1 00:00:02,720 --> 00:00:12,719 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:15,480 --> 00:00:19,880 Speaker 2: After nearly a four year break, kpop super group BTS 3 00:00:20,000 --> 00:00:20,640 Speaker 2: is back. 4 00:00:21,440 --> 00:00:24,920 Speaker 3: Everyone here and everyone watching on Netflix around the world, 5 00:00:24,920 --> 00:00:26,840 Speaker 3: thank you for joining us tonight. 6 00:00:28,080 --> 00:00:31,639 Speaker 2: More than one hundred thousand fans watched their comeback concert 7 00:00:31,840 --> 00:00:35,159 Speaker 2: promoting a new album this past weekend in Soul, and 8 00:00:35,320 --> 00:00:44,120 Speaker 2: millions more watched live on Netflix. It's the first time 9 00:00:44,200 --> 00:00:46,880 Speaker 2: the group's seven members have shared the stage since twenty 10 00:00:46,920 --> 00:00:49,599 Speaker 2: twenty two, when they took a break to complete their 11 00:00:49,640 --> 00:00:54,560 Speaker 2: mandatory military service. In k pop, tastes change fast and 12 00:00:54,600 --> 00:00:58,440 Speaker 2: groups come and go quickly, but BTS has proven they've 13 00:00:58,480 --> 00:01:02,080 Speaker 2: got staying power. Tickets for the band's upcoming world tour, 14 00:01:02,400 --> 00:01:07,039 Speaker 2: all eighty two shows sold out almost instantly. Bloomberg's Asia 15 00:01:07,120 --> 00:01:10,600 Speaker 2: Entertainment correspondence So He Kim was at the Netflix show 16 00:01:10,800 --> 00:01:11,279 Speaker 2: in Seoul. 17 00:01:12,000 --> 00:01:15,839 Speaker 3: They have this army as a fan base who's willing 18 00:01:15,920 --> 00:01:20,319 Speaker 3: to buy the hundred copies of the album's streaming endlessly 19 00:01:20,560 --> 00:01:25,000 Speaker 3: their music and attending concerts a couple of times. 20 00:01:27,040 --> 00:01:31,759 Speaker 2: The performance was also a significant milestone for Netflix. It's 21 00:01:31,800 --> 00:01:36,160 Speaker 2: the platform's first live streamed concert from Asia and only 22 00:01:36,240 --> 00:01:38,280 Speaker 2: its third live event in the region. 23 00:01:39,280 --> 00:01:46,240 Speaker 4: Netflix's deal with BTS speaks to the growing importance of 24 00:01:46,840 --> 00:01:49,880 Speaker 4: Asia as a region for the world's largest streaming service. 25 00:01:49,960 --> 00:01:52,360 Speaker 4: It's been the fastest growing region in the world for 26 00:01:52,400 --> 00:01:53,600 Speaker 4: them the last few years. 27 00:01:54,280 --> 00:01:57,800 Speaker 2: Lucas Shaw is the managing editor for Media and Entertainment 28 00:01:57,840 --> 00:02:01,640 Speaker 2: at Bloomberg and writes its screen Time newsletter. He says 29 00:02:01,720 --> 00:02:06,040 Speaker 2: BTS is big comeback has given Netflix a golden opportunity 30 00:02:06,560 --> 00:02:10,640 Speaker 2: to build an audience with fans who aren't Netflix customers yet. 31 00:02:11,520 --> 00:02:14,560 Speaker 4: The return of BTS is one of the if not 32 00:02:14,680 --> 00:02:17,520 Speaker 4: the biggest cultural moment of the year in the region. 33 00:02:17,680 --> 00:02:20,480 Speaker 4: They're the most popular boy band in the world. They're 34 00:02:20,520 --> 00:02:23,760 Speaker 4: the most popular pop back Korea has ever produced, and 35 00:02:23,840 --> 00:02:28,000 Speaker 4: so this is an opportunity to try to draw in 36 00:02:28,560 --> 00:02:32,200 Speaker 4: a lot of fans from across the region who haven't 37 00:02:32,200 --> 00:02:35,040 Speaker 4: tried netflixes, even though there you know, Netflix has tens 38 00:02:35,040 --> 00:02:37,560 Speaker 4: of millions of customers in Asia, there are billions of 39 00:02:37,560 --> 00:02:40,480 Speaker 4: people and probably hundreds of millions of BTS fans. 40 00:02:48,000 --> 00:02:51,400 Speaker 2: This is the big Take Asia from Bloomberg News. I'm Wanha. 