OTT reaches critical mass in APAC
Details
Joseph O'Halloran
| 07 March 2021
Research from global video advertising platform SpotX has revealed that over-the-top (OTT) video streaming in APAC has now reached 392 million people, with 70% of consumers across the region watching streaming video at least once a week.
SPotX OTT 7Mar2021
The OTT Is for Everyone: APAC report SpotX report was undertaken by Singapore-based research firm Milieu Insights which conducted a quantitative survey of 7,000 people across eleven markets. People were surveyed by an online panel, and were 16 and older, and watched video content on any device.

It examined video consumption trends and advertising receptivity in the APAC region for services that allow viewers to stream video content over the internet, from a multitude of devices including smart TVs, personal computers or smartphones. SpotX said the aim of the report is to provide advertisers and media owners with an enhanced understanding of the trends driving OTT viewership in the Asia-Pacific region which has distinct characteristics compared with Western markets.
SpotX said that the study confirmed that APAC was a rich and diverse region that had fully embraced streaming video at levels unmatched by Western markets.

Indeed the estimated reach of active OTT viewers in APAC of 392 million people, larger than the population of the US. The region was also said to have a number of unique characteristics such as in Southeast Asian countries were smartphones monopolise viewing, while in Australia and Japan smart TV were more popular and consumers used a broader mix of devices. The research showed that Indonesia, the largest and fastest growing market in Southeast Asia, had witnessed a recent surge in OTT viewing with 79% percent of viewers in the 18-34 age bracket and 86% of those watch video mostly on their phones.

The study revealed that over two thirds (69%) of video viewers in the region watched streaming video at least once a week, confirming said SpotX that both the audience size and regularity of OTT viewing had matured and entered the mainstream. The top three markets for OTT viewing were Singapore (91%), Australia (81%), and Indonesia (76%).

A majority of OTT viewers watch more than two hours of content a day, often out-stripping traditional TV and video-sharing platforms. The leading markets for OTT consumption are the Philippines, Indonesia, and Australia and of OTT viewers across the region, 66% spend the most time streaming video on their mobile devices, with developing countries taking the lead. However, smart TV viewership was growing quickly, especially in Australia, Singapore, and Vietnam, where at least one in five video viewers were found to have streamed through a smart TV.

The research also revealed that two thirds of video viewers (67%) preferred to watch free, ad-supported content while only 23% preferred to pay for an ad-free service. There was also a clear acceptance of ads in exchange for viewing free content highlighted from the study with 86% of viewers saying they don’t mind watching ads – provided the ad loads were kept light. In terms of advertising om the platform in general, streamers said that OTT ads were more effective than TV ads at attracting their attention across Southeast Asian countries. Just more than a third (35%) of OTT viewers reported making a purchase after seeing an ad during an OTT programme. The leading markets were Vietnam, Singapore, and Indonesia.

While a fundamental finding was that new consumers were coming online for the first time in the region and existing ones increased their content consumption during the pandemic, the market was only scratching the surface of the possibilities in OTT said Crisela Magpayo Cervantes, Mindshare Indonesia principal partner commenting on the OTT Is for Everyone: APAC report. “Not only have users grown due to the stay-at-home regulations, but it is a habit that Indonesians will continue to pursue post-pandemic.” She added: “Local original series and movies, Korean drama, and sports, are driving OTT growth as are different acquisition strategies, through telco partnerships, and new funding models.”