The Premium Video on Demand (PVOD) sector in Southeast Asia is witnessing a remarkable surge, with revenues projected to reach $1.8 billion in 2024, reflecting a 14% growth compared to the previous year. This trend, documented in a recent report published by Media Partners Asia (MPA), highlights how the streaming landscape is rapidly evolving in this diverse region. The introduction of new players, including Max, has significantly impacted market dynamics, resulting in robust competition and varied consumer choices.
Max, the popular streaming service by Warner Bros. Discovery, made a noteworthy entrance into Southeast Asia in late 2024. It managed to capture 26% of net customer additions in Q4, a commendable achievement for a newcomer. However, Netflix continues to assert its stronghold on the market, accounting for an impressive 48% of the same segment in the fourth quarter. Such figures illustrate that while new entrants are beginning to make their mark, established platforms like Netflix continue to dominate the streaming service landscape.
The diverse markets within Southeast Asia showcase various revenue figures, with Indonesia leading at an impressive $552 million, followed closely by Thailand at $473 million. The MPA’s research accounted for revenue across five key markets, emphasizing how localized content and subscriber preferences play significant roles in these figures. Notably, Indonesia, the Philippines, and Malaysia emerged as key growth drivers, more than compensating for a fractional slowdown observed in the Thai market.
Subscriber Growth and Changing Viewing Habits
A staggering addition of 3.2 million new SVOD subscriptions in the fourth quarter has propelled the regional total to 53.6 million. This 12% year-on-year increase in subscriptions undoubtedly signals a growing appetite for streaming content across the Southeast Asian audience. Commensurately, total viewership has also surged, rising by 7% to 440 billion minutes in 2024, indicating a significant engagement with streaming platforms.
Vivek Couto, Executive Director of Media Partners Asia, pointed out how the streaming ecosystem in Southeast Asia is undergoing rapid transformations. Innovative releases, particularly local content and emphasis on premium sports led by platforms like Netflix, embody the avenues through which streaming giants are enhancing subscriber retention. Future growth prospects appear promising, with enhanced broadband penetration and the proliferation of connected TV (CTV) expected to further stimulate viewership and subscriber acquisition.
Despite the prominence of Western content, particularly from the US, which comprises around 20% of viewership in the premium VOD sector, Southeast Asian and Chinese content are gaining traction. Platforms such as Vidio and Viu are increasingly capitalizing on this demand, appealing to local viewers with culturally relevant programming. The burgeoning popularity of Korean dramas on Netflix and Viu, alongside the rise of Japanese anime, further illustrates the diverse array of content viewers seek.
Local partnerships and innovative bundling strategies are also being explored to enhance viewer engagement. These initiatives not only promote subscriber growth but also ensure a personalized viewing experience tailored to the unique tastes prevalent in Southeast Asian markets.
The Premium VOD landscape in Southeast Asia harbors substantial opportunities for both new and existing players. As seen with Max’s entry, the competition is intensifying, potentially leading to more diverse content offerings and improved viewer experiences. The ongoing expansion of internet connectivity, along with targeted investments in local content, promises to elevate the industry further. As streaming services continue to tailor their strategies and programming to fit regional preferences, the future of Southeast Asia’s VOD market looks to be both dynamic and lucrative.