Netflixes of Asia Are a Sign of APAC’s Appetite for VOD Variety

September 20, 2016  | Written by Caroline Ku

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APEX Insight: The crop of video streaming platforms, the appetite for content variety and the phenomenon of ‘any time, any screen’ in the Asia-Pacific hint at a possible direction for in-flight entertainment on the region’s carriers.

In the past year, Netflix launched in Australia, Japan, Hong Kong, India, Singapore, South Korea and Taiwan. Its popularity in the region has been slow, but the problem isn’t the demand.

“Streaming is a way of life here,” says Jovita Toh, CEO of Hong Kong-based Encore Inflight Limited, a supplier of in-flight entertainment (IFE). According to Nielsen’s 2016 survey on video on demand (VOD), more than a third of Asia-Pacific respondents stream from an online service, citing that they prefer to watch multiple episodes in one sitting and have the flexibility of being entertained whenever, wherever.

“The ‘any time, any screen’ phenomenon has changed people’s daily lives.” – Grace Lau, Emphasis Video Entertainment

“The ‘any time, any screen’ phenomenon has changed people’s daily lives,” says Grace Lau, Acquisition and Distribution director of Emphasis Video Entertainment, also based in Hong Kong. “Now we see more and more people watching dramas [on the subway] or news reports in washrooms,” she says.

So why hasn’t Netflix caught on in Asia as well as it has in the United States? Critics say its subscription fees are too high and the catalogs lack local-language content, areas where platforms like China’s LeEco, Hong Kong’s Viu, Taiwan’s CatchPlay and Singapore’s Hooq excel.

“Airlines should be thinking about giving passengers access to the local content that they love wherever they are,” says Shane Mitchell, chief digital officer of Singapore-based MediaCorp.

The Nielsen survey also points out that more than a third of respondents wished there were more VOD choices to satiate their diverse entertainment cravings. With in-flight connectivity, airlines are poised to offer variety. “Entertainment systems with larger capacities are allowing airlines to program diverse content, catering well to a large mix of cultures,” Toh says.

One airline that is looking to add more local content to its IFE is Korean Air. It has its eye on video streaming platforms like Watcha Play and Tving. “These websites contain a variety of content that [our airline] is currently or intending to provide passengers in flight,” says Dante Dionne, senior IT manager, Innovation Technology Development Center, Korean Air.

And with more expansive IFE catalogs and local content, there’s added value to the passenger experience. “There is always a strong desire for locally produced content that reflects its society, its values and its culture,” says Mitchell. “With local content [comes a] very strong sense of ownership and belonging.”

“Streaming for Variety” was originally published in the October/November issue of APEX Experience magazine.