Chinese market leader has chosenThailand as its first foreign venture in video-on-demand services. The WeTV targets primarily minorities with Chinese original content.
Chinese internet giant Tencent has been in the video-streaming business since 2011. With apx. 89 million paying subscribers and more than 200 million daily active users Tencent Video is the leading service in China’s VOD market. The video streaming website of the Chinese tech company made the first overseas (sic!) move.
Tencent has been planning a foreign expansion of its VOD-service for a while. The parent company recorded a slowest-ever growth in Q1 2019.
The streaming business is on the roll though. Video subscriptions increased 43% in Q1 compared to the same period of last year. It’s the core gaming business of the company that has been struggling with regulatory problems. Tencent needs an increased diversification of revenue to upkeep its momentum.
JOOX, the biggest music streaming app in the Asian markets is also a service of Tencent.
Entering Southeast Asia first is the logical choice because significant Chinese minorities are living here that could be very receptive to Chinese-speaking original content. In Thailand, Tencent has to face competition in Netflix and Line TV of the Line Cooperation.
The local version of Tencent Video is called WeTV. The original content created by the household studio Tencent Penguin Pictures is available in Chinese and with Thai dubbing as well. The company can build on the already significant Thai base of WeTV on YouTube. Local partners provide additional content including 20 Thai dramas. WeTV also features a number of American and Korean TV shows.