Content Diversification and Business Models Are Tencent's Strategies to Grow "Video Streaming" Business

In the midst of social distancing activities due to the pandemic, digital content has become an alternative entertainment that many people choose. A survey conducted by McKinsey in March to April 2020 said that 45% of respondents admitted to spending more money on home entertainment and the impact on video content consumption growth was 53% from before.

This condition is clearly an opportunity for industry players in this field. To see how far the service provider streaming fostering growth in the midst of a pandemic, DailySocial had the opportunity to interview WeTV and iflix Indonesia Country Manager Lesley Simpson. Both applications are now managed by Tencent, a giant Chinese technology company that focuses on the entertainment segment.

Tencent itself also has a company base in Indonesia through PT Tencent Indonesia to maximize product usage penetration and business potential. Since 2018, Tencent has established itself to run operations in Indonesia independently.

WeTV and iflix

Starting the conversation, Lesley tried to explain the unique value brought by WeTV and iflix. "Since several company assets were acquired, currently WeTV and iflix are both operated by Tencent separately. In terms of brand, iflix is ​​already familiar with users in Indonesia, while WeTV is still new. "At WeTV, one of the strong content variants is Mandarin, Thai and Korean films and series," he said.

He said that WeTV is now also focusing on producing original series. In the execution, they also collaborated local production studio and also working on series titles from local intellectual properties that have previously been successful in films, for example from Indonesia there are Yowis Ben The Series and Imperfect Series.

"We also produce our own content to maintain the quality of viewing [..] Currently cinemas are not yet conducive, we hope that series from IP and known titles can become an alternative entertainment for the public," added Lesley.

Diversify content

When asked about the number of current users, Lesley did not mention the number explicitly. However, he emphasized that one of the strategies he wants to present is content diversification. It cannot be denied that South Korean content is currently the most favorite in Indonesia, even though according to him there are many other entertainment options that can also be chosen, one of which is Chinese films or series.

"All this time because of it 'Korean wave' the impression is that the viewing options are limited. Even though there are still many series or films from various countries in Asia. For example, from China, entertainment there is always presented with good quality. They are very serious about costume making and the production process. "And it turned out to be true, when we presented it on WeTV there were lots of fans," said Lesley.

To make it easy to adapt, WeTV and iflix also strive for every imported content presented to bedubbing with Indonesian voice acting. According to Lesley, many users here are more comfortable listening than reading (subtitles) -- although there is still the option to use it subtitle in every content.

"On the other hand, this is also an industry that we want to collaborate with. We work together with dubber professional and talented to create the best quality content," he explained.

business model

To watch shows on WeTV, users simply visit the site or open the application. No registration required or login to see existing films or series. Lesley even said that more than half of the total shows they have can be accessed for free. It is not surprising that in several months in 2020, the WeTV application has always ranked at the top of the Google Play ranking in the entertainment category in Indonesia.

Nevertheless, business model must still be owned to ensure the company reaps profits. Currently, users can also choose the premium version to get exclusive access rights, such as watching episodes early, ad-free, and getting exclusive premium content.

Collaboration with strategic partners is also carried out in Indonesia. For example, with telecommunications service providers. Currently they are also collaborating with Indihome to present their content to USeeTV users. Not only that, they also collaborate with platforms E-commerce local to sell voucher access to premium services. Lesley said they were still exploring collaboration with many parties, including local production houses.

"Which becomes unique selling point, Tencent has become the king of content in China. As is known, it is not easy to dominate this market. These competencies will be brought to Indonesia. "What is clear is that a local approach must be prioritized, including supporting local teams and localizing content," said Lesley.

In the midst of the pandemic, several new modules were launched. "Indonesians are usually happy Nobar, because cinemas are closed and social distancing so it's hard to do. From there we released function social media, allowing people to watch together while providing comments online live and interact with other viewers. Users from Indonesia are quite enthusiastic about participating here."

Competition in Indonesia

Previously we made a review of the service ecosystem video streaming in Indonesia, it also maps several players that are already operating: Landscape of On-Demand Video Platforms in Indonesia. The position of WeTV and iflix is ​​in direct competition with several players such as Viu, GoPlay, Vidio, Netflix, and others. This year there will also be new arrivals, one of them LionsgatePlay.

According to the latest data from Media Partners Asia, as of the beginning of this year, Disney+ Hotstar already had 2,5 million subscribers in Indonesia, Viu had 1,5 million subscribers, and Vidio had 1,1 million subscribers. While Netflix has 800 thousand. Disney+ Hotstar aggressively provides free premium access packages, in-bundling with internet packages from Telkomsel (its launch partner in Indonesia).

Regarding this competition, Lesley is quite confident. Tencent is considered to have formed an ecosystem in Indonesia and also has its main base as a technology company. As is known, the company also operates Joox (music), games (PUBG, AOV), WeChat (instant messaging) services, and so on. "In 2021 there will be synergy between Tencent platforms. But the pandemic has created limitations, because currently we still need a lot of support from local talent, but on the other hand we still have to prioritize health and the protocols that accompany it," he said.

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