Digital Content Report_(Feb 2021).pdf

1
Sector Overview: Digital Content 2021
An Industry Overview and Takeaways for SEA

Conﬁdential
I. Executive Summary………………………………………………..… 03
II. Industry Background……………………………………………..… 04
A. Our Deﬁnition
B. Industry Evolution
C. Industry Sub-Sectors
III. Market Landscape……………………………………………..……….. 17
A. Latest Trends
B. Global Drivers
C. Headwinds & Tailwinds
IV. South East Asia Macro Picture…………………...……….. 26
V. Business Models………………………………………………...……….. 33
A. Summary
B. Streaming
C. Gaming
VI. Conclusion………………………………………………...…………………… 50
A. How South East Asia is Different
B. Predictions for Digital Content 2.0
2
Industry Overview: Digital Content
Report
Structure

Confidential
3
Capital Intensive Business
for Dynamic Customers
Multiple players have raised
>$1Bn in an arms-race for
customer acquisition and unique
content to retain customers
Surge in Local & Global
Players
Beyond known names such as
Netflix, Amazon Prime, Disney+,
numerous regional players are
differentiating based on local
preferences
Nearly 100 M&A transactions in
2019
Rise of mobile
Digital media made
up 82% of Total
Consumer Internet
Traffics in 2020
Marketers shift to
Digital Platforms
Digital Media as a %
of Total Ad Spend
topped 54% in 2020
Pandemic-Driven
Behavioural
Changes
60%+ increase in
Streaming in ASEAN
in 2020
Source: https://www.cisco.com/c/dam/m/en_us/solutions/service-provider/vni-forecast-highlights/pdf/Global_2020_Forecast_Highlights.pdf
https://www.emarketer.com/content/global-digital-ad-spending-update-q2-2020
Convergence by
Geography
Global players’
head-start on
capital-raise, branding
and expansion
strategies will enable
them to acquire local
players that have
unique content, catered
to regional preferences.
Convergence by
Business Models
Pivotal success will be
seen for Players that
own content libraries
and are able to translate
it all into multiple forms
of content (streaming,
long or short form, etc.,
blurring lines between
different types of digital
media.
Predictions
for Digital
Content 2.0
Executive Summary

Conﬁdential
5
Collection of information
produced in digital formats, that
are made available via varying
electronic mediums, for public
consumption.
Most popular mediums include digital
publishing, broadcasting or streaming. Such
media can be User Generated (UGC) or Non-User
Generated Content.
What is
‘Digital
Content’?
Common formats available today are Text, Audio, Video, Games.

Conﬁdential
Evolution of Content
6
1690
Newspaper
1892
Radio, Motion Picture
1927
Television
1948
Cable TV
Mobile, Internet, Data, Streaming,
Gaming...
TODAY
Please refer to Appendix [A] for a breakdown of historical milestones.

Conﬁdential
7
AUDIO
Audio content is any type of published material or information
that is consumed through listening. Music, Podcasts and
Audiobooks are three popular subcategories of Audio Content.
VIDEO
Video content is any content format that features or includes
video. Common forms of video content include vlogs, live videos,
video recordings, sitcoms, serials, movies and documentaries.
READING
Electronic version of a printed book, digital documents or articles
that can be read on a computer, mobile or a speciﬁcally designed
handheld device.
DOING
Portals for gaming or digital commerce, where user interaction
and engagement are facilitated through the Internet.
Mainstream content, as we know it today

Conﬁdential
8
Mid-Length Video
03
● Works well for speciﬁc content and often targeted at commuters.
● Enables producers (user generated or production house) to become famous
as content creators and potentially, move into live-streaming.
● Pricing is determined by buying side as it can be content for eCommerce.
Short Audio & Video
02
● Algorithms such as behavior tracking to understand users’ time in-app -
characteristics, time viewed, reactions to content - and enhanced to
increase the user’s time spent within the app.
● Advertisement play, no subscription model for such a strategy
Online Reading
01
● Kick starter for such a strategy is through purchasing or owning copyrights.
● Once a user is subscribed to this model, it may be easier to transition or
cross-sell other media products as they are already used to subscription and
paying monthly.
Long Audio & Video
04
● Professionally made by production houses.
● Streaming platforms have pivoted to in-house content generation to
maintain retention and reduce content-acquisition costs and dependencies.
● Business model is through Distribution.
Each sub-sector is at a different stage of adoption

Conﬁdential
But the lines
are blurring
as new types
of players
emerge
9
Audio Gaming
Video
E-commerce
Social
Media
User
Generated
Content

