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Technology, Media, and Telecommunications Predictions 2019 Southeast Asia infographics
Technology, Media, andTelecommunications Predictions 2019Southeast Asia infographics
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Technology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographics
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Technology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographics
About Deloitte SEA TMT Predictions 2019 04
Smart speakers: Growth at a discount 05
Does TV sports have a future? Bet on it. 09
eSports: On your marks, get set, game! 11
Radio: Revenue, reach and resilience 13
Contacts 14
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Technology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographics
About the Technology, Media, and Telecommunications Predictions
Deloitte’s TMT Predictions is an annual report that presents Deloitte's view of the major trends over the next 12-18 months that are likely to have significant medium to long term impacts for companies in the TMT and other industries. The Deloitte perspectives are built around hundreds of discussions with industry executives, analysts and commentators, along with tens of thousands of consumer interviews.
In this publication, we present some highlights of the “Southeast Asia perspectives" developed by Deloitte Southeast Asia’s TMT practice for four of the global TMT predictions. Through a series of focus group discussions conducted by Deloitte Southeast Asia with 77 millennials—defined as those born between 1981 and 2000—across the three regional markets of Indonesia, Philippines, and Singapore, we offer some insight into how the global developments may take a different course or growth trajectory within the region due to its unique idiosyncrasies.
For the full copy of this year’s Southeast Asia edition of the TMT Predictions report, please visit: www.deloitte.com/sg
#DeloittePredicts
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Technology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographics
99%Having a compelling use case for a smart speaker is likely to be far more important for Southeast Asia’s millennials, than a lower price point.
of focus group participants own smart-phones costing ... the
predicted globalaveragecost of a smartspeaker
>10x
of focus groupparticipants did notpossess a smart speaker
of focus group participants do not
see value in buying a smart
speaker
70%
Consumers hesitate tocommit to the purchase
of smart speakers
93%
Smart speakers: Growth at a discount
Source: Focus group discussions conducted by Deloitte Southeast Asia in Indonesia, Philippines and Singapore, January 2019
The appetite for smart speakers in Southeast Asia is low.
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Technology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographics
Lack of local language support1
Compatibility issuesand switching costs
Smart speakers and domestic helpers—often employed by households to perform chores at home—may be perceived as some formof substitutes of each other
“Jalan Ong Lye”
“Jalan Kasehatan”
“Ngô Quyền”
Industry standards have yet to emerge amidst the different constellations of devices and their
associated hardware and software
Ratio of domestic helpers to households
Jakarta Manila
Ratio of population which is middle class and above2
Singapore
19%75%
18%75%
11%70%
“Boromratcho-nnanee Road”
Walgreens
Jalan Hutton
Jalan online
Replies fromSiri/Google
Bora-Bora trinityRoad / Barbara Maroge
a Journey Road
Relianceon human assistance
1. Based on smart speakers from Amazon, Apple and Google
2. Based on Pew Research Center definition of lower bound of middle class being those who earn 2/3 the median income; applied on data from EIU Data Tool, 2018
Several factors may hinder the development of “killer” use cases for smart speakers.
Source: Focus group discussions conducted by Deloitte Southeast Asia in Indonesia, Philippines and Singapore, January 2019
Lack of local language support1
Compatibility issuesand switching costs
Smart speakers and domestic helpers—often employed by households to perform chores at home—may be perceived as some formof substitutes of each other
“Jalan Ong Lye”
“Jalan Kasehatan”
“Ngô Quyền”
Industry standards have yet to emerge amidst the different constellations of devices and their
associated hardware and software
Ratio of domestic helpers to households
Jakarta Manila
Ratio of population which is middle class and above2
Singapore
19%75%
18%75%
11%70%
“Boromratcho-nnanee Road”
Walgreens
Jalan Hutton
Jalan online
Replies fromSiri/Google
Bora-Bora trinityRoad / Barbara Maroge
a Journey Road
Relianceon human assistance
SEAis one of the fastest-
growing regionsglobally in new
vehicle sales
Increase innew vehicle
sales in2018
10%
Motorcycle to car ratio
1 : 4.9
1.4 : 1Quezon Ave
Deloitte Philippines
1 hr 10
Depart at Mon, 11 Feb, 07:30
1 hr 5 45 min
Mandaluyong
Makati
Typically55min - 120min
Totaldistance:15KM
Average amount of time spent sitting in traffic in major regional cities
78-103
7.3 : 1
1 : 1
32.3 : 1
2.4 : 1
Traffic jams are notorious in Southeast Asia
minutesSource: The Straits Times, “Filipinos spend 16 days a year stuck in traffic: Study”, November 28, 2017
Note:Singapore is an outlier where commuters spend an average of 49 minutes in their vehicles daily
But voice assistance in vehicles is one avenue for the potential growth of smart speakers in Southeast Asia.
