Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Equity Bottom-Up

<h2>OTT budgets are soaring; No ceiling in sight</h2><h3>What’s new:</h3><ul><li>Purely Streamonomics, a Fintech platform that accelerates payments to content producers, recently published a report that highlighted emerging trends in the global Film &amp; TV industry (attached)</li><li>By 2025, Purely expects global SVOD subscriptions to jump to 1.6bn, implying a 16.4% CAGR from 2019’s 642m. This would be fueled by a deluge of new streaming platforms while existing platforms continue to gain traction</li><li>As more platforms enter the OTT space, Purely points out that content spending has reached new highs. In Asia, it notes that spending jumped 19.8% YoY to US$27.7bn. We note that this still dwarfs spending North America, which grew 16.1% YoY to US$149.3b. With Asia’s growing spending and consumption clout, we have no doubt that localized content production will indubitably surge as OTT platforms shift their focus to Asia</li><li>Production budgets are soaring as OTT platforms look to stay competitive as market share is up for grabs on fickle content consumption patterns. Average series budgets in the US jumped 16.5% YoY to US$59.6m in 2020</li><li>Importantly, Purely believes that the global OTT story appears to have “no ceiling in sight” as users continue to consume content through OTT platforms. <section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/215/858/original/image003+%282%29.png?1624932104" class="editor-image img-responsive" data-smartkarma-image-id="215858"></figure></section></li></ul>

OTT budgets are soaring; No ceiling in sightWhat’s new:Purely Streamonomics, a Fintech platform that accelerates payments to content producers, recently published a report that highlighted emerging trends in the global Film &amp; TV industry (attached)By 2025, Purely expects global SVOD subscriptions to jump to 1.6bn, implying a 16.4% CAGR from 2019’s 642m. This would be fueled by a deluge of new streaming platforms while existing platforms continue to gain tractionAs more platforms enter the OTT space, Purely points out that content spending has reached new highs. In Asia, it notes that spending jumped 19.8% YoY to US$27.7bn. We note that this still dwarfs spending North America, which grew 16.1% YoY to US$149.3b. With Asia’s growing spending and consumption clout, we have no doubt that localized content production will indubitably surge as OTT platforms shift their focus to AsiaProduction budgets are soaring as OTT platforms look to stay competitive as market share is up for grabs on fickle content consumption patterns. Average series budgets in the US jumped 16.5% YoY to US$59.6m in 2020Importantly, Purely believes that the global OTT story appears to have “no ceiling in sight” as users continue to consume content through OTT platforms. 

SCCM | FILM IJ - OTT Budgets Are Soaring; No Ceiling in Sight (BUY; TP IDR700/Share)

Indonesia

PT MD Pictures Tbk operates as a motion picture production company. The Company produces movies, television shows, and live concerts. MD Pictures Tbk serves clients in Indonesia.

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SCCM | FILM IJ - OTT Budgets Are Soaring; No Ceiling in Sight (BUY; TP IDR700/Share)

Purely Streamonomics, a Fintech platform that accelerates payments to content producers, recently published a report that highlighted emerging...

SCCM Asia Research