(9 February 2009 9:30 pm)

MUMBAI: China, Japan and Korea will drive the next wave of online video development, according to Cable and Satellite Broadcasting Association of Asia (Casbaa).

China will draw further attention as it emerges as the largest wired broadband market in the world with 190 million connections in 2012.

Casbaa released an additional in-depth Data Pack related to the video, available exclusively to its members. The high-value information package highlights the dramatic impact of authorised (and unauthorized!) streaming video services across Asian markets.

The Casbaa Data Pack to members shows that home access accounts for 74.1 per cent of all connections in China, while Internet Cafés are the source of access for almost 40 per cent of the youth market. Some 75 per cent of respondents to a survey conducted by the China Internet Network Information Center (CNNIC) indicate that they share the network video of all kinds with other netizens.

Meanwhile, 33.2 per cent of South Koreans are watching movies online in some form and, according to a recent survey by the Korean Film Council, this is having a devastating effect on the domestic DVD and movie industries. Some 47 per cent of all the respondents had illegally downloaded feature movies without paying, or paid less than 50 cents per title during the past year.

Casbaa CEO Simon Twiston Davies says, “Although movie piracy has become rampant in both China and Korea, Japan remains a relatively strong copyright protected regime. Traditional sources of paid content are still popular in Japan”.

Nevertheless, according to the Casbaa Data Pack, online video advertising represents a strong growth opportunity as audiences migrate to the web. Tudou, a popular video sharing site in China, claimed that ad revenue reached $1.65 million in the first half of 2008. Other sites drawing big audiences include Nico Nico Douga (Smiley Smiley video) in Japan, and Pandora TV in Korea.

Ultimately China’s online population will surpass Korea’s more developed digital advertising market, but the sophistication and maturity of the Japanese market will support its continued growth.

Overall, online advertising for China, Japan and Korea is forecasted to grow from $10.3 billion in 2009 to $15.1 billion in 2012.

Despite the current uncertainties over rights, regulation and business models of online video services, the emerging online video landscape offers opportunities for content owners, broadcasters, advertisers and subscription television players. “It is time for the TV industry to review new strategies to provide offerings to this new breed of customers,” added Twiston Davies.