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HomeNewsNew MediaMPA report predicts boom for online video market in Asia Pacific; China to lead
Monday, 22 April 2019 04:43

MPA report predicts boom for online video market in Asia Pacific; China to lead

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According to an analysis by Media Partners Asia (MPA), there would be a big boom of online video market in the Asia Pacific in next 5 years. The growth will be driven by mobile broadband connectivity, drives digital growth and scalability across the region.

As per report, online video advertising and subscription revenue will expand from US$26 billion in 2019 to US$52 billion in 2024, a 15% CAGR, MPA forecasts. As a result, online video will contribute 33% of combined TV and online video revenue in the Asia Pacific by 2024, up from 18% in 2019.

The report added that excluding China, online video will maintain a 15% CAGR in the region to increase revenues from US$10 billion in 2019 to US$21 billion by 2024. This will extend online video’s share of the video market in APAC ex-China from 15% to 25% over the same time-frame.

MPA studied 16 Asia Pacific markets with a focus on consumer and advertiser spend, content costs and market share across key clusters. The full findings will be presented at the APOS Summit (April 23-25), a leading event for industry leaders in media, telecoms, sports, and entertainment.

Executive director of MPA Vivek Couto said, “China remains at the forefront in online video scalability and innovation, although monetisation models are starting to scale in other major markets. The growth of broadband connectivity and digital video platforms is driving new economic value for content creators, aggregators, and sports-rights owners at a global and local level, helping seed digital ecosystems.”

The forecast by MPA said Asia Pacific video industry revenues, comprising TV and online platforms, scaling to US$154 billion in 2024 with a 4.5% CAGR from 2019. Ex-China APAC revenues will grow at a slower 3.7% CAGR to total more than US$84 billion in 2024. In aggregate, the TV industry in APAC will manage a ~1% CAGR from 2019-24 in contrast to a dynamic online video sector growing 15% each year.

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