Southeast Asia‘s Streaming Revolution: Netflix still Reigns, but the Competition Is Heating Up

Southeast Asia’s premium video-on-demand (SVOD) market experienced explosive growth in 2024, with total industry revenues soaring 14% to $1.8 billion and viewership reaching a staggering 440 billion minutes, according to Media Partners Asia (MPA).

Netflix dominated, commanding a 52% viewership share and 42% of the revenue, securing nearly half of all new subscriptions in the fourth quarter. The company concluded 2024 with over 12 million subscribers across the region’s five key markets. Indonesia emerged as the top revenue generator, contributing $552 million, followed by thailand at $473 million. Robust performance in Indonesia, the Philippines, and Malaysia offset a slight slowdown in thailand, fueling the overall growth.

The fourth quarter of 2024 proved especially dynamic, adding 3.2 million new SVOD subscriptions,bringing the regional total to 53.6 million. Warner Bros. Revelation’s Max launched in November 2024, making a meaningful splash by capturing 26% of the quarter’s new subscribers, especially in Thailand. Max ended the quarter with over 1.4 million subscribers, with projections for accelerated growth in 2025 fueled by upcoming original content like “White Lotus” season 3.

While Netflix maintains its clear leadership, the competitive landscape is intensifying.In Indonesia, local player Vidio led with 4.7 million subscribers in 2024, while regional competitor Viu boasted 9.5 million customers. Disney+ held a steady 10% revenue share following service adjustments.

Korean content continued to drive significant viewership, with shows like “Queen of tears,” “My Demon,” and “Gyeongseong Creature” performing exceptionally well on Netflix. U.S. content accounted for 20% of premium VOD viewership, while Southeast Asian and Chinese content gained traction, especially in the freemium sector. Japanese anime remained popular, particularly on SVOD platforms in Thailand.

“Southeast Asia’s streaming landscape is evolving rapidly,” said Vivek Couto, executive director of MPA. “While Netflix has solidified its leadership position, the category is growing with the entry of Max and the scaling of local and regional platforms like Vidio, Viu and TrueID. The next phase of growth will be fuelled by the expansion of connected TV and home broadband penetration. Continued investment in local/Asian content and premium sports, led by Netflix and key local and regional platforms in Indonesia, Thailand, and Malaysia, will further stimulate growth. The industry is also exploring new strategies focused on short-form content and bundling partnerships to attract and retain subscribers.”

Headline: Broadcasting Brilliance: The Streaming surge in Southeast Asia and What It Means for Global Markets

[Opening Statement]

The Southeast Asian streaming landscape has undergone a seismic shift,with Netflix leading the charge amidst a fierce and rapidly-evolving competition. with billions in revenue and viewership hours skyrocketing across the region,the digital entertainment industry is reshaping cultural narratives and economic strategies. But, what does this influx of content, local demand, and regional players mean for the future of streaming worldwide?

Q1: The Explosion of the SVOD Market in Southeast Asia

How has the premium video-on-demand market in Southeast Asia demonstrated such explosive expansion, and what are the key drivers behind its growth?

Expert’s Answer:

The growth of the Southeast Asian SVOD market is an extraordinary testament to the region’s increasing tech adoption and changing consumer behaviors. The 14% growth to $1.8 billion in 2024, characterized by 440 billion minutes of viewership, is driven by several critical factors. Primarily, the burgeoning middle class with rising disposable income is keen on robust entertainment options, fueling the demand for premium content delivery. additionally, the proliferation of connected TV and home broadband penetration, particularly in countries like Indonesia, Thailand, and Malaysia, forms the backbone of increased accessibility and consumption.

In this digitally-driven era, viewers seek diversity in content—local and international narratives find their place with massive engagement. Platforms are increasingly localizing their content and harnessing cultural specificity to captivate audiences,similar to Netflix’s strategic positioning of Korean dramas and japanese anime,wich has captured significant attention.

Q2: The Reign of Netflix amidst Rising Competitors

While Netflix has maintained its leadership in the region commanding a 52% viewership share, how is the intensifying competition impacting its strategies and positioning?

Expert’s answer:

Netflix’s continued dominance is noteworthy; however, the competitive landscape is undeniably intensifying. With Warner Bros.’ Max acquiring 26% of new subscribers in the fourth quarter of 2024,Netflix faces substantial pressure to innovate and consolidate its leading position. This dynamic competition encourages a focus on high-quality, diverse content creation, intensified by upcoming originals, which are projected to spur growth in 2025.

Local players like Vidio in Indonesia and Viu are challenging the status quo by harnessing regional preferences and offering competitively priced, culturally resonant content. Netflix, aware of the need for agility, is responding by investing heavily in both local and adolescent content.It is strategically leveraging data analytics to understand viewer preferences,thus tailoring content libraries to suit regional tastes.

Q3: The Impact of Local Content and Regional Competitors

How are local and regional streaming entities reshaping the Southeast Asian SVOD ecosystem, particularly in major markets like Indonesia, Thailand, and malaysia?

Expert’s Answer:

Local content and regional platforms are indeed proving formidable forces in the Southeast Asian streaming dynamics. Players like Vidio and Viu are leading by example,utilizing deep insights into local cultural aspects to craft content that resonates with regional audiences. Vidio’s success in Indonesia with over 4.7 million subscribers and Viu’s vast 9.5 million strong user base reflect a strategic edge in localizing offerings and shaping entertainment norms.

This trend not only diversifies the types of content available but also democratizes viewer engagement,allowing audiences to see their stories reflected on their screens. These regional entities are not merely subservient to global giants but stand as vital pioneers, setting industry standards. Collaborations like content bundling and strategic partnerships are augmenting their reach and viewer retention, presenting engaging developments that could redefine content consumption standards globally.

Q4: Future Prospects and Opportunities in Southeast Asia’s Streaming Industry

Looking forward, what strategic opportunities and innovations might drive the next phase of growth in Southeast Asia’s streaming sector?

Expert’s Answer:

The future of Southeast Asia’s streaming ecosystem lies in multifaceted opportunities, primarily hinging on expanding infrastructure like connected TVs and better broadband, thus enhancing accessibility. Furthermore, the focus is shifting towards premium and localized content, which appeals directly to nuanced regional tastes. Streaming giants like Netflix and regional platforms are pioneering this shift by integrating short-form content, which aligns well with the growing consumption appetite among younger demographics.

Sports content,particularly premium offerings,stands to be a significant value driver. Partnerships with local leagues and international sports bodies will likely boost subscriptions and viewer engagement. Another innovative avenue is technology-driven personalization,where AI enhances viewer experiences by suggesting content that aligns with user preferences.

Conclusion & Engagement

As Southeast Asia’s streaming landscape continues to burgeon, the interplay of technological advances, content diversification, and strategic investment positions this region at the forefront of global market evolution. With Netflix leading and new competition redefining benchmarks, the industry is poised for unprecedented growth that promises enhanced entertainment experiences for audiences worldwide.

Engagement Invitation:

What are your thoughts on the shifting paradigms within Southeast Asia’s streaming scene? How do you see these changes impacting global market dynamics in the coming years? Share your insights and join the conversation below! 😊

Key Takeaways:

• Rising Tech Adoption: Increases SVOD market growth.
• Content Localization and Diversity: Essential for capturing Southeast Asian audiences.
• Strategic Partnerships: Revolutionize accessibility and viewer retention.
• Emerging Opportunities: In sports and short-form content.
• AI and Personalization: Future strategic differentiators.

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