The Asia-Pacific video industry is poised for significant expansion, with online platforms driving revenue growth while traditional TV faces headwinds, according to a new report from Media Partners Asia (MPA).
The research firm projects $16.2 billion in incremental revenue across 14 APAC markets between 2024 and 2029. While online video is expected to generate $24.1 billion in new revenue, traditional TV will see an $8 billion decline during this period.
Six markets will dominate the projected growth through 2029, with India leading at 26%, followed by China (23%), Japan (15%), Australia (11%), Korea (9%), and Indonesia (5%). Traditional TV providers, particularly in India and Japan, are seeing faster-than-anticipated decline, though MPA executive director Vivek Couto notes some stabilization ahead.
“TV channel providers in India generated about $4.5 billion in revenue last year. We see that growing towards $5 billion over the next few years,” Couto told Variety. “However, the universe has shrunk, and there’s a much more significant transition to streaming.”
The streaming sector saw substantial gains in 2024, particularly in India, where Netflix has established its largest Asian subscriber base. “Streaming had quite an impactful year in India because the subscription business grew,” Couto noted.
User-generated content (UGC) and social video platforms are positioned to capture the largest share of new revenue at $10.7 billion, with SVOD services adding $8.4 billion and premium AVOD bringing in $5 billion. The report identifies YouTube (excluding China), Meta, TikTok operator ByteDance and Chinese platforms as key drivers in the UGC/social segment.
UGC and social video platforms are leveraging AI for content creation and advertising targeting. “They’re really using these big platforms to leverage AI for content creation, particularly with creators,” Couto explained. YouTube is diversifying revenue streams through Premium subscriptions and shopping features, while maintaining advertising growth.
Advertising continues to dominate revenue streams, contributing 65% to online video growth compared to subscription’s 35% share. By 2029, advertising is forecast to represent 54% of total APAC video revenue, up from 52% in 2024. Advertising’s contribution to online video growth is driven by expanding ad tiers across major platforms. Prime Video is rolling out advertising across India, Japan, and Australia, while Netflix is targeting markets like Australia, Japan, and Korea. Local players are benefiting from Connected TV (CTV) monetization, with the Disney-Jio media merger expected to drive significant growth.
CTV penetration – projected to reach 85-90% in Australia, Korea and Japan by 2029, with India, Indonesia and Thailand expected to hit 25-50% penetration in the same period – is reshaping content strategies. “With CTV growing, you’re going to see potential acceleration of people trying to program for families,” Couto said. “It’s not just about sports or personalized entertainment.”
The SVOD landscape saw substantial gains in 2024, with new subscriptions jumping more than sixfold compared to 2023. The sector is projected to grow from 644 million subscriptions in 2024 to 870 million by 2029, supported by new ad-supported tiers and expanded sports content. The growth is supported by expanding fiber broadband and middle-class income growth in emerging markets. “Netflix’s India revenue is currently under 10% of its APAC earnings, compared to over 20% in Japan,” Couto revealed.
While global players YouTube, Netflix, Meta, Disney, Amazon Prime Video and TikTok commanded 67% of online video revenue outside China in 2024, their collective share is expected to decrease to 62% by 2029 as local services gain ground in India, Indonesia, Japan, Korea and Thailand.
Industry consolidation is accelerating, particularly in Korea, Japan, and Indonesia. “We’re starting to see signs of profitability emerge for key players in Japan,” Couto said. “You’ll see that in India and Indonesia over the next three years, where you’ll have standalone profitable streaming businesses.”
The rise of retail media poses new challenges and opportunities. “Apart from CTV, retail media is the big thing,” Couto said. “It’s accounting for as much as 50% of new growth over the next four to five years in markets like China, India, Indonesia, Japan, and South Korea.”
Local competition remains strong, with platforms like TVING in Korea “giving Netflix a very strong run for its money,” according to Couto, while maintaining profitability remains a key focus across the region.
