Asia Online Video Growing as Free TV Revenues Move Into Secular Decline

Patrick Frater
·3 min read

Online video is taking up the role of growth engine for the Asia Pacific video industry as free-TV in the region moves into long-term decline, says a new report. The video sector is forecast to remain robust this year, but recession could deal a blow to sector performance in 2023.

More from Variety

Video sector revenues – defined as subscription fees and advertising generated by free TV, pay-TV and online video platforms – in 14 Asia-Pacific markets are forecast to will grow by 6.4% in the current year to reach $143 billion, according to Media Partners Asia.

With macro-economic woes likely to hit 2023, compound average growth will slow to at 3.5% in the following period to 2027 and total revenues reach $169 billion.

The research was published on the eve of the APOS Summit, hosted by Media Partners Asia, in Singapore, running September 27-29, 2022. The summit is scheduled to feature speakers including Prime Video’s Kelly Day, Candle Media’s Kevin Mayer, Netflix’s Kim Minyoung, Warner Bros. Discovery’s Gerhard Zeiler and Studio Dragon’s Park Hyun.

Behind the headline number, Media Partners Asia forecasts sharply differing performances. Excluding China, where free-TV has longer legs, Asia-Pacific video revenues grow at a forecast 4% compound average to $98.2 billion, with online video leading at 10.2%, pay-TV at 1.8% growth and free TV contracting by 2.2%.

China, Japan and India are predicted to remain the three largest video markets by revenue by 2027, followed by South Korea and Australia. Indonesia will overtake Taiwan to occupy sixth place by 2027, Media Partners Asia forecasts. It also calculates that these six markets will account for more than 90% of APAC video revenues by 2027. China alone will contribute 42% of the total.

The fastest growth rates over the next five years are expected to be Indonesia (9.0% compound average), India (8.6%), Philippines (7.7%), Thailand (5.4%) and South Korea (4.6%).

Premium streaming companies’ revenues grew by over 20% on average during the pandemic years of 2020 and 2021, but growth has decelerated to 10% this year and is expected at 11% in 2023. The premium online sector will remain loss making at an earnings before interest, taxation and depreciation, but some are expected to either reach breakeven or start generating profits this year, including Hulu Japan, Netflix APAC, Stan and Viu. “Netflix’s margins should start to materially grow from next year onwards,” said the report.

“Free-TV is by and large in secular decline. Profit will continue to contract, but demand for local TV content online will continue to grow, and local players will benefit from premium AVOD, an incrementally high margin business. Last mile bundled home broadband and video remains a high margin business in scale markets though the full video aggregation opportunity has yet to be unlocked,” said Vivek Couto, Media Partners Asia executive director.

Best of Variety

Sign up for Variety’s Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.

Click here to read the full article.

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • Duke of Edinburgh leads commemoration of Australia and New Zealand’s war dead

    Edward paid his respects to the Antipodean fallen on behalf of the nation.

  • Q1 2024 Align Technology Inc Earnings Call

    Q1 2024 Align Technology Inc Earnings Call

  • EU military officer says a frigate has destroyed a drone launched from Yemen's Houthi-held areas

    NICOSIA, Cyprus (AP) — A top European Union military officer said that a frigate that’s part of an EU miliary mission in the Red Sea to protect merchant shipping destroyed a drone launched from an area in Yemen controlled by Houthi rebels on Thursday morning. Austrian Gen. Robert Brieger, who is chair of the EU’s military committee, said that it would be crucial for the bloc to “conserve resources” over the long haul because the threat posed by Houthi attacks “will not disappear” due to its conn

  • FTSE 100 Live 25 April: Index surges on £31bn mining takeover move and blue-chip updates

    A £31 billion takeover pursuit and some robust blue-chip updates helped to boost the FTSE 100 index today. Anglo American, whose interests include De Beers and the giant Woodsmith polyhalite project in North Yorkshire, is the target of Australia’s BHP. Meanwhile, shares in Barclays, AstraZeneca and Unilever performed strongly after their first quarter updates.

  • SNP's power-sharing deal with the Scottish Greens collapses

    It follows the government's decision to scrap key climate targets and its response to a review into gender services.

