The video-on-demand (VOD) market in Southeast Asia is booming, with record subscription and revenue numbers in the primary quarter of 2024, in keeping with a recent AMPD Media Partners Asia research report, marking a big rebound after a difficult 2023.
The study, which focused on Singapore, Thailand, the Philippines, Indonesia and Malaysia, found that average VOD consumption remained stable at 96.3 minutes per viewer. However, the overall variety of paid subscribers rose sharply, reaching a record 48.5 million. That translates to a quarter-on-quarter increase of 652,000 and a year-on-year jump of 1.6 million subscribers.
Accordingly, subscription revenue within the region reached a record $381 million, up 9% year-over-year and up 5% from the previous quarter. Notably, Indonesia and the Philippines led the subscriber growth, while Thailand and Indonesia saw significant revenue growth.
Strong local content and strategic investments drive recovery
Vivek Couto, Managing Director of Media Partners Asia, highlights the resilience of the VOD market in Southeast Asia. He highlights a marked improvement from Q4 2023 to Q1 2024, with a decrease in customer churn and impressive subscriber and revenue growth ([Source: Media Partners Asia]). Couto attributes this success to strategic investments in local content and targeted marketing efforts. Major platforms prioritize local entertainment and sports offerings to fulfill regional preferences.
Korean and American content stays popular, local takes center stage
The report confirms that Korean and American content are still popular as a big driver of viewer engagement. However, local content is becoming a key factor, especially in Indonesia and Thailand, where platforms have successfully adapted their libraries.
Netflix Leads, Viu Grows, Disney Maintains Position
Netflix stays the market leader by way of revenue, having captured a dominant 49% share in Q1 2024 and boasting 10 million subscribers. Viu follows closely behind with 9.1 million subscribers, driven by regional expansion and successful locally produced programming. Interestingly, Disney saw year-over-year revenue growth despite price increases, securing an 11% share of the region’s VOD revenue.
Local focus in every market
In Indonesia, Vidio leads the subscriber race with 4.1 million users, because of its premium sports content and extensive library of local dramas. Thailand’s TrueID has enjoyed subscriber growth fueled by locally produced originals, Premier League football coverage and a give attention to Japanese anime.
Korean Dramas Rule, Chinese Content Gains Popularity
Korean dramas proceed to reign supreme, accounting for nearly 30% of all premium VOD viewers in early 2024. US content also stays very talked-about. Interestingly, Chinese content is gaining popularity, especially on freemium platforms like WeTV, Viu, and iQiyi, across Southeast Asia.
Local stories resonate with audiences
The report highlights the continued demand for local content from Southeast Asia, especially on freemium platforms. This indicates a robust preference for locally produced stories. The success of Indonesian and Thai dramas highlights the importance of culturally relevant content for regional audiences.
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