Tencent buys Malaysia streaming platform Iflix

Tencent confirmed the investment earlier in the week to US entertainment-focused publication Variety. It did not disclose the size of the deal. Existing investors in the company included Fidelity International, Media Nusantara Citra, Japan's Yoshimoto Kogyo, Malaysia's Catcha Group, South Korea's JTBC, UK's Sky and US conglomerate Hearst Media. The group had previously committed $50 million in a funding round last year. In total, Iflix had raised nearly $350 million over several funding rounds over the years. 

Founded in 2014, Iflix targeted users in emerging markets offering them a subscription video-on-demand service with access to thousands of television shows and movies including Asian and Hollywood titles. Iflix is currently available in 13 countries in Asia, down from 22 countries in the past. Kwesé Iflix, a division focused on sub-Saharan Africa, was sold last year.

Southeast Asia-based companies offering video content services include Viu and Hooq. Hooq, a video streaming platform owned by Singapore telecommunications giant SingTel, terminated its operations earlier in the year. Several telecom operators and media conglomerates also offer streaming services and develop original content. Google-owned YouTube is the most popular streaming platform in the region although it mainly focuses on free user-generated content.

Earlier in the year, Iflix, which is headquartered in Kuala Lumpur in Malaysia, had to lay a number of employees, with media reports indicating the company was struggling to meet its debt obligations. It was said to be looking to list in Australia this year but market volatility made that an unviable option. A number of senior executives have left the company as well.

Variety reported that the lossmaking firm had been courting the owners of all of China’s three leading video streaming platforms – Alibaba Group, Tencent Holdings, and Baidu. Tencent-owned WeTV has also launched its operations in the region with the app available in Thailand last year. However, Iflix is expected to continue operations as an independent entity for the coming twelve months.

Recently, the Southeast Asian media space has also seen the emergence of a new player backed by venture capital. Earlier in the month, Golden Gate Ventures invested an undisclosed amount in GoPlay, the media streaming spin-out from Indonesia’s GoJek. GoPlay plans to primarily target Indonesian viewers by creating local content but it will also look to re-create foreign television shows in a local context.

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• Topics
• Southeast Asia
• Trade sale
• Media
• Fidelity