Confidential
10
Authentic Content
Trustworthy Factor
The Conversion-Driver
Easy, Efficient & Valuable
Incredible User Engagement
Sources:
https://taggbox.com/blog/benefits-and-challenges-user-generated-content/
https://medium.com/@griffin.an90/5-key-benefits-of-ugc-user-generated-content-19f42be6a63e
Abbreviated as UGC, it is any form of content
that has been created by the users and is
shared on digital platforms. It is driven by
ideas, feedback, questions, opinions, or
relating to users’ experiences.
User-generated content can be referred to as
the digital word-of-mouth in the modern era.
User Generated
Content

Conﬁdential
11
● Anything more than 1,000 words
● Requires planning, research, and forethought.
● Generally seen as more authoritative and
trustworthy
● Highly invested audience that wants to learn
more
● Seek in-depth, comprehensive content, covering
everything they need to know
Long Form Content
● Brief, “snackable” content generally fewer than
200 words
● Simple and memorable with one single idea that
explain stories quickly
● Helps readers become aware of a company,
product, or service and helps build trust
● Examples include status updates, tweets, event
reminders, short videos, infographics, blog posts,
and “bite-sized” e-books.
Short Form Content
Content can be broadly categorised into two forms
Sources:
https://www.impactbnd.com/blog/long-form-content-vs.-short-form-content
http://www.econtentmag.com/Articles/Column/Marketing-Master-Class/Short-Form-vs-Long-Form-Content-in-a-Time-Star
ved-World-125714.htm

Conﬁdential
Online Streaming
Types of
Long Form Content
12
Podcasts
Blogs
Gaming & eSport
eBooks & eMagazines

Conﬁdential
Pros & Cons of Long Form Content
13
Higher
Conversion
Rates &
Search
Engine
Ranking
Enhanced
credibility
and
retention
Decreasing
attention
span of
viewers
Efﬁcient
repurposing
and ability
to be
scanned
Expensive
and time
consuming
Increase
authority
and
market
dominance
Inconsistency
Source: https://shanebarker.com/blog/short-form-vs-long-form-content/#LongForm_Content_The_Advantages

Conﬁdential
Online Streaming
14
Social Media Content
Ecommerce
Types of
Short Form
Content,
including
User
Generated
Content

Conﬁdential
Pros & Cons of Short Form Content
15
Consistency
& better
engagement
Less time
consuming
for viewers
Not Search
friendly
Increased
shareability
and
viewership
Poor website
performance
Mobile
friendly
Lack of
depth
Source:: https://shanebarker.com/blog/short-form-vs-long-form-content/#LongForm_Content_The_Advantages

Confidential
Multiple factors affect the industry
16
Contributors Channels Establishments
Influencers
Talent Agencies
TV Stations
Producers
Influencers (Ads)
Own platform
(Following)
eSports
(Sponsorships)
Infrastructure
(Access to internet)
Govt regulations
(Taxation on Digital
services)
Motivations
Develop or acquire
exclusive content
Gain larger number
of users

Conﬁdential
Global digital acceleration is
faster than ever
18
Total
Population
Unique Mobile
Phone Users
Internet
Users
Active Social
Media Users
+1.1%
JAN 2020 vs JAN 2019
+82 Mn
+2.4%
+124 Mn
+7.0%
+298 Mn
+9.2%
+321 Mn

Conﬁdential
Mobile internet users projected to
rise to 5Bn by 2025
Rapid mobile adoption coupled with growing access to
internet
● In 2018, 3.6Bn people used their mobile phones to go online.
● IMF data shows that in 2017, 62% of the population in SEA had internet
access. This rose to 70% in 2018, and by 2021, IMF projects that over
90% will be online.
China and Southeast Asia lead the $-generation pack
● In 2019, China and SEA alone were home to a combined 850Mn mobile
gamers and generated more than $28Bn in annual revenue.
● In 2019, revenue from mobile esports in China outpaced the general
mobile games market by nearly 10%.
● Between 2018 and 2019, mobile esports competitions helped drive up
the total prize pool value for tournaments in SEA by 244%.
19

Conﬁdential
Adoption of is approaching ubiquity
amongst all ages
● Rapidly rising viewership as access to mobiles, internet and usability, across ages, is increasing.
● As of August 2020, Streaming accounts for 25% of consumers’ collective time spent with the television
● Consumption has also taken hold among consumers in their teens (through gaming Platforms such as Rolblox)
and those aged 55 and older, which is often a technological sign of ubiquity and resolve.
20
Source: https://www.nielsen.com/us/en/insights/report/2020/the-nielsen-total-audience-report-august-2020/

Confidential
21
To gain rapid growth
and market share,
producers are spending
heavily to acquire new
customers
Advertising
Partnerships, for ex.
Between Influencers
and Gamers, are
becoming popular to
drive hype
Collaborations
To maintain retention,
providers are finding
agile and creative ways
to generate new
content
Frequency
Pandemic has led to an
increase in free time for
users
Disposable time
Fewer travel or outdoor
options has led to
increase in online
spend
Disposable $
Interactive content is
offering users a way to
maintain
human-connections
amidst lockdown
Social engagement
SUPPLY
DEMAND
Growth drivers
are affecting
both supply &
demand
Source:
https://redseer.com/newsletters/asean-game-on-part-1/?utm_source=newsletter&utm_medium=email&utm_campaign=ase
an_gaming_part_2_game_on&utm_term=2020-12-08

