The future of entertainment and media in Southeast Asia

Back in November, I had the privilege of hosting an event where we delved into the Entertainment and Media (E&M) outlook for Southeast Asia. This vibrant industry is projected to reach USD 39 billion in 2023, representing 2% of the global market. Excitingly, the sector is expected to grow at 6% annually through 2028, outpacing global growth rates. Key drivers of this expansion include internet advertising, video games, esports, and over-the-top (OTT) video services, which together will contribute to over 80% of the region’s growth.

As we look ahead, several trends are poised to redefine the E&M landscape:

1. Changing consumer behaviors: The rise of Gen Z as a significant consumer demographic is reshaping spending patterns. The lines between social media and traditional television are increasingly blurred, with platforms like YouTube giving rise to user-generated content that rivals premium studio productions. This shift has also led to the popularity of short-form content and innovative social e-commerce strategies.
2. Convergence of media channels: The media landscape is becoming more digital and mobile, with a strong emphasis on experiential content. Live events, particularly in major hubs like Singapore, are driving consumer spending. Companies are leveraging new technologies such as virtual reality (VR) and augmented reality (AR) to enhance in-person experiences and monetise content in novel ways.
3. Increased competition: The entry of tech giants into the E&M space is reshaping revenue streams, while independent content creators are enhancing their capabilities. This duality of new and established competitors is fostering a more diverse media environment, but it also presents challenges in maintaining a cohesive consumer experience.
4. Growing advertising opportunities: The advertising landscape is evolving rapidly, particularly in streaming and gaming. Streaming advertising is transforming OTT video, reviving traditional models in innovative formats. In-game advertising is expected to be one of the fastest-growing revenue streams in Southeast Asia, projected to grow at 18% per year through 2028.
   

To remain competitive, companies must embrace transformation. Identifying a winning persona—whether as an “IP exploiter” or a “mobile leader”—is crucial for success. The advent of Generative AI is also set to revolutionise the media value chain, offering significant profit potential while necessitating careful navigation of legal and ethical considerations.

Conclusion

The Southeast Asian E&M industry is at a pivotal moment, characterised by rapid growth and transformative trends. As consumer behaviors evolve and new technologies emerge, companies must adapt to stay relevant. By understanding these dynamics, stakeholders can position themselves to thrive in this vibrant and competitive landscape.

If you’re interested in a deeper dive into the findings from my presentation, I would be more than happy to run through the details with you!