Local Asian streaming content threatened by ‘rampant’ piracy | Security | News | Rapid TV News
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Broad optimism for the future of online curated VOD content and existing pay-TV services in Asia is being increasingly challenged by piracy that has reached worrying levels said a conference organised by the Asia Video Industry Association (AVIA).

DV HOOQ 19Dec2018At the event in Indonesia, assessing the health and prospects of the video industry in South East Asia’s largest country. Yuliandre Darwis, the chairman of KPI said that the national government hoped to see and support increasing investment in local content.

While Alphabeta engagement manager Konstantinos Matthies observed that his firm’s surveys indicated that online curated content (OCC) providers would multiply
their investment in Asian content by a factor of 3.7x, over the next three years. Fauzan Zidni the chairman of APROFI (the Indonesian Association of Film Producers) also acknowledged the opportunity for the local production industry to grow and move up the value chain with theincreased focus on local productions.

In a discussion between the major OCC video streaming companies — Hooq, iflix, OONA, Viu and Telkomsel — Jason Monteiro, CMO of iflix, said they would double their investment in local content in 2019, as they had seen favourable audience reactions to Asian stories. All parties agreed that unique, original content was the biggest draw to attract subscribers.

However, Crispin Tristram, VP of digital lifestyle service of Telkomsel talked about the growing success of their super app that aggregates content but also pointed out the challenges of monetisation. While for gaming the company was seeing a 10% conversion rate from free services to paid, for music it is 3% but for video it was less than 1%.

The general consensus was that this very low conversion rate was almost certainly largely due to high levels of piracy in Indonesia. Moreover, further discussion during the day made it clear that there was still a large traditional DTH piracy market withlocal cable operators illegally retransmitting DTH signals to their own subscribers; but there was also a massively growing digital streaming piracy ecosystem and until that was addressed, free-to-paid conversion rates for video services would remain low.

AVIA noted that its latest survey, commissioned by the Coalition Against Piracy (CAP) and conducted by YouGov highlighted the detrimental effects of streaming piracy on legitimate subscription video services.