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 4: They have this army as a fan base who's willing 18 00:01:15,920 --> 00:01:20,319 Speaker 4: to buy the hundred copies of the albums, streaming endlessly 19 00:01:20,560 --> 00:01:25,000 Speaker 4: 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 00:01:36,280 --> 00:01:38,280 Speaker 2: its third live event in the region. 23 00:01:39,280 --> 00:01:46,240 Speaker 5: Netflix's deal with BTS speaks to the growing importance of 24 00:01:46,840 --> 00:01:49,880 Speaker 5: Asia as a region for the world's largest streaming service. 25 00:01:49,960 --> 00:01:52,360 Speaker 5: It's been the fastest growing region in the world for 26 00:01:52,400 --> 00:01:53,600 Speaker 5: 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 00:02:01,680 --> 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 5: The return of BTS is one of the if not 32 00:02:14,680 --> 00:02:17,520 Speaker 5: the biggest cultural moment of the year in the region. 33 00:02:17,680 --> 00:02:20,480 Speaker 5: They're the most popular boy band in the world. They're 34 00:02:20,520 --> 00:02:23,760 Speaker 5: the most popular pop back Korea has ever produced, and 35 00:02:23,840 --> 00:02:28,000 Speaker 5: so this is an opportunity to try to draw in 36 00:02:28,560 --> 00:02:32,200 Speaker 5: a lot of fans from across the region who haven't 37 00:02:32,200 --> 00:02:34,760 Speaker 5: tried Netflix is even though there you know, Netflix has 38 00:02:34,800 --> 00:02:37,400 Speaker 5: tens of millions of customers in Asia, there are billions 39 00:02:37,480 --> 00:02:40,480 Speaker 5: of 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 --> 00:02:54,280 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 --> 00:03:25,360 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 Billboar Musical Wars. 57 00:03:53,640 --> 00:03:56,240 Speaker 4: Oh my gosh, they were young. 58 00:03:56,360 --> 00:04:00,320 Speaker 3: I was young, and they looked like a very big 59 00:04:00,360 --> 00:04:04,320 Speaker 3: pop star already, but I could sense that they were 60 00:04:04,360 --> 00:04:05,320 Speaker 3: still boys. 61 00:04:05,800 --> 00:04:09,240 Speaker 2: Now, almost a decade later, Sooey says, the band has 62 00:04:09,360 --> 00:04:10,520 Speaker 2: clearly grown up. 63 00:04:12,600 --> 00:04:16,640 Speaker 3: Ten years after the big stardom and the military service, 64 00:04:16,960 --> 00:04:19,200 Speaker 3: and now they are in the thirties and I'm now 65 00:04:19,240 --> 00:04:22,760 Speaker 3: in thirties. The answers and the vibe that they've been 66 00:04:23,040 --> 00:04:27,400 Speaker 3: giving me during the interview was very mature and thoughtful. 67 00:04:28,040 --> 00:04:32,160 Speaker 2: K Pop as a genre has matured too. In twenty seventeen, 68 00:04:32,360 --> 00:04:36,599 Speaker 2: when Sooey first met BTS, kpop was relatively new to 69 00:04:36,680 --> 00:04:40,680 Speaker 2: global audiences, big in parts of Asia, but far from 70 00:04:40,680 --> 00:04:43,400 Speaker 2: the nine billion dollar business it is today. 71 00:04:44,279 --> 00:04:48,800 Speaker 3: K Pop started as the Korean language pop, but if 72 00:04:48,839 --> 00:04:52,080 Speaker 3: you listen to the music, it's not just Korean language 73 00:04:52,080 --> 00:04:55,599 Speaker 3: where Korean sound, it's more of a mix of a 74 00:04:55,640 --> 00:04:59,280 Speaker 3: lot of pop genres, and now K pop bands are 75 00:04:59,600 --> 00:05:03,479 Speaker 3: singing a lot in English, so I will say it's 76 00:05:03,560 --> 00:05:06,919 Speaker 3: more of like borderless genre right now. 77 00:05:07,600 --> 00:05:11,600 