VIDEO CONSUMPTION IN THE ASIA PACIFIC REGION GREW 9% IN 2020

Consumer spending on video in Asia Pacific grew 9% during last year to reach US$58.3 billion in aggregate, and is projected to rise 6% CAGR to US$79.3 billion, according to new analysis and research released by Media Partners Asia.

The analysis shows that growth in 2020 and in the future will be led by the fast-expanding online SVOD sector where consumer spending revenue is forecast to grow at 15% CAGR over 2020-25 to reach US$31.6 billion by 2025, which represents 40% market share. By contrast, consumer spend on pay TV is set to grow at 2% CAGR to reach US$47.8 billion, representing 60% market share. Total consumer spending revenue is projected to rise 6% CAGR to US$79.3 billion by 2025.

According to MPA’s study, China remained the largest market in Asia Pacific for consumer spending on video, with US$27.6 billion in revenue, led by SVOD and IPTV services. Japan was second with US$9.2 billion, with SVOD representing more than a third of consumer spend, while India was third with US$6.5 billion, with pay TV having greater than 90% market share. Elsewhere, Korea with US$5.7 billion in revenue in 2020 and Australia with US$2.9 billion in 2020 remain formidable markets. Malaysia led Southeast Asia with US$962 million in revenue, with pay TV contributing more than 90% market share.

“Consumer spending on entertainment and sports through video platforms was robust in 2020 due to growth of SVOD in a peak pandemic year along with new competition and consumer choice in many Asian markets. While SVOD growth will decelerate in 2021, we see a bright future for the sector and the stacking of various services across sports, entertainment and deeply integrated local services. China, Japan, India and Korea will lead the way, while we see the market for SVOD slowly deepening in key markets across Southeast Asia, led by Indonesia, the Philippines and Thailand. Pay TV will remain vital in Korea (led by IPTV), India, Malaysia and the Philippines,”  detailed Vivek Couto, Executive Director at MPA.