According to a new study, the video-on-demand streaming sector in Southeast Asia achieved record subscription numbers and revenues in the first quarter of the year. These trends indicate a recovery following a challenging 2023.
Data collected under study from consultancy firm Media Partners Asia and its AMPD research affiliate revealed that VOD usage remained relatively stable at 96.3 minutes in the five Southeast Asian countries (Singapore, Thailand, The Philippines, Indonesia, and Malaysia).
Furthermore, reflecting net additions of 652,000 quarter-on-quarter and 1.6 million year-on-year total paying subscriptions reached 48.5 million. According to reports from the firms, this growth was accompanied by a 9% year-on-year and 5% quarter-on-quarter rise in total subscription revenues to $381 million, marking a significant milestone as the highest quarterly revenue recorded in the region. Notably, Thailand and Indonesia demonstrated strong growth in monetization while Indonesia and the Philippines emerged as the leaders in subscription growth.
MPA MD Vivek Couto, said, “Following a challenging period in 2023, the Southeast Asian premium VOD sector has demonstrated resilience and notable improvements since Q4 2023, a trend that has continued into Q1 2024. We’ve observed better monthly customer churn metrics, alongside robust growth in subscribers and subscription revenues. Investment in local content and marketing has been strategic and, for the most part, sustainable, while leading platforms continue to invest in local entertainment and sports.”
The enduring popularity of Korean and U.S. content, as per the key trends has significantly contributed to customer engagement across the region. Notably in Indonesia and Thailand local content continues to be a cornerstone and successful platforms have customized their offerings to align with the preferences of local audiences, according to the report.
Additionally, capturing 49% of the subscription revenue in Southeast Asia and boasting 10 million subscribers Netflix maintained its position as the leading earner in the premium VOD category, in the first quarter. With 9.1 million paying customers, Viu secured second place and saw double-digit growth in subscription fees.
Disney managed to grow its revenues year-on-year despite experiencing customer churn due to its strategy of raising pricing across direct and wholesale segments. Maintaining a stable position in the market Disney+ maintained its share of Southeast Asia’s premium VOD subscription revenue at 11%.
Vidio retained its position as the leading platform in terms of subscribers, in Indonesia, boasting 4.1 million customers. Its success was driven by the availability of premium sports content and popular local dramas. Meanwhile, supported by the popularity of local original content, Premier League football coverage, and Japanese anime offerings, TrueID experienced growth in Thailand.
Furthermore, accounting for nearly 30% of total premium VOD viewership in the first quarter of 2024 Korean dramas maintained their dominance as the top content category, across the region. Following closely behind in popularity was the U.S. content. Additionally, particularly on freemium platforms like WeTV, Viu, and iQiyi, Chinese content experienced notable growth, spanning across multiple markets.