The future of video streaming in a fast-content world

By Brontë H. Lacsamana, Reporter

FOR people whose lives shifted online since the pandemic hit, online streaming platforms and video-on-demand (VOD) became a primary source of entertainment. Whether a short video, television, or film, the preference of the average Filipino is now to look for it online.

Even though cinemas have reopened, and theater and concerts are now really back in full swing, streaming platforms have remained big in a world driven by online content.

Media intelligence agency Meltwater’s “Digital 2024 Global Overview Report” has found that the Philippines has the highest number of internet users who watch online video content globally.

“The biggest headline in this year’s Digital 2024 reports is that global social media users have passed the 5 billion mark, with annual user growth still comfortably above 5%,” said Simon Kemp of Data Reportal, the study’s chief analyst, in a statement.

The Philippines in particular was found to be a strong contributor to this growth, with about 97.2% of the population aged 16 to 64 saying that they regularly watch various forms of video each week.

However, this growth is not unlimited. “Overall digital growth has slowed over recent years, but this is to be expected as internet users reach ‘supermajority’ status,” said Mr. Kemp.

The survey, which named Mexico (97%) and South Africa (97%) as the countries in second place in terms of number of online video watchers, was conducted by audience research company GWI in the third quarter of 2023.

Google Philippines’ country director Bernadette Nacario said that there is now a brand new reality in the country. “People are now watching their TV shows online — on YouTube, to be specific,” she said in a statement sent to ����ý via e-mail.

Data from 2022 gathered by Google and Ipsos found that Filipinos consider YouTube as their TV when watching on any device. “The platform recorded reaching over a whopping 50 million people aged 18 and above as of June in 2023,” said Ms. Nacario.

AI AS A VITAL TOOL
As of November 2023, the top three most-used video-centric entertainment apps for mobile phones globally were YouTube, TikTok, and Netflix, according to a report by Data AI Intelligence.

All of these have one thing in common when it comes to future-proofing their platforms: artificial intelligence, or AI. This tool is being used in all video production and streaming touchpoints — from generating parts of the content of videos, to helping users find the types of videos they prefer to watch.

“Our mission is to organize the world’s information and make it universally accessible and useful. Core to this mission is to provide people with trustworthy content, and opportunities for freedom of expression while addressing misinformation,” said Mervin Wenke, Google Philippines’ head of communications, in a statement.

For example, YouTube — a Google subsidiary — now requires all its creators to disclose if their realistic content is produced using altered or synthetic media, including generative AI. “We believe the media and creators do play an important role in ensuring that more Filipinos online can connect to trusted information even on new formats like short videos,” Mr. Wenke said.

TikTok, which boasts of 325 million users in Southeast Asia alone, recognizes how AI-generated content helps content creators reach new creative frontiers, making the job of keeping harmful forms of it off the platform a challenge.

Paolo David, TikTok Philippines’ head for brand growth and partnerships, said that AI-generated content that misleads viewers about the truth of real-world events is prohibited.

“To enforce our policies, we continually evolve our detection methods to keep pace with AI’s own evolution. We detect AI-generated content through a combination of proactive technologies, alerts from experts and fact-checking partners, searches for clips or keywords related to known AI-generated content, and user reports,” he said.

Both video platforms told ����ý that they aim to advance responsible content practices through “new technologies and media literacy initiatives with experts.”

Even without using AI, Filipinos have been creating as well as watching a multitude of videos in their free time, according to Mr. David, “whether it’s learning foodie hacks, finding DIY recipes, getting inspired by beauty videos, studying topics like finance, or even transforming a carinderia into a nationwide business.”

Meanwhile, Netflix has spent 2024 releasing its simpler navigation interface, to reduce the time users spend choosing what titles to watch. The platform has almost 270 million users around the world.

Pat Flemming, global executive at Netflix, explained that the large amount of content, both on the platform and in other sites and apps, causes users to look around endlessly to find something to watch.

“We now have the technology to make that simpler, more intuitive, easier to navigate,” he said in a statement released worldwide. “Netflix will continue to offer personalized suggestions to each user. It is not making any changes to its recommendation algorithm as part of the redesign.”

He added that users’ engagement time is a key metric from which streaming platforms base their interface.

FROM BROADCAST TO STREAMING
In 2023, the Walt Disney Co. ceased broadcasting its various television channels in Southeast Asia. These included the National Geographic channel, Baby TV, and Star Movies, among many others, following the closure of the broadcasts of Fox channels in 2021.

Filipinos now watch these channels’ contents by subscribing to the Disney+ VOD platform, available across the Asia-Pacific (APAC) region.

“Aside from discovering new favorite content within a single brand or franchise such as Disney, Pixar, Marvel, and Star Wars, consumers are challenged to dive into a world of diverse genres and find content that resonates with them, whether it’s Hollywood blockbusters or Asian originals,” said Disney+ Philippines in a statement in May.

Earlier this year, the platform also raised its subscription rates: from P159 to P249 monthly for a basic plan, and from P369 to P519 monthly for a premium plan. These rates now match those of rival VOD platform, Netflix.

Both platforms have also continuously upped production of regional content. A May 2024 report by Media Partners Asia (MPA) found that Asian audiences are watching homegrown content in their streaming choices, with local entertainment making up 12% of total viewership in Southeast Asia.

“Local content plays an important role in subscriber acquisition in Southeast Asia, particularly in Indonesia, Thailand, and the Philippines, Netflix’s focus markets for local content production,” said Dhivya T., lead analyst at MPA, in a Jakarta press conference in June.

In a press release detailing the new projects revealed in the conference, Netflix’s APAC arm said that it will broaden the range of local content this year. In the Philippines, the most recent releases are the GMA co-production Pulang Araw and the grandfather-grandson buddy movie Lolo and the Kid.

And the largest broadcast networks in the Philippines, GMA and ABS-CBN, have likewise shifted gears. They now nurture their online presence, streaming live and uploading shows on their YouTube channels and have their own streaming services.

In 2023, the biggest evidence of this new direction came in the form of the two networks’ collaboration to offer their programs on the latter’s international VOD unit iWantTFC.

“Our iWantTFC platform is committed to providing the widest spectrum of Filipino content appreciated and enjoyed by our countrymen worldwide,” said ABS-CBN International Managing Director Jun Del Rosario in a statement.

“At the end of the day, the Filipino viewers — our boss — will greatly benefit from this,” he added.

Consultancy MPA explained in its report that, following a challenging period in 2023, the Southeast Asian VOD sector has demonstrated resilience and notable improvements that have continued into 2024.

Vivek Couto, MPA’s managing director, said in a statement: “We’ve observed better monthly customer churn metrics, alongside a robust growth in subscribers and subscription revenues.”

“Investment in local content and marketing has been strategic and for the most part, sustainable while leading platforms continue to invest in local entertainment and sports.”