APAC screen economy to hit $200 billion by 2031 amid shift to commerce

The regional pivot from reach-based advertising to commerce-integrated transactions marks a shift in where streaming value is captured. While total premium video revenue growth remains thin—estimated at just $2 billion over five years—content costs are rising by over $3 billion, creating a structural margin squeeze. For the ecosystem, this necessitates a move beyond traditional 'impressions' toward retail media and AI-driven production to sustain profitability. Success now depends on who can bridge the fragmented measurement gap as audiences migrate to CTV and super-app environments. Look for the adoption of standardized measurement layers across APAC markets as the key signal for unlocked ad spend.

The formation of JioStar in late 2024 through the merger of Disney and Reliance's Indian media assets has fundamentally altered the regional competitive landscape. Per regulatory filings in December 2025, the $8.5 billion joint venture now controls roughly 34% of the Indian TV market and over 100 channels. Its streaming arm, JioHotstar, reported crossing the 100-million paid subscriber milestone within five weeks of its February 2025 launch, utilizing exclusive rights to the Indian Premier League (IPL). This scale has allowed it to challenge YouTube's long-standing dominance, which Chrome OTT reported as holding a 37.7% share of India's ₹37,940 crore OTT market in early 2025.

In the microdrama sector, platforms like ReelShort and DramaBox have industrialized short-form production to combat high customer acquisition costs. Per Omdia and Sensor Tower data from 2025, monthly active users for the top five microdrama apps surged by over 5,000% year-on-year. While China remains the largest market at over $7 billion, the U.S. has emerged as the most lucrative international territory, driven by localized English-language content. This shift is increasingly supported by AI, which now accounts for nearly 40% of top-performing vertical dramas in China by automating script generation and dubbing.

Retail media is simultaneously becoming the primary engine for digital ad growth across the region. According to WPP and Dentsu reports from late 2025, commerce-related advertising revenue is projected to surpass total television advertising for the first time by 2026. In Southeast Asia, super-apps like Grab and Gojek are leading this transition by integrating video and payments, effectively moving the 'center of gravity' from the view to the point of purchase. This environment is forcing legacy broadcasters to pivot toward 'shoppable' video formats to capture shifting performance marketing budgets.