TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentralTechCentral
    NEWSLETTER
    • News

      Telkom muscles into banks’ turf with business loans

      18 August 2022

      Sarb tells banks they should work with crypto exchanges

      18 August 2022

      iPhone 14 launch date targeted for 7 September

      18 August 2022

      Icasa moves to license more broadband spectrum

      17 August 2022

      Eskom to impose more load shedding

      17 August 2022
    • World

      China blasts US over ‘discriminatory’ Chips Act

      18 August 2022

      Tencent reports first-ever sales decline

      17 August 2022

      Chip makers are flashing a big warning for the global economy

      17 August 2022

      Semiconductor boom turns to bust

      16 August 2022

      Tencent plans to offload R400-billion Meituan stake: sources

      16 August 2022
    • In-depth

      Are you a chronic procrastinator? Read this!

      18 August 2022

      African unicorn Flutterwave battles fires on multiple fronts

      11 August 2022

      The length of Earth’s days has been increasing – and no one knows why

      7 August 2022

      As Facebook fades, the Mad Men of advertising stage a comeback

      2 August 2022

      Crypto breaks the rules. That’s the point

      27 July 2022
    • Podcasts

      Qush on infosec: why prevention is always better than cure

      11 August 2022

      e4’s Adri Führi on encouraging more women into tech careers

      10 August 2022

      How South Africa can woo more women into tech

      4 August 2022

      Book and check-in via WhatsApp? FlySafair is on it

      28 July 2022

      Interview: Why Dell’s next-gen PowerEdge servers change the game

      28 July 2022
    • Opinion

      No reason South Africa should have a shortage of electricity: Ramaphosa

      11 July 2022

      Ntshavheni’s bias against the private sector

      8 July 2022

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022
    • Company Hubs
      • 1-grid
      • Africa Data Centres
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Sections»Broadcasting and Media»Richard Li’s Viu is gunning for Netflix

    Richard Li’s Viu is gunning for Netflix

    Broadcasting and Media By Agency Staff18 August 2021
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    Billionaire Richard Li’s streaming business is on a roll, mulling a potential initial public offering after its platform Viu beat Netflix in subscribers in one of Asia’s most competitive markets.

    Viu is now Southeast Asia’s second largest streaming service by paid subscribers, trailing only Disney+, according to research firm Media Partners Asia. Its success has driven the over-the-top media business of Li’s conglomerate PCCW to post a revenue jump of 29% in the first half of this year, narrowing losses by 75%.

    The Hong Kong-based business, which also includes a smaller music streaming platform, is expected to break even as early as the second half, said PCCW MD BG Srinivas last week. The group will consider introducing strategic partners or even a listing for the division, he said in a 6 August earnings call.

    The platform, which operates in 16 markets including South Africa, will find it an uphill challenge to replicate its success in Southeast Asia elsewhere

    The rise of Viu in Southeast Asia has stood out as the streaming space worldwide becomes mostly carved up by giants from Walt Disney and Netflix to China’s Baidu and Tencent Holdings. The Hong Kong-based platform got to the fast-growing middle-class population before bigger competitors in part by recognising trends more quickly — like the appetite for Korean dramas across the several languages used in the region and demand for a free subscription tier — but it remains to be seen if it can hang onto the early lead.

    “Our aim is to continue to be frontrunners in the digital entertainment space in Asia,” Viu CEO Janice Lee said. “We want to create a service in Asia for Asia, but we also understand Asia is not one region.”

    Deeper pockets

    Its rivals have deeper pockets, an established track record of creating original content and are ramping up their focus on Southeast Asia as growth slows in home markets like the US. Netflix spent almost US$2-billion between 2018 and 2020 on creating and licensing shows in Asia, with Southeast Asia a key market.

    In November, Disney appointed Ahmad Izham Omar, former CEO of Malaysia’s largest production company Primeworks Studios, to lead its efforts in Southeast Asia.

    “The key question is how Viu can scale up even more,” said Vivek Couto, executive director of Media Partners Asia, adding that the firm lacks its own franchises, especially in Korean content, compared to how Netflix is setting up studios and inking production partners in the East Asian country. Viu is at a critical point in its journey as it moves to expand its user base and compete in content, he said.

