China leads the way to online video

According to CASBAA (Cable & Satellite Broadcasting Association of Asia), China, Japan and Korea will drive the next wave of online video development. China will draw further attention as it emerges as the largest wired broadband market in the world, with 190 million connections in 2012. CASBAA has today released the full version of an insightful documentary video examination of Online Video in China, Japan & Korea, which can be viewed here.

CASBAA reasearch shows that home access accounts for 74.1% of all connections in China, whilst internet cafés are the source of access for almost 40% of the youth market. Some 75% of respondents to a survey conducted by the China Internet Network Information Center (CNNIC) indicate that they share the network video of all kinds with other netizens.

In South Korea, 33.2% of all people are watching movies online in some form and, according to a recent survey by the Korean Film Council, this is having a devastating effect on the domestic DVD and movie industries. Some 47% of the all respondents had illegally downloaded feature movies without paying, or paid less than $0.50 (€0.39) per title during the past year.

“Although movie piracy has become rampant in both China and Korea, Japan remains a relatively strong copyright protected regime. Traditional sources of paid content are still popular in Japan,” said Simon Twiston Davies, CEO of CASBAA in a statement.

Online video advertising represents a strong growth opportunity as audiences migrate to the web. Tudou, a popular video sharing site in China, claimed that advertising revenue reached CNY11.296 million (€1.279 million) in the first half of 2008. Other sites drawing big audiences include Nico Nico Douga (Smiley Smiley video) in Japan, and Pandora TV in Korea.

Ultimately, China’s online population will surpass Korea’s more developed digital advertising market, but the sophistication and maturity of the Japanese market will support its continued growth. Overall, online advertising for China, Japan and Korea is forecast to grow from $10.3 billion in 2009 to $15.1 billion in 2012.

Despite the current uncertainties over rights, regulation and business models of online video services, the emerging online video landscape offers opportunities for content owners, broadcasters, advertisers and subscription television players. “It is time for the TV industry to review new strategies to provide offerings to this new breed of customers,” added Twiston Davies.