Billionaire Richard Li’s streaming business is on a roll, mulling a possible initial public offering after its platform Viu beat Netflix Inc. in subscribers in one in all Asia’s best markets.
Viu is now Southeast Asia’s second largest streaming service by paid subscribers, trailing only Disney Plus, consistent with research firm Media Partners Asia. Its success has driven the over-the-top media business of Li’s conglomerate PCCW Ltd. to post a revenue jump of 29% within the half of this year, narrowing losses by 75%.
The Hong Kong-based business, which also includes a smaller music streaming platform, is predicted to interrupt while early because the last half, said PCCW manager BG Srinivas last week. The group will consider introducing strategic partners or maybean inventory for the division, he said in an Christian holy day earnings call.
The rise of Viu in geographic region has stood out because the streaming space worldwide becomes mostly carved up by giants from Disney Co and Netflix to China’s Baidu Inc and Tencent Holdings Ltd. The Hong Kong-based platform have to be compelled to the fast growing middle-class population before bigger competitors partly by recognizing trends more quickly — just like the appetite for Korean dramas across the several languages employed in the region and demand for a free subscription tier — but it remains to be seen if it can hang onto the first lead.
“Our aim is to still be frontrunners within the digital entertainment space in Asia,” Viu CEO Janice Lee told Bloomberg. “We want to make a service in Asia for Asia, but we also understand Asia isn’t one region.”
Its rivals have deeper pockets, a long time data of making original content and are ramping up their target geographical area as growth slows in home markets just like the US Netflix spent almost $2 billion between 2018 and 2020 on creating and licensing shows in Asia, with geographic area a key market.
In November, Disney appointed Ahmad Izham Omar, former chief officer of Malaysia’s largest production company Primeworks Studios, to steer its efforts in geographical region.
“The key question is how Viu can rescale even more,” said Vivek Couto, decision maker of Media Partners Asia, adding that the firm lacks its own franchises, especially in Korean content, compared with how Netflix is fitting studios and inking production partners within the East Asian nation. Viu is at a crossroads in its journey because 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 Inc scouted Kuek Yu-Chuang, Netflix’s main liaison to governments in geographic area in June last year, and a pair of weeks later, Tencent acquired Malaysia-based streaming platform iFlix Ltd, ramping up efforts to expand within the market.
Looking ahead, Viu is trying to consolidate its early gains by pivoting to making more original content, announcing its first four Korean drama originals earlier this year. it’s produced a median of over 40 original shows each year since 2016, consistent withthe corporate. Lee declined to disclose its take into account original content.