41 00:02:51,919 --> 00:02:54,320 Speaker 2: Every week we take you inside some of the world's 42 00:02:54,320 --> 00:02:58,240 Speaker 2: biggest and most powerful economies and the markets, tyccoons and 43 00:02:58,400 --> 00:03:02,680 Speaker 2: businesses that drive this ever shifting region. Today, on the show, 44 00:03:02,919 --> 00:03:06,639 Speaker 2: BTS is Back and Netflix is using the boy band's 45 00:03:06,680 --> 00:03:10,440 Speaker 2: popularity to boost its dominance in Asia, we look at 46 00:03:10,440 --> 00:03:13,800 Speaker 2: how Netflix and its competitors are chasing growth in the 47 00:03:13,840 --> 00:03:17,360 Speaker 2: region and what strategies they're using to grab market share. 48 00:03:21,760 --> 00:03:25,600 Speaker 2: Bloomberg Showhee Kim has been covering K pop for a decade, 49 00:03:25,880 --> 00:03:30,080 Speaker 2: long enough to watch BTS's explosive rise in real time. 50 00:03:30,760 --> 00:03:33,840 Speaker 2: She remembers the first BTS press conference she attended. It 51 00:03:33,960 --> 00:03:36,800 Speaker 2: was early in their careers, after they became the first 52 00:03:36,920 --> 00:03:39,760 Speaker 2: K pop group to win at the Billboard Music Awards 53 00:03:39,760 --> 00:03:43,120 Speaker 2: in twenty seventeen. That year, they beat out the likes 54 00:03:43,160 --> 00:03:46,240 Speaker 2: of Justin Bieber and Ariana Grande for the Top Social 55 00:03:46,320 --> 00:03:50,960 Speaker 2: Artist category. And we still cannot believe that we're standing 56 00:03:51,120 --> 00:03:53,600 Speaker 2: here on this stage at the Billbore Musical Wars. 57 00:03:53,640 --> 00:03:57,560 Speaker 3: Oh my gosh, they were young. I was young, and 58 00:03:58,040 --> 00:04:02,120 Speaker 3: they looked like a very big pop star already, but 59 00:04:02,840 --> 00:04:05,320 Speaker 3: I could sense that they were still boys. 60 00:04:05,800 --> 00:04:09,240 Speaker 2: Now, almost a decade later, Sooey says, the band has 61 00:04:09,360 --> 00:04:10,520 Speaker 2: clearly grown up. 62 00:04:12,600 --> 00:04:16,640 Speaker 3: Ten years after the big stardom and the military service, 63 00:04:16,960 --> 00:04:19,200 Speaker 3: and now they are in the thirties and I'm now 64 00:04:19,240 --> 00:04:22,760 Speaker 3: in thirties. The answers and the vibe that they've been 65 00:04:23,040 --> 00:04:27,400 Speaker 3: giving me during the interview was very mature and thoughtful. 66 00:04:28,040 --> 00:04:32,160 Speaker 2: K Pop as a genre has matured too. In twenty seventeen, 67 00:04:32,360 --> 00:04:36,599 Speaker 2: when Sooey first met BTS, kpop was relatively new to 68 00:04:36,680 --> 00:04:40,680 Speaker 2: global audiences, big in parts of Asia, but far from 69 00:04:40,680 --> 00:04:43,400 Speaker 2: the nine billion dollar business it is today. 70 00:04:44,279 --> 00:04:48,800 Speaker 3: K pop started as the Korean language pop, but if 71 00:04:48,839 --> 00:04:52,080 Speaker 3: you listen to the music, it's not just Korean language 72 00:04:52,160 --> 00:04:55,599 Speaker 3: or Korean sound. It's more of a mix of a 73 00:04:55,640 --> 00:04:59,280 Speaker 3: lot of pop genres. And now K pop bands are 74 00:04:59,600 --> 00:05:03,479 Speaker 3: singing a lot in English, so I will say it's 75 00:05:03,560 --> 00:05:06,919 Speaker 3: more of like borderless genre right now. 76 00:05:07,600 --> 00:05:11,600 Speaker 2: K pop's borderless appeal is one reason tens of thousands 77 00:05:11,600 --> 00:05:14,160 Speaker 2: of fans from all over the world gathered in Soul 78 00:05:14,320 --> 00:05:19,000 Speaker 2: for the comeback. Bloomberg's Lucas Shaw says Netflix hopes moments 79 00:05:19,080 --> 00:05:22,359 Speaker 2: like this can act as a powerful on ramp, giving 80 00:05:22,400 --> 00:05:26,520 Speaker 2: BTS's massive, highly engaged fan base a reason to sign up, 81 00:05:26,880 --> 00:05:31,480 Speaker 2: sample the platform, and ideally stick around as long term subscribers. 