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Asia Pacific online video revenue to reach USD 35 billion by 2021, MPA report

22-April-2016
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Asia Pacific online video revenue to reach USD 35 billion by 2021, MPA report

According to a new report published by Media Partners Asia (MPA), the Asia-Pacific online video revenue is expected to reach USD 35 billion by 2021, an average annual growth of 22% from USD 13 billion in 2016. China will continue to be the largest market accounting for 76 per cent of Asia-Pacific revenue by 2021.

Commenting of the online video services, MPA’s Executive Director Vivek Couto said, “The growth of broadband, combined with slow but progressive change in content licensing, is driving demand for online video services. However, the distribution of driver local content online remains modest, especially outside of China, India and Korea.”

Couto also feels that increased broadband penetration in Southeast Asia is from a lower base in most markets. He added, “Telecom operators in these markets are investing in broadband networks and integrating with subscription-based online video platforms to help drive subscriptions. This allows online video operators to utilize carrier billing and overcoming market limitations in payment infrastructure. It's a bet to drive online video consumption in the short term and ARPUs in the long term."

The online video advertising is expected to grow to 22% by 2021, currently it accounts for less than 15%. Online video ad sales will reach approximately USD 22 billion by 2021 versus USD 9 billion in 2016, a 19% CAGR.

In the online subscription video-on-demand (SVOD) segment, MPA expects total paying customers to grow from 177 million by 2016 to 360 million by 2021, with China contributing the majority. SVOD revenue will reach USD 13 billion by 2021, a 28% CAGR from USD 3.7 billion in 2016. China will again contribute the majority, representing more than 80% by 2021. The Southeast Asia SVOD opportunity will grow rapidly but from a low base, representing about USD 200 million in revenue by 2021.

As per the report, the Asia Pacific fixed broadband subscriptions will reach 345 million in 2016, and grow to 425 million by 2021. Average broadband household penetration will grow from 35% in 2016 to 41% in 2021, while mobile broadband will reach 79% of the Asia Pacific population by 2021, versus 46% in 2016.

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