The year 2024 has marked a significant milestone for the premium Video on Demand (VOD) industry in Southeast Asia, as revenues have seen an impressive 14% increase, reaching a staggering $1.8 billion. This growth is rooted in the competitive dynamics of the region, notably highlighted by the successful entry of Max, Warner Bros. Discovery’s streaming service. According to the latest findings from Media Partners Asia (MPA), Max managed to secure 26% of net new subscribers in the last quarter, signaling a promising start in a market where Netflix still maintains a formidable lead, capturing 48% of net additions during the same period.
While Max’s performance is commendable, the persistence of Netflix’s dominant position cannot be overlooked. This disparity underscores the complexity of the Southeast Asian market, where diverse consumer preferences and a variety of platforms coalesce. The report draws attention to Indonesia’s leading position in revenue generation, contributing $552 million, followed closely by Thailand at $473 million. These figures reflect a broader trend, as Southeast Asia witnesses a blend of local and global content shaping consumer choices.
The growth in premium VOD revenues can be attributed largely to rapidly evolving viewer behaviors in Indonesia, the Philippines, and Malaysia. These countries’ increasing internet penetration and mobile device usage are playing pivotal roles in the surge of subscription Video on Demand (SVOD) offerings. Conversely, Thailand experienced a minor slowdown, raising questions about potential market saturation or changing consumer habits.
MPA’s analysis indicates a total of 3.2 million new SVOD subscriptions introduced in Q4 2024, resulting in a regional total of 53.6 million subscriptions—an encouraging 12% rise year-on-year. This robust growth is indicative of the changing landscape in Southeast Asia, as high demand for diverse content creates ample opportunities for all players involved in the sector.
Consumer engagement is intrinsically tied to the evolution of content strategy among streaming platforms. As Vivek Couto, Executive Director of MPA, emphasized, the future growth of the industry will heavily rely on further penetration of connected TV (CTV) services and home broadband access. The growing investment in local and regional content, including premium sports, has the potential to significantly enhance viewer retention and satisfaction.
For instance, Netflix’s recent initiatives to enhance its library with localized content in Indonesia and Thailand could prove to be a game changer in attracting and retaining subscribers. At the end of 2024, Netflix boasted approximately 12 million subscribers across the five major markets in Southeast Asia.
Meanwhile, Max’s entry into the market aligns with the existing trend toward local content. As the service rolls out new originals, such as the highly anticipated third season of “White Lotus,” further engagement is expected. Reports suggest that Max concluded Q4 with over 1.4 million subscribers, relatively strong given its newcomer status.
The appetite for diverse content continues to expand, with Korean dramas enjoying substantial acclaim on platforms like Netflix and Viu. Notably, U.S. productions account for approximately 20% of the overall premium VOD viewership, largely propelled by services such as Netflix, Disney+, and Prime Video. However, the increasing prominence of Southeast Asian and Chinese content suggests a shift in viewing patterns, with local productions beginning to capture a more significant share of the market.
Furthermore, platforms like Vidio and Viu are successfully tapping into this trend by offering exclusive localized content, which is increasingly appealing to a growing subscriber base. The popularity of Japanese anime in Thailand further exemplifies how varied content types can enhance the streaming experience, demonstrating a clear demand for eclectic programming options.
The premium VOD landscape in Southeast Asia is undergoing rapid transformation, characterized by significant growth in revenues and an evolving competitive landscape. As new entrants like Max challenge established players such as Netflix, the future of this industry lies in the ability to adapt and innovate content strategies. With advancements in technology facilitating greater accessibility and diverse content offerings, Southeast Asia is poised to remain at the forefront of the global streaming sector in the coming years.