Investment in Asian film and TV content sees a shift
A changing landscape in content investment
In 2023, the investment in theatrical films, TV, and streaming content across India and East Asia reached a substantial $15.5 billion. However, the growth rate has decelerated to just 4%, a stark contrast to the investment surge witnessed during the peak of the COVID-19 pandemic in 2021-22.
Market dynamics and regional performance
A recent report highlights the evolving dynamics in the Asian content market, covering countries such as India, Korea, Indonesia, the Philippines, Singapore, Thailand, and Vietnam. The report describes the current trend as a normalization of budgets and a rationalization of local content investment in streaming video on demand (VOD).
India leads the charge
India emerged as the strongest-growing market with a robust 12% increase, primarily fueled by sports content. Indonesia followed with a 5% rise, while Korea, the Philippines, and Thailand saw modest gains. Conversely, Malaysia and Vietnam faced contractions due to challenging advertising markets.
Dominance of Korea and India
Korea and India continue to dominate the content investment landscape, together accounting for 80% of the total investment in 2023. Korea, a mature market, is expected to see flat overall growth, with expansion in streaming and film offset by a decline in traditional TV. In contrast, India, with its relatively low 52% TV household penetration, presents significant growth potential across all verticals through 2028.
Future projections and growth potential
Looking ahead, the report forecasts a 2.7% compound average growth rate in total content investment across the seven markets, reaching $17.2 billion by 2028. This growth will be predominantly driven by India, with Indonesia and the Philippines also expected to show decent growth rates. Korea and Thailand are anticipated to experience limited growth, while Vietnam faces the most challenges due to weak TV advertising and rampant piracy.
Shifts in investment distribution
Currently, free and pay-TV account for 64% of the total investment, but this is expected to drop to 50% by 2028. Streaming is forecasted to grow from 26% to 33% of the total investment, while film is projected to see marginal growth to 11%.
The rise of Korean content
Korean content continues to lead the pack with world-class production values and compelling storytelling. Online original content costs have inflated to as much as $7 million per episode, reflecting its extraordinary appeal. Korean content accounts for over 30% of content demand in Southeast Asia and Taiwan.
The impact of streaming on storytelling
The rise of streaming has significantly elevated storytelling and production quality, particularly in Thailand and Indonesia, where competition is intensifying. Content from these countries, especially Thai titles, is gaining traction across Asia.
Challenges for traditional TV producers
Many traditional TV drama producers are struggling to compete with higher-end streamed video content. In contrast, quality film producers have embraced the flexibility of streaming and adapted with greater ease. Over the past year, as some ad revenues have permanently shifted to digital and streaming behavior has become entrenched, TV production margins have contracted across most markets. For online originals, streamers have become much more disciplined in their approach to budgeting and content strategy.
Personal reflections for enthusiasts
For cinema and TV series enthusiasts, the evolving landscape offers a treasure trove of high-quality content. The rise of streaming platforms has democratized access to diverse storytelling, allowing viewers to explore narratives from different cultures and regions. The investment in local content ensures that stories resonate with regional audiences while also appealing to a global viewership.
Exploring new content
For those eager to dive into the latest offerings, here are some recommendations:
- Korean Drama: Explore Korean Dramas
- Indian Sports Content: Discover Indian Sports Content
- Thai Titles: Check Out Thai Titles
Conclusion
The content investment landscape in Asia is undergoing significant changes, driven by the rise of streaming and the evolving preferences of viewers. As the market continues to grow and adapt, it presents exciting opportunities for both creators and audiences. Whether you’re a fan of high-quality dramas, sports content, or innovative storytelling, the future of Asian content promises to be vibrant and diverse.