Commissioned by the Asia Internet Coalition, a new research paper describes the economic impact of Thailand OTT industry and policy recommendations to drive the growth of this important sector
BANGKOK, March 31, 2022 /PRNewswire/ — A new research paper, Innovative Policy Approaches to Thailand Digital Economy, which examined the impact of Over-the-Top (OTT) video platforms on Thailand economic, estimates that in 2020, local OTT players created 45,106 jobs and contributed $1.4 billion (46.7 billion THB) in economic value to the Thai economy. This represents approximately 0.3% of Thailand total gross domestic product (GDP). This means that every baht invested in the OTT video industry has resulted in a 2.67 baht gain in Thailand GDP 2020. Research conducted by the Tammasat University Research and Consultancy Institute and commissioned by the Asia Internet Coalition illustrates the crucial economic role of OTT platforms and offers innovative policy approaches to support and promote the growth of Thailand Digital Economy.
OTT services refer to online platform services that deliver any content to end users who interact with user devices using the Internet without owning or operating network infrastructure. The study further reveals regulatory disparities between traditional broadcasting and OTT video services; OTT video services adhere to different business models compared to traditional broadcast, and each have their own unique value propositions for customers – from user-generated content to curated content. Therefore, strict regulatory parity between OTT and traditional broadcast services may not be appropriate to facilitate a sustainable OTT ecosystem. Importantly, traditional streaming service providers are also leveraging OTT platforms to further distribute and monetize their content.
The research team reviewed global best practices and recommends industry self-regulation to ensure government policy is aligned with rapidly evolving OTT businesses and supports industry growth and innovation . The transparency of the self-regulatory process can be improved by making public the self-regulatory guidelines and the process by which OTT providers deal with complaints filed. This allows consumers to determine whether providers are adhering to the guidelines and adequately handling complaints in accordance with these guidelines. Any industry self-regulatory committee should include industry experts and other stakeholders to avoid collusion among members. The research team also recommends providing incentives to encourage industry participation, such as tax incentives and public recognition to companies that have committed to self-regulation.
“In addition to a positive economic impact, the growth of Thailand The OTT video industry will bring a lot of value to consumers, businesses and traditional video platforms. Based on our research, as well as conversations with players in the OTT video industry, we can expect a boost in the labor market in Thailand as more content creators and their associated workers are needed to meet the increased demand for video content. Small businesses can now easily access more targeted and cost-effective advertising choices with both platforms. Consumers benefit from a greater choice of easily accessible and affordable content. For traditional platforms such as TV channels, there are opportunities to increase revenue by operating alongside OTT platforms. However, Thailand The OTT video industry must be supported by sensible and forward-looking regulatory frameworks, so that the full potential and value of the industry is realized,” said Dr. Suthikorn Kingkaew, Project Manager, Tammasat University Research and Consultancy Institute and one of the authors of the article.
In Thailandthe COVID-19 pandemic has helped drive the growth of OTT video in Thailand, as well as an increase in OTT video ad spend as more people stay home and rely more on the internet and online video. In 2020, the OTT video advertising market was valued at $547 million and is expected to have increased by 14% in 2021, with a further increase at $1,031 million by 2025. TV ad spend fell 10% in 2020 while OTT video ad spend grew 7%.
About the Asia Internet Coalition
The Asia Internet Coalition (AIC) is an industry association comprised of leading Internet and technology companies. The AIC seeks to promote understanding and resolution of Internet policy issues in the Asia Pacific Region. To visit www.aicasia.org for more information.
About Tammasat University Research and Consulting Institute (TURAC)
The institute is established to create high-impact research that contributes to the development of Thai society.
For media inquiries, please contact the AIC press office at [email protected].
SOURCE Asia Internet Coalition