This April, Netflix surprised investors when its total audience fell for the first time in over a decade.

Thankfully, Netflix had a secret weapon – the Asia Pacific (APAC) market.

Between April and June 2022, Netflix added one million subscribers from the region due mainly to the popularity of TV shows like South Korea’s Emmy-award-winning Squid Game. APAC was the only region that Netflix added subscribers in that quarter.

GWI’s latest study on  ‘Why TV streaming services have their eyes on APAC‘ tells us that this makes perfect sense. Businesses and advertisers now have a big opportunity to learn about this growing audience and effectively reach them. Below, I’ve shared five key trends that will be useful to keep a pulse on.

Streaming is growing, and ads do not bother consumers as much anymore

In the latest wave of data, GWI reported that the time people spend watching online streaming has overtaken traditional TV for the very first time in APAC, and time spent watching online TV will only increase.

Also Read: What Netflix really missed? Not earnings

The more time people spend watching TV online, the more advertisements they will watch. Yet, contrary to popular belief, ads are not likely to dissuade APAC TV watchers from their streaming activities.

Why? APAC consumers are the most likely to approve of ad-supported tiers and to say they would exchange their personal data for free services. Tighter wallets due to economic pressures are a contributing factor. This also means that if ad-based subscription models were to land anywhere, there’s a good chance that it would be in APAC.

Mobile-first, but TV sets are still not going anywhere

More people in APAC are streaming content on their mobile phones than on TV sets, despite the fact that the opposite proved true in other parts of the world. The number of mobile streamers here is only growing.

Outside China, the number of people using TV subscription services on their phones grew by 33 per cent between 2018 and 2021. 57 per cent in APAC say they use their phones or tablets to watch on-demand TV, which means that mobile-friendly content is key to engage.

Nonetheless, TVs are still the go-to device for a good number of markets. This included half of the APAC markets that GWI studied, like Australia, New Zealand, and Vietnam. Around two in five APAC consumers now own a smart TV – a 25 per cent jump in the last two years – and 52 per cent say they use a TV set to watch on-demand content.

This is good news for advertisers. Google reports that Connected TV (CTV) users are more engaged and emotionally invested, being more likely to watch with someone else. Better audio and visual quality also lead to a more immersive experience. People who stream content through their TV sets are skewing older and wealthier compared to those who watch on mobile.

Indian food delivery service Swiggy understood this well when they adopted a CTV-first strategy that targeted customers who were ordering while streaming the Premier League. Swiggy reached 47 per cent more high-income households, raising its profile and prompting viewers to download the app – a true success story.

Consumers are re-evaluating the streaming services they are subscribed to

Just as the COVID-19 situation clears, the cost-of-living crisis hits. None of us can really catch a break.

This has led to APAC consumers becoming more price sensitive towards in-home entertainment purchases. The good news is that the crisis is not affecting their love for TV streaming. The bad news – consumers in APAC are streamlining their entertainment expenses.

Among the APAC markets, GWI studied – around one in four streamers in five of these markets are thinking about cancelling a TV subscription, citing ‘paying for too many services already’ or ‘wanting to use another one instead’ as the main reasons for doing so.

It might be fair to say that there is a limit to the number of platforms consumers are willing to pay for, and that limit may get smaller as inflation continues to bite, especially in parts of the region where price sensitivity is higher. Only time will tell which services will come out on top in each market, and the choice of where to advertise must be made wisely.

Value and original content triumph price concerns

Nonetheless – it’s value that APAC consumers are prioritising when making their decisions on entertainment subscriptions. Content that is relevant to their interests (60 per cent) and original content (49 per cent) are more important to them than price.

GWI’s data shows that interest in cultural channels, lifestyle shows, and soap operas is falling in APAC. The lack of sports in 2020 also contributed to its decreasing popularity, and we will soon see if major events like the World Cup will bring sports fever back.

Also Read: Streaming the dream: How live streaming technology can increase access to brands

Challenging times have made people more drawn to genres that offer an escape from everyday reality – including drama, comedy, and children’s TV. In particular, Korean dramas and Japanese anime shows are catching on in many different parts of the world. GWI’s July Zeitgeist data showed that more than half of foreign content viewers globally say they’ve enjoyed content from other countries and want to see more of it. This could be why Disney+ is spending big and looking to serve up 50 new APAC originals by 2023, producing plenty of local language content.

