The Asia-Pacific video business is poised for important growth, with on-line platforms driving income development whereas conventional TV faces headwinds, in line with a brand new report from Media Companions Asia (MPA).

The analysis agency tasks $16.2 billion in incremental income throughout 14 APAC markets between 2024 and 2029. Whereas on-line video is predicted to generate $24.1 billion in new income, conventional TV will see an $8 billion decline throughout this era.

Six markets will dominate the projected development by 2029, with India main at 26%, adopted by China (23%), Japan (15%), Australia (11%), Korea (9%), and Indonesia (5%). Conventional TV suppliers, significantly in India and Japan, are seeing faster-than-anticipated decline, although MPA government director Vivek Couto notes some stabilization forward.

“TV channel suppliers in India generated about $4.5 billion in income final yr. We see that rising in direction of $5 billion over the subsequent few years,” Couto instructed Selection. “Nevertheless, the universe has shrunk, and there’s a way more important transition to streaming.”

The streaming sector noticed substantial good points in 2024, significantly in India, the place Netflix has established its largest Asian subscriber base. “Streaming had fairly an impactful yr in India as a result of the subscription enterprise grew,” Couto famous.

Consumer-generated content material (UGC) and social video platforms are positioned to seize the most important share of latest income at $10.7 billion, with SVOD providers including $8.4 billion and premium AVOD bringing in $5 billion. The report identifies YouTube (excluding China), Meta, TikTok operator ByteDance and Chinese language platforms as key drivers within the UGC/social phase.

UGC and social video platforms are leveraging AI for content material creation and promoting focusing on. “They’re actually utilizing these massive platforms to leverage AI for content material creation, significantly with creators,” Couto defined. YouTube is diversifying income streams by Premium subscriptions and procuring options, whereas sustaining promoting development.

Promoting continues to dominate income streams, contributing 65% to on-line video development in comparison with subscription’s 35% share. By 2029, promoting is forecast to symbolize 54% of complete APAC video income, up from 52% in 2024. Promoting’s contribution to on-line video development is pushed by increasing advert tiers throughout main platforms. Prime Video is rolling out promoting throughout India, Japan, and Australia, whereas Netflix is focusing on markets like Australia, Japan, and Korea. Native gamers are benefiting from Related TV (CTV) monetization, with the Disney-Jio media merger anticipated to drive important development.

CTV penetration – projected to succeed in 85-90% in Australia, Korea and Japan by 2029, with India, Indonesia and Thailand anticipated to hit 25-50% penetration in the identical interval – is reshaping content material methods. “With CTV rising, you’re going to see potential acceleration of individuals attempting to program for households,” Couto mentioned. “It’s not nearly sports activities or customized leisure.”

The SVOD panorama noticed substantial good points in 2024, with new subscriptions leaping greater than sixfold in comparison with 2023. The sector is projected to develop from 644 million subscriptions in 2024 to 870 million by 2029, supported by new ad-supported tiers and expanded sports activities content material. The expansion is supported by increasing fiber broadband and middle-class earnings development in rising markets. “Netflix’s India income is at the moment below 10% of its APAC earnings, in comparison with over 20% in Japan,” Couto revealed.

Whereas international gamers YouTube, Netflix, Meta, Disney, Amazon Prime Video and TikTok commanded 67% of on-line video income exterior China in 2024, their collective share is predicted to lower to 62% by 2029 as native providers acquire floor in India, Indonesia, Japan, Korea and Thailand.

Business consolidation is accelerating, significantly in Korea, Japan, and Indonesia. “We’re beginning to see indicators of profitability emerge for key gamers in Japan,” Couto mentioned. “You’ll see that in India and Indonesia over the subsequent three years, the place you’ll have standalone worthwhile streaming companies.”

The rise of retail media poses new challenges and alternatives. “Aside from CTV, retail media is the large factor,” Couto mentioned. “It’s accounting for as a lot as 50% of latest development over the subsequent 4 to 5 years in markets like China, India, Indonesia, Japan, and South Korea.”

Native competitors stays sturdy, with platforms like TVING in Korea “giving Netflix a really sturdy run for its cash,” in line with Couto, whereas sustaining profitability stays a key focus throughout the area.