France’s Canal+, a leading pay-TV company, is making a foray into the Asian streaming market by acquiring a 26.1 percent stake in Viu, an Hong Kong-based OTT video service. The deal involves a staggered investment of $300 million, with the option for Canal+ to increase its stake to 51 percent in the future, highlighting its commitment to expanding in Asia. This move is deemed as a significant step for Canal+ in developing Asia as its next growth engine.
Viu, launched in 2015 with the support of Hong Kong’s PCCW telecom company, offers a video service with both advertising and subscription-supported options in 16 territories across Asia, the Middle East, and South Africa. With over 66 million monthly active users and 12 million paid subscribers, Viu has emerged as a prominent player in the streaming industry, primarily in Asia.
One of Viu’s key strengths lies in licensing and producing original Korean content, but it has also ventured into creating original content in Southeast Asian territories such as Thailand, Indonesia, and Malaysia. The company reported a revenue of over $250 million in 2022, indicating a remarkable 36 percent year-over-year growth.
Maxime Saada, the CEO of Canal+, expressed optimism about the investment, stating that while Canal+ already holds leading market positions in Europe and Africa, it sees tremendous potential in Asia as an additional growth engine for the group. He views the investment in Viu as a pivotal step towards achieving this goal.
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Janice Lee, Viu’s CEO and managing director at PCCW, echoed Saada’s sentiments, emphasizing the benefits of having Canal+ as a strategic investor. She believes that Canal+’s global strength in premium productions, content creation, and distribution expertise will accelerate Viu’s growth even further. With the combined strengths of PCCW and Canal+, Viu is looking forward to the next phase of its business.
The Asian streaming market is a highly lucrative one, with a significant and growing user base. Companies like Netflix and Amazon Prime Video have seen immense success in the region, attracting millions of subscribers. Canal+’s investment in Viu is a strategic move aimed at capitalizing on this trend and expanding its reach in Asia.
Moreover, this deal also demonstrates the increasing importance of original content in the streaming industry. Viu’s focus on producing and licensing Korean content has garnered a strong following, particularly among Asian viewers who have a deep appreciation for Korean dramas and entertainment. By leveraging Viu’s expertise in this area, Canal+ can tap into a loyal and dedicated audience, further strengthening its position in the Asian streaming market.
Overall, Canal+’s investment in Viu represents an exciting opportunity for both companies. While Canal+ aims to establish itself as a key player in the Asian streaming market, Viu can benefit from Canal+’s global presence and expertise. As the streaming industry continues to grow, partnerships and collaborations like this will play a crucial role in shaping its future.