82 00:05:32,279 --> 00:05:32,440 Speaker 3: Well. 83 00:05:32,480 --> 00:05:34,320 Speaker 4: The main way for Netflix to make money off this 84 00:05:34,480 --> 00:05:37,440 Speaker 4: is to get people to sign up to pay for Netflix, right, 85 00:05:37,480 --> 00:05:39,440 Speaker 4: they're not selling it as an add on. You know, 86 00:05:39,440 --> 00:05:41,200 Speaker 4: they're not a lot of acts where I think they'd 87 00:05:41,200 --> 00:05:43,520 Speaker 4: want to do live concerts like this, just because there's 88 00:05:43,560 --> 00:05:46,560 Speaker 4: only a handful of acts at the scale of a BTS. 89 00:05:46,720 --> 00:05:48,800 Speaker 4: And I imagine they would want this to be part 90 00:05:48,839 --> 00:05:51,240 Speaker 4: of an ongoing relationship with the band. They'd love to 91 00:05:51,279 --> 00:05:56,159 Speaker 4: have there be somewhat regular documentaries or touch points, just 92 00:05:56,200 --> 00:05:59,359 Speaker 4: because BTS has stretched a strong and passionate fan base. 93 00:06:00,120 --> 00:06:03,680 Speaker 2: Netflix hasn't disclosed how much it costs them to stream 94 00:06:03,680 --> 00:06:08,120 Speaker 2: BTS's opening show, but the BTS Live comeback gave the 95 00:06:08,160 --> 00:06:11,960 Speaker 2: platform a rare chance to make a big splash in Asia, 96 00:06:12,440 --> 00:06:17,239 Speaker 2: and it worked. The stream topped Netflix's charts in seventy 97 00:06:17,240 --> 00:06:21,080 Speaker 2: seven countries. That's exactly the kind of global tension Netflix 98 00:06:21,279 --> 00:06:21,839 Speaker 2: is betting on. 99 00:06:22,520 --> 00:06:25,720 Speaker 4: I would view it as a continuation of a strategy 100 00:06:26,160 --> 00:06:30,240 Speaker 4: where they do a small number of major live events 101 00:06:30,560 --> 00:06:32,920 Speaker 4: and they want each one of them to feel special 102 00:06:33,040 --> 00:06:35,320 Speaker 4: and loud. But it's in keeping with you know, they 103 00:06:35,360 --> 00:06:38,280 Speaker 4: had the World Baseball Classic in Japan. You know, they 104 00:06:38,279 --> 00:06:41,240 Speaker 4: don't have a full season of football. They do Christmas 105 00:06:41,320 --> 00:06:43,679 Speaker 4: Day football, they don't have a full season of Baseball, 106 00:06:43,680 --> 00:06:46,080 Speaker 4: They're doing Opening Day and the home run derby, and 107 00:06:46,120 --> 00:06:48,200 Speaker 4: so you know, what better way to have their first 108 00:06:48,240 --> 00:06:50,599 Speaker 4: concert than a live show with one of the biggest 109 00:06:50,600 --> 00:06:52,560 Speaker 4: acts in the world. And so they do these one 110 00:06:52,600 --> 00:06:54,680 Speaker 4: offs because they will generate the most attention. 