The streaming market in Southeast Asia has undergone remarkable changes in 2024, reflecting a burgeoning appetite for premium Video on Demand (VOD) services. According to a comprehensive report by Media Partners Asia (MPA), revenues in the region have surged to $1.8 billion, marking a 14% increase from previous years. This growth is fueled by innovative content offerings and the aggressive entry of new players into the regional streaming arena. In particular, the launch of the Warner Bros. Discovery’s Max has garnered attention, achieving 26% of net customer additions during the final quarter of the year, although it still trails behind Netflix’s robust 48% share.
Among the Southeast Asian markets, Indonesia stands out as the most lucrative, generating a whopping $552 million in revenues. Thailand follows closely with $473 million. The MPA report highlights a dynamic market landscape across five countries, indicating that both subscription models and advertising revenues are contributing significantly to overall growth. Indonesia, alongside the Philippines and Malaysia, is driving expansion despite a subtle slowdown in Thailand’s growth trajectory. This dichotomy raises interesting questions about regional consumption preferences and economic conditions influencing viewer habits.
In the last quarter of 2024, the region witnessed an influx of 3.2 million new Subscription Video on Demand (SVOD) subscriptions, pushing the total to an impressive 53.6 million across Southeast Asia. This represents a 12% year-on-year increase, affirming the growing engagement of audiences with streaming platforms. Notably, total viewership expanded by 7%, culminating in 440 billion minutes consumed over the year. This surge not only underscores the shift towards digital consumption but also hints at the potential for further growth in content production targeted for local audiences.
The Role of Local Content and Strategic Partnerships
Vivek Couto, Executive Director of MPA, emphasizes the rapid evolution of Southeast Asia’s streaming ecosystem. While Netflix continues to hold a dominant position, the entry of new players like Max and the enhanced offerings from regional platforms such as Vidio and Viu are invigorating the market. The future of streaming in this region hinges on the increased penetration of connected TV (CTV) and home broadband services. Investments directed towards creating localized content—including Asian dramas and sports—will be key drivers of future subscriber growth, particularly in countries like Indonesia, Thailand, and Malaysia.
Another interesting development is the industry’s pivot toward innovative strategies like short-form content and bundling partnerships. These initiatives are designed not only to attract new subscribers but also to improve retention rates among existing viewers.
Korean dramas have remained a steady favorite, particularly on platforms like Netflix and Viu. Meanwhile, US-produced content continues to capture a significant portion, accounting for 20% of the overall premium VOD viewership. However, the emerging popularity of Southeast Asian and Chinese productions cannot be overlooked; these genres are increasingly gaining traction on platforms such as Vidio and Viu, positioning themselves favorably against the established players. Interestingly, Japanese anime is also witnessing a surge in popularity, especially on SVOD networks in Thailand, signaling a diverse landscape that goes beyond mere replication of Western content.
Overall, the state of premium VOD in Southeast Asia in 2024 paints a vibrant picture of an industry in transition and expansion. The emergence of Max and the sustained dominance of Netflix, paired with the growth of localized content, indicates a rich, competitive market. As streaming services continually adapt to consumer preferences and innovate with content strategies, the future appears promising, not just for major players but also for local platforms navigating the complex landscape with unique offerings. The next phase will surely bear witness to an even broader array of choices for the region’s diverse audiences, highlighting the importance of cultivating both local and international content in fulfilling the requests of a discerning viewership.