A recent report reveals that the short-form video platform TikTok has experienced a significant increase in viewership during the first half of the year in Southeast Asia. This surge has led to a sudden halt in the overall growth of premium (SVOD) video in the region. Data from AMPD and analysis from Media Partners Asia demonstrate that TikTok has become a major driver of viewership growth on mobile and web platforms, contributing to over 70% of the growth in streaming minutes over the past two years.

TikTok captured 42% of video streaming minutes between January and June, marking a notable 20-percentage point increase from the first half of 2021 and a seven percentage point increase from the previous year. While overall engagement is still growing, TikTok's rise has impacted the dominance of YouTube (-4%) and time spent watching premium video-on-demand content (-2%) year-on-year.

Despite TikTok's success, the overall SVOD market in Southeast Asia has experienced a significant flattening in growth. The measured region, comprising Indonesia, Malaysia, the Philippines, Singapore, and Thailand, added only a net of 7,000 new subscribers during the first half of 2023. This slowdown is in contrast to the impressive 7.0 million new additions in the second half of 2022 and 3.7 million new subscribers in the first half of 2022. As of the end of 1H 2023, Southeast Asia had 47.6 million SVOD subscriptions.

The report highlights variations in performance between countries and platforms. While Thailand, Malaysia, and the Philippines saw net subscriber growth, Indonesia experienced a contraction, with a total decline of 1.2 million subscriptions. Factors contributing to this decline include subscriber churn after the conclusion of major football tournaments and the impact of reduced local marketing and content investment.

Amidst setbacks faced by some platforms, Viu, Amazon Prime Video, and Netflix managed to add a combined total of 1.2 million new customers, accounting for 63% of new subscriptions among growing platforms. These platforms have capitalized on the popularity of Korean dramas, the largest content category in Southeast Asia's premium VOD market.

Leading premium VOD services are also investing in Southeast Asian content, with 50% of the region's premium VOD audiences consuming local content in 1H 2023. Thai content, in particular, has had a strong regional impact, with Netflix's thriller movie "Hunger" leading regional viewership in the first half of 2023.

MPA executive director Vivek Couto commented on the region's premium VOD platforms' shift towards quality customer growth, retention, and monetization. Platforms like Netflix have implemented measures such as reduced prices and member sharing to enhance customer bases. Couto expects further growth in platforms like Vidio in Indonesia with the return of major football leagues and continued success for platforms like Viu, Netflix, and Amazon in attracting new subscribers with impactful local content offerings.