Technology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographics
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Technology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographics
eSIM data package / Bluetooth connection to phone
Navigation Climatecontrol
Musicplayback& calls
Windows& sunroof
& more indevelopment
Bluetooth connection to rider’s phone
Musicplayback& calls
Audionavigation
& more indevelopment
Augmented reality (AR)overlays
(Only forLIVEMAPcurrently)
X70
US$25,000Proton X701
US$40,0002019 BMW330i2
US$2,000LIVEMAP(not available yet)
US$200Sena Momentum
Use of smart speakers in cars and motorcycle helmets is an emerging trend – currently available models sold at premium
prices. Increased usage will depend on affordable pricing and good
user experience.1. Prices based on Malaysia, currently not available in other SEA markets2. Prices based on US, not available in SEA as of January 2019
Smart speakers are being rolled out in vehicles across Southeast Asia, not only in luxury and top-of-range models but also locally produced models.
Median 18-24 year old male in Southeast
Asia
Median 18-24 year old male in
the UShours ofTV sportsper week
hours ofTV sportsper week
11.8 <7
Out of the total respondentsin our millennial survey,
tend to watch sportsonly on special occasions (such asbig league games)
tend to watchsports only when
with familiesor friends
61% 17%
Does TV sports have a future? Bet on it.Southeast Asian viewers watch less TV sports than their counterparts in the United States.
Sources: TMT Focus Groups in Indonesia, Philippines and Singapore, January 2019
“Millennials" refers to focus group participants aged between 18 - 35
Technology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographics
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Technology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographics
Percentage offocus group participants
who bet on sports
Out of the
who bet
Over 50% of focus group participants do not participatein betting. Those who do, betfor social reasons and during special sports events.
Do not participatein betting
Participatein betting
90%
62%
of respondents bet only on special occasions (for example, during big games or the World Cup), or have only bet on sports once or twice in their life
of respondents bet throughinformal channels such as personal wagers, or office /family pools
42%
who don’t bet58%
$
$
$$
A significant proportion of Southeast Asian TVviewers will watch a full game regardless of whether they have placed bets on it
54%
41%
5%
When betting on the game
When watching alone orwith friends and familiies,regardless of betting
Instances when focus group participants in Southeast Asiawould watch a full game
Would never watch a full game
Focus group participants in Southeast Asia are not frequent participants in betting activities.
Source: Focus group discussions conducted by Deloitte Southeast Asia in Indonesia, Philippines and Singapore, January 2019
Technology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographics
Technology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographics
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Percentage offocus group participants
who bet on sports
Out of the
who bet
Over 50% of focus group participants do not participatein betting. Those who do, betfor social reasons and during special sports events.
Do not participatein betting
Participatein betting
90%
62%
of respondents bet only on special occasions (for example, during big games or the World Cup), or have only bet on sports once or twice in their life
of respondents bet throughinformal channels such as personal wagers, or office /family pools
42%
who don’t bet58%
$
$
$$
A significant proportion of Southeast Asian TVviewers will watch a full game regardless of whether they have placed bets on it
54%
41%
5%
When betting on the game
When watching alone orwith friends and familiies,regardless of betting
Instances when focus group participants in Southeast Asiawould watch a full game
Would never watch a full game
eSports has a lotof hype & attractedinvestments in SEA…
but uptakehas been slow
31.9millioneSports audienceprojected in 2019for SEA
Do youwatch eSports?
