The streaming industry provided a significant economic boost to Taiwan’s creative sector in 2023, contributing NT$9.7 billion (approximately $300 million) to the economy and supporting more than 100,000 jobs across the broader entertainment industry, according to a new report released Wednesday.
International consulting firm Frontier Economics presented the findings at the Film Institute Forum titled “How Streaming Services Will Promote Taiwan’s Creative Economy” held in Taipei. The study revealed that video-on-demand platforms have become an integral part of Taiwan’s audiovisual ecosystem, with market penetration reaching more than 7 million subscribers.
Research shows that 87% of Taiwanese internet users access VOD services at least weekly, with locally produced content accounting for nearly half (48%) of viewing activity. This strong local consumption has led major global streaming platforms to significantly increase their investment in Taiwanese programming.
“The outlook for Taiwan’s audiovisual sector is very positive,” Frontier Economics economist Clive Kenny said in a video statement to the forum. “The country offers a mature economic environment and a vibrant VOD industry, attracting significant investment.”
The report found that 31,132 people were directly employed across the film and television sector in 2021, with the ripple effect supporting approximately 103,000 jobs across Taiwan’s economy.
However, forum participants warned that the global streaming landscape is entering what they called a “post-growth period,” marked by industry consolidation, rising subscription prices and the expansion of ad-supported models.
James Cheatley, MPA’s Vice President of VOD, Digital Affairs and Intellectual Property, emphasized the need for a collaborative approach rather than restrictive regulation. “Today’s report confirms that VOD services are a powerful driver of Taiwan’s creative economy, fostering investment in local stories and talent, and promoting Taiwanese content to the world,” Cheatley said. “To maintain this momentum, as the Frontiers report warns, government and industry will need to work closely together on ‘market incentives’ and skillful ‘investment incentives’, rather than imposing restrictive regulations that could stifle growth and reduce exports.”
Feng Bo-hang, economics professor at National Taiwan University, highlighted how new commercial models are accelerating local content development. “Data shows that when markets launch low-cost, ad-supported plans, local content viewing increases significantly, attracting new users who prefer local-language programming, driven by zero or low-cost barriers to entry,” Fenn said.
Atomic 76 Managing Director Yan Zhiguan highlighted the role of streaming platforms in raising production standards. “Streaming services are a catalyst for upskilling, bringing international standards, new technology and creative collaboration to improve the industry as a whole,” Yang said. “Taiwanese creators are proving that given the opportunity and support, they can meet global demand.”
A study by Frontier Economics warns that a coercive regulatory approach could undermine the sector’s export potential. The research project finds that applying local content quotas and other restrictive policies to VOD platforms can reduce content export revenues by 4.3%.
“Policies that increase barriers and restrictions need to be approached with caution, as they can discourage industry from investing,” Kenney added.
Forum participants concluded that strengthening copyright protection, supporting human resources and infrastructure, and providing production incentives can create a virtuous cycle that attracts further investment and establishes the foundation for Taiwan’s globally influential T-Wave.
The report was commissioned by MPA and conducted by Frontier Economics using economic modeling, interviews with stakeholders, and a survey of 1,000 Internet users in Taiwan.
MPA’s member studios include Walt Disney Studios Motion Pictures, Netflix Studios, Paramount Pictures, Prime Video & Amazon MGM Studios, Sony Pictures Entertainment, Universal City Studios, and Warner Bros. Discovery. Charles Rivkin will serve as Chairman and CEO.
