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WHY ASIAN CONTENT IP IS WINNING GLOBAL AUDIENCES

As internet distribution becomes increasingly commoditized and global media consumption growth slows, Bernstein analysts argue that the focus is shifting toward differentiated first-party content IP (intellectual property).In this context, Asian content creators, particularly in Japan, Korea, and China, are gaining global relevance, not just due to cultural resonance but because of structural cost and productivity advantages.

According to Bernstein, Western media and gaming companies face higher production costs, which often lead to more conservative content strategies. Studios tend to rely on sequels and established franchises, limiting creative risk-taking and contributing to signs of fatigue among younger audiences, especially with legacy IPs like Marvel and Assassin's Creed, the analysts note.Asian studios, by contrast, can afford to take more creative risks due to lower labor costs. They can try new ideas, iterate faster, and absorb failures more easily because each hour of labor costs less.

Over time, this trial-and-error approach is more likely to produce breakout hits and high-quality IP.Pop Mart's 9992.HK Labubu is a prime example: what began as a niche collectible has evolved into a status symbol among younger consumers.

Pop Mart chief executive Wang Ning on Wednesday said his toy company was on track to meet its targeted revenue goal of 20 billion yuan ($2.78 billion) in 2025, and that "30 billion ($4.18 billion) this year should also be quite easy", underscoring the commercial success of such IP.

The report also highlights the growing global footprint of Asian media. Non-English content now accounts for more than half of Netflix's NFLX.O U.S. catalog, with Korea, Japan, and Spain emerging as key sources of original programming. Titles such as Squid Game, One Piece, Demon Slayer and Sony's KPop Demon Hunters have achieved success well beyond their domestic markets, reflecting the worldwide appeal of innovative Asian IP.

"The media and video gaming industries have consolidated over time, and we'd expect top platforms like Tencent 0700.HK, Sony 6758.T, Netflix - and content creators like Nintendo 7974.T et al. - to continue to find success", the analysts said.

"Similar to video gaming, we expect AI to play an increasing role in accelerating media content production". (Joel Jose)

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