5 Leading Players in Asia Pacific’s Video Streaming Market
While most major video streaming services in the Asia Pacific region are largely unknown in the western markets, they are witnessing significant growth in their respective regions. Services based in China are some of the largest and rapidly expanding platforms in the region, followed by Indian and western competitors, that is creating an extremely intense atmosphere of competition in the region.
China-based Tencent Holdings Ltd., iQiyi, and HOOQ, will be followed by India based Hotstar, and western giants such as Netflix, and Amazon Prime for the near future. Western companies like Netflix are unlikely to overtake their Asia based competition, especially within China owing to legislations that limit the growth of companies with foreign ownership in the country.
Tencent Video Focuses on Original Content Creation
Tencent Holdings Ltd.’s video streaming service is currently holds the lead in terms of penetration, albeit largely in China. Heavy investments in original or exclusive content is a key factor that this lead can be attributed to. Growing internet connectivity in China and the shift of consumer preferences towards the adoption of internet-based entertainment is also aiding in the growth of the company. Strategies to building paid subscriptions are essential to the company’s strategy for the future.
A comprehensive report by Future Market Insights, titled, “Video Streaming Market: SEA Projected to be the Fastest Growing Region During the Forecast Period”, tracks the market for 2018-2028. A sample of the report is available upon request.
iQiyi Supported by Key Search Engine Capability
Developed and run by China’s premier search engine brand Baidu, iQiyi’s success is largely dependent on its well established and widespread support of the search engine platform. The platform is currently facing strong completion from Youku Tudou, owing to similar subscription packages and variety of content. In addition, the company has also signed a licensing agreement with Netflix for original content, which is anticipated to boost the profitability of the company in the near future.
Hotstar Capitalizes on India’s Cricket Craze
The increasingly affordable rates of data subscriptions provided by telecom players in India has drastically transformed the Indian video streaming market, into one that is primarily based on mobile device viewing.
Competing with Netflix and Amazon Prime, Hotstar, which is owned by Star India is rapidly adding viewers to its consumer base, with the help of an optimized hybrid business model. This includes free content, which is supported by advertising, and an affordable subscription-based service for premium ad free content. Streaming cricket matches is one of the key strategies that is being followed by the company, as viewers can avail viewership of the matches even for free, albeit with a five-minute delay.
Iflix Grows with Focus on Pricing and Convenience
Aiming to keep Amazon and Netflix at bay, Malaysia based Iflix is putting emphasis on original and purchased local content. The company is also optimizing strategy through affordable pricing of subscription packaging for consumers in new markets. Also the content by this service allows for viewing even at relatively low data speeds, and allows the download of content before viewing, boosting user convenience, creating a favorable atmosphere for growth in smaller markets such as Vietnam, Myanmar, Pakistan and Sri Lanka.
Netflix Grows Despite Challenges in Asia
Netflix currently faces an uphill battle in the Asia Pacific market, as it does not have a strong base of original local content, while being one of the priciest video streaming services in the region. However, Netflix uniquely produces a lot of their own content instead of syndicating all of their movies and shows.
Cultivating a bigger field of localized content is one of the more significant activities being undertaken by the platform. In addition, the company is also working on providing potential subscribers with packages for shorter durations at low prices, to attract users who are unlikely to be regular viewers.
The Asia Pacific video streaming industry is expecting rapid growth in the near future. Free television broadcasts, on the other hand, are anticipated to witness a relatively flat rate of growth and lose its market share to online streaming services.
China in particular with its vast population, and increasingly robust infrastructure for internet connectivity is predicted to account for the world’s second highest subscription-based video on-demand service subscriber base, following the United States. The intense competition among numerous players in the region is expected to make it tough for any company to gain a significant lead over the others as traditional television channels and online video streaming services start to merge.
The authors of the report on Video Stream Market are available to discuss the future of this landscape. Get in touch.