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Asia-Pacific OTT revenues to jump $20bn by 2027, predicts Digital TV Research

OTT revenues for 22 Asia-Pacific countries will reach US$52bn in 2027, up by 62% from the US$32bn recorded in 2021, according to new forecasts by UK analyst Digital TV Research.

From the US$20bn additional revenues by 2027, China, India and South Korea will each add US$3bn to the figure for total revenues and Japan will grow by US$5bn, the company said. Indian revenues will more than double.

Simon Murray

However, much of the growth in Asian OTT revenues will take place outside China, where growth is stalling. The Chinese government’s clampdown on fan-based culture hit OTT reality productions hard, resulting in SVoD subscriber growth deceleration.

Market leader Tencent Video, for example, this week reported a meagre 1% increase in SVoD subscriptions for 2021. The situation was worse for second-placed iQiyi, which lost six million subscribers in 2021 to take its total down to 96.4 million.

Simon Murray, principal analyst at Digital TV Research, said: “Can one country make that much difference? China was responsible for 37% of Asia Pacific’s OTT revenues in 2021. Luckily, there is plenty of growth elsewhere.”

Asia Pacific SVoD revenues will reach US$28bn by 2027, up from US$18bn in 2021, while AVoD will grow by US$8bn to US$19bn by 2027, according to Digital TV Research forecasts.

Digital TV Research this week also forecast western European OTT revenues to reach US$45bn in 2027; up from US$26bn in 2021. From the additional revenues, the UK will contribute US$4bn, France and Germany US$3bn each, and Italy US$2bn.

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