In terms of which streaming channels are currently leading the pack – GWI’s ‘Why People Watch‘ study shows that it is Netflix in APAC, followed by iQiyi, and then Disney Hotstar.

Strong competition from short-form video platforms

GWI’s 2022 Global Media Landscape Report shows that outside of China, the number of consumers using TikTok globally has grown 40 per cent since Q4 2020.

TV streaming services are now competing for viewers’ attention with other forms of media like short-form video platforms. Twitter and YouTube, for instance, are gaining traction, especially among younger generations. India is YouTube’s biggest market. Over two-thirds of Instagram users are watching videos on the platform every month.

The popularity of short-form video and social media platforms is only going to grow, which brings an opportunity for different viewing formats to work together and complement each other rather than cannibalise the other.

A great example of this in action was the 2021 Netflix series Arcane debuting across Netflix and Twitch to accommodate Netflix users and those who prefer free-to-use platforms.

As the online TV streaming landscape continues to see shifts, hits from economic pressures, and increasing saturation and competition, one thing’s for sure and reassuring – TV streaming is only going up.

It is crucial for businesses and advertisers to keep a close track of the industry and consumers’ preferences and stay tuned in to what and how people want to watch.

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Rachel Lau is the Co-Founder and Managing Partner at Malaysian VC firm RHL Ventures focusing on growth capital investments in Southeast Asia.

Before establishing RHL Ventures as a partner in February 2016, Lau was VP at Heitman Investment Management in Hong Kong and Australia.

Lau also serves on the Leadership Team of the Hong Kong chapter of Ellevate (formerly 85 Broads), a 34,000-member global network of professional women. She also sits on the Program Committee of EMpower, an international not-for-profit organisation that supports at-risk youths in developing countries.

In 2018, Lau was named one of the 50 People Redefining the Way We Live by Business Times Singapore. 

Lau graduated from Australian National University with a Bachelor of Commerce with Distinction (double major in Accounting and Finance) and received a Master of Law (major in Business Law) from the University of Sydney.

In addition, Lau represented Malaysia in rhythmic gymnastics in various tournaments and the British Council as a delegate in the Young Global Citizen Summit to solve global poverty and human rights issues.

She is a regular contributor of articles for e27 (you can read her thought leadership articles here).

In this candid interview, Lau talks about her personal and professional life.

How would you explain what you do to a five-year-old?

The easiest way to explain is to say I invest in people that change the world.

What has been the biggest highlight/challenge of your career so far?

RHL Ventures was founded in 2016, and we have always been focused on driving transformative growth in the ASEAN through investing in small and medium-sized companies in the region. Setting up RHL Ventures and building it to become Malaysia’s most prominent homegrown VC has been my career’s most significant challenge and highlight.

Also Read: Your identity should not be limited to what you do at work: Sheryl Chen of Qualgro

How do you envision the next five years of your career?

The best way to progress in life is through having a goal and working towards it. The next five years of my time will be focused on building RHL as the go-to VC in the region.

What are some of your favourite work tools?

The best tool ever created was Microsoft Excel. I am a pure nerd at heart.

What’s something about you or your job that would surprise us?

We all have a side of us that people don’t know. What surprises many people is that we invest in the unknown, taking risks into young innovative solutions. We believe in new ideas and support them in making their dreams a reality.

Do you prefer WFH or WFO, or hybrid?

The best version of me is when I am around people. So, Work from Office. I love the energy in the office, the chats, the lunch meetings, all of it.

What would you tell your younger self?

A piece of advice I will always hold close to me is to never listen to people who put you down. Destiny is not what you are born into; chart your path, for the future is what you make it. Be fearless, take risks, fall, and cry, but keep going.

Can you describe yourself in three words?

Disciplined, calm and fearless

What are you most likely to be doing if not working?

Reading. I love always keeping myself updated with new things. It is the one thing that everyone should cultivate.

What are you currently reading/listening to/ watching?

Listening to Smash Mouth’s All-Star and watching Money Heist.

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Join the e27 contributor community of thought leaders and share your opinion by submitting an article, video, podcast, or infographic.

