The year 2024 marks a significant uplift in the premium Video-On-Demand (VOD) sector across Southeast Asia, with revenues soaring by 14% to an impressive $1.8 billion. This growth narrative is underscored by the entry of Max, which made a promising start by capturing 26% of new customer additions in Q4 alone. While Netflix still holds a commanding lead with 48% of net additions, the introduction of new competitors and their performance is pivotal to an evolving streaming ecosystem. Countries like Indonesia and Thailand have emerged as frontrunners in revenue contributions, reflecting diverse viewing preferences and increasing platform penetration in the region.
Indonesia stands out as the powerhouse of the Southeast Asian VOD market, racking up $552 million in revenue. Close behind is Thailand, contributing $473 million. These figures highlight the growing appetite for streaming services in these nations, driven by a blend of local content and international hits. According to Media Partners Asia (MPA), both subscription and advertising revenues were pivotal in this context, showcasing a multiplicity of growth avenues in the regional landscape. Interestingly, even as Thailand exhibited a slight revenue slowdown, other markets, notably the Philippines and Malaysia, compensated for these dips, indicating a resilient market performance overall.
The fourth quarter of 2024 saw the addition of 3.2 million new subscriptions, proving the growing trend of Streaming Video-On-Demand (SVOD) in Southeast Asia. This marked an overall total of 53.6 million SVOD subscriptions across the region, which is an annual growth of 12%. Furthermore, total viewership increased dramatically by 7%, reaching 440 billion minutes in 2024. This surge signals an insatiable demand for streaming content, further reinforced by the constantly shortening attention spans of modern consumers who seek quick, engaging entertainment.
Despite Netflix’s substantial subscriber base, the competitive scene is changing with the arrival of Max, popular local platforms like Vidio, Viu, and TrueID continuing to push the envelope. According to Vivek Couto, Executive Director of MPA, the region’s streaming landscape is rapidly evolving in response to these new players. Max’s penetration into the market, particularly in Thailand, is a testament to the shifting dynamics, where content diversification, especially local productions and targeted offerings, play a crucial role in determining market success.
Looking ahead, the growth trajectory seems poised to continue as connected TV (CTV) and home broadband installation gain momentum. The industry’s strategic focus on producing premium local content and sports broadcasting promises to enhance viewer engagement further. Industry giants, including Netflix, have recognized this trend and are significantly investing in tailored content for prominent markets like Indonesia, Thailand, and Malaysia.
Moreover, there is a noticeable shift towards short-form content and bundling strategies, aimed at capturing subscriber attention and retention. This trend is particularly beneficial in Southeast Asia, where mobile consumption patterns dictate a preference for bite-sized entertainment. The popularity of non-Western content, especially in the realm of Asian dramas and anime—particularly noticeable on platforms like Viu—indicates a fast-shifting consumer preference landscape.
As Southeast Asia’s VOD market grows, it will likely become increasingly multifaceted, balancing global and regional content. The interplay between established services like Netflix and new entrants like Max could yield a fresh wave of innovations and choices for consumers. The observations from 2024 provide a glimpse into the future of the industry, indicating a competitive bubble that is set to amplify the essence of localized content while navigating the complexities of viewer preferences. The Southeast Asian VOD market stands at the brink of a transformative era—ripe with opportunities and challenges that will shape the viewing experience in the years to come.
Leave a Reply