Conﬁdential
22
Acquisitions and Institutional
Investments (such as by IDN media and
Telcos like Singtel or SK Group)
M&A transactions within Digital Content
players in 9M19
Top 6 most active corporate development teams are global
digital content players.
Avenues for consolidation are growing

Conﬁdential
China’s Digital Content Market Share
23
China's internet video and audio market in 2020
(Market share by value, in per cent )
Long-form video
platforms are investing
more in original content
creation, capturing bigger
market share.
Success of original
contents boost revenue
by increasing fee based
subscription.
Source : China Netcasting Services Association

Conﬁdential
COVID has brought some headwinds...
24
Movies, Concerts,
Sports
Engagement &
Excitement kept alive
through e-Channels
Clubs in Shanghai were
reportedly able to rake in
millions of Yuan by hosting
online music events on Douyin.
Television, Gaming,
Karaoke
Video related content
viewership surged
Viewership of live television +14%
Use of video-game consoles
+35%.
Karaoke function on Tencent’s
Joox music streaming app +50%.
Gaming subscription
Number of paid users
is on the rise
Gaming Subscription
Source:
https://www.economist.com/graphic-detail/2020/03/27/covid-19-is-a-short-term-boon-to-streaming-services
https://www.scmp.com/tech/apps-social/article/3078512/tencents-music-app-joox-sees-surge-karaoke-users-virus-brings-hong

Conﬁdential
Yet, signiﬁcant tailwinds continue...
25
Arms race for blockbuster content or
user-base as number of players increase
● Push to create own content is leading to higher
subscription prices
● Less choices on one platform = consumers’ need
to subscribe to multiple platforms
● Piracy back on the rise after years of steady
decline
External factors are hindering growth
● Indonesia imposed a 10% value-added tax on
digital services (Software, Multimedia, Data)
provided by non-resident companies starting
July 1 2020.
● Singapore introduced a 7% tax for overseas
digital services.
● Malaysia imposed a 6% tax on imported digital
services from the start of 2020.
Source:
https://www.techinasia.com/indonesia-impose-10-digital-services-tax
https://www.economist.com/graphic-detail/2020/03/27/covid-19-is-a-short-term-boon-to-streaming-services

Conﬁdential
The South East Asia Perspective
Southeast Asia regroups a large population of digital
users that can be compared to leading global
markets like US, EU, China for digital activities.
But it is the region’s growth numbers that are even
more impressive, with high double-digit growth in all
segments.
This growth has primarily been enabled in 2019
through the expansion of technological
infrastructures that support Internet and mobile
connections in SEA.
27
Source: https://aseanup.com/asean-infographics-population-market-economy/

Conﬁdential
Apart from spending more time on the mobile or internet, many are also spending money on online services and products. The
Internet economy now involves 180Mn people in Southeast Asia, or about one in two Internet users.
28
Internet economy comprises 180Mn people in SEA
Source: Temasek Bain Report 2020

Conﬁdential
Digital landscape in SEA is booming
29
Total
Population
Unique Mobile
Phone Users
Internet
Users
Active Social
Media Users
662
Mn
URBANISATION:
49%
375
Mn
PENETRATION:
57%
416
Mn
PENETRATION:
63%
853
Mn
VS POPULATION:
129%
Active Social
Mobile Users
370
Mn
PENETRATION:
56%

Confidential
COVID has affected Asian countries differently
30
Singapore
1. COVID-19 drives news traffic
2. Working from home: new
normal?
3. Career continuity at risk
4. Finding comfort at home
Vietnam
1. Staying informed about current
events & news
2. Transitioning to online learning
and online food purchases
3. Interest in health and retail
4. Increase in Financial Services
Hong Kong Indonesia
1. COVID-19 drives news traffic
2. Indonesians’ adoption of online
learning
3. Cease of all non-essential travel
Malaysia
1. Staying informed about
current events and news
2. Exploration of online learning
3. Piqued interest in health
4. Increase in financial services
1. Increasing screen time
2. Keeping abreast of the times
3. Steering through the financial
storm with information
4. Hermitting at home
Source: https://www.comscore.com/Insights/Blog/How-COVID-19-has-continued-to-impact-Digital-Media-Consumption-in-APAC-March-2020

