disney-Jio media merger expected to significantly boost growth.

Connected TV Penetration

CTV penetration is expected to reach 85-90% in Australia, Korea, and Japan by 2029, while India, Indonesia, and Thailand are projected to achieve 25-50% penetration during the same period. “With CTV growing, you’re going to see potential acceleration of people trying to program for families,” Couto noted. “It’s not just about sports or personalized entertainment.”

SVOD Landscape Expansion

The SVOD landscape saw significant growth in 2024, with new subscriptions increasing more than sixfold compared to 2023. The sector is expected to rise from 644 million subscriptions in 2024 to 870 million by 2029, bolstered by new ad-supported tiers and expanded sports content. This growth is supported by improved fiber broadband access and rising middle-class incomes in emerging markets. “Netflix’s India revenue is currently under 10% of its APAC earnings, compared to over 20% in Japan,” Couto revealed.

Shifting Market Shares

While global players like YouTube, Netflix, Meta, Disney, Amazon Prime Video, and TikTok accounted for 67% of online video revenue outside China in 2024, their collective share is expected to decrease to 62% by 2029 as local services gain traction in India, Indonesia, Japan, Korea, and Thailand.

Industry Consolidation Trends

Industry consolidation is accelerating, particularly in Korea, Japan, and Indonesia. “We’re starting to see signs of profitability emerge for key players in Japan,” Couto stated. “You’ll see that in India and Indonesia over the next three years, where you’ll have standalone profitable streaming businesses.”

Retail Media Opportunities

The emergence of retail media presents both challenges and opportunities. “Apart from CTV, retail media is the big thing,” Couto noted. “It’s accounting for as much as 50% of new growth over the next four to five years in markets like China, India, Indonesia, Japan, and South Korea.”

Local Competition and Profitability

Local competition remains robust, with platforms like TVING in Korea providing strong competition to Netflix. Maintaining profitability continues to be a key focus across the region.

Person

Vivek Couto

Company Names

Media Partners Asia, Netflix, YouTube, Meta, TikTok, ByteDance, Prime Video, Disney, Amazon Prime Video, TVING

Titles

None

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