MUMBAI: Despite a deluge of global content coming to India thanks to a multitude of streaming platforms, the Indian audience continues to retain a strong appetite for local content. According to a report from Alphabeta Strategy and economics, the paid video-on-demand (VoD) audience in the country spends 53 per cent watch time on local content. Along with India, other Asian countries also show the same fondness for local content.
AlphaBeta commissioned a survey of internet users watching paid online VOD once a month or more in India, Indonesia, Malaysia, Taiwan and Thailand. The survey has also found that the demand for local content remains same across all the age groups. During a session in FICCI FRAMES 2019, Alphabeta Strategy and Economics engagement manager Dr. Konstantin Mathhies revealed the findings.
“With strong consumer demand for local content, VOD players will have to increasingly provide high-quality local content to align with these preferences. Already, many VOD players in Asia have developed “hyper-local” strategies in content investment – with a focus on producing high-quality shows that also differentiate their offerings in a competitive market,” the report read. It also cited the example of global players like Amazon, Netflix going local in Asia.
While all the large international players are investing in the Asian countries, local players are also ramping up the investment in content. The study estimates that the content spending in Asia could go up to US$10.1 billion in 2022 from US$2.7 billion in 2017.
Moreover, foreign direct investment in local content in Asia is also expected to get a boost given the fact that VoD spending is largely driven by global players . The report added that the potential FDI could reach US$4 billion by 2022.
The key findings of the report depict that over 80 per cent of VoD executives cite a welcoming investment environment, supportive regulations, and high-quality content production infrastructure as key to driving content investment. It also adds that VoD makes it easier for Asian entertainment to reach at least 450 mn people globally today.
