The VOD platform under the umbrella of the Indonesian conglomerate Elang Mahkota Teknologi (Emtek), VIDIO, has recently announced a new funding round of $100 million. This initiative aims to secure resources to compete with foreign services like Netflix.
Established in 2014 as a local contender against global players such as Netflix and Disney+, VIDIO drew inspiration from the Hotstar streaming service, which provides free-to-air live streaming, catch-up broadcasts, sports entertainment, and original content.
Following successful private investments, VIDIO has experienced substantial growth in its subscriber base. This surge was further propelled by its role as the official broadcaster of the 2022 FIFA World Cup, acquisition of Formula One broadcast rights, and exclusive digital coverage of the Premier League for 2022-2023 and 2025-2026 seasons, this is due to the discontinuation of Fox Sports Asia operations in October 2021.
By December 2022, the platform witnessed a surge in paid subscribers, surpassing 5 million. However, this figure saw a decline to 3.8 million by the end of May 2023. Simultaneously, the platform observed an increase in average revenue per user as subscribers transitioned from lower-cost bundled packages to premium offerings.
While sports content holds paramount importance on VIDIO, the platform has also made significant investments in the creation of new drama series and movies. These endeavors have been instrumental in driving their total monthly active user base, which stood at 60 million as of the close of last May.
A distribution-centric strategy
The service has strategically aligned with distribution partners, including a recent collaboration with NetRange, a provider of OTT platforms and white-label smart TVs owned by Access. Through this agreement, VIDIO expands its presence in Indonesia by integrating into the NetRange Smart TV App Store ecosystem. This partnership is logical, as the television company can tap into the 60 million active users of the service, which boasts over five million application downloads via the App Store and Play Store.
Hadikusuma Wahab, Chief Product Officer at Vidio, commented, ‘the combination of must-see Indonesian content, like our smash hit Married with Senior, along with global hits such as the English Premier League and Hollywood blockbusters, has positioned VIDIO at the forefront of the streaming audience race in the largest video market in Southeast Asia. Expanding our reach through the partnership with NetRange allows us to capitalize on this success, bringing great content to even more people right on the biggest screen in the home’.
Promising Prospects for Streaming in Southeast Asia
A report by Media Partners Asia, titled «SEA Online Video Consumer Insights & Analytics», reveals that by the close of 2022, there were 48.4 million paid online video subscribers in Indonesia, Malaysia, the Philippines, Singapore, and Thailand. Over the year, 11.8 million net new customers were registered, with 7.3 million joining in the second half, including 4.6 million in the fourth quarter. Indonesia accounted for half of this surge.
Indonesia and Thailand stand as the two largest markets for Subscription Video on Demand (SVOD) in Southeast Asia, comprising 75% of SVOD subscriptions in the region. Meanwhile, Disney, Viu, and Netflix collectively represent 52% of all SVOD subscriptions in Southeast Asia.
