Southeast Asia’s Premium VOD sector sees 11% revenue growth in 1H 2024, fueled by demand for Korean, Chinese, US, and Japanese content

Southeast Asia’s premium video-on-demand (VOD) sector saw an 11% increase in revenue during the first half of 2024, totalling US$895 million, according to the latest analysis by ampd, the digital measurement platform operated by Media Partners Asia (MPA). This growth, while positive, masks underlying challenges and shifts within the market.

The sector recorded over 230 billion minutes of viewership, a 4% rise year-over-year. Despite this increase, the growth rate is slower compared to previous periods, suggesting a potential plateau as the market matures. The addition of around 1 million new SVOD subscriptions, bringing the total to 48.8 million, represents a 5% year-over-year increase. This modest rise in subscription numbers indicates that while demand persists, the rate of new customer acquisition is slowing.

Content trends highlight a dominant presence of Korean, Chinese, US, and Japanese productions, which together captured 80% of the viewership. Korean content remains the leading driver, but the growing share of Chinese dramas in the freemium segment suggests evolving viewer preferences. The heavy reliance on US content points to its continued significance in attracting subscribers, yet this dependency raises concerns about the sustainability of foreign content dominance as local players gain ground. “While price increases have moderated customer growth, growing penetration beyond the major urban centres in Indonesia, Philippines and Thailand remains a major opportunity as premium sports, local, Asian and US content moves online. Korean, US, Chinese & Japanese content captured 80% of premium VOD viewership in Southeast Asia in 1H 2024. While Korean content remains the major driver, Chinese dramas are increasing freemium viewership. US content remains the leading acquisition funnel across global services. Local content maintains strong reach, with acquisition impact,” Vivek Couto, executive director, MPA, said.

The Korean SVOD market added 705,000 net new subscribers in the first half of 2024, reaching a total of 20.8 million by the end of June. During this period, premium VOD revenues, encompassing both subscription and advertising, grew 11% year-on-year to US$922 million. Viewership also increased by 5% year-on-year, totalling 103 billion minutes.

The report further highlights Netflix’s substantial 50% share of overall viewership and 40% of category revenue, including advertising, which underscores its market dominance in regions such as Malaysia, the Philippines, and Singapore. However, Netflix faces increasing competition in Indonesia and Thailand, where local platforms are emerging as formidable rivals. The disparity between Netflix’s high viewership share and its revenue share indicates challenges in translating viewership into revenue effectively.

Viu’s 10% share of both viewership and revenue demonstrates its growing influence but also reveals the limitations of competing with larger platforms. Disney+, despite a decline in subscriber numbers, has achieved revenue growth by focusing on higher-value customers. This strategy highlights the platform’s response to competitive pressures but raises questions about its long-term ability to retain a broad subscriber base.

WeTV’s 8% engagement share suggests a stable but limited role in the market, reflecting its niche positioning rather than significant growth potential.

Local players are increasingly important. Vidio, with a 20% share of revenue and 17% of viewership in Indonesia, shows the effectiveness of local content in capturing audience interest. True ID, with a 27% viewership share in Thailand, faces challenges in translating high viewership into comparable revenue, illustrating the difficulties local platforms encounter in monetizing their audience.