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Video content material budgets throughout India, Korea and Southeast Asia climbed 21% to achieve $10.4bn in 2021, and are forecast to develop 15% to $12bn in 2022, in accordance with a report from Media Companions Asia (MPA).
Asian content material funding surged final 12 months as key operators “replenished content material pipelines after the preliminary waves of Covid depleted programming inventories in 2020”, in accordance with the report, entitled Asia Video Content Dynamics 2022.
The report tracks content material consumption, funding and manufacturing prices throughout seven key Asian markets: India, Indonesia, South Korea, Malaysia, the Philippines, Thailand and Vietnam. The figures embody free-to-air (FTA), pay-TV, on-line video and movie investments.
All these verticals are rising apart from theatrical movies, which noticed funding contract 2% as pandemic restrictions delayed releases in lots of markets. Nonetheless, movie funding is predicted to develop 140% in 2022 as theatres begin screening new locally-produced films.
Pay-TV was the most important vertical in 2021 – accounting for 46% of complete trade content material funding – reflecting the power of the pay-TV sectors in India and Korea.
OTT content material was the quickest rising vertical, up 83% year-on-year to turn out to be the second largest vertical with 26% of trade funding. FTA ranked third with 25% of the overall.
Korea and India have been the biggest content material funding markets total with a mixed $7.4bn; producing significantly robust OTT funding progress. Different markets are reaching round $400m-$900m every, with Thailand and Indonesia additionally contributing considerably to OTT funding progress.
The report discovered that progress will proceed in 2022, albeit at a slower fee, with funding up an estimated 15% to $12bn. Once more, India and Korea are driving the majority of the rise, however all markets and verticals are anticipated to develop. Investment in on-line video content material will develop by nearly $700m.
“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 increased budgets translate into extra premium viewing experiences; in any other case, the price will increase won’t be sustainable,” mentioned MPA Vice President Stephen Laslocky commenting on the report.
“Internationally profitable applications stay the content material licensing Holy Grail which to this point, solely Korean dramas and a few anime in addition to US and UK content material have sustainably achieved. Some Thai content material has succeeded exterior of Thailand. High quality manufacturing values, robust storylines with a concentrate on youthful on-line demographics would be the constructing blocks of future funding methods.”
Laslocky additionally mentioned that the increasing on-line video sector “has been a boon to impartial producers” as revenue margins have stabilized at 10% or extra throughout a lot of the area.
“Extra will be executed 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 trade, producers should be clear with manufacturing prices. Commissioners should be prepared and capable of audit prices.”
The report additionally discovered that TV rankings proceed to say no as viewers transition to on-line video. Nonetheless, video consumption stays skewed in the direction of UGC platforms (YouTube, TikTok and so on) which account for 95% of consumption in Vietnam and 82% in Korea.
