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Digital TV Research: Asia Pacific OTT Video Revenue to Grow Despite Chinese Crackdowns on Content

Sales, rental and streaming revenue of episodic content and movies across 22 Asia Pacific countries is expected to reach $52 billion in 2027; up by 62% from the $32 billion in 2021, according to new data from Digital TV Research. From the $20 billion additional revenue, China would add $3 billion, India $3 billion, South Korea $3 billion and Japan $5 billion. Indian revenue would more than double.

Asia Pacific subscription VOD revenue would reach $28 billion by 2027, up from $18 billion in 2021. Ad-supported VOD is projected to grow by $8 billion to $19 billion by 2027.

Much of the growth would occur outside China due in large part to the Chinese government’s clampdown on fan-based reality productions hard, resulting in SVOD subscriber growth deceleration.

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Market leader Tencent Video March 23 reported only a 1% increase in SVOD subscriptions for 2021. The situation was worse for China’s No. 2 SVOD service iQiyi, which lost 6 million subscribers in 2021 to take its total to 96.4 million. Netflix, Disney+, Amazon Prime Video and other U.S. SVOD services are not allowed to operate in China.

“Can one country make that much difference?” analyst Simon Murray asked in a note. “China was responsible for 37% of Asia Pacific’s OTT revenue in 2021. Luckily, there is plenty of growth elsewhere.”

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