OTT video streaming in the Asia-Pacific region has now reached 392 million people, with 70% of consumers across the territory watching streaming video at least once a week, according to a new research from global video advertising platform SpotX.
The report, entitled “The OTT Is for Everyone: APAC,” examined video consumption trends and advertising receptivity in the APAC region for services that allow viewers to stream video content over the internet, from a multitude of devices including smart TV, personal computers or smartphones. SpotX said that the study confirmed that APAC was a rich and diverse region that had fully embraced streaming video at levels unmatched by Western markets.
Indeed, the estimated reach of active OTT viewers in APAC is of 392 million people, larger than the population of the United States. The region was also said to have a number of unique characteristics, such as in Southeast Asian countries, where smartphones monopolised viewing, while in Australia and Japan smart TV were more popular and consumers used a broader mix of devices. The research also showed that Indonesia, the largest and fastest growing market in Southeast Asia, had witnessed a recent surge in OTT viewing with 79% of viewers in the 18-34 age bracket and 86% of those watch video mostly on their phones.
Furthermore, 69% of video viewers in the region indicated they watch streaming video at least once a week, confirming that both the audience size and regularity of OTT viewing had matured and entered the mainstream. The top three markets for OTT viewing were Singapore (91%), Australia (81%) and Indonesia (76%).
A majority of OTT viewers watch more than two hours of content a day, often out-stripping traditional TV and video-sharing platforms. The leading markets for OTT consumption are the Philippines, Indonesia, and Australia, and of OTT viewers across the region, 66% spend the most time streaming video on their mobile devices, with developing countries taking the lead. However, smart TV viewership was growing quickly, especially in Australia, Singapore, and Vietnam, where at least one in five video viewers were found to have streamed through a smart TV.
The research also revealed that 67% of video viewers preferred to watch free, ad-supported content while only 23% preferred to pay for an ad-free service. There was also a clear acceptance of ads in exchange for viewing free content highlighted from the study, with 86% of viewers saying they don’t mind watching ads – provided the ad loads were kept light.
In terms of advertising on the platform in general, streamers said that OTT ads were more effective than TV ads at attracting their attention across Southeast Asian countries. Just 35% of OTT viewers reported making a purchase after seeing an ad during an OTT programme. The leading markets were Vietnam, Singapore, and Indonesia.
“While a fundamental finding was that new consumers were coming online for the first time in the region and existing ones increased their content consumption during the pandemic, the market was only scratching the surface of the possibilities in OTT,” said Crisela Magpayo Cervantes, Principal Partner at Mindshare Indonesia, the firm responsible for the study. “Not only have users grown due to the stay-at-home regulations, but it is a habit that Indonesians will continue to pursue post-pandemic. Local original series and movies, Korean drama, and sports, are driving OTT growth as are different acquisition strategies, through telco partnerships, and new funding models,” she added.