The Southeast Asian video-on-demand (VOD) landscape is witnessing an unprecedented transformation in 2024, with premium VOD revenues soaring by 14% to an impressive $1.8 billion. This uptick, highlighted in a recent Media Partners Asia (MPA) report, underscores a region that is increasingly leaning into digital entertainment solutions. While industry leader Netflix continues to dominate the space, the emergence of new competitors, particularly Max, signifies a shift towards diversified content offerings and enhanced consumer engagement.
Delving deeper into the revenue streams, Indonesia stands tall as the frontrunner, generating a remarkable $552 million, closely followed by Thailand at $473 million. These figures underscore the potential and growing appetite for streaming services within the region. The MPA report offers a comprehensive overview of revenues accounting for both subscription-based and advertising-based models across five key Southeast Asian markets. Notably, the surge in revenue can be attributed to Indonesia, the Philippines, and Malaysia, which have proven resilient even amidst a minor slowdown in Thailand’s growth trajectory.
The fourth quarter of 2024 marked a pivotal moment for subscription video on demand (SVOD) in Southeast Asia, registering an addition of 3.2 million net new subscriptions and elevating the total to 53.6 million, a significant 12% increase year-on-year. This explosion in subscriptions illustrates not only the growing reliance on streaming services but also reflects consumer preferences shifting towards on-demand content that aligns more closely with their viewing habits. Furthermore, total viewership surged by 7% year-on-year, amassing a staggering 440 billion minutes in 2024.
The competitive landscape is heating up, with Netflix maintaining a stronghold by capturing 48% of net customer additions in Q4 2024. Despite facing new entrants like Max, which garnered 26% of the customer additions during its debut, Netflix’s aggressive strategy and prolific content offerings ensure its ongoing leadership. Max, launched by Warner Bros Discovery (WBD) in late 2024, aims to penetrate the region aggressively and capitalize on the momentum generated by high-profile releases, including new seasons of popular originals.
The report highlights how major platforms like Vidio, Viu, and TrueID are also expanding their local and regional offerings, providing competitive alternatives to global heavyweights. Such diversification in content is crucial in retaining and attracting subscribers, particularly in a region where local and Asian narratives resonate with the audience.
The positive trajectory for premium VOD services in Southeast Asia is projected to continue, largely driven by advancements in connected TV (CTV) and enhanced home broadband access. Insights from Vivek Couto, Executive Director of MPA, emphasize the importance of continued investment in localized content, including premium sports and original productions, as these elements play a vital role in stimulating user interest and maintaining subscriber growth.
Platforms are increasingly exploring innovative strategies that include bundling partnerships and a focus on short-form content, tapping into the preferences of younger consumers who favor bite-sized entertainment options. The growing interest in diverse content types highlights a significant shift in user consumption patterns within the region.
As Southeast Asia’s streaming ecosystem undergoes rapid evolution, the expansion of premium VOD services is not merely a trend but a clear reflection of changing consumer habits and a vibrant competitive arena. Companies are challenged to adapt and innovate continuously. The rise of platforms like Max, alongside stalwarts like Netflix and local services, signals a promising future for streaming in Southeast Asia. As viewers increasingly seek a richer array of options, the region is poised to benefit from a blossoming landscape of entertainment that caters to diverse tastes and preferences.