Asia-Pacific video market expected to grow to $16.2 billion by 2029
Asia’s streaming wars are heating up, with a massive $16.2 billion revenue surge on the horizon through 2029, while traditional TV faces a precipitous decline of $8 billion, according to a new study from research firm Media Partners Asia (MPA) .
India emerges as the largest market in the Asia Pacific (APAC) region, with 26% of expected growth, followed by China (23%), Japan (15%), Australia (11%), Korea (9% ) and Indonesia (5%) in a high-stakes battle for viewers and advertising dollars.
The study also puts things into perspective, stating that the size of the US streaming market by 2024, including SVOD, AVOD, user-generated content (UGC) and social video, will be $112 billion, while APAC will be $64 billion. By 2029, the size of the US streaming market is expected to grow to $140 billion and the APAC to $89 billion.
The streaming sector is already showing its strength, with Netflix capturing the largest Asian subscriber base in India, while domestic players are showing their own strength. “Streaming had quite an impactful year in India,” said MPA managing director Vivek Couto, pointing to the growth of Netflix and Prime Video alongside JioCinema and Disney+ Hotstar. The media merger between Disney and Jio is expected to drive significant growth.
Social video giants are also not sitting still and are using AI for content creation and ad targeting. YouTube is diversifying into Premium subscriptions and shopping features in addition to ads, as platforms across the board scramble to leverage ads’ 65% contribution to online video growth.
UGC and social video platforms are positioned to capture the majority of new revenue ($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.
The connected TV revolution is forcing changes in content strategy. “As CTV grows, you’ll see a potential acceleration in the number of people trying to do programming for families,” Couto said. “It’s not just about sports or personalized entertainment.”
SVOD subscriptions are expected to explode to 870 million by 2029, driven by the wave of growing fiber broadband and rising middle-class incomes in emerging markets. Netflix’s Indian revenue is currently less than 10% of APAC revenue, compared to more than 20% in Japan – indicating there is room for growth.
Meanwhile, industry consolidation is gaining momentum, especially in Korea, Japan and Indonesia. Local players are putting up a fierce battle, with Korea’s TVING “giving Netflix a very strong run for its money,” Couto said.
The wild card? The dramatic rise of retail media. “Next to CTV, retail media are the most important,” Couto emphasizes. “It is responsible for as much as 50% of new growth over the next four to five years in markets such as China, India, Indonesia, Japan and South Korea.”
While traditional TV providers scramble to adapt, some bright spots remain. “TV channel providers in India generated around $4.5 billion in revenue last year. We see that growing to $5 billion in the coming years,” Couto said. “However, the universe has shrunk and there is a much more important transition to streaming.”
The battle lines are being drawn as global streaming titans and ambitious local players battle for their piece of the Asian video streaming gold rush, with profitability and market share at stake.
