iWorld

Content investment in India, Korea, and Southeast Asia to rise in 2022: MPA Report

The video content investment will grow by 15% in 2022 and reach $12 billion.

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2022/08/05/12.jpg?itok=G7KO_5bn

Mumbai: The video content budget in India, Korea, and Southeast Asia will grow by 15 per cent and reach $12 billion in 2022, according to the latest edition of Asia Video Content Dynamics, published by Media Partners Asia (MPA).

In 2022, India and Korea will drive the bulk of the increase, but all markets and all verticals are expected to grow. The film industry will be the fastest, growing by nearly 140 per cent as theatres screen fresh movies. Online video will grow the most, by nearly $700 million.

It increased by 21 per cent last year to $10.4 billion. Except for theatrical, all content verticals saw significant growth. OTT content was the fastest growing vertical, increasing 83 per cent year on year to become the second largest vertical, accounting for 26 per cent of industry investment. Korea & India saw particularly strong OTT investment growth, while Thailand and Indonesia made significant contributions.

This report examined video content consumption, investment in video content, and production costs in seven key Asian markets: India, Indonesia, South Korea, Malaysia, Philippines, Thailand, and Vietnam. Free-to-air (FTA), pay-TV, online video, and film are among the verticals examined, along with key players and the production value chain.

Also read: India's OTT video market to reach $3 bn in 2022; estimated to double by 2027: Report

Commenting on the findings of the report, MPA vice president Stephen Laslocky said, "Inflation, particularly with online originals, is a factor driving up content costs."

He went on to say that online video operators, broadcasters, and producers must see that higher budgets translate into more premium viewing experiences, or the cost increases will be unsustainable.

According to this report, Pay-TV was the largest vertical, accounting for 46 per cent of total industry content investment, reflecting well-developed pay-TV markets in India and Korea. FTA ranked third with 25 per cent of the total.

"Internationally successful programmes remain the content licensing holy grail, which thus far, only Korean dramas and some anime, as well as US and UK content, have sustainably achieved. Some Thai content has succeeded outside of Thailand. Quality production values and strong storylines with a focus on younger online demographics will be the building blocks of future investment strategies," Laslocky added.

While talking about the expanding online video sector, he expressed that it has been a boon to independent producers. He said, "Profit margins have stabilised at 10 per cent or more across much of the region. More can be done to bolster independent producers, including additional compensation for original concepts, commensurate rewards for breakout successes, and expanded use of pipeline deals (which allows producers to more reliably recoup overheads)."

"In exchange, producers need to be transparent with production costs. Commissioners need to be willing and able to audit costs," he added.

Declining TV ratings 

TV ratings continue to decline in measured markets. User-generated content (UGC) platforms continue to dominate video consumption, with their share of total video consumption ranging from 82 per cent in Korea to 95 per cent in Vietnam. While YouTube remains the leader, TikTok is driving growth in Southeast Asia. Premium video, both AVOD and SVOD, captures the majority of the balance.

The consumption of television and online video is diverging. On TV, drama is generally the most watched genre, while variety, including reality, often ranks #2. Movies, kids, and news can be significant drivers of viewership, and sports can over-index with top-rating TV programs. Viewership of some key TV genres is transitioning to YouTube, where they generate significant classified consumption.

Meanwhile, with premium online video, series account for approximately 90 per cent of consumption, with dramas accounting for the majority of viewership, while movies account for approximately 10 per cent. Dramas account for nearly all of the top titles. Except for India, variety consumption is largely driven by acquired Korean programming.

Box office revenues 

In 2021, box office revenues, admissions, and releases all performed poorly. Film costs fell by two per cent as pandemic restrictions delayed release dates in many markets, but delayed tentpoles performed well in 2022.

Some markets, including India and Indonesia, are expected to recover completely. In other markets, a return to pre-covid may take until 2023. Returning to pre-covid levels in other markets may take until 2023. Elsewhere, prospects may be marginally better but permanently harmed.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/08/17/13.jpg?itok=2aSBG06j
DNEG appoints Academy Award, Bafta winner Janek Sirrs as visual effects supervisor

Sirrs' list of production VFX supervisor credits to his name includes Marvel movies like “Doctor Strange in the Multiverse of Madness” (2022), “Spider-Man: Far from Home” (2019), “Spider-Man: Homecoming” (2017), “The Avengers” (2012), and “Iron Man 2” (2010).

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/08/17/12.jpg?itok=nLJqY3ij
PlayerzPot ropes in actress Rashmika Mandanna as brand ambassador

The fantasy sports and casual games platform PlayerzPot has just turned seven! Celebrating the milestone, the brand has announced actress Rashmika Mandanna as the brand ambassador.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/08/16/tata-play2.jpg?itok=cHgr4u-Q
Tata Play Binge service now offers content from Planet Marathi, Namma Flix and Chaupal

Tata Play has added three new OTT platforms—Planet Marathi, Namma Flix, and Chaupal—to its Tata Play Binge offering.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/08/16/linkdin.jpg?itok=Hg4edyZw
Linkedin’s efforts to boost content creation on its platform

Professional online social network LinkedIn is looking to boost content creation efforts in the country. Engagement on the platform, it said, has skyrocketed.

iWorld Social Media
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/08/15/vishal-soni_3.jpg?itok=IWSuC41P
GUEST COLUMN: The role of AI and ML in the media industry

There is truly no such thing as "show business!" We have seen the world of entertainment and media shape shift over the last few years, and more dramatically ever since the world around us changed in the wake of the pandemic. The entertainment industry showed a massive fillip during the lockdown...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/08/13/z7.jpg?itok=Nea6Fp-1
Aha plans to expand in Tamil market; observes potential business opportunities in Avod model

Launched in 2020, video-on-demand streaming service Aha, which provides 100 percent Telugu content, has created its own space in the minds of audiences. Aha, which was dependent on the subscription video on demand (SVOD) model for revenue, has decided to go 'hybrid'. Subscribers will now decide if...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/08/13/trai.jpg?itok=2QGFTSbJ
Trai extends deadline to receive stakeholder comments on ‘renewal of MSO registration’ consultation paper

The Telecom Regulatory Authority of India (Trai) has extended the deadline to receive comments & counter comments on the consultation paper ‘renewal of multi-system operators (MSOs) registration’. Stakeholders can submit their written comments by 24 August and their counter comments by 31...

iWorld Telecom
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/08/13/ott.jpg?itok=c34xdx8e
OTTplay launches quirky campaign to woo audiences across India

OTTplay has rolled out a new campaign ‘Maze Karo Multiply’, introducing a one-of-its-kind proposition for the fast-growing OTT audience in India.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2022/08/12/manorma1.jpg?itok=_F_W-rjD
ManoramaOnline's campaign celebrates the homecoming of every Malayali's superhero

Onam celebrates the homecoming of every Malayali's superhero, the benevolent king Mahabali. When it comes to good times, Malayalis consider the times of the legendary Mahabali to be the gold standard.

iWorld eNews