Asia Pacific’s sexiest newest online video revenue number is US$35 billion by 2021. That’s average annual growth of 22% over this year across 14 markets, according to figures presented by Media Partners Asia (MPA) at its annual Asia Pacific Video Operators’ Conference (APOS) in Bali last week.

Is there, in this great big multi-screen future, a payday for Asia’s content creators? How much will be spent on content for Asia’s digital universe – and who will take the lion’s share?

For some, the payday is already here or close. For many, the licensing love is spreading. All distributors say online platforms are driving syndication sales in a big way. Asia’s indies stand a chance of participating in a real way as OTT platforms move into original production.

For all the moving parts in this scenario, what is clear is that China is way ahead on content spend for online platforms. China has about 25 OTT platforms; six or seven dominate. All are investing heavily in content creation.

For online video only (excluding internet TV), MPA estimates that last year Chinese streaming online video platforms spent US$2.4 billion on content. Content costs on online video portals only were, on average, about 42% of revenue generated.

China’s combined online video and internet TV content costs last year were about US$3.9 billion, MPA says. Across the OTT board (internet TV combined with online video), content costs were, on average, about 55% of revenue.

About 30% – or US$1.2 billion – of what Chinese platforms spend on content is kept in-house on internal production, MPA says. The remaining 70% goes to third-party acquisitions and outside commissions. Of this, just less than half is spent on Chinese content, with the balance roughly split between international (U.S./North America/Europe) and Asian.

Acquisitions of Asian content in China are by far dominated by Korea, with a small showing from Hong Kong, Taiwan and Japan, MPA says.

Three of the big five regional streaming platforms in Asia are major buyers of Hollywood and other international rights for Asia. The three – iflix, Hooq and Netflix – are joined by Viu, owned by Hong Kong telco PCCW, and Rakuten-owned platform Viki in the race for rights for local libraries.

Viu is the undisputed leader in Korean content, with enviable first and (mostly) exclusive rights for Korean drama and variety. Viki is also in play on Korean rights.

A streaming newcomer is Tribe, a regional OTT play from Malaysia’s Astro. So far, Tribe is leveraging Astro’s linear channel relationships in Malaysia. Tribe’s on-demand offering remains under wraps.

The push into original production – and exclusive rights – has begun, led by Netflix. Viki had premiered its first original series, Dramaworld, and has greenlit a second series, Five Year.

Singtel/Sony/Warner joint-venture SVOD platform, Hooq, uploads its first original series – a six-episode co-production based on Pinoy movie On The Job (OTJ) – in August this year.

Others are likely to follow the originals path as the race for relevance continues.

Meanwhile online platforms such as Endemol Beyond and StyleHaul are driving sponsor-funded premium short-form production.

MPA says mobile consumption of clips and short-form video continues to climb across Asia Pacific. “This is informing the creation of new local content in China, India and Korea, and will drive demand for other genres, including sports, factual and lifestyle,” MPA says.

These new slates of local short-form are “a key catalyst for the large advertising opportunity for online video, which will grow further as video’s share of digital advertising expands,” says MPA executive director, Vivek Couto. “This will not only benefit global platforms with local reach but also local players with IP ownership,” he adds.

Adapted from ContentAsia’s June 2016 issue, published on 29 May for Casbaa Satellite Forum (30 May), and CommunicAsia/BroadcastAsia (31 May-3 June)