Speaker 2: K pop's borderless appeal is one reason tens of thousands 78 00:05:11,600 --> 00:05:14,160 Speaker 2: of fans from all over the world gathered in Soul 79 00:05:14,320 --> 00:05:19,000 Speaker 2: for the comeback. Bloomberg's Lucas Shaw says Netflix hopees moments 80 00:05:19,080 --> 00:05:22,359 Speaker 2: like this can act as a powerful on ramp, giving 81 00:05:22,400 --> 00:05:26,520 Speaker 2: BTS's massive, highly engaged fan base a reason to sign up, 82 00:05:26,880 --> 00:05:31,480 Speaker 2: sample the platform, and ideally stick around as long term subscribers. 83 00:05:32,279 --> 00:05:32,440 Speaker 3: Well. 84 00:05:32,480 --> 00:05:34,320 Speaker 5: The main way for Netflix to make money off this 85 00:05:34,480 --> 00:05:37,440 Speaker 5: is to get people to sign up to pay for Netflix, right, 86 00:05:37,480 --> 00:05:39,440 Speaker 5: they're not selling it as an add on. You know, 87 00:05:39,440 --> 00:05:41,159 Speaker 5: they're not a lot of acts where I think they'd 88 00:05:41,200 --> 00:05:43,520 Speaker 5: want to do live concerts like this, just because there's 89 00:05:43,560 --> 00:05:46,560 Speaker 5: only a handful of acts at the scale of a BTS. 90 00:05:46,720 --> 00:05:48,800 Speaker 5: And I imagine they would want this to be part 91 00:05:48,839 --> 00:05:51,240 Speaker 5: of an ongoing relationship with the band. They'd love to 92 00:05:51,279 --> 00:05:56,159 Speaker 5: have there be somewhat regular documentaries or touch points, just 93 00:05:56,200 --> 00:05:59,359 Speaker 5: because BTS has stretched a strong and passionate fan base. 94 00:06:00,040 --> 00:06:03,040 Speaker 2: Netflix hasn't disclosed how much it costs them to stream 95 00:06:03,120 --> 00:06:07,400 Speaker 2: BTS's opening show, but the BTS Live comeback gave the 96 00:06:07,440 --> 00:06:11,080 Speaker 2: platform a rare chance to make a big splash in Asia, 97 00:06:11,640 --> 00:06:14,880 Speaker 2: and it worked. The live stream drew more than eighteen 98 00:06:14,920 --> 00:06:17,480 Speaker 2: million views and it was the most watched show on 99 00:06:17,560 --> 00:06:21,680 Speaker 2: Netflix for the week. That's exactly the kind of global 100 00:06:21,680 --> 00:06:23,359 Speaker 2: attention Netflix is betting on. 101 00:06:23,880 --> 00:06:27,160 Speaker 5: I would view it as a continuation of a strategy 102 00:06:27,520 --> 00:06:31,600 Speaker 5: where they do a small number of major live events 103 00:06:31,920 --> 00:06:34,279 Speaker 5: and they want each one of them to feel special 104 00:06:34,400 --> 00:06:36,680 Speaker 5: and loud. But it's in keeping with you know, they 105 00:06:36,720 --> 00:06:39,640 Speaker 5: had the World Baseball Classic in Japan. You know, they 106 00:06:39,640 --> 00:06:42,600 Speaker 5: don't have a full season of football. They do Christmas 107 00:06:42,680 --> 00:06:45,039 Speaker 5: Day football. They don't have a full season of baseball. 108 00:06:45,040 --> 00:06:47,440 Speaker 5: They're doing Opening Day and the home Run Derby, and 109 00:06:47,480 --> 00:06:49,560 Speaker 5: so you know, what better way to have their first 110 00:06:49,560 --> 00:06:51,960 Speaker 5: concert than a live show with one of the biggest 111 00:06:51,960 --> 00:06:52,680 Speaker 5: acts in the world. 