Asia Pacific’s OTT revenues are set to almost double in the next five years, according to new data revealed today.
OTT TV episodes and movie revenues for 22 countries in the region will reach $54bn in 2026, according to Digital TV Research. This total is up by 90% from the $29bn generated in 2020.
China will continue to be the largest country in the region, increasing from $15.5bn in 2020 to $23.8bn in 2026. It will be the only country to surpass $10bn in OTT revenues, with Japan in second – increasing from $4.7bn to $9.2bn during the period.
India is set to continue its surging presence as a key battleground for OTT players, overtaking South Korea and Australia to firmly establish itself as the third-largest OTT market. Its revenues will increase from $2bn in 2020 to $6.7bn, even eclipsing the rate of growth in Japan.
South Korea and Australia are set for more limited growth, reflecting their position as more mature OTT markets. South Korea will grow from $2.2bn to $4.9bn while Australia will see less growth from $2bn to $3.7bn.
Overall, the APAC region has followed Western trends with SVOD overtaking AVOD for revenue in 2019. Both categories are set to double between 2020 and 2026 to $22bn and $28bn respectively.
Simon Murray, principal analyst at Digital TV Research, said: “China will account for 44% of the region’s revenues by 2026, down from 54% in 2020 as other countries catch up. China will add $5bn in AVOD revenues between 2020 and 2026, with SVOD bringing in an extra $3bn.”