111 00:06:55,520 --> 00:06:59,719 Speaker 2: Lucas says BTS is just one part of a bigger push. 112 00:07:00,200 --> 00:07:03,960 Speaker 2: Netflix has been investing heavily in Korea and in Korean 113 00:07:04,040 --> 00:07:09,160 Speaker 2: content because the returns have been impossible to ignore. Squid Game, 114 00:07:09,360 --> 00:07:14,160 Speaker 2: the gory dystopian Korean thriller, remains Netflix's most watched title 115 00:07:14,320 --> 00:07:18,120 Speaker 2: of all time. Its first season generated and estimated nine 116 00:07:18,200 --> 00:07:22,400 Speaker 2: hundred million dollars in value and spawned multiple seasons, and 117 00:07:22,480 --> 00:07:26,240 Speaker 2: now Netflix is planning a k pop Demon Hunter's World tour, 118 00:07:26,800 --> 00:07:30,440 Speaker 2: building on the runaway success of its most popular movie ever. 119 00:07:32,240 --> 00:07:36,680 Speaker 4: The customer base in Korea first streaming is not a 120 00:07:36,840 --> 00:07:41,760 Speaker 4: top five market, but as a producer of film, television 121 00:07:41,840 --> 00:07:45,080 Speaker 4: and some of these music properties, it's punched away above 122 00:07:45,080 --> 00:07:45,440 Speaker 4: its weight. 123 00:07:45,520 --> 00:07:45,640 Speaker 3: Right. 124 00:07:45,680 --> 00:07:48,280 Speaker 4: It's been the most important in Asia by far, because 125 00:07:48,400 --> 00:07:51,120 Speaker 4: Korean film and television is popular not just at home, 126 00:07:51,160 --> 00:07:55,760 Speaker 4: but in Japan and Southeast Asia and increasingly elsewhere. I'd 127 00:07:55,840 --> 00:07:59,160 Speaker 4: say it's one of the three or four most important 128 00:07:59,240 --> 00:08:01,720 Speaker 4: markets outside out of the US great so. 129 00:08:01,720 --> 00:08:05,560 Speaker 2: Korea definitely holds the crown for content right now. Asia 130 00:08:05,640 --> 00:08:08,240 Speaker 2: is huge though, so when Netflix looks at the rest 131 00:08:08,280 --> 00:08:11,200 Speaker 2: of Asia, where do they see the biggest growth opportunities. 132 00:08:11,800 --> 00:08:15,520 Speaker 3: Japan remains a very high value metro market with very 133 00:08:15,560 --> 00:08:18,640 Speaker 3: strong will needs to pay. So they've been working on 134 00:08:18,720 --> 00:08:22,200 Speaker 3: a lot of scripted shows in Japan and they spend 135 00:08:22,240 --> 00:08:26,000 Speaker 3: a lot of money on WBC live streaming scale wise, 136 00:08:26,120 --> 00:08:29,840 Speaker 3: India and Southeast Asia over the long run could give 137 00:08:29,880 --> 00:08:33,240 Speaker 3: them some massive skill but for now it's a lower 138 00:08:33,320 --> 00:08:37,439 Speaker 3: revenue per user. So I think the opportunities like lies 139 00:08:37,480 --> 00:08:40,160 Speaker 3: in tailoring price and content that they are going to 140 00:08:40,200 --> 00:08:41,360 Speaker 3: have in each market. 141 00:08:42,080 --> 00:08:45,800 Speaker 2: And of course there's China right, huge market, but totally inaccessible. 142 00:08:46,240 --> 00:08:50,199 Speaker 4: They've tried. Any Western company, or really any foreign company 143 00:08:50,800 --> 00:08:53,640 Speaker 4: needs to have a license or really have a local 144 00:08:53,720 --> 00:08:57,120 Speaker 4: partner that controls the business. It would be sort of 145 00:08:57,120 --> 00:09:00,680 Speaker 4: a you know, a separate venture. Netflix had tried for 146 00:09:00,720 --> 00:09:02,760 Speaker 4: a few years. It probably wasn't going to happen, and 147 00:09:02,800 --> 00:09:05,320 Speaker 4: I think they also made a decision looking at how 148 00:09:05,360 --> 00:09:08,760 Speaker 4: much money would be required to invest in China to 149 00:09:08,800 --> 00:09:11,200 Speaker 4: make it work, you know, billions of dollars that that 150 00:09:11,360 --> 00:09:14,600 Speaker 4: was money better spent on places like India and Japan 151 00:09:14,880 --> 00:09:16,880 Speaker 4: that were equally large. 