Content investment across seven Asia Pacific markets grew 4% last year to $15.5 billion, and Media Partners Asia (MPA) predicts it will grow at a slower compound annual growth rate (CAGR) of 2.7% from 2024 to 2028.
The data was released in MPA's 2024 Asia Video Content Dynamics report, which tracked content investment, engagement and viewership across TV, VOD and theatrical in India, South Korea, Indonesia, Philippines, Singapore, Thailand and Vietnam.
Last year's 4% growth indicates a significant slowdown in 2021-2022 amid a global reset of streamer budgets. India led content growth with 12% growth, mainly driven by sports, followed by Indonesia at 5%. South Korea, Philippines and Thailand reported slight increases, while content spending fell in Malaysia and Vietnam.
Asian content is dominated by South Korea and India, accounting for 80% of all domestic content investment in 2023. Looking ahead, South Korea's growth is expected to plateau as gains in streaming and film are offset by declining TV investment. However, India still has significant growth potential, with domestic content spending expected to surpass South Korea by 2026.
Across its seven markets, the MPA expects content investment to grow at a CAGR of 2.7% to reach $17.2 billion by 2028, led by India and, to a lesser extent, Indonesia and the Philippines. The MPA predicts “limited” growth in South Korea and Thailand. Content investment in Vietnam is expected to be challenged by a weak advertising market and piracy.
Free-to-air will still lead the way in local content investment, accounting for 64% of spending in 2023, followed by streaming at 26% and film at 10%. TV will remain over 50% in 2028, with streaming rising to 33%.
MPA vice president Stephen Lasrocki said: “Korean content continues to lead the way with world-class production values and compelling storytelling, yet the cost of original content online has ballooned to up to $7 million per episode. Its outsized appeal is clear, accounting for more than 30% of content demand in Southeast Asia and Taiwan. The rise of streaming has led to a significant improvement in storytelling and production quality, particularly in Thailand and Indonesia where competition is fierce. Content from these countries, particularly Thai titles, is gaining popularity across Asia.”
“It has become clear that many traditional TV drama studios are struggling to compete with higher-end streaming video content. In contrast, quality film studios have embraced the flexibility of streaming and adapted more readily. Over the past year, we have seen margins on TV production shrink in most markets as some advertising revenues have permanently shifted to digital and streaming behavior has become entrenched. When it comes to online originals, streamers have become much more disciplined in their approach to budgeting and content strategy.”
The report also highlights YouTube's dominance in online video, with the site reaching over 1 billion monthly active users across the markets studied, including 732 million in India, while TikTok has grown to a total of 211 million monthly active users in Indonesia, Malaysia, the Philippines and Thailand.
In premium VOD, Netflix accounts for 40% to 70% of viewers in South Korea, Indonesia, Malaysia and the Philippines, but faces stiff competition from TrueID in Thailand and Disney+ Hotstar and Jio Cinema in India.
