The Asia Video Industry Association (AVIA) has unveiled its latest research, Premium OTT: Building Its Rightful Place in the Digital Market, focusing on the growing dominance of premium over-the-top (OTT) platforms in Indonesia and Thailand.

The study, conducted by Milieu Insight in November 2024, underscores the increasing preference for professional video content over social media videos, both in terms of quality and engagement, and highlights a significant opportunity for advertisers to tap into a more attentive and emotionally engaged audience, the company said in a press release.

As digital content consumption continues to evolve, viewers in these markets are gravitating towards platforms like Disney+, Netflix, TRUEID, Vidio, and Viu, which offer high-quality, professionally produced videos. According to the study, nearly 90 percent of respondents acknowledged that premium OTT services deliver superior video quality compared to social video platforms. Consumers also reported a more positive emotional experience when watching professional content, contrasting with the negative emotions often associated with user-generated content (UGC) on social media.

The research further highlights a crucial shift in viewing habits, with an increasing number of users accessing premium OTT content via Smart TVs. This shift is particularly significant for advertisers, as it opens up new possibilities for Connected TV (CTV) advertising. Advanced targeting, interactive ad formats, and a more immersive viewing environment are enabling brands to engage audiences in a highly effective manner, reinforcing the premium OTT space as a lucrative avenue for digital marketing.
“In Indonesia, a 10 percent higher brand recall and purchase intent from OTT advertising campaigns underscores the platform’s growing impact, encouraging more brands and agencies to diversify their media strategies,” said Hermawan Sutanto, Managing Director of Vidio. He further emphasized that Vidio’s impressive 150-minute average daily watch time provides advertisers access to a high-quality audience with a strong inclination towards premium content.

Echoing this sentiment, David Sky, Director of Advertising Solutions at TRUE Digital Group, noted, “At TRUEID, we are dedicated to providing premium OTT services that deliver high-quality professional video content to our viewers in Thailand. We are heartened that almost 9 out of 10 consumers surveyed wholeheartedly agree that premium services out-deliver on quality. And with the increasing adoption of Connected TVs, the time is now for advertisers and brands to take advantage of the increasingly engaged audience on premium OTT.”

The study serves as a clear indicator that premium OTT services are not only reshaping digital entertainment in Southeast Asia but also offering brands a more effective way to connect with audiences. The preference for high-quality, emotionally engaging content is driving a fundamental shift in how advertisers approach digital campaigns, moving away from cluttered social media environments and towards premium platforms that offer better engagement and recall.

Louis Boswell, CEO of AVIA, reinforced this perspective, stating, “The power and opportunity of premium OTT services in Indonesia and Thailand are significant. This study clearly demonstrates the value these services offer to both consumers and advertisers. We believe this is a call to action for advertisers to leverage the unique advantages of premium OTT.”

As brands look to optimize their digital advertising strategies, premium OTT is emerging as the go-to platform for high-impact marketing. With the sector’s growth showing no signs of slowing down, advertisers who seize the opportunity now stand to benefit from a rapidly expanding, highly engaged audience base.