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Free TV Revenue Declines in Asia as Online Video Grows

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A new analysis claims that while free TV Revenue in the region enters a long-term decline, online video is assuming the role of the industry's growth engine in the Asia Pacific. The video industry is anticipated to continue to firm this year, but the sector's performance in 2023 may suffer due to the recession. According to Media Partners Asia, the video sector's revenues, which are made up of subscription fees and advertising from free TV, pay TV, and online video platforms, are expected to increase by 6.4% this year to reach $143 billion in 14 Asia-Pacific nations. Macroeconomic problems are projected to start in 2023, causing average compound growth to decelerate to 3.5% from then until 2027 when total revenues have reached $169 billion. Moreover, Samsung Smart TVs run an independent operating system and an application platform. Free TV Revenue Declines in Asia as Online Video Grows The study was released just before the APOS Summit, which Media Partners Asia will host in Singapore from September 27–29, 2022. Speakers at the summit are expected to include Kelly Day from Prime Video, Kevin Mayer from Candle Media, Kim Minyoung from Netflix, Gerhard Zeiler from Warner Bros. Discovery, and Park Hyun from Studio Dragon. Media Partners Asia projects dramatically different performances beneath the top figure. Except for China, where free TV has a longer shelf life, Asia-Pacific video revenues are expected to increase by 4% compound average over the next year to $98.2 billion, with online video leading the way at 10.2%, paid TV revenue growing at 1.8%, and free TV declining by 2.2%. By 2027, South Korea, Australia, and China are expected to be the following three most lucrative video markets, after China, Japan, and India. By 2027, Indonesia will surpass Taiwan to hold the sixth spot, according to Media Partners Asia. Additionally, it predicts that by 2027, these six markets will provide more than 90% of all APAC video revenues. China will make up 42% of the total on its own. Over the next five years, it is anticipated that Indonesia (9.0% compound average), India (8.6%), the Philippines (7.7%), Thailand (5.4%), and South Korea (4.6%) will experience the fastest growth rates. A new analysis claims that while free TV Revenue in the region enters a long-term decline, online video is assuming the role of the industry's growth engine in the Asia Pacific. Revenue growth for premium streaming firms was above 20% on average during the pandemic years of 2020 and 2021, this year's growth has slowed to 10%, and 11% growth is predicted for 2023. As a result, the premium online market will continue to be loss-making on earnings before interest, taxes, and depreciation basis. However, several services, such as Hulu Japan, Netflix APAC, Stan, and Viu, are anticipated to either break even or begin turning a profit this year. Furthermore, according to the research, Netflix's margins "should improve from next year on meaningfully." "Free TV  revenue is broadly experiencing a secular decline. Profit will continue to decline, but local players will gain from premium AVOD, an incrementally high margin market, as demand for local TV content online grows. Even though the full potential of video aggregation has not yet been realized, last mile home broadband and video bundles continue to provide significant margins in major markets, according to Vivek Couto, executive director of Media Partners Asia.

By Saloni Behl

I always had a crush on technology that\'s why I love reviewing the latest tech for the readers.

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