International Media Companies Stand to Benefit from Promising Digital Media e-Commerce Opportunities in APAC

Media-hungry consumers in the Asia-Pacific region are creating exciting opportunities for international media companies that distribute digital entertainment. In a recent report, ABI Research forecast the over-the-top video market in Asia Pacific to exceed $4 billion by 2016. This strong growth forecast is further supported by data from a trio of consumer surveys conducted by ABI Research in China, South Korea and India during the first quarter of 2011.

ABI Research practice director Jason Blackwell comments, “APAC respondents had among the highest rates of digital media e-commerce, which includes: purchasing digital downloadable songs (>57% of respondents), subscribing to music services (>32% of respondents), renting streamed movies (>30% of respondents), online gaming (computer and mobile based, >60% of respondents), and social networking (>70% of respondents). These results validate some of the new strategies from companies like Warner Bros. which is actively seeking new business models such as online VOD releases and lower prices to better address these unique market conditions.”

Other online services in China include YouKu (which, like YOU On Demand, signed a deal with Warner Bros.) and Baidu’s Qiyi, Tudou also targeted premium content but it has recently shifted its focus to user-generated content. In South Korea there are also a number of VOD platforms, including Samsung’s 3D VOD service.

Senior analyst Michael Inouye adds, “Despite relatively high levels of piracy, the Asia Pacific area still holds strong potential because it has become the most connected region (in terms of numbers) with more than 200 million fixed broadband subscribers and over 840 million Internet users in 2010 (and potential for further growth). With this in mind, content owners will continue to explore new distribution models to better extract value from this growing market: the market data thus far supports these strategic initiatives.”

The results of these consumer surveys are available in three ABI Research “Technology Barometer™: Digital Lifestyle” reports: “South Korea Survey Results,” “China Survey Results," and “India Survey Results.” Each provides, in Microsoft PowerPoint format, insight into the constantly changing CE markets of that country, and the preferences and purchasing intentions of the consumers.

They are all part of ABI Research’s Digital Lifestyle Research Service and its Technology Barometer™: Digital Lifestyle.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 40+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.​