  • EU should set 600 billion euro target for capital markets union-France

    The European Union should set a target to raise 600 billion euros ($644 billion) in investments annually by the end of the decade by integrating its fragmented capital markets, French Finance Minister Bruno Le Maire said on Thursday. Although Europeans generally save more than Americans, EU capital markets currently lack the depth of their U.S. counterparts because they largely operate along national lines. All EU leaders gave support to the principle of capital markets union at a summit this month though divisions remain on the details, with some countries reluctant to cede control of national financial rules.

  • House speaker Mike Johnson heckled by protesters in tense campus visit

    While the Speaker visited Columbia, police confronted pro-Palestinian protesters at campuses in Texas and California.

  • Shoplifting hits record high with more than 1,000 offences a day

    Shoplifting has hit a record high of nearly 1,200 offences a day - but the number of cases solved has fallen to a low of just one in 10.

  • Dow Jones Futures Fall As Meta Dives On Guidance; Chipotle Eyes Buy Point

    The rally attempt paused Wednesday as Nvidia reversed lower. Meta, Chipotle and ServiceNow led key earnings late.

  • Q1 2024 Biomarin Pharmaceutical Inc Earnings Call

    Q1 2024 Biomarin Pharmaceutical Inc Earnings Call

  • Fourth person arrested after five migrants die in Channel boat crossing tragedy

    An 18-year-old from Sudan was arrested at Manston migrant processing centre in Kent on Wednesday evening.

  • Russian rouble hits three-week high on eve of rate decision

    The Russian rouble hit a three-week high against the dollar on Thursday, a day before the central bank is widely expected to hold interest rates at 16% for its third meeting in a row. At 1039 GMT the rouble was up 0.1% against the dollar at 92.11 for its strongest since April 3. All 26 analysts polled by Reuters this week expect the Bank of Russia to keep interest rates unchanged on Friday, with inflation's only gradual slowdown preventing the central bank from easing borrowing costs more quickly.

  • Here are the transportation options for the 2024 NFL Draft

    The 2024 NFL Draft is set to bring hundreds of thousands of people into Downtown Detroit for the three-day event on April 25-27, and that means lot of vehicular traffic.

  • Q&A: Labour’s plan for rail reform and the background to nationalisation

    Labour has pledged to nationalise the rail network, claiming it has become a ‘symbol of national decline’.

  • Kim Petras cancels gigs on doctor's orders

    The I Don't Want It At All singer took to social media to announce that she is cancelling her scheduled festival performances this summer. "My buns, I'm devastated to be writing this but I'm going through some health issues and under medical advice I have had to make the hard decision to not perform at festivals this summer," Petras shared. She did not provide details on exactly what health issues she is experiencing. "I love u so much and I'll make it up to you and be back better than ever very soon," she signed off.

  • Green fleet transition faces financial roadblock

    The cost of replacing 41 diesel waste vehicles with electric or hydrogen models proving prohibitive.

  • UPDATE 1-Caterpillar profit rises as higher prices offset easing demand

    Caterpillar posted a rise in quarterly profit on Thursday as it held on to higher prices for its construction equipment as demand eased from last year's boom. Caterpillar has benefited from President Joe Biden's $1 trillion 2021 infrastructure law to upgrade roads, bridges and other transportation infrastructure. Although the boom from last year has eased it has remained relatively stable, helping Caterpillar hold on to the price increases it launched in the second half of 2023.

  • Vauxhall maker threatens to quit UK market over electric car mandate

    The net zero crackdown on combustion engines could force the maker of Vauxhall to pull out of Britain, its boss has warned.

  • Here’s Why HCI Group (HCI) Rose in Q1

    Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” first-quarter 2024 investor letter. A copy of the same can be downloaded here. In the first quarter, the portfolio gained +8.5% on a net basis, well above R2000V’s advance of +2.9% and above R2500V’s rise of +6.1%. The largest contribution to the […]

  • Belarus says it thwarted attack on capital by drones launched from Lithuania

    The head of the Belarusian security service said on Thursday it had thwarted an attack on the capital Minsk by drones launched from Lithuania, Russian state news agencies said. There was no immediate comment from NATO-member Lithuania. "The State Security Committee, in cooperation with colleagues from other law enforcement agencies, has recently carried out a number of acute security measures, which made it possible to prevent strikes by combat drones from the territory of Lithuania on objects in Minsk and its suburbs," RIA news agency quoted Belarusian security chief Ivan Tertel as saying.