112 00:06:53,120 --> 00:06:57,360 Speaker 2: Lucas says BTS is just one part of a bigger push. 113 00:06:57,800 --> 00:07:01,560 Speaker 2: Netflix has been investing heavily in CAREA and in Korean 114 00:07:01,680 --> 00:07:06,799 Speaker 2: content because the returns have been impossible to ignore. Squid Game, 115 00:07:07,000 --> 00:07:11,800 Speaker 2: the gory dystopian Korean thriller, remains Netflix's most watched title 116 00:07:11,960 --> 00:07:15,760 Speaker 2: of all time. Its first season generated and estimated nine 117 00:07:15,840 --> 00:07:20,000 Speaker 2: hundred million dollars in value and spawned multiple seasons, and 118 00:07:20,120 --> 00:07:23,880 Speaker 2: now Netflix is planning a k pop Demon Hunter's World tour, 119 00:07:24,440 --> 00:07:28,080 Speaker 2: building on the runaway success of its most popular movie ever. 120 00:07:30,520 --> 00:07:34,960 Speaker 5: The customer base in Korea first streaming is not a 121 00:07:35,120 --> 00:07:40,080 Speaker 5: top five market, but as a producer of film, television 122 00:07:40,160 --> 00:07:43,360 Speaker 5: and some of these music properties, it's punched away above 123 00:07:43,400 --> 00:07:43,760 Speaker 5: its weight. 124 00:07:43,840 --> 00:07:43,960 Speaker 3: Right. 125 00:07:44,000 --> 00:07:46,600 Speaker 5: It's been the most important in Asia by far, because 126 00:07:46,680 --> 00:07:49,400 Speaker 5: Korean film and television is popular not just at home, 127 00:07:49,440 --> 00:07:53,240 Speaker 5: but in Japan and tauth East Asia and increasingly elsewhere. 128 00:07:53,800 --> 00:07:57,000 Speaker 5: I'd say it's one of the three or four most 129 00:07:57,040 --> 00:07:59,240 Speaker 5: important markets outside of the US. 130 00:08:00,000 --> 00:08:03,120 Speaker 2: In Korea definitely holds the crown for content right now. 131 00:08:03,520 --> 00:08:06,320 Speaker 2: Asia is huge, though, so when Netflix looks at the 132 00:08:06,320 --> 00:08:09,520 Speaker 2: rest of Asia, where do they see the biggest growth opportunities. 133 00:08:10,080 --> 00:08:13,840 Speaker 3: Japan remains a very high value metro market with very 134 00:08:13,880 --> 00:08:16,960 Speaker 3: strong will needs to pay. So they've been working on 135 00:08:17,040 --> 00:08:20,040 Speaker 3: a lot of jills in Japan and they spend a 136 00:08:20,080 --> 00:08:24,360 Speaker 3: lot of money on WBC live streaming scale wise, India 137 00:08:24,400 --> 00:08:27,840 Speaker 3: and Southeast Asia over the long run could give them 138 00:08:27,880 --> 00:08:31,520 Speaker 3: some massive skill but for now it's a lower revenue 139 00:08:31,520 --> 00:08:35,280 Speaker 3: per user. So I think the opportunities like lies in 140 00:08:35,400 --> 00:08:38,080 Speaker 3: tailoring price and content that they are going to have 141 00:08:38,200 --> 00:08:39,120 Speaker 3: in each market. 142 00:08:39,840 --> 00:08:43,559 Speaker 5: And of course there's China right huge market, but totally inaccessible. 143 00:08:44,000 --> 00:08:47,959 Speaker 5: They've tried. Any Western company, or really any foreign company 144 00:08:48,559 --> 00:08:51,400 Speaker 5: needs to have a license or really have a local 145 00:08:51,480 --> 00:08:54,880 Speaker 5: partner that controls the business. It would be sort of 146 00:08:54,880 --> 00:08:58,440 Speaker 5: a you know, a separate venture. Netflix had tried for 147 00:08:58,440 --> 00:09:00,280 Speaker 5: a few years, but it probably wasn't going to happen, 148 00:09:00,440 --> 00:09:02,959 Speaker 5: And I think they also made a decision looking at 149 00:09:02,960 --> 00:09:06,319 Speaker 5: how much money would be required to invest in China 150 00:09:06,440 --> 00:09:08,880 Speaker 5: to make it work, you know, billions of dollars that 151 00:09:08,880 --> 00:09:11,840 Speaker 5: that was money better spent on places like India and 152 00:09:12,000 --> 00:09:14,640 Speaker 5: Japan that were equally large. 