Disney+ Indonesia launch sets scene for streaming battle
SINGAPORE: US streaming giant Netflix is ramping up its mobile-only subscription plans in Southeast Asia and expanding local content, senior executives told Reuters, just as arch-rival Disney arrives in the fastgrowing market.
The world's biggest video streaming platform by paid customers, Netflix told Reuters more than a million of its nearly 200 million subscribers around the world are in Southeast Asia, home to around 655 million people. But the market is ripe for rapid growth, analysts say, with the Disney+ Hotstar launch in Indonesia next month set to become a key battleground.
"What we see in Southeast Asia is that it's a very mobile-centric market", Netflix director for product innovation Ajay Arora told Reuters in a recent interview. That's led the company to push cheaper mobile plans and adapt its product to fit lower-end smartphones, Arora said.
Southeast Asia is estimated to have generated $600 million in overall subscription music and video revenue in 2019, according to a study by Google, Temasek Holdings and Bain & Co - but that's set to explode to an annual $3 billion by 2025, the study said. Starting with India in August 2019, Netflix has now launched mobile-only plans in Malaysia, Thailand, the Philippines, and Indonesia - all priced at below $5 a month. That's a departure for Netflix, which has held firm on pricing in Western markets. Repeated coronavirus lockdowns across Southeast Asia have also increased the appetite for content streaming.