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American Focus > Blog > Entertainment > Global streamers seek price increases as Asia market grows, matures
Entertainment

Global streamers seek price increases as Asia market grows, matures

Last updated: September 24, 2024 10:01 pm
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Global streamers seek price increases as Asia market grows, matures
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Multinational streaming groups are flexing their market muscle in the Asia-Pacific region, leveraging their dominance to increase pricing and boost profitability. While local competitors in the region hold a significant share of revenue, they still fall behind the global giants in terms of earnings.

During the opening address at the APOS conference in Indonesia, Vivek Couto, managing partner at Media Partners Asia, highlighted the shifting dynamics in the streaming industry. Global players like Netflix, Disney, and Warner are adopting different strategies to capitalize on the growing market. Netflix is moving towards a partnership-based growth model, while Disney is focusing more on direct-to-consumer offerings. Warner, through its MAX platform, is seeking a balance between different markets, as seen in its recent deal with U-Next in Japan.

Price hikes are becoming more common in the region, with platforms looking to maximize monetization opportunities. Advertising is also on the rise on SVOD and user-generated platforms, with players like Netflix, Prime Video, Tving, and YouTube increasing their ad load and premium prices. Disney, in particular, is transitioning to a pricing model closer to that of Netflix, signaling the evolution of offerings as markets evolve.

In terms of revenue, the big four entertainment-tech companies – Amazon, Meta, Netflix, and YouTube – are projected to earn $21.6 billion in the Asia-Pacific region this year, more than double the combined revenue of local market leaders. However, when it comes to global profits, the big four significantly outperform their local counterparts, boasting a staggering $240 billion compared to just $1.5 billion for the local leaders.

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Tech giants like Amazon, Google, and Meta have reshaped the entertainment landscape, with Amazon emerging as the world’s leading entertainment company. Meta, although trailing behind, is not far ahead of China’s Bytedance, which surpasses traditional industry giants like Disney and Tencent in terms of revenue. Netflix is also expected to see substantial revenue growth in the current year.

The entertainment industry is undergoing a transformation driven by technological advancements and changing consumer preferences. As streaming platforms continue to evolve and expand their reach, the competition is heating up in the Asia-Pacific region, with multinational players exerting their dominance and reshaping the industry landscape.

TAGGED:AsiaglobalGrowsincreasesmarketmaturesPriceseekstreamers
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