As individuals spend more time indoors, online streaming continues to thrive. Global over-the-top (OTT) media services have seen their subscriber numbers surge in the last number of weeks, with Netflix proudly declaring that they had 16 million new sign-ups in the first three months of the year as audiences continued to look online for entertainment.
Though we can’t share numbers, many of our own customers have also seen a marked increase in subscriptions and active users in the past few months.
However, the reality is that pre-pandemic, there was already a massive surge in streaming across Southeast Asia. As users continue to cut the cord, many anticipate a rise in consumption and revenue over the next few years from over-the-top (OTT) media services.
A report by Dataxis predicted that Southeast Asia would grow to 6.2 million subscribers by 2022 — and there’s no doubt that we are right on track!
During the economic downturn, digital service providers will be exploring how they can innovate and increase their revenue. But from the perspective of their customers, it is the relationship with their provider that holds the keys to everything.
Genuinely engaging with consumers to help them manage and subscribe to new services without being invasive requires excellent diplomacy.
However, digital service providers are surrounded by innovation. Replacing a legacy mindset with a new approach focussed on delivering value to customers can provide the elusive game-changer moment. For example, flexible merchandising and monetising through capabilities such as bundling and promotions can help both upselling and cross-sell capabilities.
Also Read: One billion downloads later, Amanotes is optimistic about the future of non-streaming music platform
Preparing for an age of uncertainty
The internet has offered viewers a lifeline during the global pandemic we are currently facing. Traditional TV has been replaced by on-demand entertainment where we can stream or download our favourite content for later viewing. But there is no room for complacency.
As OTT streaming services in Asia soon begin to lose their captive audience to the great outdoors, they will need to remain vigilant in these uncertain times and future-proof themselves for what lies ahead.
In addition to this, global players such as Amazon, Netflix, Apple, and Disney are flexing their virtual muscles and utilising their resources to compete to stay on top. As competition throughout the region continues to intensify, many predict that the consolidation which crippled the traditional cable distribution model will soon come to OTT services too.
Pitfalls to avoid during the pandemic
As streaming services were offered an opportunity to capitalise on increases in subscribers during country lockdowns, OTT platforms across Asia will inevitably be faced with profitability challenges in an increasingly crowded market.
We know that COVID-19 will pass, it’s only a matter of time, and when that does happen it will be critical for these platforms to keep evolving in tandem with the digital landscape in order to keep up with the demands of their digital-savvy customers.
Also Read: Streaming wars: Why are streaming giants spending big bucks on acquiring content
Understanding the need to entice consumers to keep membership for the coming months, not just during lockdown periods, will determine the future success of streaming platforms. We know that the inevitable drop-off rates will begin in the run-up to the removal of lockdown orders.
To thrive and survive, companies will need to adapt quickly with a more proactive rather than reactive approach and have the agility to respond accordingly with new bundles, services, and special retention offers to keep users on their platform.
How to adapt to the different markets in Asia
The business landscape is littered with cautionary tales of household names that have struggled to innovate. Giant companies that found the secret to success and attempted to keep relying on the old way of doing things, even when it was no longer relevant, endured a predictable demise.
An unwillingness to innovate, listen to their customers, and adapt, coupled with a refusal to evolve with the market will have devastating effects on any business. For any streaming service to be successful in Asia, it’s critical to have a deep understanding of payment and content preferences. It’s also essential to adopt a continuous learning mindset and avoid the temptation of replicating models that work elsewhere.
Every country and region is entirely different, and these variances must be identified from the get-go and given the respect they deserve. The ability to listen to your audience and quickly pivot both your systems and your people will help keep you on the course for continued success.
Integrated Revenue and customer management platforms are already transforming the world’s leading OTT services. It’s these advances in technology that are enabling companies like Evergent to reduce time to market for products and services. But also finally begin to simplify the complex monetisation models and back-office processes so that they run more efficiently.
Also Read: Streaming wars: Why are streaming giants spending big bucks on acquiring content
Add these improvements together, and they dramatically improve the customer experience too. Enabling customers to digitally manage all aspects of their connected services provides superior customer experience and sets the stage for personalised offers that are much more likely to succeed.
Navigating forward in unchartered digital waters
Businesses need to be able to set themselves ahead of the crowd. Communications companies are delivering convenience with everything under one roof style packages. When everything is at their fingertips, it quickly becomes too much hassle to go searching elsewhere — moving forward, this is where the focus needs to be.
Communications companies are also well poised to capitalise on their subscriber bases to move the needle for their own services and for other services like Netflix and Amazon Prime, which they can help aggregate and monetise.
For OTT streamers this provides a valuable distribution channel – it’s a win-win situation for both sides. In addition, platforms that can support monetisation of bundled services will invariably set these service providers apart for consumers.
Traditional TV fell out of favour for being too restrictive and limiting for digital consumers who demanded greater freedom. Customer expectations are also dramatically evolving. They want to watch what they want, wherever they want it, and on any device they choose.
If companies cannot provide it, they will turn to one of the many other OTT providers or communications providers who can serve their needs. The positive side — these are all problems that can be turned into opportunities.
OTT streaming opens up greater localisation and greater niche capabilities that can be targeted towards specific market segments. Time to market, product agility, and seamless deployments are the secret ingredients to success in an increasingly digital world.
Although we may expect some consolidation in the industry, it will be platforms that serve their audiences with customised offerings for specific regions that will stand out in an increasingly crowded marketplace.
–
Register for our next webinar: Meet the VC: Vertex Ventures
Editor’s note: e27 aims to foster thought leadership by publishing contributions from the community. Become a thought leader in the community and share your opinions or ideas and earn a byline by submitting a post.
Join our e27 Telegram group, or like the e27 Facebook page
Image credit: Glenn Carstens-Peters on Unsplash
The post An age of uncertainty: Why streaming services need to adapt to survive in Asia appeared first on e27.