A study titled Asia Pacific Online Video & Broadband Distribution 2021, picked up by Media Variety, concluded that the online video market in Asia topped $ 30 billion for the first time in 2020. Advertising-funded video on demand (AVOD) is the top-selling format, but subscription video-on-demand (SVOD) services are on the rise.
The major global players in Asia are on the rise like Netflix: “Netflix has developed strong activity in the Asia-Pacific region and thanks to its growing success has an estimated income of $ 2.5 billion in 2020 as well as Japan, Korea and Australia Popularity of its high quality Asian content (Korean and Japanese) and its global originals, ”the study says.
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The same story for Amazon Prime Video which is very successful in India and Japan and is also gaining popularity in Australia. Disney + now has 30 million subscribers in the Asian continent, and the platform could reach over 80 million in India alone if it manages to retain important sports rights and invest in local originals. In addition, the launch of Disney + Hotstar, the Indian service, in Indonesia is a real success for now.
At AVOD, it’s logically YouTube, which leads the Asia-Pacific region with 60% of total sales in the sector, apart from China, which is a separate market. Study details: “The platform is a destination for commercials and often full episodes of professional content in Korea, Japan and Southeast Asia. Content creators source, test and market concepts on the platform. Professional content libraries are available on the website. “She goes on to state that, despite the dominance of the Google service, local players are becoming increasingly popular.
Another important element that emerges from the report; the boom in services from China. “A trio of Chinese services – Tencent Video, iQIYI, and TikTok – owned by ByteDance – are expanding in the Asia-Pacific region and around the world. TikTok was the front runner in terms of consumption and engagement in Southeast Asia and Japan, although monetization lags behind. The application was banned in India. iQIYI was launched commercially in Malaysia and launched smoothly in most other Southeast Asian markets, ”expert Vivek Couto told Variety. These services are expected to gain momentum, particularly with the addition of more content such as anime or Korean series.
The rise of the video market in Asia can be explained in particular by the Covid-19 pandemic, so we can assume that the curve will stagnate in 2021. However, “the scale and speed of investment in content calls are designed so that net new customer additions will remain significant over the medium term,” the report said.