Video content material budgets throughout Korea, India and Southeast Asia climbed 21% in 2021 to succeed in $10.4 billion. They’re forecast to develop an extra 15% to $12 billion in 2022, in keeping with the 2022 version of the Asia Video Content material Dynamics report.
The report, printed by consultancy and analysis agency Media Companions Asia (MPA), attributed the 2021 surge to key operators replenishing content material pipelines after the preliminary waves of COVID-19 depleted programming inventories in 2020. All content material verticals besides theatrical generated robust positive factors. Key movie prices contracted 2% as pandemic restrictions delayed releases in lots of markets, the report discovered. Nonetheless, movie is projected to be the quickest rising sector, at 140%, as cinemas display recent motion pictures. Some movie markets, similar to India and Indonesia, are anticipated to completely get better however in different markets, a return to pre-COVID heights could take till 2023, the report predicts.
Korea and India had been the biggest content material funding markets with a mixed $7.4 billion, whereas different markets reached $400-900 million every.
Pay-TV was the biggest vertical with 46% of whole business content material funding, reflecting mature markets in India and Korea, whereas streaming content material was the quickest rising vertical, up 83% year-on-year to change into the second largest vertical with 26% of business funding. Korea and India loved significantly robust streaming funding progress, the report discovered, whereas Thailand and Indonesia contributed considerably. Free-to-air TV was the third rating vertical with 25% of the whole.
The report tasks total strong progress, with on-line video projected to climb by $700 million. India and Korea will drive the majority of the rise, the report mentioned.
Then again, TV scores continued to say no with on-line viewing anticipated to additional erode the sector. Video consumption remained closely skewed towards person generated content material platforms with their share of video consumed starting from 82% in Korea to 95% in Vietnam. Whereas YouTube stays the chief, TikTok is driving the expansion in Southeast Asia.
MPA VP Stephen Laslocky mentioned: “Inflation, significantly with on-line originals, is clearly an element driving-up content material prices. On-line video operators, broadcasters, and producers must see that larger budgets translate into extra premium viewing experiences; in any other case, the fee will increase is not going to be sustainable. Internationally profitable packages stay the content material licensing Holy Grail which so far, solely Korean dramas and a few anime, in addition to U.S. and U.Ok. content material, have sustainably achieved. Some Thai content material has succeeded exterior of Thailand. High quality manufacturing values, robust storylines with a give attention to youthful on-line demographics would be the constructing blocks of future funding methods.
“The increasing on-line video sector has been a boon to impartial producers. Revenue margins have stabilized at 10% or extra throughout a lot of the area. Extra could be accomplished to bolster impartial producers together with extra compensation for unique ideas, commensurate rewards for breakout successes and expanded use of pipeline offers (which permits producers to extra reliably recoup overheads). In change, producers should be clear with manufacturing prices. Commissioners should be keen and in a position to audit prices,” Laslocky added.
The report tracked video content material consumption, content material funding, and manufacturing prices in seven key Asian markets: India, Indonesia, South Korea, Malaysia, the Philippines, Thailand and Vietnam.