The over-the-top content market continues to grow and reach wider than ever before. According to a report by Digital TV Research, revenues from OTT video and television in the Asia-Pacific region should reach $18.4 million by 2021, up from $5.7 million in 2015.
While advertising on OTT websites will continue to be the primary source of profit, revenues from subscription video on demand in the region will rise from $1.8 million to $6.4 million over the same time period.
According to Simon Murray, the research company’s principal analyst, most of the current OTT content providers in the Asia-Pacific region are local companies. However, international corporations started looking toward these countries in recent years. Some plan to bring their own services, while other companies started the process of working with regional providers.
Quality and content in an evolving world
Murray noted that the international organizations that provide an appropriate mix of local and foreign content will succeed in the Asia-Pacific market.
“Although there is substantial demand for foreign fare, local content is necessary in each market to entice subscribers,” he said in the report’s press release. “Furthermore, international players benefit from partnerships with local players to gain from their distribution and retail infrastructure.”
This infrastructure changes on a near-daily basis and ranges widely from one country to the next. Even within individual nations like India and China, consumers are limited both geographically and socio-economically in terms of their choice of Internet providers. Still, as more companies reach these areas, an increasing number of people access online video.
It’s not just markets that will shift – the industry as a whole is adapting to better technology. As Murray noted, the increasing number of smartphone users are what is driving profits in areas like China, Japan and Australia. It will be interesting to see how phone use evolves alongside better technology and if foreign OTT video providers will be able to offer these benefits to their customers.
As Fierce Online Video reported virtual reality, 4K video and increased bandwidth from network providers will all have an effect on the services businesses are capable of providing. Vendors can push next-generation technologies and experiences in addition to quality content provided on a subscription billing platform. Yet many aren’t considering things from the consumer’s perspective. They offer the latest video advances but don’t examine how this technology helps or hurts the customer experience. They also don’t take the importance of good service into account.
Success in the Asia-Pacific region becomes a matter of providing some local content through means that maximize quality yet are still supported by the technological infrastructure. This is why businesses providing services on a subscription billing platform should partner with locals who know consumer preferences within their respective countries. Recurring subscription billing provides the steady revenue necessary for companies to maintain service in international markets, while regional allies help with distribution and content creation.