Market Trends of APAC Media And Entertainment Industry
Increasing Trends Around Personalization and Increased Digitalization is expected to Drive the Growth of the Market
- The region's overall 5G market development will be bolstered by a 5G network powered by Multi-access Edge Computing (MEC). Furthermore, the incorporation of emerging technologies such as Artificial Intelligence (AI), cloud computing, and robots is rapidly boosting real-time automation. Therefore, the 5G network is expected to become the most significant next-generation cellular network technology in the upcoming years as well, which is further growing the adoption of OTT (Over-the-top) platform usage.
- 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.
- In 2022, Netflix announced that it was home to 74.3 million paying streaming subscribers in the US and Canada. The largest market for Netflix was North America, but for the first time in 2022, the number of subscribers in the EMEA region surpassed the number in the US and Canada. Compared to last year, there has been a 17 percent increase in the number of free stream memberships in Asia Pacific.
- 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.
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India is Expected to Witness Significant Growth
- A rise in disposable income levels and growing internet penetration in the country also contribute to an increase in sales of smart TVs, increased online streaming subscriptions, etc., fuelling 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.
- 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 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 following 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 also finance 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.
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