The latest research from Media Partners Asia (MPA) indicates that total video industry revenues in the Philippines will grow at 9.8% CAGR between 2017-22 to top US$2.2 billion by end-2022, making the Philippines the top-performing video market in Southeast Asia in terms of growth, and the third-largest in the region after Indonesia and Thailand.
Despite a significant advertising slowdown this year, free TV will remain the dominant media, accounting for more than 60% market share by end-2022. Key drivers include the growing reach of digital terrestrial TV (DTT) and popularity of local FTA content.
Online video’s market share will grow rapidly from a low-base, reaching 10% by 2022 with significant upside still to come as digital video platforms capitalize on exponential online consumption in a market in which the median age is 23.
Pay-TV penetration will continue to grow but revenues will lag as growth in the digital DTH market will come with low ARPUs.
According to MPA, key beneficiaries will include leading broadcaster and content creator ABS-CBN, which will offset weakness in its cable TV business through strong operating leverage from FTA and digital advertising growth and high-margin gains from broadband, domestic & international OTT platforms and content licensing.
Other beneficiaries include telco platforms such as PLDT and Globe across fixed and mobile broadband, and content distributors such as Fox, Disney, Turner and Netflix, who are enjoying fresh traction in the market across OTT and broadband windows.