5 ways how Video Streaming companies are driving growth in emerging markets

a) Partnering with the Smart/ Digital TV ecosystem  –

Both players gain. Smart TV sales go up with the additional content infratructure built in, and the streaming service gets more subscribers hooked on.

Eg : Samsung Electronics has partnered with iflix in an effort to market its Samsung Smart TV, by incorporating pre-installed iflix app for markets in Indonesia, Malaysia, Myanmar, the Philippines and Thailand
Consumers who purchase designated Samsung Smart TV models will enjoy a complimentary 12-month iflix subscription, sponsored by Samsung.

b) Getting over the barrier of data costs

Lot of the focus is to get decently good steaming quality at low bit rates and also provide an option of download and view later. (Bit rates below 1 mbps)

c) Adapting to Content needs

80% of the Top 10 streamed shows in Indonesia, Thailand, Sri Lanka are locally produced shows, and this trend will continue as more of the middle class get onto using streaming services.
Even Netflix has realised that key to their penetration in India, is high quality locally produced content. Amazon prime has stolen a march on them in this regard.

d) Hyper local in terms of Marketing

– Credit card usage is low in Emerging market economies, players are adapting to this by having Telco tie ups for payment and data related deals with Telco’s.
– Pricing is in the $ 2 range per month, so the service competes with the pirated DVD market, in converting users.
– Content is curated as per local market demands
– Censorship rules are as per local community standards

e) Partnering with the TELCO ecosystem

The partnership with Telco’s is win-win.
Telco’s get access to a huge content library, which is a big differentiator today.
In return, they give preferred access costs to the straming service, which will also increase their data revenue stream, as more and more consumers start to binge watch.
The streaming service gets access to a large consumer base from the start.

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