On-demand video disrupting TV in South-east Asia, study finds

OVER-THE-TOP (OTT) media services have the potential to seriously disrupt television in South-east Asia, new research has concluded.

Audiences in the region are turning to this platform to watch online professional video content put out by the likes of established players like Netflix and Amazon Prime Video, and leading regional platforms such as Viu and iflix, as such services offer them the flexibility to watch their chosen videos on-demand and on their chosen devices.

The research, commissioned by tech company The Trade Desk and conducted by the consultancy Kantar, has found that 31 million out of 180 million OTT viewers have not watched traditional television in the past three months.

More than 4,500 consumers, including over 2,400 OTT viewers, were surveyed for the study, with these respondents hailing from Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

The findings suggest that about 180 million consumers are now viewing eight billion hours of OTT content per month in South-east Asia. Indonesia is the biggest market, consuming almost three billion hours of OTT per month. Other top markets are the Philippines (2.2 billion hours), Thailand (1.4 billion) and Vietnam (1 billion).

Covid-19 has accelerated OTT adoption. More than half of those surveyed (57 per cent) say they are viewing more OTT content during the pandemic; 72 per cent plan to maintain or raise their OTT consumption after the pandemic ends.

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These numbers are now rivalling that of traditional television. The research found that across the six markets, monthly OTT consumption lags just 4 per cent behind television viewership today. As a whole, viewers still tune in to television more frequently - but when they do stream videos using OTT services, they spend more time watching them.

Notably, some 17 per cent of OTT viewers (31 million consumers) reported that they had not watched traditional television at all in the three months prior to the survey. Moreover, OTT viewership peaks are eating into television's traditional primetime. The survey found that 70 per cent of all OTT viewers prefer to tune in between 8 pm and midnight.

In all markets, viewers agreed that the top draw of OTT platforms is the ability to watch their favourite content when they want it. Television is still preferred for the ability to enjoy shows with family and friends. However, the report noted that OTT platforms are also able to provide a social experience.

While smartphones remain most popular - nine in 10 OTT viewers use them to access content - smart TVs are evolving into an important part of the OTT landscape, with a current device penetration rate of 65 per cent. In Singapore and Vietnam, they have already overtaken smartphones.

Not only are viewers turning to OTT content; they are also willing to watch ads in exchange, the survey found. The report estimates that about 100 million viewers are active on ad-supported OTT platforms across the region, which could expand the reach of marketers.

Mitch Waters, a regional senior vice-president at The Trade Desk, said: "The pandemic has ushered in an accelerated shift to OTT, and there's no turning back."

He added: "Advertisers understand this. They want to move their campaigns to reach consumers where they are, and so they can apply data to video campaigns in ways that are simply not possible via traditional channels, such as linear TV."

The report said that nearly nine in 10 OTT viewers said they were open to viewing ads in exchange for free content. Of these, 88 per cent said they would accept two or more ads per hour of free content.