153 00:09:17,440 --> 00:09:21,960 Speaker 2: Global streamers like Netflix, Disney Plus, and Amazon Prime all 154 00:09:22,000 --> 00:09:25,640 Speaker 2: see Asia as a driver of growth, but it's also 155 00:09:25,760 --> 00:09:30,640 Speaker 2: a notoriously difficult market for American companies to crack. After 156 00:09:30,679 --> 00:09:33,600 Speaker 2: the break, we look at the strategies streaming platforms are 157 00:09:33,600 --> 00:09:52,439 Speaker 2: adopting as a battle for dominance in the region. Asia 158 00:09:52,559 --> 00:09:56,480 Speaker 2: offers enormous growth potential for global streamers, but it's a 159 00:09:56,480 --> 00:10:01,080 Speaker 2: complex region to scale. There's differences in length, UIG and income, 160 00:10:01,400 --> 00:10:05,960 Speaker 2: and diverse local taste and infrastructure. Bloomberg's Lucas Shaw says 161 00:10:06,000 --> 00:10:09,040 Speaker 2: the challenges vary widely from country to country. 162 00:10:09,800 --> 00:10:11,880 Speaker 5: The continent is home to more than half the people 163 00:10:11,920 --> 00:10:13,960 Speaker 5: in the world right, so it's by nature going to 164 00:10:13,960 --> 00:10:17,880 Speaker 5: be more diverse than like in Latin America, though it's tricky. 165 00:10:18,160 --> 00:10:20,079 Speaker 5: They all speak the same language, and so that's a 166 00:10:20,160 --> 00:10:24,880 Speaker 5: lot easier than like India alone has dozens of different languages. 167 00:10:25,160 --> 00:10:28,240 Speaker 5: If you're talking about places in Southeast Asia, for example, 168 00:10:28,720 --> 00:10:31,600 Speaker 5: generally poorer, so they don't have the disposable income to 169 00:10:31,720 --> 00:10:34,360 Speaker 5: spend on Netflix subscriptions. A lot of them don't have 170 00:10:34,400 --> 00:10:38,040 Speaker 5: credit cards, and there's also not the same local infrastructure 171 00:10:38,160 --> 00:10:41,720 Speaker 5: to produce local content, which tends to be very popular 172 00:10:41,760 --> 00:10:44,240 Speaker 5: and key. So it just it requires a much longer 173 00:10:44,360 --> 00:10:47,240 Speaker 5: term investment, right like Netflix could slip a switch in 174 00:10:47,280 --> 00:10:50,240 Speaker 5: Canada or Australia and it immediately worked. It could slip 175 00:10:50,280 --> 00:10:52,560 Speaker 5: a switch in the UK and it pretty much immediately worked. 176 00:10:52,800 --> 00:10:55,600 Speaker 5: Latin America. Let's say it took them three to five 177 00:10:55,679 --> 00:10:58,360 Speaker 5: years to figure out India. They're ten years in and 178 00:10:58,400 --> 00:11:00,000 Speaker 5: I still don't think they'd say they've cracked it. 179 00:11:01,600 --> 00:11:05,040 Speaker 2: All of the big American content companies looking at Asia 180 00:11:05,200 --> 00:11:08,960 Speaker 2: have similar stories to tell. Take Disney. For years it 181 00:11:09,040 --> 00:11:11,560 Speaker 2: tried to set up in India on its own, but 182 00:11:11,679 --> 00:11:15,839 Speaker 2: without success. Eventually it merged its India business with a 183 00:11:15,920 --> 00:11:20,560 Speaker 2: company backed by Reliance Industries, the conglomerate owned by Mukesham Bani, 184 00:11:20,760 --> 00:11:26,480 Speaker 2: Asia's richest man in India. Competition from local providers is fierce, 185 00:11:27,000 --> 00:11:30,160 Speaker 2: so he pointed to India's Geostar, which owns the country's 186 00:11:30,240 --> 00:11:35,439 Speaker 2: largest collection of TV networks and its most popular paid streaming. 187 00:11:35,040 --> 00:11:36,559 Speaker 4: Service, Geostar. 