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2022 has been fruitful and filled with growth and challenges, especially for the Innovate team. In a nutshell, our 2022 was focused on digitalisation, adaptability, building a solid foundation, and collaboration. These elements are vital for businesses to thrive in today’s fast-paced and constantly evolving business environment.

“If it’s not working, change it.”

We did a lot of pivoting this year but our goal to provide equal opportunities to startups and founders and to connect you with the right network remains unchanged.

Here’s a recap of what we did and the lessons you can take away from it:

Geography is no longer our master

In the last few years, we have seen a digital transformation happen faster than before. We were limited by geographical and anthropogeographical access, but with most processes now digitalised, it opened a whole new set of opportunities and challenges for everyone.

We worked with Zoom, which is now expanding its vision to support startups innovating hybrid workforce collaboration and delivering happiness to their customers. We organised:

• A webinar where we talked about what customer experience and customer communications are. You can watch the recording here.
• An in-person roundtable with selected VCs to empower companies in the ecosystem to build a memorable customer experience for all its customers and stakeholders.

We are also running the Meta Community Accelerator Programme for the third time to support online communities in APAC and Bangladesh. With community building at the heart of e27, we are honoured to empower online communities by providing them with the necessary tools, training, guidance, and connection to grow and nurture their communities.

We have supported 50+ communities to achieve their goals, conducted their dream activities, and connected them with relevant connections to further amplify their impact. What started as a hobby for some and a safe space for others, these community leaders are continuously providing value to the people around us.

Also Read: A year in review: How e27 served the tech ecosystem in 2022

What used to be physical has now turned digital, and we are no longer bound by geography.

Adaptability over sustainability

Put in a different context, sustainability is the ability to sustain your operations and support your customers, but sustaining your operations is not enough to meet the rapidly changing needs and expectations of your customers – especially in the digital world.

We partnered with CleverTap to discuss with key growth and top marketers in the region how to adapt and integrate optimised customer growth and retention strategies on mobile touchpoints to be able to double down on retention and win in the markets in which our businesses operate. 

We just finished our roadshow events in Jakarta and Singapore this year, and we are going to Malaysia, Vietnam, Thailand, and the Philippines in 2023 to discuss how you can craft innovative customer experiences.

Stay tuned to the events’ updates and registration openings through this link.

Building a solid foundation for innovation

Innovation doesn’t happen in a vacuum. The best innovation comes in response to long-standing problems we are facing, and having a stable foundation allows us to explore and innovate freely.

We have been using maps to navigate around cities and places. But despite having a lot of updates to our maps, approximately 75 per cent of the world is poorly addressed, leaving them underserved. 

We teamed up with UNL Global to host a webinar to talk about how they are planning to develop a next-gen micro-location and mapping technology to build maps that bring your business forward, empower your delivery agents, and build the internet of places.

Having accurate data and mapping play a significant role in your business operations. And In the context of e-commerce and last-mile delivery, it refers to the delivery of products and services quickly and seamlessly and to your customer’s doorstep.

Click here to watch the webinar recording.

Collaboration over individual endeavours

There are many benefits to collaboration. With this, individuals and organisations can pool their knowledge, skills, and resources and can achieve more than they could alone. Collaboration can also foster creativity and innovation as it encourages the sharing of ideas and the development of new approaches.

This year we worked with SAP and XS APAC over a series of engagements. Starting with a series of webinars focused on you can do business with large enterprises, a virtual roundtable with investors where they talked about how they can support investor portfolios, and a panel discussion during this year’s Echelon Asia Summit!

Also Read: ‘Focus on your north-star vision’: 30 startups speak of their learnings in 2022

The engagement focused on the importance of Startup-Corporate collaboration to boost:

• Innovation: By collaborating with a startup, a corporation can access this innovative thinking and potentially bring new products or services to market. Click here to learn how you can do business with enterprises to help you focus and improve your product.
• Offering more cost-effective solutions: Startups may be able to offer more cost-effective solutions to problems faced by corporations, potentially leading to cost savings for the corporation, especially during these challenging times. Click here to learn how you can optimize business solutions through customer-centricity.
• Access to new markets: Through collaboration, startups and corporates can work together to reach a wider set of audience, reach new markets, and impact more people. SAP shared some key points on regional expansion in the last Echelon Asia Summit 2022. See how you can explore corporate partnerships as a pathway to scaling your startup here.