152 00:09:19,679 --> 00:09:24,200 Speaker 2: Global streamers like Netflix, Disney Plus, and Amazon Prime all 153 00:09:24,240 --> 00:09:27,880 Speaker 2: see Asia as a driver of growth, but it's also 154 00:09:28,000 --> 00:09:32,880 Speaker 2: a notoriously difficult market for American companies to crack. After 155 00:09:32,920 --> 00:09:35,800 Speaker 2: the break, we look at the strategies streaming platforms are 156 00:09:35,840 --> 00:09:54,679 Speaker 2: adopting as a battle for dominance in the region. Asia 157 00:09:54,760 --> 00:09:58,719 Speaker 2: offers enormous growth potential for global streamers, but it's a 158 00:09:58,720 --> 00:10:03,320 Speaker 2: complex region to se scale. There's differences in languages and income, 159 00:10:03,640 --> 00:10:08,200 Speaker 2: and diverse local taste and infrastructure. Bloomberg's Lucas Shaw says 160 00:10:08,240 --> 00:10:11,880 Speaker 2: the challenges vary widely from country to country. 161 00:10:12,040 --> 00:10:14,120 Speaker 4: The continent is home to more than half the people 162 00:10:14,120 --> 00:10:16,200 Speaker 4: in the world, right, so it's by nature going to 163 00:10:16,200 --> 00:10:20,120 Speaker 4: be more diverse than like in Latin America, though it's tricky. 164 00:10:20,400 --> 00:10:22,319 Speaker 4: They all speak the same language, and so that's a 165 00:10:22,400 --> 00:10:27,079 Speaker 4: lot easier than like India alone has dozens of different languages. 166 00:10:27,400 --> 00:10:30,480 Speaker 4: If you're talking about places in Southeast Asia, for example, 167 00:10:30,960 --> 00:10:33,840 Speaker 4: generally poorer, so they don't have the disposable income to 168 00:10:33,960 --> 00:10:36,600 Speaker 4: spend on Netflix subscriptions. A lot of them don't have 169 00:10:36,640 --> 00:10:40,280 Speaker 4: credit cards, and there's also not the same local infrastructure 170 00:10:40,400 --> 00:10:43,960 Speaker 4: to produce local content, which tends to be very popular 171 00:10:44,000 --> 00:10:44,400 Speaker 4: and key. 172 00:10:44,440 --> 00:10:45,240 Speaker 3: So it just it. 173 00:10:45,200 --> 00:10:48,800 Speaker 4: Requires a much longer term investment, right Like Netflix could 174 00:10:48,800 --> 00:10:52,000 Speaker 4: slip a switch in Canada or Australia and it immediately worked. 175 00:10:52,000 --> 00:10:53,439 Speaker 4: It could slip a switch in the UK and it 176 00:10:53,480 --> 00:10:56,480 Speaker 4: pretty much immediately worked. Latin America. Let's say it took 177 00:10:56,520 --> 00:10:59,760 Speaker 4: them three to five years to figure out India. They're 178 00:10:59,760 --> 00:11:01,679 Speaker 4: tach years in and I still don't think they'd say 179 00:11:01,679 --> 00:11:02,400 Speaker 4: they've cracked it. 180 00:11:03,840 --> 00:11:07,280 Speaker 2: All of the big American content companies looking at Asia 181 00:11:07,440 --> 00:11:11,200 Speaker 2: have similar stories to tell. Take Disney. For years it 182 00:11:11,280 --> 00:11:13,800 Speaker 2: tried to set up in India on its own, but 183 00:11:13,880 --> 00:11:18,079 Speaker 2: without success. Eventually it merged its India business with a 184 00:11:18,160 --> 00:11:22,280 Speaker 2: company backed by Reliance Industries, the conglomerate owned by Mukesh 185 00:11:22,360 --> 00:11:27,120 Speaker 2: and Bani, Asia's richest man in India. Competition from local 186 00:11:27,200 --> 00:11:31,560 Speaker 2: providers is fierce, so he pointed to India's Geostar, which 187 00:11:31,559 --> 00:11:35,400 Speaker 2: owns the country's largest collection of TV networks and its 188 00:11:35,440 --> 00:11:37,640 Speaker 2: most popular paid streaming service. 