Looking at the market at tend of 2020, the study revealed that in that year 2020 the ad-supported segment continued to lead the online video market in South-East Asia with 71% of total revenue contributed by ad-supported online video services. Omdia’s forecasts show that the subscription-based online video market share will increase from 28% to 37% of total online video revenue from 2020 to 2025.
The analyst noted that transactional online video is meagre in this region with less than 1% of total market share. In 2020 the total online video market value in key South-East Asia markets, including Indonesia, Malaysia, the Philippines, Singapore, Vietnam, and Thailand, reached $1.8 billion.
One key trend emerged form the report: advertising revenues were driven by a duopoly. Specifically, Facebook and YouTube’s popularity in this region was uniform, and the duopoly is set to remain the biggest contributor to the advertising online video market for all markets. YouTube’s revenue is derived mainly comes from its in-stream video ad revenue, whereas Facebook’s video advertising revenues is mainly generated from out-stream video format.
The study forecast that other players’ shares will expand in the time to 2025 to squeeze into the duopoly’s share over the forecast period. This trend it said was bolstered by more direct-to-consumer OTT video service launches, broadcasters’ ongoing efforts to strengthen their position in the premium video ad marketplace and growth of local and regional players as a result of more enhanced partnerships between content and service providers.
Looking at the key platforms in the region, Omdia estimated that three-quarters of in-stream video ad revenue comes from mobile and 20% from PC. Though only 5% of cash generated currently was sourced from connected TV (CTV), Omdia expects the CTV segment to grow during the forecast period, albeit at a slower pace than in the US and Western Europe markets.
“The subscription online video market will continue to grow in South-East Asia with pay-TV and telco operators adopting the super aggregator model,” said Omdia senior research analyst Jun Wen Woo commenting on the Omdia South-East Asia Online Video Trends report. “More players will introduce flexible, modular tariff structures that allow users to personalise and customise their online video entertainment selections. Given the low credit card penetration in the region, offering more local payment options—mobile wallet, scratch card, and local bank transfer—will remain important to increase conversion to paid users.” Rapid TV News