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Breaking down Southeast Asia’s media market boom
Unprecedented growth in digital advertising and streaming
The media landscape in Southeast Asia is undergoing a transformative phase. Recent trends reveal significant growth in digital advertising and an expansion of streaming platforms, positioning Indonesia, Thailand, and Vietnam as pivotal territories for content development and format adaptation.
Indonesia: A promising market leader
Indonesia emerges as the frontrunner with an impressive 8.5% annual growth rate in entertainment and media revenue. This rapid growth outpaces other countries in the region, making Indonesia a hotbed for media investments. The local streaming market showcases an even more dynamic picture, with Disney+ and Netflix each commanding over 20% of the SVOD market. Notably, local platform Vidio boasts 4 million subscribers, underscoring the competitive landscape. The market is notably dominated by four major media groups, with the MNC Group’s RCTI maintaining its position as the country’s top channel.
Thailand’s media landscape
Thailand’s media market is equally vibrant. Netflix reigns supreme as the most popular streaming service, capturing over one-third of surveyed consumers. TrueID and Disney+ Hotstar follow with 21% and 13% market shares respectively. The region has witnessed significant movements in content deals, highlighted by Paramount Global’s recent partnership with Mono to launch a Paramount+ brand extension.
Vietnam’s strategic positioning
In Vietnam, the television sector remains primarily government-influenced, with VTV operating seven nationwide channels. Despite this, the country’s streaming market is thriving with multiple local platforms leading the way. FPT Play and Netflix are the frontrunners in paid services. Vietnam stands out as Asia’s largest buyer of unscripted formats, favouring Chinese formats from providers such as Hunan TV and Shanghai Media Group.
Key insights on digital advertising and connected TV
Southeast Asia’s digital advertising spending is in sync with global trends. Singapore, Thailand, and Malaysia allocate the largest share of ad budgets to digital platforms, followed by Indonesia and Vietnam. The future of connected TV looks particularly promising, with expectations that its revenue will double from 2023 to 2028.
Content adaptation trends
Format adaptation trends highlight distinct preferences across the region. In 2023, Indonesia acquired nine unscripted formats compared to just one scripted format. In contrast, Thailand secured ten unscripted formats alongside approximately fifteen scripted ones, primarily sourced from Korea. Vietnam, on the other hand, maintains a robust interest in unscripted content, particularly talent and game shows.
Taiwan: Growing influence in Asian media
Taiwan is gaining recognition for its rapidly growing prominence in the Asian media landscape. The territory is now positioned second only to Korea in terms of market effectiveness. Taiwan’s contemporary film output and institutional support for regional media development have garnered significant attention. The territory’s strategic importance in Asian media cannot be overstated, as it continues to provide an appealing destination for content producers and distributors.
Future of SVOD and AVOD
The analysis reveals that SVOD revenue is projected to maintain over 70% of the total VOD revenue globally through 2027. However, there is a notable shift in dynamics as AVOD begins to gain momentum, growing at three times the rate of SVOD during the forecast period. This trend underscores the evolving nature of consumer preferences and monetization strategies in the media industry.
Stay tuned for more updates and deep dives into the evolving media landscapes around the world. Join the conversation and follow us for the latest insights on the vibrant growth and transformations within Southeast Asia’s thriving media markets.
