Vidio Steps into Malaysia: A Strategic Prelude to Conquering Southeast Asia’s Evolving Streaming Market

With Squid Game 2 set to premiere in less than a month, the global spotlight is once again turning to Asia’s powerhouse in content creation: South Korea. This surge of attention highlights the growing dominance of Korean content but also casts a shadow over another compelling narrative—the evolving and diverse streaming landscape of Southeast Asia (SEA). In SEA, a fragmented yet opportunity-rich region, the streaming market is undergoing rapid transformation. Shifting strategies by global giants, the rise of agile regional players, and the increasing demand for localised content are reshaping the digital entertainment ecosystem. Vidio’s recent entry into Malaysia serves as a microcosm of these changes, illustrating how local platforms are positioning themselves amid this dynamic evolution. Unlocking the Potential of Southeast Asia's Streaming Revolution The Southeast Asia market is undergoing a period of rapid transformation, driven by economic growth, digital adoption, and shifting consumer behaviours. With over 650 million people, the region offers a vast, increasingly connected audience, making it a fertile ground for digital and entertainment businesses. Dataxis estimates SEA's Over-the-Top (OTT) market will experience exponential growth, with total revenues projected to rise from $3.8 billion in 2023 to $6.9 billion by 2029. Advertising-based OTT revenues are expected to more than double, from $0.9 billion to $2 billion, while subscription-based revenues will climb from $3.4 billion to $4.8 billion. A key feature of the SEA market is the diversity of strategies employed by OTT players. Each actor, from global streamers to regional platforms, customises its approach to the opportunities and challenges presented by this vibrant and segmented region. Navigating a Diverse Terrain: OTT Strategies Across Southeast Asia When Disney+ and Prime Video entered Southeast Asia, their ambitions were bold: to capture market share by heavily investing in local content. But the streaming landscape has changed. Wall Street’s focus on profitability over subscriber growth has forced global giants to pivot their strategies. Instead of funding original productions in countries like Indonesia, Malaysia, and Thailand, both platforms now prioritise licensing established content. For Disney+, this means doubling down on markets with global appeal, like South Korea and Japan, while consolidating in India by merging Disney+ Hotstar with Jio Cinema. The result? A noticeable pullback from Southeast Asian originals, coupled with significant layoffs in regional teams, such as the closure of Disney’s Indonesian content operations. Disney’s pivot reflects a larger challenge: the high cost of producing local content in a market where growth has slowed. Prime Video opted for a comparable strategy.  By licensing popular genres like anime and K-dramas, Prime Video can test audience preferences without the financial risk of large-scale local productions. This strategy allows the platform to keep a foothold in Southeast Asia while it remains in the...