188 00:11:36,960 --> 00:11:40,320 Speaker 3: They are disrupting the markets with this like a free, 189 00:11:40,840 --> 00:11:45,280 Speaker 3: ad supported platform and the live streaming for sports and 190 00:11:45,640 --> 00:11:50,440 Speaker 3: other regions like Southeast Asia, for example, videos there, view 191 00:11:50,600 --> 00:11:55,000 Speaker 3: is there, and Korea. Tving is now expanding their territories 192 00:11:55,080 --> 00:11:59,000 Speaker 3: with multiple deals with the international players. They are going 193 00:11:59,040 --> 00:12:03,480 Speaker 3: into Japan and as well. The local players also have 194 00:12:03,640 --> 00:12:07,600 Speaker 3: their own, like a strategy to scale their business in 195 00:12:07,679 --> 00:12:10,719 Speaker 3: this market and eventually they want to like have more 196 00:12:10,760 --> 00:12:14,240 Speaker 3: of international viewers from the USS wall. 197 00:12:14,440 --> 00:12:18,840 Speaker 2: Local platforms also battle it out on price. That makes 198 00:12:18,840 --> 00:12:23,160 Speaker 2: it hard for premium service like Netflix to compete. In India, 199 00:12:23,200 --> 00:12:27,240 Speaker 2: for example, a monthly subscription to Geostar streaming service costs 200 00:12:27,280 --> 00:12:31,760 Speaker 2: around eighty cents. A Netflix subscription is almost double that. 201 00:12:32,360 --> 00:12:34,280 Speaker 2: The same goes for a lot of the other local 202 00:12:34,320 --> 00:12:36,600 Speaker 2: markets where Netflix expanded in the region. 203 00:12:37,640 --> 00:12:39,960 Speaker 5: They just rolled it out at the same price everywhere 204 00:12:40,040 --> 00:12:41,840 Speaker 5: and wanted to see how it work. Because Netflix is 205 00:12:41,840 --> 00:12:45,400 Speaker 5: a big fan of test and learn, rather fail in 206 00:12:45,480 --> 00:12:48,760 Speaker 5: public and figure it out quickly than try to map 207 00:12:48,760 --> 00:12:52,040 Speaker 5: out the perfect strategy on the spreadsheet. They soon realized 208 00:12:52,080 --> 00:12:55,240 Speaker 5: their problems and rolled out lower cost plans in some 209 00:12:55,280 --> 00:12:57,880 Speaker 5: of Southeast Asia and India. I think it's still a 210 00:12:57,880 --> 00:13:00,640 Speaker 5: work in progress for them, still something that they're fermenting with. 211 00:13:01,080 --> 00:13:04,600 Speaker 5: I think it is unlikely that you will see company 212 00:13:04,640 --> 00:13:08,760 Speaker 5: like Netflix offer their product for as little as Geostar does, 213 00:13:09,160 --> 00:13:11,240 Speaker 5: you know, they're not going for the masses in quite 214 00:13:11,240 --> 00:13:14,480 Speaker 5: the same way, but it's been a real, real limiting 215 00:13:14,520 --> 00:13:17,199 Speaker 5: factor for their growth in some of these more populous 216 00:13:17,200 --> 00:13:19,720 Speaker 5: but poorer markets. Part of what. 217 00:13:19,679 --> 00:13:23,520 Speaker 2: Makes Asia such a complicated target for global streaming companies 218 00:13:23,679 --> 00:13:26,440 Speaker 2: is that audience habits in the region can look very 219 00:13:26,480 --> 00:13:29,559 Speaker 2: different from the US and Europe, both in terms of 220 00:13:29,640 --> 00:13:33,000 Speaker 2: what people consume and how they consume it, and it's 221 00:13:33,000 --> 00:13:36,360 Speaker 2: something these companies still haven't fully figured out yet. 222 00:13:36,720 --> 00:13:38,960 Speaker 5: There are a bunch of media types that are very 223 00:13:39,000 --> 00:13:42,679 Speaker 5: popular in Asia that people have tried to replicate in 224 00:13:42,760 --> 00:13:46,040 Speaker 5: the US and the West with mixed success. This is 225 00:13:46,120 --> 00:13:48,920 Speaker 5: less maybe less pertinent to film