The coronavirus pandemic set the stage for an intensified battle among streaming platforms in Vietnam, and it’s the consumers that benefit, says Dang Nhu Ngoc.
During the three months of lockdowns during the coronavirus pandemic in Vietnam, 31% of all discussions on social media networks were related to movies, according to a report by YouNet Media. That’s a lot of movie-based social conversation, indicative of the huge opportunity for streaming platforms in Vietnam.
Vietnam is a rapidly developing country with a growing middle class and ability to adopt new technologies. More than 97% of the population uses smartphones, and according to Vietnam Investment Review, the average time Vietnamese people aged 16-64 spend online is 6 hours 47 minutes – 2 hours and 40 minutes of which are spent streaming content.
According to the Ministry of Information and Communications data in Vietnam, the top local streaming services – FPT Play, K+, MyTV, VTVgo, and Viettel TV – experienced substantial growth during the pandemic.
International players increased their foothold in the Vietnam market too, and the only global brand in the top 5 is Netflix, with the most growth – in the first quarter of 2021, the streaming giant held 16% share of the market in Vietnam, but by the end of the year, it had won 22% according to Decision Lab.
Top paid streaming services in Vietnam by market penetration rates
Domestic services like K+ or VTV Go attract users with multiple local TV series and movies.
FPT and Netflix have the advantage of showcasing sought-after K-drama and Western titles. Netflix Vietnam holds around 1,000 titles according to cordcutting.com, including original hits such as Squid Game, Money Heist, Red Notice, and anime IPs such as Demon Slayer: Mugen Train, Attack on Titan, etc.
With the service integration of HBO Go, FPT Play has a library of attractive international films while providing users with hundreds of TV channels – not to mention sport-based K+ channels.
How much are streaming platform subscriptions in Vietnam?
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MyTV: from 22,000VND (0.96c) to 50,000VND ($2.19) per month
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Galaxy Play Premium package: 60,000VND ($2.63) per month
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FPT Play family packages or VIP packages: from 50,000VND - 140,000VND ($2.19-$6.13) per month
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Netflix: from 180,000VND - 260,000VND ($7.88 - $11.38) per month
While VTV Go sells a VTV Box for a one off investment of 1,000,000VND ($43-44) for users to watch all VTV channels with stable transmission, MyTV has a variety of movie packages ranging from 22,000VND (0.96c) to 50,000VND ($2.19) per month. The Galaxy Play Premium package costs 60,000VND per month ($2.63). FPT Play has family packages ranging from 50,000VND - 140,000VND per month ($2.19-$6.13) and Netflix usually costs between 180,000VND - 260,000VND ($7.88 - $11.38) per month.
In addition to transparent pricing policies, online services also offer discounts and incentives for Vietnamese users. FPT Play recently launched the FPT Play VIP package for only 120,000VND per month ($5.25) with HBO Go movies and, at the end of 2021, Netflix launched its Free Plan: free of charge, no card, no subscription, no ads exclusively for Android mobile devices.
Social media conversation as fuel
One of the most prominent examples of attempts to engage young people through social media content is Netflix. They have surpassed competitors such as Disney+, HBO Go or Amazon Prime to dominate the Vietnamese market as an international streaming service and noticeably have an always-on approach to Instagram, Facebook and – more recently –Tik Tok.
Starting from July 2021, Netflix made a splash on social media by launching humorous editorial social content fuelled by local trends and local user insight. Netflix taps into user tastes and interacts with its growing domestic audience with close and witty Vietnamese editorial content, while platforms such as iQiyi or WeTV pay more attention to running paid ads on social media.
Netflix's “Free Plan” was made up of online and Out of Home video content starring Vietnamese rap start Suboi, and Instagram and TikTok videos including KOLs such as Quynh Anh Shyn, Jun Vu and Trang Hyon. The #NetflixGoiMienPhi (#NetflixFreePlan) hashtag constantly appeared on online platforms and attracted a tremendous amount of interaction.
Making the most of a bad situation
Many young people – who before the pandemic were increasingly choosing to travel during the Lunar New Year holidays – were forced to stay at home during Tet in 2022.
Netflix used this as a chance to collaborate with domestic stars Bao Han, Quang Anh and model/actress Chau Duong to create an extended promotional video – "where are you travelling to this Tet?" – which had views surpassing 1,000,000 across platforms, and many users related with the frustration of being stuck at home for Tet.
During this time families stayed at home to watch international blockbusters as well as locally produced series. While Netflix introduced even more attractive Asian and Vietnamese films, other platforms upped their game by adding domestic drama shows to their libraries.
Game shows have done well on streaming platforms too. In particular, the VieOn platform achieved great success with a Vietnamese rap show, attracting significant attention from the public. Season 1 of Rap Viet was mentioned 200 million times on social networking platforms – that’s enough mentions for the entire population of Vietnam to mention it twice.
Is cinema dead in Vietnam?
From August 2021, the CGV cinema group closed 77 of its 81 theatres across the country due to COVID-19 prevention legislation. Korean group Lotte closed 42 of its 46 theatres while Galaxy closed almost all its theatres.
Online platforms raced on and the trend of watching movies at home is showing now sign of dying out; compared to an average movie ticket of 80,000VND - 150,000VND per movie, the price of 200,000VND per month for a complete online library is economical and convenient, especially for families.
Some consumers believe that watching movies online at home will become the main format for movie lovers.
"The cinema will become a form of luxury entertainment,” says Trong Nghia on Facebook. “Hundreds of thousands of Vietnam Dong per ticket for the price of the whole month on Netflix”.
Others disagree.
"The experience of watching movies in theatres with a big screen, vivid sound, and bustling atmosphere is irreplaceable,” says Mika Hoang on social media. “Watching movies at the theatre is still better."
One thing seems evident: Vietnamese users are shifting from free services (YouTube) or non-copyrighted, pirated viewing platforms to high quality – and paid – video services. There are many reasons to explain this change in habit, including the convenience of watching copyrighted movies without advertising, better quality, and the ability to easily access libraries that hold a wider variety of films and shows.
"Once you use Netflix, you don't want to watch pirated content anymore,” says Tran Minh Anh in a Facebook group. “Movies displayed on TV with high resolution are something else. Even compared to other copyrighted movie watching apps, Netflix's interface is much friendlier."
The intensified race of online streaming services as a result of the coronavirus pandemic also aligns perfectly with the increasing demand for a better user experience from Vietnamese audiences – and the willingness to pay for it.
Whatever happens next in the race of Vietnam’s streaming services, it will certainly be the consumers who will benefit – from abundant and quality film libraries, local content, tempting promotions and great entertainment value at a reasonable price.
