The Asia-Pacific region has always been a hub of innovation and change, and its entertainment industry has been no different. With technology advancing quickly and a growing desire for digital content, the entertainment scene in Asia Pacific has undergone a significant transformation. The telecom sector is at the center of this change, playing a crucial role in shaping the future of entertainment throughout Asia Pacific.
The Booming Entertainment Industry
The Asia-Pacific entertainment industry has been on an upward trajectory in recent years. According to a report, the online media and entertainment market in the Asia-Pacific region is experiencing notable growth due to increasing internet penetration in emerging economies like India and Vietnam. Additionally, the offline media and entertainment industry in the region, including amusement parks and trade shows, is expanding as well.
The market is divided into online and offline platforms, with the online platform projected to grow significantly thanks to the demand for video streaming and online gaming. China currently dominates the market, but India is expected to show considerable growth due to rising internet penetration.
Major players in the market include Alibaba Pictures Group, Eros International Media Ltd., Fantawild Holdings Inc., Sony Corp., Netflix Inc. and Apple Inc., who are contributing to the market's growth through various strategies like mergers and acquisitions and technological development.
The market's expansion is attributed to various factors, including increasing disposable income, changing consumer preferences and rapid urbanization.
Moreover, a report from Mordor Intelligence underscores the rise of digital media consumption in Asia Pacific. The Asia-Pacific media and entertainment market is expected to grow from US$1.23 trillion in 2023 to US$1.55 trillion by 2028, with a compound annual growth rate of 4.77%. Such expansion is largely driven by the increasing demand for seamless communication, digital entertainment and wireless networks.
Viewers are preferring smart TVs and OTT streaming platforms for high-quality content. And in support, big studios are using advanced digital technology for communication and investing more in promotional activities.
As with most sectors of society, the film industry was adversely affected by the pandemic, as production and consumption require unavoidable gatherings of people. But in a surprising turn, the COVID-19 pandemic has led to increased adoption of online video streaming services, significantly affecting media consumption habits.
The Convergence of Telecom and Entertainment
Telecom companies have recognized the immense potential of the entertainment industry in Asia Pacific and are actively seeking ways to capitalize on it. The convergence of telecom, media and entertainment is reshaping the industry's landscape. More than ever, telecom giants are acquiring or partnering with content creators and distributors to provide a seamless entertainment experience to their customers.
One of the key ways in which telecom companies are contributing to the entertainment industry is by investing in high-speed internet infrastructure. The expansion of 5G networks is enabling faster and more reliable connectivity, making it easier for consumers to access and stream high-quality content. This infrastructure development is critical in a region as vast and diverse as Asia Pacific.
The Rise of OTT Platforms
The OTT (over-the-top) market in the Asia-Pacific region is projected to continue growing. It is estimated that revenues will reach US$52 billion in 2028, which is a 56% increase from the US$33 billion recorded in 2022. This substantial growth is fueled by the growing number of people using the internet, better infrastructure and the increasing popularity of smartphones and smart devices in the region.
Furthermore, the rapid growth of OTT platforms in the Asia-Pacific market can be attributed to multiple factors. Firstly, international streaming platforms like Netflix, Amazon Prime Video and Disney+ have expanded their presence in the region by offering localized content and competitive pricing strategies.
Secondly, local streaming platforms in countries like China, India and Japan — platforms such as iQiyi, Hotstar and Rakuten TV — are gaining popularity by providing a diverse range of content targeted at regional audiences.
Thirdly, those government initiatives that invest in infrastructure development are key to supporting the expansion of OTT services. Additionally, the growing middle class in the region has increased the demand for quality content. And technological advancements like the widespread adoption of 4G and 5G networks and affordable smartphones have ultimately made it easier for these consumers to access OTT content.
Given such factors, telecom companies are recognizing the opportunity to bundle their services with popular OTT platforms, creating enticing packages for their customers. This strategy not only boosts customer loyalty but also helps telecom companies differentiate themselves in a competitive market.
The Future of Telecom and the Entertainment Industry
As the telecom, media and entertainment sectors continue to converge, the Asia-Pacific region is poised to become a global entertainment powerhouse. With the right strategies and investments, telecom companies have the opportunity to not only shape the future of entertainment but also reap the rewards of a burgeoning market.
In this dynamic landscape, the synergy between telecom and entertainment in Asia Pacific promises a thrilling future for consumers and stakeholders alike.
