The streaming landscape in Southeast Asia is about to get a shake-up with the unexpected alliance between Viu and iQIYI. This strategic move, announced at the APOS conference in Bali, showcases the cutthroat nature of the streaming industry in this region, where giants like Netflix, Disney+, and Amazon Prime Video battle it out with local and regional players.
The Power of Asian Content
At the heart of this partnership is the recognition of the immense popularity of Asian content, particularly Korean and Chinese dramas, among audiences in Southeast Asia. Viu, with its strong Korean-led catalog and diverse offerings, including Chinese series and local-language productions, has established itself as a regional powerhouse. Meanwhile, iQIYI, a NASDAQ-listed Chinese streaming giant, brings its own unique strengths, including a growing roster of local-language originals and a diverse range of content, such as anime and variety shows.
By combining forces, these two mid-tier services aim to create a more accessible and appealing offering for their audiences. As Janice Lee, Viu's CEO and Managing Director of PCCW Media Group, puts it, "Asian content is at the heart of what our audiences love, and we want to make it more accessible." This sentiment is echoed by Yang Xianghua, head of iQIYI's overseas business, who sees this bundle as a pivotal milestone, leveraging the complementary nature of their content libraries.
A Strategic Move in a Tough Market
Southeast Asia is a notoriously challenging market for streaming services. With a diverse population of over 600 million, price sensitivity, and a history of piracy, it's a region where many locally targeted services have struggled to gain traction. The likes of Hooq and iflix have come and gone, unable to compete with the deep pockets of global giants.
In this context, the Viu-iQIYI bundle makes strategic sense. By pooling their catalogs and offering a unified subscription, they can reduce churn and minimize the financial burden of competing with the big players. This move also allows them to leverage their strengths and provide a more comprehensive offering to their audiences, covering a wide range of Asian content.
Broader Implications and Trends
This partnership is not an isolated incident. It reflects a broader trend in the streaming industry, where stand-alone apps are giving way to bundling and strategic partnerships. Disney+, for example, recently partnered with CJ ENM's TVing in Japan, and Viu itself has a prior bundle with HBO Max in Southeast Asia.
These moves suggest a shift in the industry, where collaboration and consolidation are becoming key strategies for survival and growth. In a market as competitive and diverse as Southeast Asia, such alliances can provide a much-needed boost to mid-tier services, allowing them to compete more effectively and offer a more comprehensive experience to their audiences.
Conclusion
The Viu-iQIYI bundle is a fascinating development, showcasing the power of Asian content and the strategic thinking required to succeed in a challenging market. By joining forces, these two services aim to create a more accessible and appealing offering, leveraging the strengths of their diverse content libraries. This move not only benefits the services themselves but also provides audiences with a wider range of high-quality Asian content. As the streaming industry continues to evolve, such partnerships will likely become increasingly common, shaping the future of entertainment in Southeast Asia and beyond.
