Subscription video on demand (SVOD) is growing on a global scale, nowhere more so than in APAC where users are expected to more than double by 2023 to more than 351 million.
Netflix is expected to be only the fourth largest service in terms of subscribers – at 24 million – behind a trio of Chinese services, Tencent (82 million subscribers), iQiyi (80 million subscribers) and Alibaba subsidiary Youku Tudou (33 million subscribers).
Netflix, at 24 million, and Amazon, at 17 million, are projected to round out the top five.
And Netflix will have the biggest single share of subscription revenue in the region at $3.12 billion. The U.S. based global streamer is unlikely to ever operate as a standalone service in China, primarily due to the difficulty it likely would see as a result of government interference.
Currently, there are an estimated 141 million SVOD customers in the region. The lion’s share of growth is forecast by Digital TV Research to occur in the region’s largest economy, China, which is expected to own two-thirds of the region’s subscribers, or about 235 million by 2023.
Overall, revenue’s in Asia-Pac will top $15 billion by 2023, with Tencent, iQiyi and Youku Tudou responsible for about $8.1 billion of the total figure. SVOD revenues for the region currently are approaching $5 billion.
Overall, OTT is expected to generate $42 billion in revenue by 2023. Just more than half of that revenue is expected to come from ad-supported video on demand services. AVOD’s share is expected to retreat slightly in 2023 to 54% from 55% in 2017. SVOD, meanwhile is expected to see stronger growth to 37% of the revenue share, from 33% today.
The accelerated rate of growth for SVOD is expected to continue as more services put premium content – especially live sports like cricket and football – over the top, with regional OTT revenues expected to grow 33% in 2018 alone to some $20 billion.