APAC Advertising-Based Video on Demand (AVOD) Market

APAC Advertising-Based Video on Demand (AVOD) Market Overview

• The APAC Advertising-Based Video on Demand (AVOD) Market is valued at approximately USD 29 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing penetration of the internet, the proliferation of smart devices, and the rising demand for on-demand content among consumers. The shift from traditional cable TV to digital platforms has significantly contributed to the expansion of the AVOD market in the region, supported by strong migration of audiences and ad spend from linear TV to OTT and online video services.
• Key players in this market include China, India, and Japan, which dominate due to their large populations and high smartphone penetration rates. The rapid adoption of streaming services and the increasing availability of localized content have further solidified their positions, with China leading regional OTT monetisation, India emerging as a central driver of online video and ad growth, and Japan contributing stable premium video revenues. Additionally, these countries have a robust digital advertising ecosystem, with digital formats accounting for the majority of media spend and programmatic and online video ads expanding rapidly, making them attractive for AVOD platforms.
• In 2023, the Indian government implemented regulations to promote digital content consumption and responsible online publishing of audio-visual content through the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, notified by the Ministry of Electronics and Information Technology and the Ministry of Information and Broadcasting. These rules introduce a co-regulatory framework and content classification obligations for online curated content, including streaming platforms, while parallel initiatives such as the “National Film Heritage Mission” and incentives for domestic film and OTT production aim to support local creators and diverse cultural narratives, thereby enhancing the overall user experience and engagement on AVOD platforms.;

APAC Advertising-Based Video on Demand (AVOD) Market Segmentation

By Content Type:The content type segmentation of the AVOD market includes various subsegments such as Long-form Premium Content (Movies, Series), Short-form and User-Generated Content, Sports and Live Events, News and Information, Kids and Animation, and Others. Among these, Long-form Premium Content is currently the leading subsegment, driven by the increasing demand for high-quality movies and series on both global and regional platforms. Consumers are increasingly willing to engage with longer content formats, which provide immersive storytelling experiences, particularly when delivered as original series, dramas, and films tailored to local tastes. This trend is further supported by the rise of original programming from major platforms and regional services, attracting a larger audience base and encouraging higher engagement and ad monetisation opportunities for AVOD providers.

By Device Type:The device type segmentation includes Connected & Smart TVs, Smartphones, Tablets, Laptops and Desktops, Streaming Media Players & Set-Top Boxes, and Others. Currently, Smartphones dominate this segment, as they provide easy access to AVOD services and are widely used across various demographics in mobile-first APAC markets. The convenience of mobile viewing, coupled with the increasing availability of high-speed mobile broadband and affordable data plans, has led to a surge in smartphone usage for streaming content, making it the preferred device for many consumers, while connected and smart TVs are rapidly gaining share as connected TV adoption rises across the region.

APAC Advertising-Based Video on Demand (AVOD) Market Competitive Landscape

The APAC Advertising-Based Video on Demand (AVOD) Market is characterized by a dynamic mix of regional and international players. Leading participants such as YouTube (Google LLC), Tencent Video (Tencent Holdings Ltd.), iQIYI Inc., Youku Tudou (Alibaba Group), Bilibili Inc., MX Player (Times Internet), Disney+ Hotstar (The Walt Disney Company), Sony LIV (Sony Pictures Networks India), ZEE5 (Zee Entertainment Enterprises), Viu (PCCW Media), TVer Inc. (Japan Broadcaster Consortium), Tubi (Fox Corporation), Rakuten Viki (Rakuten Group), WeTV (Tencent / iflix), Netflix – Ad-Supported Tier contribute to innovation, geographic expansion, and service delivery in this space.

APAC Advertising-Based Video on Demand (AVOD) Market Industry Analysis

Growth Drivers

• Increasing Internet Penetration:The APAC region has witnessed a significant increase in internet penetration, reaching approximately 66% in future, according to the International Telecommunication Union. This growth translates to over 2.5 billion internet users, providing a vast audience for AVOD platforms. Enhanced connectivity, particularly in rural areas, is expected to drive viewership and engagement, leading to increased advertising revenues. The rise in affordable smartphones further supports this trend, enabling access to streaming services across diverse demographics.
• Rising Demand for On-Demand Content:The demand for on-demand content in APAC is surging, with the market for video streaming expected to exceed $30 billion in future, as reported by Statista. This shift is driven by changing consumer preferences, particularly among younger demographics who favor flexibility in viewing. The proliferation of original content from local creators and international studios is also fueling this demand, as consumers seek diverse programming that caters to their interests and cultural backgrounds.
• Growth of Mobile Streaming Services:Mobile streaming services are rapidly expanding in APAC, with mobile subscriptions projected to reach more than 1.2 billion in future, according to GSMA. This growth is largely attributed to the increasing affordability of mobile data plans and the widespread adoption of 4G and 5G technologies. As consumers increasingly rely on mobile devices for entertainment, AVOD platforms are capitalizing on this trend by optimizing their services for mobile viewing, enhancing user experience and engagement.

Market Challenges

• Intense Competition:The AVOD market in APAC is characterized by intense competition, with numerous players vying for market share. Major platforms like YouTube, Tencent Video, and iQIYI dominate the landscape, making it challenging for new entrants to establish a foothold. This competitive pressure often leads to aggressive pricing strategies and increased marketing expenditures, which can strain profit margins. As a result, smaller platforms may struggle to differentiate themselves and attract a loyal user base.
• Regulatory Hurdles:Regulatory challenges pose significant obstacles for AVOD providers in APAC. Governments are increasingly implementing stringent content regulations and advertising standards, which can complicate operations for streaming services. For instance, countries like India and China have specific guidelines regarding content censorship and advertising practices. Compliance with these regulations often requires substantial investment in legal resources and can limit the types of content that platforms can offer, impacting their growth potential.

APAC Advertising-Based Video on Demand (AVOD) Market Future Outlook

The future of the AVOD market in APAC appears promising, driven by technological advancements and evolving consumer preferences. As internet connectivity continues to improve, more users will access streaming services, leading to increased advertising opportunities. Additionally, the integration of artificial intelligence in content recommendations will enhance user engagement, making platforms more appealing. The rise of niche content platforms catering to specific audiences will also create new avenues for growth, allowing advertisers to target their campaigns more effectively.

Market Opportunities

• Emerging Markets in APAC:Emerging markets such as Vietnam and Indonesia present significant opportunities for AVOD growth. With rising disposable incomes and increasing smartphone penetration, these regions are becoming attractive for advertisers. The potential audience in these markets is expected to grow by over 15% annually, providing a fertile ground for AVOD platforms to expand their reach and enhance revenue streams.
• Partnerships with Content Creators:Collaborating with local content creators can significantly enhance the appeal of AVOD platforms. By investing in original programming and exclusive content, platforms can attract diverse audiences. Reports indicate that platforms that engage in partnerships with local creators see a 30% increase in viewer retention, highlighting the importance of localized content in driving user engagement and advertising effectiveness.