In a transformative shift for the Asia-Pacific video and broadband industry, Media Partners Asia (MPA) released its highly anticipated Asia Pacific Video & Broadband 2025 report yesterday, forecasting remarkable growth in the region’s video market over the next five years.

The report highlights an incremental revenue surge of $16.2 billion between 2024 and 2029, driven by the dominance of online video and significant changes in audience preferences.

The APAC video industry is projected to expand from $145 billion in 2024 to over $165 billion by 2029, reflecting a steady 2.2 percent CAGR. This growth will be led by a $24.1 billion rise in online video revenue, which is poised to surpass traditional TV revenue by 2027, according to a media statement put out by MPA.

At the same time, the latter is expected to shrink by $8 billion as consumer preferences lean increasingly toward streaming. Streaming’s share in the APAC video industry is predicted to grow from 44 percent in 2024 to 54 percent by 2029, with India and China at the forefront of this transformation.

India and China will collectively contribute nearly 50 percent of the incremental revenue growth in the video market. India, in particular, will emerge as a dominant force in the premium video sector, driving nearly half of the $5.5 billion growth in this segment. While traditional TV revenue will decline in India, online video is set to experience an impressive 16 percent CAGR, bolstered by the adoption of subscription-based and ad-supported models.

The fastest-growing segments over the next five years will include User-Generated Content (UGC) and Social Video, which are set to generate $10.7 billion in additional revenue. Platforms like YouTube, ByteDance, and Meta will lead this charge, leveraging advanced AI technologies to enhance user engagement.

Subscription Video-on-Demand (SVOD) will also play a pivotal role, contributing $8.4 billion in growth, supported by low-cost ad-tier offerings and an expanding portfolio of sports and local content.

Advertising revenue continues to dominate the market, contributing 65 percent of online video growth. Premium ad-supported video-on-demand (AVOD) platforms are witnessing rapid expansion, particularly in markets like India, Indonesia, Australia, and Japan. By 2029, advertising is expected to account for 61% of video industry monetization in APAC, excluding China.

The increasing penetration of connected TVs (CTVs) is another significant growth driver. By 2029, active CTV penetration is projected to reach 85-90 percent in developed markets like Australia, Korea, and Japan, while emerging markets such as India and Indonesia will see penetration levels of 25-50 percent. Fixed broadband growth, fueled by fiber-optic deployments, will further support this trend, with an estimated 4.2 percent CAGR in broadband adoption across key APAC markets, excluding China.

Global players such as YouTube, Netflix, Disney, Amazon Prime Video, and TikTok currently dominate the online video market, holding a combined 67 percent revenue share in 2024. However, this share is expected to dip to 62 percent by 2029 as local platforms gain prominence. In India, JioStar leads in premium VOD, while regional players are also making strides in Indonesia, Japan, Korea, and Thailand.

MPA’s Executive Director Vivek Couto emphasized the transformative potential of the APAC video market, noting that while streaming profitability is emerging in certain regions, challenges remain in local streaming markets. Consolidation and mergers are likely to accelerate in response to these challenges, particularly in India, Japan, and Southeast Asia.

With streaming poised to take center stage, the Asia-Pacific video industry is set to redefine its landscape, offering new opportunities for innovation and monetization. As 2029 approaches, the shift from traditional television to digital platforms will mark a new era of entertainment in the region.