The subscription model is increasingly being adopted by businesses around the world. Usually, the go-to-model for tech companies, subscriptions are now disrupting the ownership mindset prevalent in many industries. Shashank Venkat examines how subscriptions are taking hold in the APAC region
The subscription industry is slowly becoming a force to be reckoned with, and nowhere is the shift from the ‘ownership’ mindset to the ‘subscription’ mindset more visible than the APAC region. Home to some of the fastest growing economies in the world, the subscription industry is rising rapidly thanks to local start-ups as well as international players in the market.
Australia, for example, has a growing appetite for SVOD services as more than half of households now have access to at least one such service. In fact, a new report
has revealed that 43% of Australian homes subscribe to more than one service. The impact of the rise in video streaming is being felt by the traditional television industry where total advertising revenue was down more than 4% on the previous financial year.
Little wonder that Australia has become an attractive destination for international subscription businesses. Netflix is already the most popular video streaming service down under, trumping homegrown services such as Stan. Disney+ and Apple are also expected to launch their new SVOD services In Australia soon.
China is also witnessing a subscription goldrush
. The country’s extensive delivery networks combined with its penchant for new-age technologies such as artificial intelligence have led to subscription services growing here at a fast clip. From the usual music and video streaming businesses to consumer goods such as clothing, cosmetics and flowers, there’s a subscription service for everything out there!
The same is the case in India where subscription services are gaining increasing popularity among users. Companies have adapted to the price-sensitive Indian market by innovating to meet the demands of their users. For instance, Netflix offers a ₹199 ($3) mobile-only plan in India.
In fact, local subscription businesses are catching up fast with their more established international competitors. We highlighted in a recent edition of our subscription roundup
how Hotstar has pipped the likes of Netflix and Amazon Prime Video to become the most popular SVOD service in the country. Walmart-owned Flipkart is also planning to launch its own streaming service
to take on Amazon Prime Video.
A large addressable market, fast growing economies and tech-savvy subscribers means that the APAC region is set to become the nerve center of the subscription industry. For every global subscription business, the road to subscription success inevitably goes through APAC!