A quarter of all households in the Asia Pacific will likely subscribe to a subscription video-on-demand (SVOD) service by 2022, up from a tenth in 2016, according to Digital TV Research.
In total, over-the-top (OTT) revenues for TV shows and films in the Asia Pacific are set to reach US$24.41 billion in 2022, three times the $8.27 billion raised in 2016. Total OTT revenues for the region will increase by almost $3 billion this year alone, according to the company’s latest study.
By 2022, China will account for half of the revenues collected by OTT operators in the 22 Asia Pacific countries covered by the report.
Revenues from SVOD services and that generated by advertising on OTT platforms are well matched. “SVOD will be the leader in 2017 and 2018, but AVOD will regain the crown from 2019. China will supply 61% of the region’s AVOD revenues by 2022 – or $7.27 billion,” the analyst noted.
SVOD revenues in the Asia Pacific are projected to rise to £9,090 million in 2022, up from $3,388 million in 2016, with China leapfrogging Japan in 2017 to be the market leader in terms of revenue.
Some 234 million people will subscribe to premium VOD services by 2022, up from 91 million last year – with 139 million (59%) of these residing in China. India and Japan will follow with a combined total of 50 million subscribers, with 44 million spread across the remaining 19 countries covered in the study.