    China’s streaming services are entering the fray, too: Baidu’s iQiyi scouted Kuek Yu-Chuang, Netflix’s main liaison to governments in Southeast Asia in June last year, and a couple of weeks later, Tencent acquired Malaysia-based streaming platform iFlix, ramping up efforts to expand in the market.

    Looking ahead, Viu is trying to consolidate its early gains by pivoting to creating more original content, announcing its first four Korean drama originals earlier this year. It has produced an average of over 40 original shows every year since 2016, according to the company. Lee declined to disclose its budget for original content.

    Betting on growth opportunities in Southeast Asia and technology-driven sectors has been a key focus for Richard Li — the younger son of Hong Kong tycoon Li Ka-Shing. The scion, 54, is expanding his insurance businesses in the region, as well as investing in e-payment and digital financing. He’s also teamed up with billionaire Peter Thiel to establish blank-cheque firms with a focus to acquire new economy start-ups in the market.

    Viu’s success, though it contributes only a small proportion of PCCW’s revenue, has cemented Li’s image as a media and technology entrepreneur

    Viu’s success, though it contributes only a small proportion of PCCW’s overall revenue, has cemented Li’s image as a media and technology entrepreneur, which is rare among Hong Kong’s tycoons whose businesses mainly operate in traditional sectors like real estate, ports, utilities and retail.

    One of Viu’s early coups was to introduce a hybrid model offering some content for free and some only available to its paying subscribers, at a time when other platforms were just courting the latter.

    Given the lower spending power and rampant piracy in the region, free content lured in hordes of users and created an advertising revenue stream for Viu, one that surged 54% in the first half. Subscription revenue jumped 40%. Overall, Viu’s revenue grew 47% to $62-million in the first half of the year.

    Recent entrants iQiyi and Tencent’s WeTV have both adopted this tiered model.

    Mobile plans

    Viu was also among the first major platforms to partner with local wireless operators and offer its service over mobile phones, with plans costing as little as $2/month. Netflix in 2019 adopted a similar system, introducing under-$5-a-month mobile-only plans in several Asian countries.

    Still, the platform, which operates in 16 markets including the Middle East and South Africa, will find it an uphill challenge to replicate its success in Southeast Asia elsewhere.

    Other major Asian markets like China and India are dominated by local incumbents; Viu decided to exit India in 2019 after more than three years of operations because it lacked the cash to challenge bigger rivals, India’s Economic Times reported.

    Few regional streaming platforms have been able to keep up with American and Chinese heavyweights. Hooq, backed by Singapore Telecommunications, filed for liquidation and discontinued service last year. iFlix was acquired by Tencent after advertising revenue took a hit during the pandemic.

    Viu is hoping to continue defying expectations.

    “We have been in the market with multiple players for a period of time now,” said Lee. “We’ve seen that we have continued to deliver very robust growth.”  — Reported by Shirley Zhao, (c) 2021 Bloomberg LP

    Disney Iflix Netflix PCCW Richard Li Tencent top Viu
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleBest company to build a new smartphone app for your business
    Next Article Xi targets China’s richest

    Related Posts

    Entelek, A2pay to roll out 2 500 free Wi-Fi sites in South Africa

    18 August 2022

    Telkom muscles into banks’ turf with business loans

    18 August 2022

    Sarb tells banks they should work with crypto exchanges

    18 August 2022
    Add A Comment

    Comments are closed.

    Promoted

    Entelek, A2pay to roll out 2 500 free Wi-Fi sites in South Africa

    18 August 2022

    Companies are drowning in data – but solutions are at hand

    18 August 2022

    Top cybersecurity challenge is inadequate identification of key risks

    17 August 2022
    Opinion

    No reason South Africa should have a shortage of electricity: Ramaphosa

    11 July 2022

    Ntshavheni’s bias against the private sector

    8 July 2022

    South Africa can no longer rely on Eskom alone

    4 July 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.