Speaking of access to new markets, this year, we teamed up again with JETRO (Japan External Trade Organisation) for their 2022 Global Acceleration Hub Programme to support Japanese startups with their plans for overseas expansion. We’ve worked with:

• Credit Engine: a SaaS products provider for the financial sector that provides services that cover the online lending process to debt collection with data-driven digital technology.
• Cross Sync: Provides iBSEN – real-time monitoring of ICU patients and their severity using AI and ICT. They provide D-to-D Tele-ICU telemedicine service with an AI monitoring function.
• Terra Drone: Focuses on providing drone utilisation services for oil and gas, renewables, terminals, survey, and processing and storage.
• TB-M: Focuses on developing and manufacturing ecological new material, LIMEX – a composite material of over 50 per cent made of limestone. LIMEX has been developed in Japan that provides ecological and economic benefits

If you would love to work with them, please let us know, and we would be more than happy to connect you!

Collaboration is not just limited to startups or corporates partnering with each other or other entities to support their vision and mission. We also work with our network to connect startups with the right investors.

Together with Techstars, Facilitated the Demo Day with 200+ attendees and made more than 130+ matched connections with investors and strategic partners over a two-day programme split between Global Scale and Clean Tech cohorts.

The selected 26 startups also underwent a series of sessions to help address the issues they are facing specific to their companies to help them build and grow their companies. The event was attended by mentors, investors, and other startups, with more than 80 per cent of the attendees looking for business opportunities with the startups.

Collaboration can take many forms, and by working with other organisations, businesses can access new ideas, resources, and expertise and can achieve more together than they could alone.

Looking back at 2022

In recap, digitalisation, adaptability, building a solid foundation, and collaboration are all key factors that can help businesses to thrive in today’s fast-paced and constantly evolving business environment. By adopting these strategies, businesses can stay competitive, achieve their goals, and create value for their customers, employees, and shareholders.

What’s in store for 2023

2022 posed a different set of challenges, and we are anticipating that some of these challenges will remain.

As we mentioned, we did a lot of pivoting this year but our goal to provide equal opportunities to startups and founders and to connect you with the right network remains unchanged, and it doesn’t end here!

Send an email to programs@e27.co to see how we can work together to craft the right story to showcase your brand, how you can get connected and engage the community in Southeast Asia, and how you can amplify your impact. This is where you start!

This article has been co-written by Selma Ayuanshari and Mayeda Bidushi.

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Image credit: Canva Pro

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Indonesia-based banking and digital finance platform Akulaku has secured a US$200 million investment from Japanese megabank Mitsubishi UFJ Financial Group (MUFG).

The investment will support its expansion of banking services across Southeast Asia, including underserved customers and markets.

The company’s future growth plans align with MUFG’s, and their joint expansion into new territories, markets, and products will accelerate heading into 2023.

This is the second strategic investment in the company this year, following the US$100 million in funding closed with Thailand’s Siam Commercial Bank early this year.

Along with the investment, Akulaku and MUFG will enter into a framework agreement for Akulaku to work with MUFG companies across Southeast Asia on technology, product development, financing, and distribution.

Also Read: ‘Asia’s BNPL sector has great potential’, says Akulaku CEO William Li

“Akulaku’s emphasis on emerging markets has highlighted a vast, underserved audience in the banking industry,” the company said in a statement. “By partnering with MUFG, another innovative financial institution, we will have the knowledge, resources, and services to meet the long-term needs of our growing customer base. Both companies will benefit from shared skills and knowledge, enabling us to expand our products and geographical reach.”

“Southeast Asia is key and a second home market to MUFG. Our investment in Akulaku will further solidify our commitment to this region to meet the growing financial needs of underserved customers. With Akulaku’s digital financial services backed by its strong technology, our journey with Akulaku will help us further contribute to the growth of this region,” said Kenichi Yamato, Managing Executive Officer and CEO of the Global Commercial Banking Business unit at MUFG Bank.

