Asian content budgets are expected to grow 15% to $12 billion

Video content budgets in Korea, India and Southeast Asia grew 21% to $10.4 billion in 2021. They are projected to grow another 15% to $12 billion by 2022, according to the 2022 edition of the Asia Video Content Dynamics report.

The report, released by consultancy and research firm Media Partners Asia (MPA), attributed the 2021 surge to key operators replenishing their content pipelines after the first waves of COVID-19 program inventories in 2020 depleted. All vertical content except cinema delivered strong gains. Key film costs fell 2% as pandemic restrictions delayed releases in many markets, the report said. However, film is expected to be the fastest growing sector at 140% as new films hit theaters. Some film markets like India and Indonesia are expected to fully recover, but in other markets a return to pre-COVID highs could take until 2023, the report predicts.

Korea and India were the largest markets for content investment at $7.4 billion combined, while other markets each reached $400 million to $900 million.

Pay TV was the largest industry, accounting for 46% of total industry content investment, reflecting mature markets in India and Korea, while streaming content was the fastest growing industry, up 83% year-on-year and at 26% has become the second largest industry. of industrial investments. Korea and India saw particularly strong growth in streaming investment, the report found, while Thailand and Indonesia made significant contributions. Free-to-air TV was the third-place vertical at 25% of the total.

The report forecasts overall robust growth, with online video expected to grow by $700 million. India and Korea will drive most of the surge, the report said.

On the other hand, TV ratings continued to decline and online consumption is likely to further undermine the sector. Video consumption remained heavily biased toward user-generated content platforms, with their share of video consumption ranging from 82% in Korea to 95% in Vietnam. While YouTube continues to lead, TikTok is driving growth in Southeast Asia.

MPA Vice President Stephen Laslocky said: “Inflation, particularly for online originals, is clearly a factor driving up the cost of content. Online video operators, broadcasters and producers need to see that higher budgets lead to superior viewing experiences; Otherwise, the cost increases will not be sustainable. Internationally successful programs remain the content licensing Holy Grail, which so far only Korean dramas and some anime as well as US and UK content have achieved sustainably. Some Thai content has had success outside of Thailand. High quality production values, strong storylines with a focus on younger online demographics will be the building blocks of future investment strategies.

“The expanding online video sector has been a boon for independent producers. Profit margins have stabilized at 10% or more across much of the region. More can be done to empower independent producers, including additional compensation for original concepts, appropriate rewards for breakout achievements, and expanded use of pipeline deals (which allow producers to more reliably recoup overhead). In return, producers must make their production costs transparent. Commissioners must be willing and able to audit costs,” Laslocky added.

The report tracked video content consumption, content investment and production costs in seven key Asian markets: India, Indonesia, South Korea, Malaysia, the Philippines, Thailand and Vietnam.