189 00:11:38,280 --> 00:11:42,520 Speaker 3: Geostar they are disrupting the markets with is like a free, 190 00:11:43,080 --> 00:11:47,520 Speaker 3: ad supported platform and the live streaming for sports and 191 00:11:47,880 --> 00:11:52,680 Speaker 3: other regions like Southeast Asia, for example, videos there, view 192 00:11:52,840 --> 00:11:57,239 Speaker 3: is there and Korea. Tving is now expanding their territories 193 00:11:57,320 --> 00:12:01,240 Speaker 3: with multiple deals with the international place. They are going 194 00:12:01,280 --> 00:12:04,640 Speaker 3: into Japan and other markets as well. The local players 195 00:12:04,720 --> 00:12:09,240 Speaker 3: also have their own, like a strategy to scale their 196 00:12:09,280 --> 00:12:12,360 Speaker 3: business in this market and eventually they want to like 197 00:12:12,559 --> 00:12:16,480 Speaker 3: have more of international viewers from the USS wall. 198 00:12:16,679 --> 00:12:21,080 Speaker 2: Local platforms also battle it out on price that makes 199 00:12:21,080 --> 00:12:25,400 Speaker 2: it hard for premium service like Netflix to compete. In India, 200 00:12:25,440 --> 00:12:29,480 Speaker 2: for example, a monthly subscription to Geostar streaming service costs 201 00:12:29,520 --> 00:12:34,000 Speaker 2: around eighty cents. A Netflix subscription is almost double that. 202 00:12:34,600 --> 00:12:36,520 Speaker 2: The same goes for a lot of the other local 203 00:12:36,559 --> 00:12:38,840 Speaker 2: markets where Netflix expanded in the region. 204 00:12:39,880 --> 00:12:42,200 Speaker 4: They just rolled it out at the same price everywhere 205 00:12:42,280 --> 00:12:44,160 Speaker 4: and wanted to see out work. Because Netflix is a 206 00:12:44,160 --> 00:12:48,120 Speaker 4: big fan of test and learn, rather fail in public 207 00:12:48,360 --> 00:12:51,160 Speaker 4: and figure it out quickly than try to map out 208 00:12:51,200 --> 00:12:54,520 Speaker 4: the perfect strategy on the spreadsheet. They soon realized their 209 00:12:54,559 --> 00:12:57,600 Speaker 4: problems and rolled out lower cost plans in some of 210 00:12:57,679 --> 00:13:00,400 Speaker 4: Southeast Asia and India. I think it's still work in 211 00:13:00,440 --> 00:13:03,400 Speaker 4: progress for them, still something that they're experimenting with. I 212 00:13:03,400 --> 00:13:06,960 Speaker 4: think it is unlikely that you will see company like 213 00:13:07,000 --> 00:13:11,000 Speaker 4: Netflix offer their product for as little as Geostar does. 214 00:13:11,400 --> 00:13:13,480 Speaker 4: You know, they're not going for the masses in quite 215 00:13:13,480 --> 00:13:16,720 Speaker 4: the same way, but it's been a real, real limiting 216 00:13:16,760 --> 00:13:19,439 Speaker 4: factor for their growth in some of these more populous 217 00:13:19,440 --> 00:13:21,880 Speaker 4: but poorer markets. Part of what. 218 00:13:21,920 --> 00:13:25,760 Speaker 2: Makes Asia such a complicated target for global streaming companies 219 00:13:25,920 --> 00:13:28,680 Speaker 2: is that audience habits in the region can look very 220 00:13:28,720 --> 00:13:31,800 Speaker 2: different from the US and Europe, both in terms of 221 00:13:31,880 --> 00:13:35,240 Speaker 2: what people consume and how they consume it, and it's 222 00:13:35,240 --> 00:13:38,440 Speaker 2: something these companies still haven't fully figured out yet. 223 00:13:38,960 --> 00:13:41,200 Speaker 4: There are a bunch of media types that are very 224 00:13:41,240 --> 00:13:44,920 Speaker 4: popular in Asia that people have tried to replicate in 225 00:13:45,000 --> 00:13:48,280 Speaker 4: the US and the West with mixed success. This is 226 00:13:48,360 --> 00:13:51,160 