A study from Digital TV Research calculates that by 2023, the Asia Pacific subscription video on-demand market will have added 210 million subscribers in the years from 2017 to total 351 million.
The Asia Pacific OTT TV & Video Forecasts report finds that by 2023, three Chinese companies will top the Asia Pacific SVOD rankings aided perhaps by the fact the US streaming giants Netflix and Amazon Prime Video, despite their global ambitions, are not expected to ever operate as standalone platforms in China. The US firms are set to take fourth and fifth places respectively.
Yet in terms of business, the report expects Netflix to top the SVOD revenues chart in 2023 generating $3.12 billion out of a total Asia Pacific SVOD market where revenues are forecast to triple from just under $5 billion in 2017 to $15 billion in 2023. The top three platforms are set to account for 54% of the region’s SVOD revenues by 2023.
China’s share of business is set to remain at about half of the Asia-Pac total and the country is calculated to have 235 million SVOD subs in 2023, amounting to two-thirds of the 22 countries covered in the report.
Digital TV Research says that the Asia Pacific over-the-top revenues from TV episodes and movies will reach $42 billion in 2023, nearly triple the $15 billion recorded in 2017. The total will increase by $5 billion in 2018 alone. China and Japan are set to account for three-quarters of the region’s OTT revenues by 2023 with China commanding just over three-fifths ($25.97 billion) by 2023. This will mean it has increased its share from 59% ($8.79 billion) of the 2017 total.
The Asia Pacific OTT TV & Video Forecasts report also pinpoints advertising on OTT sites (AVOD) as the main source of OTT revenues. However, it also notes that SVOD is growing faster, tripling between 2017 and 2023 and that it will take 37% of OTT revenues by 2023, with AVOD supplying 54%. These proportions were 33% and 55% respectively in 2017.