47% 53%reported YES reported NO
VS
Barriers to adoption
· Difficulties in comprehending gameplay· Cultural acceptance of eSports
· Time and financial commitment
Viewers PlayerseSports will be amedal event at the 2019 SEA Games and 2022 Asian Games
Sources: Focus group discussions conducted by Deloitte Southeast Asia in Indonesia, Philippines and Singapore, January 2019
Newzoo, Niko Partners, eSportsinsider.com, Straits Times, Nikkei Asian Review
eSportsOn your marks, get set, game!
Traction on the ground has been slower than expected in Southeast Asia.
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Technology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographicsTechnology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographics
Broaden eSports’ appeal and reach with…
However, for mobileto be successful, additional efforts
will be required in:
Localisation of advertisements and marketing
campaigns
Loss of features when gaming
content isported fromPC to mobile
versions
250millionSEA mobilegamersprojectedin 2021
Mobile
Asia Pacific makes up
of global games revenue
of gaming revenue in Asiacomes from mobile
52%
55%
“Gameflix” –Popularise andexpand gaming
throughstreaming
Sources: Newzoo, Niko Partners, Cybersport.com,South China Morning Post, Forbes
Technology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographics
But the region holds much potential for the development of eSports in the area of mobile gaming.
Broaden eSports’ appeal and reach with…
However, for mobileto be successful, additional efforts
will be required in:
Localisation of advertisements and marketing
campaigns
Loss of features when gaming
content isported fromPC to mobile
versions
250millionSEA mobilegamersprojectedin 2021
Mobile
Asia Pacific makes up
of global games revenue
of gaming revenue in Asiacomes from mobile
52%
55%
“Gameflix” –Popularise andexpand gaming
throughstreaming
The majority of focusgroup participants stilllisten to the radio
Reasons for radio's resilience
Radiolistenershipin SEA
38%66% 66%
IndonesiaSingapore
63%
MalaysiaPhilippines
Daily habitduring commute
Music
Radio DJs
"Someone is always listening to radio during the daily commute (jeepneys, buses)."
"I like to listen to a good mix of music (new, retro, classic) which may notbe available inmy playlist."
"The DJs areentertainingand havepleasant voices."
Radio Reach (% of population)
Sources: Focus group discussions conducted by Deloitte Southeast Asia in Indonesia, Philippines and Singapore, January 2019
Mediacorp, “Mediacorp continues to be the number one radio network in Singapore, says Nielsen”, November 22, 2018
VERA Files, “Radio”
Nielsen, “Radio masih memiliki tempat di hati pendengarnya”, November 7, 2016
AsiaRadioToday, "Malaysia has 20 million listeners tuning in to radio every week: GfK", January 6, 2019
RadioRevenue, reach and resilience.
Radio remains relevant in the lives of many people across Southeast Asia.
Technology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographics
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Contacts
Southeast Asia perspectives
Researched and written by
Peter HoExecutive Director, ConsultingDeloitte Southeast [email protected]
Ng Kuok Shern Manager, Consulting Deloitte Southeast Asia [email protected]
Contributors
Wynne Tang Senior Consultant, ConsultingDeloitte Southeast Asia Cassandra ChuaConsultant, ConsultingDeloitte Southeast Asia
Daniel Quang Truong TranAnalyst, ConsultingDeloitte Southeast Asia
Southeast Asia TMT Leaders
Southeast AsiaJohn [email protected]
IndonesiaNindito [email protected]
MalaysiaIzzad [email protected]
PhilippinesOliver [email protected]
SingaporeYang Chi [email protected]
ThailandParichart [email protected]
VietnamTrung [email protected]
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Technology, Media, and Telecommunications Predictions 2019 | Southeast Asia infographics
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© 2019 Deloitte Southeast Asia Ltd
