Southeast Asia’s OTT Sector: Data-Driven Shifts in 2024

Southeast Asia’s over-the-top (OTT) video streaming market is experiencing significant evolution in 2024, according to the latest report from S&P Global. The region, home to over 650 million people and a rapidly expanding digital economy, has become a critical battleground for both global and local streaming providers seeking new growth as mature markets plateau.

Market Growth and Consumption Patterns

S&P Global’s data reveals that OTT video revenue in Southeast Asia is projected to reach $4.2 billion in 2024, representing a 21% year-on-year increase. Indonesia, Thailand, and the Philippines remain the top three markets by user base and revenue, collectively accounting for over 60% of the region’s OTT market share. Mobile-first consumption continues to dominate: more than 80% of OTT viewership across these markets occurs on smartphones, driven by affordable data plans and widespread 4G/5G coverage.

Local content is a key engagement driver. Platforms investing in original series and movies tailored to local languages and cultures—such as Vidio in Indonesia and iQIYI in Thailand—are seeing churn rates fall by up to 15%, compared to global incumbents relying heavily on international catalogs. Subscription video-on-demand (SVOD) remains the primary revenue engine, but ad-supported video-on-demand (AVOD) is gaining ground, accounting for nearly 35% of total OTT revenue in the region, up from 27% in 2022.

Competitive Realignment and Strategic Implications

The competitive landscape is marked by aggressive localization strategies and pricing innovation. Regional platforms such as Viu, WeTV, and iflix are leveraging partnerships with telecom providers to bundle streaming with mobile data packages—resulting in a 19% year-on-year subscriber uplift among bundled users, per S&P Global.

Global players like Netflix and Disney+ remain significant but are facing growing pressure to adapt to price-sensitive markets. Netflix’s introduction of mobile-only plans in Indonesia and the Philippines has yielded mixed results: while subscriber acquisition improved by 13% in lower-income segments, average revenue per user (ARPU) remains below regional averages. Meanwhile, Disney+ is experimenting with shorter-term, prepaid subscription models to attract younger, mobile-focused demographics.

Original content investment is intensifying. S&P Global notes a 32% year-on-year increase in local content production budgets across the top five OTT platforms operating in Southeast Asia. This arms race is prompting new collaborations between streaming services, local studios, and independent creators, with an emphasis on genres such as drama, romance, and horror—genres that consistently outperform imported titles in weekly viewership rankings.

Regulatory and Policy Developments

Governments across Southeast Asia are stepping up oversight of digital platforms, with a focus on content moderation, copyright enforcement, and consumer data protection. Indonesia’s Ministry of Communication and Informatics (Kominfo) has introduced new guidelines requiring OTT platforms to register locally and comply with takedown requests for prohibited content within 24 hours. Similar regulatory moves are underway in Malaysia and Vietnam, raising compliance costs for both domestic and foreign players.

Taxation of digital services is emerging as a key issue. S&P Global notes that Indonesia and Thailand have implemented value-added tax (VAT) requirements for OTT subscriptions, while the Philippines is considering analogous legislation. These measures are projected to add 3–5% to end-user costs, potentially impacting subscriber growth in price-sensitive segments.

Future Outlook

S&P Global projects that Southeast Asia’s OTT market will maintain double-digit growth through 2026, buoyed by rising broadband penetration, expanding middle-class populations, and innovation in content delivery. However, the path forward will be shaped by the interplay of competitive differentiation, regulatory compliance, and the ongoing shift in consumer expectations toward hyper-local and interactive experiences.

Mergers, partnerships, and technological advancements—such as integration of AI-driven content recommendations and interactive live events—are expected to further redefine market dynamics. Industry leaders will need to balance scale with local relevance, and agility in navigating an increasingly complex regulatory environment.

Key Takeaways

  • Southeast Asia’s OTT revenue is expected to reach $4.2 billion in 2024, with local platforms outpacing global rivals in user retention.
  • Mobile-first consumption and bundled offerings with telecom operators are driving subscriber growth.
  • Regulatory scrutiny is intensifying, with new local registration, content moderation, and taxation policies impacting operations.
  • Investment in original, hyper-localized content is rising sharply, fueling competitive differentiation.
  • The next phase of growth will depend on balancing innovation, regulatory compliance, and market-specific consumer engagement strategies.

Share this article