OTT Video - Eastern Asia | Statista Market Forecast

In Eastern Asia, revenue in the OTT Video market market is projected to reach US$92.38bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 6.55%, leading to a projected market volume of US$126.90bn by 2029.
The largest market within this market in Eastern Asia is OTT Video Advertising, which is anticipated to have a market volume of US$62.17bn in 2024.
In a global context, the most revenue will be generated the United States, amounting to US$133.70bn in 2024.
Within the OTT Video market market in Eastern Asia, the number of users is expected to reach 1.4bn users by 2029.
User penetration is forecasted to be 66.5% in 2024 and is projected to increase to 88.0% by 2029.
The average revenue per user (ARPU) within the OTT Video market market in Eastern Asia is projected to be US$84.96 in 2024.
In Eastern Asia, South Korea's OTT video market is increasingly characterized by the rise of localized content, appealing to diverse viewer preferences and cultural nuances.

Definition:

OTT Video refers to a digital media distribution model where users can access and watch video content at their convenience, usually through an online platform or service. With VoD, users have the flexibility to choose what content they want to watch, when they want to watch it, and how they want to consume it. This allows users to stream or download video content on demand, without the need for traditional broadcasting schedules or physical media. VoD platforms typically offer a wide range of content, including movies, TV shows, documentaries, and other video content, which can be accessed and viewed instantly or stored for later viewing. VoD has become increasingly popular in recent years, offering convenience, flexibility, and a personalized viewing experience for users.

Structure:

The market consists of several markets, namely Video Streaming (SVoD), which is streaming on a subscription basis, Pay-per-View (TVoD), which is paying for digital video content and watch it online, Video Downloads (EST), which is the download of digital video content and OTT Video Advertising, which is the advertising in video streaming.

Additional Information:

The market comprises revenues, users, average revenue per user, and penetration rates. Revenues are generated through purchases and subscriptions. Market numbers for OTT Video can also be found in the video-on-demand market. Key players in the market are companies, such as Netflix, Amazon or Disney+.

Rentals as single transaction or pay-per-view (transactional VoD or TVoD)
Subscription-based services (subscription VoD or SVoD)
Digital purchases via download or permanent cloud storage (electronic-sell-through or EST)
OTT Video Advertising
Free ad-supported streaming TV (FAST) services, such as Pluto TV or Freevee

Pay-TV subscriptions (cable TV, satellite TV, IPTV, DTTV)
Physical home video (DVD & Blu-ray)
Traditional TV advertising

The OTT Video market in Eastern Asia has experienced significant growth in recent years, driven by changing customer preferences and the increasing availability of high-speed internet.

Customer preferences: Customers in Eastern Asia are increasingly turning to OTT Video platforms for their entertainment needs. This shift in preferences can be attributed to several factors. Firstly, there is a growing demand for on-demand content, as viewers want to have control over what they watch and when they watch it. OTT Video platforms offer a wide range of content, including movies, TV shows, and original series, which can be accessed anytime and anywhere. Secondly, customers appreciate the convenience and flexibility that OTT Video platforms provide. They can stream content on multiple devices, including smartphones, tablets, and smart TVs, allowing them to enjoy their favorite shows and movies wherever they are. Lastly, the affordability of OTT Video services is also a key factor driving customer preferences. Compared to traditional cable or satellite TV subscriptions, OTT Video platforms offer more competitive pricing options, making them a cost-effective choice for many consumers.

Trends in the market: One of the key trends in the OTT Video market in Eastern Asia is the increasing popularity of local content. While international content still holds appeal, viewers in Eastern Asia are showing a strong preference for content that reflects their own culture and language. This trend has led to the rise of local OTT Video platforms that focus on producing and distributing original content. These platforms are investing heavily in creating high-quality shows and movies that resonate with local audiences, which has helped them gain a competitive edge in the market. Additionally, the increasing penetration of smartphones and the rise of mobile internet usage have also contributed to the growth of the OTT Video market in Eastern Asia. With more people accessing the internet through their smartphones, there is a growing demand for mobile-friendly OTT Video platforms that offer a seamless streaming experience on smaller screens.

Local special circumstances: Eastern Asia is a diverse region with unique cultural and regulatory considerations that impact the OTT Video market. For example, in some countries, there are strict regulations on content censorship and licensing, which can pose challenges for international OTT Video platforms looking to enter these markets. As a result, local players have an advantage in navigating these regulatory hurdles and tailoring their content to meet local standards. Additionally, language barriers also play a role in shaping the OTT Video market in Eastern Asia. While English-language content remains popular, platforms that offer content in local languages have a competitive edge in attracting and retaining viewers.

Underlying macroeconomic factors: The growth of the OTT Video market in Eastern Asia is supported by several macroeconomic factors. Firstly, the region has witnessed significant economic growth in recent years, leading to an increase in disposable income and consumer spending. This has allowed more people to afford OTT Video subscriptions and contribute to the market's growth. Secondly, the rapid expansion of internet infrastructure and the increasing availability of high-speed internet have made it easier for people in Eastern Asia to access OTT Video platforms. As internet penetration rates continue to rise, the potential customer base for OTT Video services in the region will also expand. Lastly, the prevalence of digital payment methods in Eastern Asia has facilitated the monetization of OTT Video platforms. With the widespread adoption of digital wallets and mobile payment systems, customers can easily subscribe to and pay for OTT Video services, further driving the growth of the market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.

Modeling approach / Segment size:

The segment size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant segment. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.

Online video streaming has visibly transformed the global media landscape and impacted viewing behavior around the world. Driven by rapid leaps in internet adoption, widespread availability of mobile devices, and the ever-increasing popularity of online video content, the global video streaming market has experienced unprecedented growth in the last decade. In 2023, the over-the-top (OTT) video revenue reached an estimated 288 billion U.S. dollars, with the United States accounting for the largest share of revenue worldwide. Considering that the list of international streaming services and the catalog of online video content continue to expand at a rapid pace, the number of OTT users worldwide is expected to reach new heights in the future.