APAC OTT Poised for Growth
According to a study from MTM on behalf of Vindicia and Ooyala, despite challenges, the Asia-Pacific region's premium OTT market will ...
The study highlights three main challenges to premium OTT market expansion in the region.
- Broadband infrastructure. Industry executives believe broadband infrastructure challenges and limited access to affordable fixed-line services are significant barriers to growth. In Australia, the average connection speed is 8.2 Mbps, about half that of the UK and United States. Thailand has a similar average of 9.2 Mbps, but only 9% of consumers subscribe. In Indonesia, there is only 1% broadband penetration with an average speed of 3.9 Mbps. Participants view APAC as a mobile-first market.
- Content localization. Despite the appeal of international content, respondents believe local-language programming is essential to the proliferation of premium OTT services in Indonesia and Thailand. Furthermore, they expect stiff competition among local pay TV providers over licensing of existing local content libraries.
- The Netflix factor. While the presence of Netflix is expected to drive OTT market expansion in general, consumers are expected to struggle with Netflix's one-size-fits-all offering. Because of this, there is expected to be a period of uncertainty as consumers choose between standalone Netflix and competing offerings from local content providers, whose multiplatform and bundled packages ultimately may prove more appealing.