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Asia-Pac online video to be worth $12BN by 2020

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Date d'inscription : 23/10/2013

Asia-Pac online video to be worth $12BN by 2020

Message par jimy page le Mar 13 Jan - 15:10

Asia-Pac online video to be worth $12BN by 2020

DetailsJoseph O'Halloran | 13 January 2015




A Media Partners Asia (MPA) research report is predicting that online video service net revenues across 13 Asian countries will grow from $3.5 billion in 2014 to $12.4 billion by 2020.


NetflixOrangeIf realised, adds the Asia Pacific Online Video Distribution 2015 report, this would represent an average annual growth of 23.5% with advertising contributing more than four-fifths of the total by 2020. In contrast the subscription sector, largely driven by subscription video-on-demand (SVOD) platforms such as Netflix is predicted to growing from less than $700 million in 2014 to more than $2.3 billion by 2020.

The report also highlighted large-scale global digital brands, like Netflix and also YouTube, expanding rapidly in a number of Asian markets or readying to launch in key territories over 2015 and 2016. The analyst noted local and regional television companies also in the early stages of launching a number of large scale advertising and subscription based OTT platforms, anchored to local, Asian and Hollywood content while telecom operators are either moving upstream into content and OTT services or providing a crucial link for the ecosystem.

OTT was certainly hot in Asia: the data showed that active Asia Pacific over the top video subscribers reached 594 million in 2014 with China accounting for more 85% of the market size in 2014 and set to represent 80% by 2020. Other notable markets largest markets in 2014 were Korea India, Japan; and Hong Kong. By 2020, MPA projects that active OTT video customers will near the billion mark. The market for subscription-based OTT video reached 75.3 million active subs in 2014 and is expected to reach 225 million by 2020. China will be the largest contributor, driven by connected TV and set-top box platforms and online video companies offering premium services. Japan, Korea, India and Australia will likely emerge as material opportunities, powered by SVOD but India will trend towards more a freemium-oriented model.

"The market for the legal consumption of OTT services in Asia Pacific is at an early stage with monetisation models nascent in most countries," said MPA executive director Vivek Couto commenting on the Asia Pacific Online Video Distribution 2015 report "As barriers to entry reduce and broadband penetration increases, more disruptors are emerging and host of new platforms are proliferating, though business models are not always scalable and issues such as piracy; content; and platform operation remain problematic. This is especially true in a number of Asian markets where piracy is significant and the limited scale of OTT video revenues are not commensurate with content costs."


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