A recent analysis by Media Partners Asia revealed that TV and online media continue to grow at different speeds, with TV revenues inching up 1.2% in 2017, while online video revenues expanded by 45% to US$5.2 billion
In a landscape still dominated by TV, the Asia-Pacific online video industry is on a definite path to more than double its share of video industry revenues, excluding China, from 9% in 2017 to 20% by 2023, according to an analysis released by Media Partners Asia (MPA), a consulting and research provider.
The analysis focused on consumers and advertiser spend, content costs and market share across 12 markets. They are Australia, India, Japan, South Korea, Hong Kong, Taiwan, and six markets in South-east Asia.
Vivek Couto, executive director of Media Partners Asia, pointed out that the growth of subscription and ad-supported video services from Facebook, Amazon, Netflix and Google will propel these FANG companies to a combined 63% share of Asia-Pacific online video revenues ex-China by the end of 2018.
He explained: “Google-owned YouTube’s dominance is reflected by its 70%-90% slice of a large and fast-growing online video ad pie in Australia, Japan, South-east Asia and India. In addition, Amazon and Netflix have scaled quickly with subscription video offerings in Australia, India and Japan, but have a long way to go in South-east Asia and South Korea. There’s also a long runway for more growth in India.
“Encouragingly, local and regional players with strong entertainment and sports IP together with, in many instance, large TV businesses, have invested in online video platform to grab a bigger market share. This is especially true in India, South Korea and Japan, although South-east Asia lags.”
While the outlook remains in FANG’s favour with its aggregate market share minted at 62%, according to Couto, such scale will “dramatically alter growth and investment dynamics across key markets”. He concluded: “We see significant upside for local and regional media platforms with attractive IP and strong execution as well as the appetite and patience to invest over the long term across digital video.”