Southeast Asia’s VOD market: A thriving landscape
The premium video-on-demand (VOD) market in Southeast Asia has shown remarkable resilience and growth, even amidst a global slowdown. In the first half of this year, revenues surged by 11%, reaching a substantial $895 million. This growth is a testament to the region’s increasing appetite for digital content, with paid SVOD subscriptions climbing by a million to hit the 49 million mark.
A closer look at the numbers
The latest quarterly report from a leading digital measurement platform, covering Indonesia, Thailand, Malaysia, the Philippines, and Singapore, provides a comprehensive overview of the market dynamics. The platform measured over 230 billion minutes of viewership in the first half of 2024, marking a 4% year-on-year increase. This growth was particularly driven by the Philippines and Indonesia, highlighting these countries as key players in the region’s VOD landscape.
Revenue and subscriber growth
Indonesia continues to lead in terms of revenue, while the Philippines, Thailand, and Malaysia have shown significant customer growth. The report indicates that Netflix and Viu both experienced substantial double-digit revenue growth in the first half of 2024. Netflix’s share of category viewership reached an impressive 50%, dominating markets in Malaysia, the Philippines, and Singapore. However, it faces stiff competition in Indonesia and Thailand, where local dynamics are more complex.
Netflix’s category revenue share, including advertising, stood at 40% during this period. Viu, on the other hand, captured 10% of both viewership and category revenue share. Despite losing some subscribers, Disney+ continues to see revenue growth by focusing on a higher ARPU (Average Revenue Per User) customer base. Meanwhile, the Chinese-owned WeTV maintained a robust 8% category engagement share in Southeast Asia.
Local players making their mark
Among local players, Vidio leads in Indonesia with approximately 20% of the category revenue share in the first half of the year. Its 7% viewership share is driven by popular local dramas and sports content. In Thailand, True ID led the premium VOD category with a 27% viewership share, although it remains second to Netflix in terms of revenue share.
The content landscape
The report highlights that while price increases have moderated customer growth, there remains a significant opportunity for penetration beyond major urban centers in Indonesia, the Philippines, and Thailand. As premium sports, local, Asian, and U.S. content move online, the demand continues to rise. Korean, U.S., Chinese, and Japanese content captured 80% of premium VOD viewership in Southeast Asia in the first half of 2024.
The power of Korean content
Korean content remains a major driver of viewership in the region. Chinese dramas account for 40% of freemium viewership, while U.S. content continues to be a leading acquisition funnel across global services. Local content also maintains a strong reach, significantly impacting subscriber acquisition.
Personal reflections for enthusiasts
For cinema and TV series enthusiasts, the Southeast Asian VOD market offers a rich tapestry of content. The dominance of Korean dramas, the rising popularity of Chinese series, and the evergreen appeal of U.S. shows create a diverse viewing experience. Platforms like Netflix and Viu are not just content providers but cultural bridges, bringing global stories to local audiences.
Exploring new content
For those looking to explore new content, here are some recommendations:
- Netflix: Dive into a vast library of international hits and local favorites.
- Viu: Discover a treasure trove of Asian dramas and variety shows.
- Disney+: Enjoy a mix of classic Disney content and new originals.
- WeTV: Explore popular Chinese dramas and variety shows.
- Vidio: Watch local Indonesian dramas and sports events.
- True ID: Experience a blend of Thai content and international hits.
The future of VOD in Southeast Asia
As the VOD market continues to evolve, the focus will likely shift towards more localized content and innovative pricing strategies to attract a broader audience. The integration of premium sports, local dramas, and international content will be crucial in maintaining growth and engagement.
For music enthusiasts, the rise of VOD platforms also means more opportunities to discover new soundtracks and musical scores from various shows and movies. Platforms like Spotify offer a seamless way to explore these musical gems:
- Spotify: Search for your favorite soundtracks and discover new music from the latest shows and movies.
the Southeast Asian VOD market is a dynamic and rapidly growing sector, offering a wealth of content for viewers. Whether you’re a fan of Korean dramas, Chinese series, or U.S. shows, there’s something for everyone in this vibrant digital landscape.