Revenues for both AVOD and SVOD in APAC will double between 2020 and 2026 to $22bn and $28bn respectively.
Revenues from over-the-top (OTT) TV episodes and films for 22 countries in the Asia Pacific (APAC) region will reach $54bn by the end of 2026, up by 90% from the $29bn recorded in 2020, according to a report from Digital TV Research.
China will continue to be the largest country in the region, increasing from US$15.5bn in 2020 to US$23.8bn in 2026. It will be the only country to surpass US$10bn in OTT revenues, with Japan in second – increasing from US$4.7bn to US$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 US$2bn in 2020 to US$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 US$2.2bn to US$4.9bn while Australia will see less growth from US$2bn to US$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 US$22bn and US$28bn respectively.
Commenting on the findings of the report, 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 US$5bn in AVOD revenues between 2020 and 2026, with SVOD bringing in an extra US$3bn.”