Speaker 4: less maybe less pertinent to film and TV, but I 227 00:13:51,160 --> 00:13:54,040 Speaker 4: think matters with celebrity and talent, like live shopping is 228 00:13:54,080 --> 00:13:56,600 Speaker 4: a huge thing in Asia that it has just not 229 00:13:56,800 --> 00:13:59,960 Speaker 4: really picked up in the US. And I'd say in general, 230 00:14:00,240 --> 00:14:05,160 Speaker 4: the fan economy in Asia is larger and a little 231 00:14:05,240 --> 00:14:09,320 Speaker 4: more developed. Americans spend a ton of money on concert 232 00:14:09,400 --> 00:14:12,720 Speaker 4: tickets and on merchandise, but there's not as many online 233 00:14:12,920 --> 00:14:16,680 Speaker 4: and kind of direct transactions and tipping and like live 234 00:14:16,720 --> 00:14:19,920 Speaker 4: streams where you're paying for to be able to use 235 00:14:19,960 --> 00:14:22,640 Speaker 4: emojis and certain things like that that I think are 236 00:14:22,680 --> 00:14:24,240 Speaker 4: just bigger in this part of the world. 237 00:14:25,800 --> 00:14:29,200 Speaker 2: All of those differences are shaping how streaming evolves in 238 00:14:29,240 --> 00:14:32,960 Speaker 2: the region and where it may end up next. One 239 00:14:32,960 --> 00:14:35,720 Speaker 2: of the main ways global streaming platforms are trying to 240 00:14:35,720 --> 00:14:39,120 Speaker 2: get an edge and more subscribers in Asia is by 241 00:14:39,160 --> 00:14:43,560 Speaker 2: investing heavily in local language programming. The idea is simple, 242 00:14:43,880 --> 00:14:47,560 Speaker 2: shows made for local audiences are more likely to break 243 00:14:47,600 --> 00:14:50,960 Speaker 2: through at home, and the biggest hits can travel far 244 00:14:51,040 --> 00:14:54,520 Speaker 2: beyond the original markets, like what Squid Game in Korea 245 00:14:54,640 --> 00:14:56,000 Speaker 2: did For Netflix. 246 00:14:56,200 --> 00:15:00,000 Speaker 3: Netflix strategy is local for local. For example, in India, 247 00:15:00,440 --> 00:15:04,640 Speaker 3: India's content hub used to be in Mumbai, but now 248 00:15:04,840 --> 00:15:08,520 Speaker 3: they are expanding in like a South India Tamail and 249 00:15:08,600 --> 00:15:12,640 Speaker 3: Teleku for their next big growth river. Yeah. 250 00:15:12,720 --> 00:15:17,160 Speaker 4: Netflix has been the biggest investor in local programming in 251 00:15:17,200 --> 00:15:20,680 Speaker 4: Asia and the world by leaps and bounds. Amazon has 252 00:15:20,720 --> 00:15:26,320 Speaker 4: invested heavily in select markets where it has an existing business, 253 00:15:26,360 --> 00:15:30,120 Speaker 4: oftentimes where there's overlap with their prime shipping service. Disney 254 00:15:30,440 --> 00:15:34,960 Speaker 4: has historically believed that it is producing programming in the 255 00:15:35,080 --> 00:15:37,600 Speaker 4: US that travels the world and it does not need 256 00:15:37,640 --> 00:15:40,280 Speaker 4: to invest as much in local markets because Marvel and 257 00:15:40,320 --> 00:15:43,760 Speaker 4: Pixar and Star Wars are universal. That has changed over 258 00:15:43,760 --> 00:15:46,320 Speaker 4: the last few years as it has realized the importance 259 00:15:46,400 --> 00:15:47,400 Speaker 4: of local programming. 