Viu is now Southeast Asia’s second largest streaming video-on-demand service by paid subscribers, just behind the Walt Disney Co’s DIS Disney+ and ahead of Netflix Inc NFLX, Bloomberg News reported on Monday, citing research firm Media Partners Asia.
What Happened: The Hong Kong-based company is mulling a potential initial public offering and aiming to further lift subscriber base by pivoting to creating more original content that includes Korean original dramas.
Viu, launched in 2015, has been growing at a fast pace helped by its efforts to recognize trends more quickly. The streaming video-on-demand player has rolled out content in several languages native to the region.
The nimble startup had in early days introduced a hybrid model offering some content for free and some only available to its paying subscribers.
Why It Matters: Viu was also among the first major platforms to partner with local wireless operators and offer its service over mobile phones, with plans costing as little as $2 a month, while Netflix introduced a similar model in 2019, with under-5-dollar-a-month mobile-only plans in several Asian countries.
The online video streaming space is crowded and Viu competes with homegrown players as well that include Baidu Inc BIDU and Tencent Holdings Ltd TCEHY.
Bigger U.S.-based rivals have been spending billions to create original content and scale up their focus on Southeast Asia as growth slows in home markets.
Price Action: Netflix shares closed 0.39% higher at $517.92 on Monday.
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