Amazon's Prime Video is making a bold move in the Asia-Pacific region, aiming to become the go-to 'entertainment hub' for viewers. This strategy, unveiled at the APOS media conference in Bali, marks a significant shift in the streaming landscape, moving away from standalone apps towards a bundled, aggregated model. The company's vice president for Asia-Pacific, Gaurav Gandhi, argues that the diverse and varied nature of the region necessitates a unique approach, one that layers add-on subscriptions and rentals on top of a core subscription tier. This hub model offers a win-win situation for both customers and content partners, providing a wider selection and a streamlined billing process, respectively.
What makes this strategy particularly intriguing is its alignment with the current industry trend towards bundling and aggregation. With the streaming market in Asia maturing, players are moving away from the initial phase of the 'streaming wars' characterized by head-to-head subscriber battles. This shift is especially evident in the crowded developed markets and the low-margin realities of the rest of the region. Viu and iQIYI International have already introduced a Southeast Asian bundle, and Disney+ has partnered with CJ ENM's Tving in Japan, indicating a growing preference for aggregated services.
Prime Video's strategy is most evident in India, its largest Asian market. The company is integrating a free, ad-supported tier into its paid service, leveraging its integration with Amazon MX Player to offer a vast selection of exclusive originals. This approach, combined with a multilingual, originals-first strategy, has made Prime Video India's largest streaming service. Shilangi Mukherji, head of Prime Video India's subscription business, highlights the platform's deep investment in Hindi, Tamil, and Telugu, as well as its 60% renewal rate for series, as evidence of its success.
In Japan, Prime Video's second-largest APAC market, the company has had to establish a subscription-streaming habit from scratch. Country manager Keisuke Oishi recalls the challenge of introducing a new category of subscription video in a market still anchored to free-to-air television. However, Prime Video Japan has since broadened its content pillars, including anime, scripted entertainment, unscripted programming, and live sports, with a focus on local audiences and manga adaptations.
Gandhi emphasizes the Asia-Pacific region's centrality to Prime Video's global plans, not just as a key driver of growth but also as a market where new ideas are generated. India's tiered and mobile-first plans, along with its multilingual programming, are prime examples of this. As Prime Video continues to expand its hub model, the question arises: will this strategy become the new norm for streaming services in the Asia-Pacific region, and beyond?
