August 31, 2021
Over-the-top video distribution in Southeast Asia continues to proliferate. Total online video market revenue in the region projected to rise to $4.5 billion by the end of 2025, according to new data from London-based research firm Omdia. By 2025, it is forecast that 62% revenue will come from ad-supported VOD and free ad-supported streaming television, or FAST.
Last year, total online video revenue in key Southeast Asia markets, including Indonesia, Malaysia, the Philippines, Singapore, Vietnam and Thailand, reached $1.8 billion.
In 2020, the ad-supported segment led the online video with 71% of total revenue. Omdia projects that the subscription-based online video will increase market share from 28% to 37% of total online video revenue through 2025. Transactional VOD makes up less than 1% of total market share.
With Facebook and YouTube’s popularity in this region is unilateral, this duopoly will remain the biggest contributors to ad-supported video revenue. Omdia estimates 75% of video ad revenue comes from mobile devices and 20% from PCs. Though only 5% is from connected TVs, Omdia expects the CTV segment to grow during the forecast period, albeit at a slower pace than in the U.S. and Western European markets.
“This [revenue growth ] trend is bolstered by more direct-to-consumer OTT video service launches in this region, broadcasters’ ongoing efforts to strengthen their position in the premium video ad marketplace and growth of local and regional players as a result of more enhanced partnerships between content and service providers,” Kia Ling Teoh, senior research analyst at Omdia, said in a statement.
Fellow researcher Jun Wen Woo contends the subscription VOD market will continue to grow with pay-TV and telecom operators adopting more of an hybrid streaming/broadcast business model. He said as increased competition introduces flexible, modular tariff structures that allow users to personalize and customize their online video entertainment selections, revenue will grow.
“Given the low credit card penetration in the region, offering more local payment options—mobile wallet, scratch card, and local bank transfer—will remain important to increase conversion to paid users,” Wen Woo said.