Media Partners Asia released its report, "Asia Pacific Online Video & Broadband Distribution 2021" which reveals that total online video revenues in the Asia Pacific are projected to reach USD 54.5 billion by 2025, with SVOD services contributing to over half of that total. “During 2020, the Covid-19 pandemic created a work-from-home environment that scaled the adoption of online services, including SVoD," MPA executive director Vivek Couto said. "Moreover, profitability should grow more rapidly than revenues and subscribers as online businesses scale. This is particularly true in larger markets such as Australia, China, Japan, and Korea."
The data was presented in the study indicates that the number of subscriptions per household reaching an average of 3.8 in Japan and Australia, Disney Plus's ability to reach 80 million paying subscriptions in India,and YouTube and China’s TikTok-owner Bytedance emergance as the two largest AVOD players in the region. SVOD has grown by 34% in 2020 to US$16.3 billon in revenues, with China contributing 58%. Excluding China, the Asia Pacific SVoD sector grew revenues by 47% to USD 6.8 billion in 2020, and SVoD revenue is projected to reach USD 15.3bn in the region, excluding China, by 2025 and USD 31.3 billion with China.
YouTube is the dominant player with some 60% of total AVOD revenue in the Asia Pacific, ex-China. The platform is a destination for promotional clips and often entire episodes of professional content in Korea, Japan, and Southeast Asia. Content creators source, trial, and market concepts on the platform. Libraries of professional content are available on the site,” MPA explains in the report.
Despite Youtube dominance, local players are also slowly growing share, especially as broadcasters with local content and sports rights transition online. Global platforms have enjoyed success in SVOD. Netflix does not publish country-specific data in Asia. “Netflix has built a strong business in the Asia Pacific, generating an estimated $2.5 billion in revenue in 2020 on the back of growing success in Japan, Korea, and Australia and the popularity of its premium Asian content (Korean and Japanese) and global originals,” The research and consulting service estimates.
During 2020, the Covid-19 pandemic created a work-from-home environment that scaled the adoption of online services, including SVOD. Moreover, profitability should grow more rapidly than revenues and subscribers as online businesses scale. This is particularly true in larger markets such as Australia, China, Japan, and Korea.” Vivek Couto Executive Director, Media Partners Asia
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