and TV, but I 226 00:13:48,920 --> 00:13:51,840 Speaker 5: think matters with celebrity and talent, like live shopping is 227 00:13:51,840 --> 00:13:54,360 Speaker 5: a huge thing in Asia that it has just not 228 00:13:54,600 --> 00:13:57,680 Speaker 5: really picked up in the US. And I'd say in general, 229 00:13:57,960 --> 00:14:02,920 Speaker 5: the fan economy in Asia is larger and a little 230 00:14:03,000 --> 00:14:07,160 Speaker 5: more developed. Americans spend a ton of money on concert 231 00:14:07,160 --> 00:14:10,480 Speaker 5: tickets and on merchandise, but there's not as many online 232 00:14:10,679 --> 00:14:14,440 Speaker 5: and kind of direct transactions and tipping and like live 233 00:14:14,480 --> 00:14:17,679 Speaker 5: streams where you're paying for to be able to use 234 00:14:17,720 --> 00:14:20,400 Speaker 5: emojis and certain things like that that I think are 235 00:14:20,440 --> 00:14:22,000 Speaker 5: just bigger in this part of the world. 236 00:14:23,560 --> 00:14:26,960 Speaker 2: All of those differences are shaping how streaming evolves in 237 00:14:27,000 --> 00:14:30,720 Speaker 2: the region and where it may end up next. One 238 00:14:30,720 --> 00:14:33,480 Speaker 2: of the main ways global streaming platforms are trying to 239 00:14:33,480 --> 00:14:36,880 Speaker 2: get an edge and more subscribers in Asia is by 240 00:14:36,920 --> 00:14:41,320 Speaker 2: investing heavily in local language programming. The idea is simple, 241 00:14:41,640 --> 00:14:45,280 Speaker 2: Shows made for local audiences are more likely to break 242 00:14:45,360 --> 00:14:48,720 Speaker 2: through at home, and the biggest hits can travel far 243 00:14:48,800 --> 00:14:52,280 Speaker 2: beyond the original markets, like what Squid Game in Korea 244 00:14:52,400 --> 00:14:53,280 Speaker 2: did for Netflix. 245 00:14:53,960 --> 00:14:57,840 Speaker 3: Netflix strategy is local for local. For example, in India, 246 00:14:58,200 --> 00:15:02,760 Speaker 3: India's content used to be in Mumbai, but now they 247 00:15:02,800 --> 00:15:06,880 Speaker 3: are expanding in like a South India, Tamil and Teleku 248 00:15:07,120 --> 00:15:09,560 Speaker 3: for their next big growth river. 249 00:15:10,200 --> 00:15:10,400 Speaker 1: Yeah. 250 00:15:10,480 --> 00:15:14,920 Speaker 5: Netflix has been the biggest investor in local programming in 251 00:15:14,960 --> 00:15:18,440 Speaker 5: Asia and the world by leaps and bounds. Amazon has 252 00:15:18,480 --> 00:15:24,080 Speaker 5: invested heavily in select markets where it has an existing business, 253 00:15:24,120 --> 00:15:27,880 Speaker 5: oftentimes where there's overlap with their prime shipping service. Disney 254 00:15:28,200 --> 00:15:32,720 Speaker 5: has historically believed that it is producing programming in the 255 00:15:32,840 --> 00:15:35,360 Speaker 5: US that travels the world, and it does not need 256 00:15:35,400 --> 00:15:38,040 Speaker 5: to invest as much in local markets because Marvel and 257 00:15:38,080 --> 00:15:41,520 Speaker 5: Pixar and Star Wars are universal. That has changed over 258 00:15:41,520 --> 00:15:44,080 Speaker 5: the last few years as it has realized the importance 259 00:15:44,160 --> 00:15:45,200 Speaker 5: of local programming. 