The video-on-demand (VOD) market in Southeast Asia is experiencing a boom, with record highs in subscriptions and revenue for the first quarter of 2024, according to a recent report by Media Partners Asia's AMPD research. This marks a significant rebound from a challenging 2023.
The study, which focused on Singapore, Thailand, the Philippines, Indonesia, and Malaysia, revealed that average VOD consumption remained steady at 96.3 minutes per viewer. However, the total number of paid subscribers surged, reaching a record 48.5 million. This translates to a quarter-on-quarter increase of 652,000 and a year-on-year jump of 1.6 million subscribers.
Correspondingly, subscription revenue for the region hit an all-time high of $381 million, reflecting a 9% year-on-year growth and a 5% increase compared to the previous quarter. Notably, Indonesia and the Philippines spearheaded subscriber growth, while Thailand and Indonesia witnessed significant revenue increases.
Strong Local Content & Strategic Investments Drive Recovery
Vivek Couto, Managing Director of Media Partners Asia, highlights the resilience of the Southeast Asian VOD market. He emphasizes a clear improvement from Q4 2023 to Q1 2024, with declining 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 are prioritizing local entertainment and sports offerings to cater to regional preferences.
Korean & US Content Remain Popular, Local Takes Center Stage
The report acknowledges the continued popularity of Korean and US content as significant drivers of viewer engagement. However, local content is emerging as a crucial factor, particularly in Indonesia and Thailand, where platforms have effectively tailored their libraries.
Netflix Leads, Viu Expands, Disney Holds Strong
Netflix remains the market leader in terms of revenue, capturing a dominant 49% share in Q1 2024 and boasting 10 million subscribers. Viu follows closely with 9.1 million subscribers, fueled by its regional expansion and successful locally produced shows. Interestingly, Disney experienced a year-on-year revenue increase despite price hikes, securing an 11% share of the region's VOD revenue.
Local Focus in Each Market
In Indonesia, Vidio leads the subscriber race with 4.1 million users, thanks to its premium sports content and strong library of local dramas. Thailand's TrueID enjoys subscriber growth fueled by locally produced originals, Premier League football broadcasts, and a focus on Japanese anime.
Korean Dramas Rule, Chinese Content Gains Traction
Korean dramas continue to reign supreme, accounting for nearly 30% of all premium VOD viewership in early 2024. US content remains highly popular as well. Notably, Chinese content is gaining ground, particularly on freemium platforms like WeTV, Viu, and iQiyi, across Southeast Asia.
Local Storytelling Resonates with Viewers
The report underscores the enduring demand for local Southeast Asian content, especially on freemium platforms. This indicates a strong viewer preference for locally-produced stories. The success of Indonesian and Thai dramas underlines the importance of culturally relevant content for regional audiences.
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