KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec
Key Takeaway: Warner Bros Discovery launches Max streaming service in Asia, relying on Hollywood blockbusters instead of investing heavily in local content, differentiating itself from rivals Netflix and Disney.
Max’s Strategy in Asia
- Established Franchises: Banking on global hits like Harry Potter, Friends, and Game of Thrones to attract subscribers, rather than creating local content.
- Partnership Approach: Collaborating with local platforms and telecom operators to drive growth efficiently.
- Example: Max is bundled with U-Next in Japan and available on Sky in New Zealand.
- Tailored Rollouts: Strategies vary by country to suit local consumption habits.
Market Landscape
Challenges for Rivals:
- Netflix: Investing in regional original content with its “local for local” strategy.
- Disney: Scaling back operations in Southeast Asia and focusing on Korean dramas and Japanese anime.
- Amazon: Redirecting its focus to India and Japan, exiting Southeast Asia.
Regional Competitors: Local platforms are expanding ad-supported models, live sports, and unscripted shows, intensifying competition.
Growth Opportunities and Challenges
Subscriber Growth:
- Asia’s Potential: Max executives view Asia as the biggest subscriber growth opportunity, although average revenue per user will be lower than in the US or Europe.
- Revenue Projection: Expected to generate $600 million annually by 2029 from key markets like Japan, Australia, New Zealand, and Southeast Asia.
Risks and Constraints:
- Local Content Caution: A tactical approach to local investments is necessary given budget constraints and intense competition.
- Tailored Approach: Max must navigate diverse regional preferences, such as Japan’s 80% local content consumption.
Rollout Details
- Launch Schedule:
- Nov 2024: Max launches in Indonesia, Malaysia, the Philippines, Singapore, Thailand, Taiwan, and Hong Kong, replacing HBO Go in some markets.
- 2024-2025: Expansion to Australia and potential South Korea partnerships with platforms like Tving.
- Standalone App: Planned in select markets once a substantial subscriber base is established, similar to its UK and European strategy.
Outlook
Warner Bros is taking a contrarian approach in Asia by leveraging its global content library and efficient partnerships instead of costly local content production. While this strategy sets Max apart from Netflix and Disney, its success depends on how well it tailors its offerings to diverse markets and manages competition from both global and regional players.
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