The landscape of video on demand (VOD) in Southeast Asia is experiencing substantial transformations, characterized by impressive revenue growth and evolving consumer preferences. According to a report from Media Partners Asia (MPA), revenues in the premium VOD segment reached an impressive $1.8 billion in 2024, marking a significant 14% increase from the previous year. This boom is largely attributed to the entry of new platforms, particularly Warner Bros Discovery’s Max, along with existing giants like Netflix that have solidified their market presence. The year for subscription video on demand (SVOD) services witnessed interesting dynamics, with performance metrics providing valuable insights into regional viewer habits.
As per the MPA’s findings, Netflix remains the kingpin within this burgeoning market, commanding 48% of net customer additions in the fourth quarter of 2024. In contrast, Max, which debuted during the same time frame, managed to secure 26% of the new subscribers—a promising start for the emerging player. These figures undeniably illustrate the fierce competition in this arena, showcasing the rapid consumer shift towards diverse content offerings. Notably, Indonesia emerged as the leading revenue generator, contributing approximately $552 million to the overall market, followed closely by Thailand with $473 million. These statistics underline the importance of localized content and regional preferences amidst a broader global narrative.
Revenue growth across Southeast Asia was buoyed primarily by the performance in Indonesia, the Philippines, and Malaysia. This trend indicates a preference for localized and culturally resonant content amongst viewers. Although Thailand witnessed a minor slowdown, the overall increase in subscriptions and viewership across the region reflects a growing appetite for premium content. The report suggests an addition of 3.2 million net new SVOD subscriptions in the fourth quarter alone, raising the total to 53.6 million by year-end—a remarkable achievement representing a 12% growth year-on-year. Furthermore, total viewership surged to an astonishing 440 billion minutes, further demonstrating the robust engagement of audiences with VOD platforms.
Looking ahead, the next phase of growth for the Southeast Asian VOD market is poised to be significantly influenced by advancements in connected TV (CTV) and home broadband penetration. With technology enhancing access to streaming services, viewers are increasingly likely to explore various platforms. Content remains at the heart of this growth, with both Netflix and local competitors investing heavily in original productions and premium sports offerings to secure their customer bases. The emphasis on local content, especially in key markets like Indonesia, Thailand, and Malaysia, is becoming increasingly vital for success, as highlighted by MPA Executive Director Vivek Couto.
In an age where viewer preferences are critical for driving subscriptions, varied content is becoming a differentiator in attracting and retaining audiences. The report suggests that while Korean dramas and shows maintain significant popularity—especially on platforms like Netflix and Viu—content from Southeast Asia and China is gaining traction and reshaping the viewing landscape. Platforms such as Vidio and Viu are capitalizing on this shift, as original local content is increasingly integrated into their offerings. This diversification of content is essential not only for appealing to regional audiences but also for competing effectively against established global players.
The premium VOD market in Southeast Asia is thriving, driven by increased revenues, burgeoning subscription numbers, and heightened viewership metrics. While Netflix continues to dominate, new entrants like Max and the rise of local platforms signal a more competitive environment that prioritizes localized content and consumer preferences. As advancements in technology provide greater accessibility, the market is likely to witness a continuous influx of subscribers, making Southeast Asia a focal point for VOD growth in the coming years. The future looks bright for the region’s streaming landscape, providing exciting prospects for both established and emerging players alike.
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