Akulaku is a leading banking and digital finance platform in Southeast Asia, with a presence in Indonesia, the Philippines, and Malaysia. Akulaku helps meet the daily financial needs of underserved customers in emerging markets through digital banking, digital financing/investment, and insurance brokerage services.

In addition to the Akulaku virtual credit card and e-commerce platform, the company operates Asetku, an online wealth management platform, and Neobank, a mobile digital bank supported by Bank Neo Commerce.

Akulaku has so far raised US$648 million over 12 equity rounds from investors such as Ant Group, Sequoia India, Qiming Venture Partners, and Arbor Ventures. 

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Fundraising or preparing your startup for fundraising? Build your investor network, search from 400+ SEA investors on e27, and get connected or get insights regarding fundraising. Try e27 Pro for free today.

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Remember the days of standing at the reservation counter of an airline company to buy your ticket? Neither do I. Thanks to the transformative effects of tech, industries like transport, food deliveries, groceries and travel bookings, amongst others, are a swipe away.

A big reason for the success of these businesses is that they do one thing, and they do it well. By zooming in on a single problem and solving it effectively, businesses can quickly acquire a targeted user base and build a reputation for reliably offering a service. Travel companies such as Skyscanner and Airbnb thrive on this model by growing and building a solid user base through a focus on customer satisfaction and retention.

Similarly, over the past decade, we have seen a rise in faith-based apps that were produced with a single utilitarian purpose in mind, such as providing accurate prayer times or locating the direction of the Qibla.

However, single-purpose apps – even successful ones – often don’t create enough consistent usage or demand to build a sustainable business in the long run, given the isolated function that they offer. Apps need to evolve with the times to reflect the demands of modern day-to-day life.

Diversification as the way forward

If we look at companies that are really leading the pack globally, diversification is key to many of their strategies. Popularly known as super apps, these are one-stop-shop apps that offer multiple services, including shopping, ride-hailing, groceries and banking through a single user interface.

For apps, diversifying their services helps to mitigate risks, makes the most of their current user base, and gives them access to entirely new audience segments by extending their core offering.

Also Read: Quadria Capital injects US$90M into Con Cung to build super app for Vietnamese mothers

This approach makes more sense, given that the average person has about 40 apps on their mobile device but spends nearly 90 per cent of their time on less than half of them. Not surprisingly, in ASEAN, super apps are growing rapidly – from a market valuation of US$4 billion in 2020 to hitting a forecasted value of US$23 billion by 2025.  

All this is to say that there is a massive opportunity for faith-based apps, such as ourselves, to diversify our offering and bridge the gap for tech-savvy users looking for relevant products and services. This is particularly true for Muslim users. Globally, the Muslim population stands at 1.9 billion, but there are only a handful of global lifestyle apps available to serve their needs. 

Among users of the Muslim Pro app, a survey found that seven in ten respondents struggled with having to tap into multiple sources and platforms when seeking viewer-appropriate content. Based on these insights and learnings from how other successful apps have grown, it’s clear that a diversified all-in-one platform is a crucial first step to meeting the demand for Muslim-centric lifestyle solutions.

Creating a faith-based super app

From prayers and other daily rituals to dietary requirements, fashion and media consumption, religion has an expansive influence on the day-to-day lifestyle of its practitioners. It is only natural for users to value the convenience of having all their go-to resources available on a single platform, where they can access the content they need in a seamless manner.

To this end, the Muslim Pro app has recently expanded its services into Qalbox; a subscription video-on-demand (SVOD) streaming platform that celebrates the best of Muslim-friendly entertainment. With hundreds of hours of films, documentaries, kids’ programmes and more, Qalbox offers content that is thoughtfully curated and carefully moderated in accordance with strict guidelines and experts, giving communities peace of mind through platform-based compliance. 

For us, this is only the start. It is no easy task to continuously understand, meet and address gaps in user demands, but this is critical for any business or app looking to deliver solutions that are helpful and sustainable in the long term. Regardless of the platform, this remains an ever-evolving challenge – but one that presents opportunities for growth.  

Super apps that are leading the pack across the region are doing so by keeping a finger on the pulse of consumer needs. For those of us seeking to close the gap in the faith-based lifestyle market, there is much we can learn and adapt from these success stories to achieve the same.

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Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic

Join our e27 Telegram group, FB community, or like the e27 Facebook page

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