May 1, 2023

Streaming across a variety of screens

The entry of streaming services like Netflix, Disney+ and HBO Max has made waves in Asia, enticed by the relatively affordable subscription fees and the ability to watch from the comfort of one's home.

On an average day, how long do you spend watching online TV?

Internet users in China and India are well ahead of the wider region for online TV engagement; but they're switching positions since 2019, which reminds us how fast the tide can turn.

Alongside an economic downturn, the Chinese government clamped down on fan-based culture in 2021. This led to less choice across genres like reality TV, causing demand to dip.

As this happens, Chinese platforms like Tencent Video and iQiyi are pushing Chinese language content in other markets, placing extra focus on Southeast Asian countries.

Meanwhile, more smartphone availability and affordable subscription plans are boosting online TV's success in India. Since 2020, local platforms ZEE5 and Sony Liv have both earned a spot on our leaderboard for the region's top 10 services, overtaking Chinese players like Sohu and Mango TV in the process.

China's an inaccessible market anyway, and if we remove it from the equation, the rise of APAC's online TV sector is even more impressive than ever.

As more Indian consumers step into this space, competition will inevitably heat up, with the country set to have an increasingly bigger impact on wider streaming trends. Despite being notably tricky to break into, services have found success in India by focusing on original content across genres, targeting niche audiences, and catering to its various languages.

Small screens aren't the only headline

It's not just longer binges that are shaping the direction of online TV. The devices people use to watch them are also leaving their mark.

Around the world, more people stream content on a TV set than a phone, but in APAC, the opposite is true. Here, mobiles take the prize.

Not only that, they've continued to grow as a way to tune in. Outside China, the number using TV subscription services on their phones grew by 33% between 2018 and 2021, which helps explain why the regions often described as mobile-first.

Almost 3 in 5 APAC consumers own a smart TV, a figure that's risen by 25% in the last two years. Not to mention, TVs are the go-to device for streaming in half of our 14 markets, and they have a big lead on phones in Australia, New Zealand, and Vietnam.

This is good news for advertisers according to Google, as Connected TV (CTV) users are more engaged and emotionally invested. They're more likely to watch with someone else and better audio/visual quality means the experience is more immersive.

Those who stream via TVs are also a slightly different audience to those who watch on mobile; compared to the latter, they skew older and wealthier. So, brands have a chance at connecting with a valuable part of the non-traditional TV audience.

And there's plenty of success stories to draw on. Indian food delivery service Swiggy, for example, adopted a CTV-first strategy to win over those ordering in while streaming the Premier League. The decision clearly paid off, as it reached 47% more high-income households, raising its profile and prompting viewers to download the app.

Asian originals

Besides, Asian pop culture has made its way on the Western stage. That's another reason why APAC's so appealing to streaming businesses. The Korean dramas and Japanese anime show taking off there are also catching on elsewhere in the world. If you want proof of this, you can find it in the incredible 14 Emmy nominations racked up by Netflix's Squid Game.

It's worth keeping tabs on what's gaining ground in this part of the world, especially if successful shows or films can be repurposed later on as foreign-language media.

Even so, content costs are rising, which means providers can no longer afford to spend first and ask questions later. And, though consumers in APAC are cost-conscious, they're value-conscious more than anything.

This means that, though the region's potential pay-off is huge, it's challenging terrain.

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