MPA reveals key trends shaping APAC video industry
January 8, 2025
Media Partners Asia (MPA) has released its 2025 report on the Asia-Pacific video and broadband market, revealing major growth drivers and significant shifts in the industry landscape.
The report, entitled Asia Pacific Video & Broadband 2025, highlights the following key takeaways:
1. APAC Video Market Transition: The APAC video industry will see substantial growth, with MPA projecting $16.2 billion in incremental revenue between 2024 and 2029 across 14 markets. This growth is driven by online video ($24.1 billion increase), while traditional TV revenue is expected to contract by $8 billion. APAC video industry revenues are forecast to grow from $145 billion in 2024 to over $165 billion by 2029 (2.2 per cent CAGR). Streaming will overtake TV by 2027, driven by China and India, with Streaming’s share from APAC video industry revenues rising from 44 per cent in 2024 to 54 per cent by 2029.
2. Key Markets: Six key markets—India (26 per cent), China (23 per cent), Japan (15 per cent), Australia (11 per cent), Korea (9 per cent), and Indonesia (5 per cent)—will account for approximately 90 per cent of incremental video industry revenue growth.
3. UGC/Social Video Leads Growth: The fastest-growing segments in terms of incremental new dollars over the next five years will be UGC/Social Video ($10.7 billion), SVoD (US$8.4 billion), and Premium AVoD ($5 billion). UGC/Social Video platforms, led by YouTube ex-China, Meta, ByteDance, and others in China, will remain dominant, increasingly leveraging AI to drive future growth.
4. Advertising’s Strength: While subscription revenue will contribute 35 per cent to online video’s growth, advertising will remain dominant, contributing 65 per cent. In 2024, advertising accounted for 52 per cent of total APAC video revenue; this is projected to increase to 54 per cent by 2029, fuelled by the expansion of premium AVoD.
5. Premium AVoD Growth: In APAC (excluding China), advertising contributed 59 per cent to video industry monetisation in 2024, projected to rise to 61 per cent by 2029. This is driven by TV advertising and the expansion of BVoD and ad-supported SVoD tiers in key markets such as Australia, India, Indonesia, Japan, Korea and Thailand.
6. India’s Premium Video Surge: India will spearhead growth in the premium video sector (TV, SVoD, Premium AVoD), contributing close to half of the sector’s $5.5 billion in incremental growth across APAC. While traditional TV will decline, the sector remains material in India, and online video will experience robust 16 per cent CAGR growth in India.
7. Connectivity Fuels Growth: Active connected TV (CTV) penetration is rapidly increasing, boosting big-screen engagement and monetisation. By 2029, active CTV penetration will reach 85-90 per cent in Australia, Korea, and Japan and 25-50 per cent in India, Indonesia, and Thailand. Fixed broadband growth (excluding China) is projected at a 4.2 per cent CAGR (2024-2029), driven by fibre deployments in key markets.
8. SVoD Subscriber Surge: SVoD subscriptions significantly accelerated in 2024, with net new subscriptions more than six times higher than in 2023. Driven by India, China, Japan, Thailand, Indonesia, Korea and Australia, and fuelled by local and global players, SVoD subscriptions are projected to grow from 644 million in 2024 to 870 million by 2029 (APAC ex-China: 296 million to 505 million, an 11.3 per cent CAGR). This growth is supported by new low-cost ad tiers, expanding sports offerings, and new content marketplaces.
9. Shifting Power Dynamics: Six global players (YouTube, Netflix, Meta, Disney, Prime Video, and TikTok) held a 67 per cent share of the online video revenue market (ex-China) in 2024. This share is projected to decline to 62 per cent by 2029 as local players gain prominence in India, Indonesia, Japan, Korea, and Thailand.
10. Monetisation Leadership: YouTube consistently ranked among the top two video industry monetisers (streaming and TV) across four of the six largest markets in 2024. However, local players led in India, Indonesia, and Korea. In premium VoD, Netflix led in all markets except India (JioStar), although local competition is strong in Indonesia, Japan, Korea and Thailand.
11. Top 10 VOD Platforms: Three of the top ten largest VoD platforms by streaming revenue in Asia Pacific during 2024 originated from China: ByteDance (#2, with Douyin in China and TikTok internationally), Tencent (#3), and iQIYI (#6). India’s JioStar ranked #10, with Netflix at #4 and YouTube #1.
12. Key Trends & Prospects. MPA Executive Director Vivek Couto highlighted key trends, saying: “The online video market is experiencing a surge, driven by increased engagement and monetisation. However, the decline in traditional TV revenue and challenges in achieving profitability in local streaming are accelerating industry consolidation and M&A activity, particularly in India, Japan, Korea, Australia, and Southeast Asia. While streaming profitability is emerging in certain markets, the overarching focus remains on optimising monetisation strategies and streamlining operational efficiency.”