Asia-on- demand: the Growth of VOD Investment in Local Entertainment Industries contents Important Notice on Contents – Estimations and Reporting 04 GLOSSARY This report has been prepared by AlphaBeta for Netflix. 08 EXECUTIVE SUMMARY All information in this report is derived or estimated by AlphaBeta analysis using both 13 FACT 1: proprietary and publicly available information. Netflix has not supplied any additional data, nor VOD INVESTMENT IN LOCAL ASIAN CONTENT COULD GROW 3.7X BY 2022 does it endorse any estimates made in the report. Where information has been obtained from third party sources and proprietary sources, this is clearly referenced in the footnotes. 17 FACT 2: STRONG CONSUMER DEMAND INCENTIVIZES INVESTMENT IN HIGH-QUALITY Published in October 2018 LOCAL ENTERTAINMENT ONLINE 23 FACT 3: THROUGH VOD, ORIGINAL CONTENT PRODUCED IN ASIA IS GETTING INCREASED ACCESS TO GLOBAL AUDIENCES 27 FACT 4: THE ECONOMIC IMPACT OF LOCAL CONTENT INVESTMENT IS 3X LARGER THAN WHAT VOD PLAYERS SPEND 32 FACT 5: VOD PLAYERS OFFER BENEFITS TO THE LOCAL INDUSTRY - WELL BEYOND LOCAL CONTENT INVESTMENT 38 FACT 6: THE CONTENT PRODUCTION VALUE CHAIN IS BECOMING MORE GLOBAL AND DIVERSE, ALLOWING ASIAN COUNTRIES TO SPECIALIZE 43 FACT 7: THE KEY DRIVERS TO CAPTURING THE VOD CONTENT OPPORTUNITY ARE INVESTMENT INCENTIVES, SUPPORTIVE REGULATION, AND AlphaBeta is a strategy and economic advisory business serving clients across Australia and HIGH-QUALITY INFRASTRUCTURE Asia from offices in Singapore, Sydney, Canberra and Melbourne. 54 FINAL THOUGHTS: IMPLICATIONS FOR POLICYMAKERS SINGAPORE Level 4, 1 Upper Circular Road 57 APPENDIX: METHODOLOGY Singapore, 058400 Tel: +65 6443 6480 Email:
[email protected] Web: www.alphabeta.com glossary The following terms have been used at various stages in this report.