According to a new analysis by Media Partners Asia (MPA) titled “Asia Pacific Online Video & Broadband Distribution 2022,” the Indian streaming OTT video market is in its second development phase, with total sales of $3 billion in 2022 estimated to more than double to approximately $7 billion by 2027.
The survey also stated that the level of competition between renowned and established global players and freshly capitalised local players is expected to increase. Telco reach, AVOD business models, and low-ARPU, high-volume SVOD services, it continued, are still crucial in the market.
According to the study, the top five platforms—YouTube, Meta, Disney+ Hotstar, Amazon Prime Video, and Netflix—will collectively generate 82% of all online video profits in 2022.
Additionally, it predicts that by 2022, the overall income for the Asia-Pacific online video market will increase by 16% to $49.2 billion. 50% of the total will come through SVOD, 37% from UGC AVOD, and 13% from Premium AVOD. The sector is expected to expand at an 8% CAGR, reaching $72.7 billion in 2027, with constant SVOD: AVOD ratios.
The APAC online video market, excluding China, is expected to increase by 24% in 2022 to reach US$25.6 billion in revenue, with SVOD accounting for 47% of that total, UGC AVOD for 43%, and Premium AVOD for 10%. Online video revenues in APAC outside of China are anticipated to increase by 11% CAGR to $42.8 billion by 2027, with SVOD growing by 44%, UGC AVOD growing by 43%, and Premium AVOD growing by 13%.
MPA Executive Director Vivek Couto commented on the study’s findings, saying that shareholders are strongly focused on greater scalability, better revenue, and actual profitability across global, local, and regional online video platforms. In this scenario, Asia-Pacific will continue to play a significant role in the development of the global online video market. The region continues to be the key driver of online video user and customer growth globally and is now a major source of revenue growth. APAC’s huge markets, especially India, Korea, Japan, Thailand, and Indonesia, will become more significant to global platforms as the US and Europe rapidly mature and China becomes inaccessible. Local content and distribution methods involving long-term investment are required for each of these areas.
Emerging key themes include:
(1) A growing number of countries, led by Korea, Japan, China, India, Thailand, and Taiwan, offer high-quality local material online that may be accessed while travelling;
(2) In markets like Australia, India, Indonesia, Korea, Singapore, and Thailand, premium sports rights (such as football and cricket) are moving online;
(3) Growth at any cost business models are rapidly changing to more logical ones that are grounded in monetizable telecom reach and natural, direct customer funnels.
(4) Content cost inflation is still a problem, particularly in India, Japan, Korea, and increasingly Thailand. The pressure on the production ecosystem may be lessened by a model that is more strategic and partnership-focused.
(5) Online piracy rates are likewise worrisomely high in Southeast Asian and Indian markets; and
(6) Although rising earnings and a middle class have contributed to affordability in emerging economies, there is still a significant unmet demand for online video services in micro-ARPU rural and second- and third-tier regions. Particularly in India and Indonesia, this is probably going to change in the future.
According to Brand Consultant Abhimanyu Mishra from Brandfizz, OTT platforms have contributed to maintaining sanity by serving as a significant source of entertainment during these trying times. Consumers are taking advantage of the free trials that are being offered by virtually every streaming provider under the sun. The true test, though, is client retention that is attained through both excellent content and technology. OTT providers must use technology at every stage of an OTT subscriber’s lifecycle, beginning with content discovery, to offer a consistent experience for viewing content.
