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What's New on the US Internet Front

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Part 4
What's New on the US Internet Front PART 4 OF 10

Asia Presents Video Opportunities for Twitter

Twitter inks 35 premium video deals in Asia

According to a report by Media Partners Asia, the Asia-Pacific region is set to see explosive growth in online video revenue over the next few years. Media Partners Asia estimates that Asia-Pacific online video revenue, including advertising and subscription sales, will reach $46 billion by 2022. Twitter (TWTR) is eyeing this opportunity with the recent expansion of its video partnerships across the Asian region.

In mid-September, Twitter announced more than 35 premium video content partnerships in Asia. The video deals that Twitter announced are tied around sports, news, and entertainment. In the Asian market, the company struck sports deals with Fox Sports Asia and Australia’s Channel 7.

Asia Presents Video Opportunities for Twitter

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Facebook making big bet on video

As demand for online videos grows and advertisers increase spending on digital video advertising, Internet companies such as Twitter, Facebook (FB), and Alphabet’s (GOOGL) Google have stepped up their video push. Although Twitter has been doing small-ticket video deals, Facebook is reportedly willing to pump as much as $1.0 billion into its online video business—it has launched a dedicated video section called Watch. Netflix (NFLX) and Amazon (AMZN) are some of the companies known for their big video acquisition budgets.

Asia’s online video advertising market

As shown in the chart above, Asia’s total online video market is projected to reach $17.6 billion this year and grow to $45.5 billion by 2022. For Twitter, which primarily monetizes its videos through advertising, Asia presents a huge opportunity. Asia’s online video advertising sales are expected to hit $25 billion by 2022, representing the lion’s share of the region’s $45.5 billion online video market.

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