Malaysia SVOD penetration to reach 38% in 2026Thursday, October 27th, 2022
Malaysia SVoD household penetration to reach 38% in 2026, forecasts GlobalData
The household penetration of subscription video on demand (SVoD) services in Malaysia is expected to increase from 17% in 2021 to 38% in 2026, driven by considerable rise in the adoption of OTT platforms, according to GlobalData, a leading data and analytics company.
GlobalData’s Malaysia Subscription Video on Demand (SVoD) Forecast (Q2 2022) reveals that SVoD subscriptions in the country will increase at a CAGR of 19.1% over the forecast period 2021-2026, in line with the growing cord cutting trend among the traditional pay-TV viewers and their increasing migration towards on-demand video services. The competitive pricing strategies adopted by OTT service providers and their investments in premium local content will also drive the growth in SVoD subscriber base over the forecast period.
Kantipudi Pradeepthi, Telecom Analyst at GlobalData, says: “Increasing coverage and availability of broadband services, and promotional multi-play service bundle plans with free subscriptions to OTT platforms will additionally lend traction to the SVoD service adoption in the country.”
Netflix held the largest share in Malaysia’s total SVoD subscriptions in 2021 and will continue to lead through 2026. Heavy investments in high quality regional content, and affordable mobile-only plans offered at $4 per month will help the company maintain its leadership in the market over the forecast period.
Pradeepthi concludes; “Malaysia is a price-sensitive market and hence many streaming players are adopting innovative pricing strategies to attract new subscribers. iFlix and Viu, for instance, allow their basic plan subscribers to watch some content for free in exchange for viewing advertisements while the ad-free shows and movies are usually locked for premium subscription plans. Operators are also differentiating their services through their content offerings. While iFlix and Viu offer a wide range of Asian and local content, Netflix brings Hollywood blockbusters and exclusive shows to viewers.”