Shifting AsiaPac Dynamics in Focus as APOS Opens in Bali

The 16th edition of APOS formally opened in Bali, Indonesia, today with a detailed look at the Asia-Pacific region’s shifting monetization dynamics and content consumption trends by Media Partners Asia’s Vivek Couto.

There are some 550 delegates on site at the Ayana in Bali for Media Partners Asia’s flagship event spotlighting Asia’s fast-moving media business “where scale is growing, formats are shifting and monetization is evolving,” Couto said. “The next wave in Asia is here.”

The region continues to drive global screen growth, Couto said, being home to 4.5 billion screens today and growing to 5.5 billion in five years time. CTV is the fastest-growing segment with a 13 percent CAGR, hitting close to 360 million homes by 2030. By then, 40 percent of all TVs will be connected devices.

“Smartphones remain the largest segment rising from 3.6 billion to 4.5 billion, anchoring consumption across every format,” Couto said.

By market, meanwhile, China, India, Japan and Indonesia dominate, with China and India alone accounting for a whopping 72 percent of all screens by 2030. Indonesia, the Philippines and Thailand are all set to lead screen growth.

Screen entertainment revenues in the region are expected to rise to $175 billion by 2030. TV remains out front today at 49 percent but that is expected to erode to 41 percent by 2030. Premium video, including SVOD, rises to 29 percent, with UGC and social video rising to 24 percent. Theatrical revenues will be flat, Couto said. “Monetization is shifting decisively toward digital.”

While legacy TV erosion continues, there are new dollars arriving in the ecosystem; just at a much slower pace then the pandemic-era boom, Couto said.

“Ad growth remains healthy, driven by digital. Subscription growth though slows enormously. Every dollar will be harder to win. We are entering a tougher, more competitive monetization phase where growth must be earned.”

China, Japan and India will account for almost 75 percent of screen revenues in the region by 2030; each has a distinct monetization model, he said.

China will largely be dominated by short-form content, micro-dramas “and a steady but very mature premium VOD sector, all underpinned by transactions and ads,” Couto said. Japan will be driven by premium and remains “TV-centric,” he said, “with a high ARPU SVOD segment and a fast-growing premium AVOD category.” India will be led by the “dual engine of ads and value-conscious subscription across streaming and TV with mobile, local OTT and hybrid models scaling simultaneously.”

By 2030, UGC and social video will be the number one category by monetization in Indonesia and Thailand, while premium VOD will continue to dominate in Australia.

Couto’s presentation also spotlighted the region’s most dominant players by revenue. That list, of course, includes YouTube and Netflix, but, Couto stressed, “Many of the top players are multi-screen incumbents, from TV to streaming,” among them Foxtel and Nine in Australia, JioStar in India, Nippon TV and TBS in Japan and CJ ENM and TVING in Korea. “These are legacy platforms that have adapted, evolving from broadcast or cable to streaming, live sports, hybrid models. Therefore, the new video economy isn’t just digital-native: it’s cross-platform. Legacy players with transformation strategies can win and prosper.”

In terms of where growth is coming from, Couto said that new dollars flowing into video across the Asia Pacific are being shaped by three growth pillars: UGC/social video, SVOD and premium AVOD, amid shifting traditional TV economics.

In China, UGC and SVOD will drive almost $4 billion in new revenues amid continued TV erosion. India will have $5 billion coming in, “powered by mass-scale SVOD, monetizing AVOD and a resilient TV sector.” Japan will see $2.4 billion in new revenues as SVOD offsets pay-TV erosion. “Southeast Asia delivers a balanced $1.7 billion growth across digital primarily. Korea adds more than $1 billion led by SVOD and expanding social video monetization.”

Creator economy content is reshaping monetization dynamics, Couto noted, before highlighting what’s happening in the premium content space. “As creators rise and revenue pressures mount, premium content investment is getting sharper. The era of overspending, over-investing, is somewhat over. We’re seeing more focused content, led by sports, local stories and IP with global appeal.”

MPA says investment in premium content on streaming will rise to $21 billion from $17 billion over the next five years. “Platforms are now asking: What drives retention? What monetizes? What engages? What helps us build a marketplace? Premium content is still critical, but the economics now demand a lot more precision along with ambition.”

Couto charted the top ten VOD platforms in the region, led by YouTube, with expected AsiaPac revenues of $18 billion to $19 billion by 2030, followed by Chinese platforms ByteDance, Tencent and iQIYI. “Netflix is the clear leader in premium VOD outside of China. Prime Video is scaling in Japan and rising in India and Australia. Disney+ has built a billion-dollar-plus footprint across Asia, led by Australia, Japan and Southeast Asia. JioStar is the fastest riser, set to hit more than $1 billion this year.” Japan’s U-Next is seeing gains from premium sports, local stories, Hollywood content and high ARPUs. Couto also highlighted other local players that are “punching above their weight,” among them Foxtel, Stan and 9Now in Australia, TVING in Korea, Viu in Southeast Asia, Vidio in Indonesia and TrueID in Thailand. “Local champions are proving that scale can be built and defended outside the global giants.”

Couto also touched on the booming micro-drama sector, particularly in China, and short-form content in general.

Overall, online video will add $22 billion in new revenue over the next five years. “UGC/social video leads in scale, but subscription and advertising-funded VOD are key monetization engines. Growth is being driven by platform innovation, monetization maturity and user segmentation.”

Couto also highlighted the growth in retail media. “Online video is important, but retail ecosystems are driving the majority of digital advertising expansion and commerce-media integration is reshaping ad models across the region.”

The Asia Pacific “leads the world in screens, time spent and innovation,” Couto said. “For a long time, the world has looked at us as a big consumption story. But now we’re scaling in terms of monetization; we’re a real revenue story. It’s not just about scale. It’s about the convergence of UGC and social video, premium VOD, retail media and how all these things, with AI, come together to define a new growth map. Streaming success will hinge on monetization and technology, culture, working in sync with content. We’re in a market that’s dynamic and full of opportunity for those bold enough to reframe, reinvest and reimagine.”