The “Asia-Pacific (APAC) Media and Entertainment Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)” report has been added to ResearchAndMarkets.com’s offering.
The Asia-Pacific media and entertainment market is expected to register a CAGR of 7.2% during the forecast period (2021 – 2026)
With the ever-expanding need for seamless communication, digital entertainment, and demand for wireless networks, the media and entertainment market is gradually emerging.
As high-speed Internet has become easily affordable, viewers/audiences that prefer good quality content are preferring smart TVs over other television systems. Also, the growing admiration for OTT streaming in audiovisual content is impacting the overall media and entertainment market positively in the Asia Pacific.
Big studios are adopting enhanced marketing strategies that use advanced digital technology for communication. Investment in promotional activates has increased drastically. The introduction of improved promotional channels is expected to influence revenue growth positively.
The film industry is vulnerable due to the pandemic as both the production and the consumption of its output require numerous people together in small spaces. The primary factors for the growth of the entertainment industry during the COVID-19 pandemic include the increased adoption of online video streaming, notably Netflix, Amazon Prime, among others.
Entertainment venues, such as online video streaming, sports, live events, and trade shows. Social distancing, quarantining, and staying home will have a significant effect on media consumption as TV viewing, social media conversations, and indoor lifestyle-friendly application usage have rapidly increased.
Key Market Trends
Increasing Trends Around Personalization and Increased Digitalization is expected to Drive the Growth of the Market
With the 5G technology expected to become the most significant next-generation cellular network technology in 2020, especially in urban areas, the increasing adoption of OTT (Over-the-top) content will continue to grow.
Further to the latest OTT trends, streaming 4K video takes up to around 30Mbps on internet bandwidth. To stream such high-resolution video, one must have at least double that bandwidth available, which is unusual for consumer-grade internet connections. However, with the rise of 5G, the extra bandwidth will make it possible for 4K and VR (Virtual Reality) streaming to be one of the defining features during the forecast period. Such an upsurge in demand for high-resolution video will eventually lead to the adoption of superior wireless networking standards and therefore boost the penetration of the media and entertainment market further.
Increased emphasis on customer experience and personalization with the help of ever-growing technology to safeguard revenue and attain growth in the long term has proved to be one of the critical drivers for the growth of the market.
This success is fuelled by substantial financial backing from central governments. For example, China plans to build a USD 30 billion fund to ensure they are a world leader in AI by 2030. At the same time, India is making headway with mobile wallets and Progressive Web Applications to streamline in-app experiences (especially for places with slow mobile broadband). Such holistic developments in the infrastructure, which acts as a technical backbone to the market will result in growth opportunities and improved customer retention.
India is Expected to Witness Significant Growth
A rise in disposable income levels and growing internet penetration in the country also contributes to an increase in sales of smart TVs, increased online streaming subscriptions, etc. and hence fuelling the market growth. Moreover, according to the IBEF, the market size of the OTT video streaming market of India is forecasted to reach USD 5 billion by 2023, and India is projected to become one of the top 10 global OTT markets by 2022.
Increasing internet penetration can also be termed as a contributing factor to the widespread expansion of the media and entertainment market in India. According to the Bain and Company’s ‘Unlocking Digital for Bharat: USD 50 Billion Opportunity’ report, “India has the second-highest active Internet users, with about 390 million residents who use the web at least once a month.
Moreover, Indian government initiatives towards digital transformation, such as digitization of cable TV and Direct-to-Home (DTH) services, are also favoring the adoption of IPTV in the country. The IPTV scenario in India is witnessing change owing to the advent of the network services provider, with the company providing free IPTV live subscriptions to its customers. With other companies to follow suit, the demand for mobile-based IPTV services is expected to increase in the region, which will, in turn, increase the demand for media and entertainment in the area.
However, there are also some challenges faced by the market. Over the past few years, the creation of media content has witnessed a drastic change with a shift from traditional television to online digital platforms. Online entertainment content providers, such as Netflix and Amazon, have successfully introduced acclaimed original video content in the region. These companies are also financing content in regional languages to attract customers, especially in multilingual countries, such as India. The rising competition in the market, high cost of content creation, and technical difficulties associated with viewing videos online may hinder the market growth to an extent during the forecast period.
The Asia-Pacific media and entertainment market consists of several players. This industry is viewed as a lucrative investment opportunity due to the huge consumer interest gained recently. The companies are investing in future technologies to gain substantial expertise, which would enable them to achieve sustainable competitive advantage. Business Wire