260 00:15:45,840 --> 00:15:48,800 Speaker 2: It's a lot to think about for these streamers. Serious 261 00:15:48,880 --> 00:15:53,240 Speaker 2: investment in local programming means developing multiple streams of content 262 00:15:53,520 --> 00:15:58,400 Speaker 2: in diverse markets across the region. It's an expensive proposition 263 00:15:58,880 --> 00:16:04,000 Speaker 2: with no guarantee of success. Let's pretend you're both looking 264 00:16:04,000 --> 00:16:07,080 Speaker 2: into a crystal ball. It's twenty thirty. What does the 265 00:16:07,120 --> 00:16:09,160 Speaker 2: Asian streaming market look like. 266 00:16:09,800 --> 00:16:12,600 Speaker 3: It's likely to be a hybrid like global players that 267 00:16:12,680 --> 00:16:16,560 Speaker 3: will dominate in scale and premium content. The local platforms 268 00:16:16,840 --> 00:16:19,920 Speaker 3: will continue to hold ground and team markets like India, 269 00:16:20,040 --> 00:16:24,200 Speaker 3: Japan and Korea. They're also trying to spend more money 270 00:16:24,760 --> 00:16:29,280 Speaker 3: on live streaming deals like in sports, and there will 271 00:16:29,320 --> 00:16:31,680 Speaker 3: will be like a special event, so like Netflix and 272 00:16:31,960 --> 00:16:35,480 Speaker 3: Disney Plus will have in this market to generate the 273 00:16:35,480 --> 00:16:40,080 Speaker 3: buzz around those events and use it as a growth momentum. 274 00:16:40,480 --> 00:16:46,560 Speaker 5: Netflix will still be the most successful premium streaming video service. 275 00:16:46,680 --> 00:16:50,280 Speaker 5: You know, we're going to set the YouTube TikTok Instagram 276 00:16:50,360 --> 00:16:54,640 Speaker 5: aside for the moment you'll see a newly combined Paramount 277 00:16:54,680 --> 00:16:58,440 Speaker 5: and Warner Brothers Discovery kind of push its product across 278 00:16:59,040 --> 00:17:01,560 Speaker 5: a lot of Asia, but I think we'll still be 279 00:17:01,600 --> 00:17:04,959 Speaker 5: a pretty small player and not have invested enough in 280 00:17:05,000 --> 00:17:08,040 Speaker 5: local programming because it's just too expensive. I wouldn't be 281 00:17:08,080 --> 00:17:11,600 Speaker 5: surprised if you saw some local players do what we've 282 00:17:11,640 --> 00:17:14,480 Speaker 5: already seen happen in certain markets, where they license their 283 00:17:14,600 --> 00:17:17,000 Speaker 5: TV network or they do a deal with a Netflix 284 00:17:17,040 --> 00:17:20,679 Speaker 5: or an Amazon where that becomes their streaming home for 285 00:17:20,840 --> 00:17:23,560 Speaker 5: their TV network. Right there's a deal between TF one 286 00:17:23,880 --> 00:17:26,000 Speaker 5: in Netflix in France. PF one is one of the 287 00:17:26,040 --> 00:17:28,760 Speaker 5: biggest media companies in the country, and they basically just 288 00:17:28,800 --> 00:17:31,400 Speaker 5: said competing with Netflix online is not going to work 289 00:17:31,440 --> 00:17:34,000 Speaker 5: for us. Let's just partner and benefit from the audience. 290 00:17:34,080 --> 00:17:36,240 Speaker 5: And I think you could see some of that if 291 00:17:36,280 --> 00:17:39,000 Speaker 5: some of the local streaming services don't work. But I 292 00:17:39,040 --> 00:17:46,480 Speaker 5: don't know. Twenty thirty is not actually that far away. 293 00:17:51,960 --> 00:17:54,720 Speaker 2: This is the Big Take Asia from Bloomberg News. I'm 294 00:17:54,720 --> 00:17:58,040 Speaker 2: wanha to get more from The Big Take and unlimited 295 00:17:58,080 --> 00:18:01,159 Speaker 2: access to all of Bloomberg dot Com, subscribe today at 296 00:18:01,160 --> 00:18:04,800 Speaker 2: Bloomberg dot com slash Podcast offer. If you liked the episode, 297 00:18:04,880 --> 00:18:07,160 Speaker 2: make sure to subscribe, and review The Big Take Asia. 298 00:18:07,240 --> 00:18:10,000 Speaker 2: Wherever you listen to podcasts, it really helps people find 299 00:18:10,040 --> 00:18:12,240 Speaker 2: the show. Thanks for listening, See you next time.