260 00:15:48,080 --> 00:15:51,040 Speaker 2: It's a lot to think about for these streamers. Serious 261 00:15:51,120 --> 00:15:55,480 Speaker 2: investment in local programming means developing multiple streams of content 262 00:15:55,760 --> 00:16:00,640 Speaker 2: in diverse markets across the region. It's an expensive proposition 263 00:16:01,120 --> 00:16:06,240 Speaker 2: with no guarantee of success. Let's pretend you're both looking 264 00:16:06,240 --> 00:16:09,320 Speaker 2: into a crystal ball. It's twenty thirty. What does the 265 00:16:09,320 --> 00:16:11,400 Speaker 2: Asian streaming market look like. 266 00:16:12,040 --> 00:16:14,840 Speaker 3: It's likely to be a hybrid. Like global players that 267 00:16:14,920 --> 00:16:18,800 Speaker 3: will dominate in scale and premium content. The local platforms 268 00:16:19,080 --> 00:16:22,640 Speaker 3: will continue to hold ground and team markets like India, Japan, 269 00:16:22,680 --> 00:16:27,200 Speaker 3: and Korea. They're also trying to spend more money on 270 00:16:27,320 --> 00:16:31,520 Speaker 3: like live streaming deals like in sports, and there will 271 00:16:31,560 --> 00:16:34,520 Speaker 3: will be like a special event like Netflix and Disney 272 00:16:34,560 --> 00:16:38,040 Speaker 3: Plus will have in this market to generate the buzz 273 00:16:38,040 --> 00:16:42,320 Speaker 3: around those events and use it as a growth momentum. 274 00:16:42,720 --> 00:16:48,800 Speaker 4: Netflix will still be the most successful premium streaming video service. 275 00:16:48,920 --> 00:16:52,560 Speaker 4: You know, we're going to set the YouTube TikTok Instagram 276 00:16:52,600 --> 00:16:56,880 Speaker 4: aside for the moment, you'll see a newly combined Paramount 277 00:16:56,920 --> 00:17:00,640 Speaker 4: and Warner Brothers Discovery kind of push its product across 278 00:17:01,280 --> 00:17:03,800 Speaker 4: a lot of Asia. But I think we'll still be 279 00:17:03,840 --> 00:17:07,199 Speaker 4: a pretty small player and not have invested enough in 280 00:17:07,240 --> 00:17:10,280 Speaker 4: local programming because it's just too expensive. I wouldn't be 281 00:17:10,320 --> 00:17:13,840 Speaker 4: surprised if you saw some local players do what we've 282 00:17:13,880 --> 00:17:16,640 Speaker 4: already seen happen in certain markets, where they license their 283 00:17:16,840 --> 00:17:19,200 Speaker 4: TV network or they do a deal with a Netflix 284 00:17:19,280 --> 00:17:22,879 Speaker 4: or an Amazon where that becomes their streaming home for 285 00:17:23,080 --> 00:17:25,800 Speaker 4: their TV network. Right there's a deal between TF one 286 00:17:26,119 --> 00:17:28,240 Speaker 4: in Netflix in France. PF one is one of the 287 00:17:28,280 --> 00:17:31,000 Speaker 4: biggest media companies in the country, and they basically just 288 00:17:31,040 --> 00:17:33,640 Speaker 4: said competing with Netflix online is not going to work 289 00:17:33,680 --> 00:17:36,240 Speaker 4: for us. Let's just partner and benefit from the audience. 290 00:17:36,320 --> 00:17:38,480 Speaker 4: And I think you could see some of that if 291 00:17:38,520 --> 00:17:41,280 Speaker 4: some of the local streaming services don't work. But I 292 00:17:41,280 --> 00:17:44,840 Speaker 4: don't know. Twenty thirty is not actually that far away. 293 00:17:54,200 --> 00:17:56,960 Speaker 2: This is the Big Take Asia from Bloomberg News. I'm 294 00:17:56,960 --> 00:18:00,800 Speaker 2: wanha to get more from the Big Take minuted access 295 00:18:00,840 --> 00:18:03,800 Speaker 2: to all of Bloomberg dot Com. Subscribe today at Bloomberg 296 00:18:03,840 --> 00:18:07,040 Speaker 2: dot Com. Slash Podcast offer if you liked the episode, 297 00:18:07,119 --> 00:18:09,399 Speaker 2: make sure to subscribe and review The Big Take Asia 298 00:18:09,480 --> 00:18:12,240 Speaker 2: wherever you listen to podcasts. It really helps people find 299 00:18:12,280 --> 00:18:20,359 Speaker 2: the show. Thanks for listening, See you next time.