Conﬁdential
COVID is driving adoption of streaming across SEA
31
Total online video weekly streaming minutes on
mobile grew 60% in aggregate across ID, MY, PH and
SG between Jan 20 – Apr 11, 2020
DURING COVID
58B
PRE COVID
36.4B +60%
Usage of music streaming is now more evenly
distributed throughout the day as people stay at
home to work, and logins from desktop users have
surged by more than 25% in the recent period.
Source: https://www.media-partners-asia.com/article.php?id=2325

Conﬁdential
Mobile esports has also received a signiﬁcant boost in
2020
32
PC and mobile game revenue for
Greater SEA is projected to pass
$8.3Bn in 2023, with 320Mn
gamers.
Esports is also the most important
driver of growth in the industry,
with 90% of mobile gamers playing
esports games or competing in
esports events.
Source: https://www.researchandmarkets.com/reports/4864948/southeast-asia-and-chinese-taipei-mobile-games?
https://www.thinkwithgoogle.com/intl/en-apac/consumer-insights/rise-player-fan-growing-opportunity-mobile-esports-asia/?utm_medium=social&utm_cam
paign=thinkwithgoogle&utm_source=email&utm_content=rise-player-fan-growing-opportunity-mobile-esports-asia

Confidential
Asian companies in Digital Content
34
AUDIO
US$3 billion music streaming
market in Asia in 2020. Besides
music streaming, podcasting
and audio book companies are
on the rise to.
VIDEO
The online video industry in Asia Pacific (excluding China) is expected to
grow at roughly 15% per year to reach $23Bn by 2024 and will generate
$50Bn in advertising and subscription revenue by 2024. Local players are
providing a platform for regional talent to showcase their work, tailored
to local preferences.
GAMING
SEA generated $1.9Bn+ in mobile esports revenue in 2019, with Vietnam
leading the region (5Yr CAGR of +28%), China tops that charts, globally,
with the biggest mobile and PC esports market and with the most
developed infrastructure.
ECOMMERCE
Seamless purchasing of goods through digital means, especially as online
infrastructure and mobile adoption increases had lead to a 100Mn+ new
ecommerce users in SEA in 4 years, from 2015-2019.
READING
Electronic articles are being
diseminated by industry
specific, regional startups.
Source: https://www.techinasia.com/video-streaming-asia-faint-heart

Conﬁdential
Global streaming landscape
Global video streaming market size was valued at $38.56 Bn in 2018 and is projected to reach $149.34 Bn by 2026,
growing at a CAGR of 18.3% from 2019 to 2026.
35
Average weekly video content consumption (in hours)
Please refer to Appendix [B] for breakdown of future projections.
Source: https://mkto.deloitte.com/rs/712-CNF-326/images/the-future-of-the-tv-and-video-2030.pdf

Confidential
Unique approach for price-sensitive India
36
India is set to be one of the world’s top 10 media
markets by 2021, with revenue estimated to hit
$52.7Bn in 2022 from $30.4Bn in 2017.
To capture the ‘low value, high volume’ price
sensitive market and also cater to varying
internet access levels across the nation, players
are taking unique approaches:
Netflix’s mobile-only plan, for example, costs about
$2.6 a month. Hotstar and Disney+ plans start at
about $0.43 per month while Amazon Prime’s
plans start at about $1.7.
Netflix invested $400Mn into India through
2019-2020 for original and syndicated content. In
early 2018, Amazon plunked down $263Mn in
original local content.
Source: https://www.pwc.in/assets/pdfs/publications/2018/video-on-demand.pdf

Conﬁdential
Thriving Digital Content ecosystem in China
37
Game live Streaming Platforms
Douyu.xom (Listed): US$3.73Bn
Penguin E-sports: NA
Huya.com (Listed): US$4.986Bn
Bilibili: US$5Bn
YY.Com: US$5.24Bn
3
Game Publishers
Tencent (Listed): RMB3000Bn
Perfect World (Listed): RMB30Bn
Netease Game (Listed): RMB17.58Bn
Giant Network (Listed): RMB35.87Bn
4
Esport Clubs
RNG: RMB1.5Bn
EDG: RMB1Bn
Vici Gaming: RMB300Mn
1
Streaming Players
Youku (Acq. by Alibaba): US$944Mn
IQiyi (Listed): US$4.1Bn
Tencent Video (Listed): US$9.8Bn
Kuaishou (Listed): US$6Bn
2
Favorable government policies Esports are core of the ecosystem Capital giants supporting the industry

Confidential
SEA streaming’s fragmented battle
38
SEA promises substantial returns from a
huge market of over 600 Mn people.
However, it is a heterogeneous region
divided between different political regimes,
languages and tastes.
Fragmentation
TV and Movie streaming in SEA, as with the
rest of the world, is seen as a scale business
where ‘critical mass’ is needed to attain a
path to profitability. However, Local players
have no clear path and Global players are
“loss leaders”
Critical Mass
As global streaming companies Netflix, Disney+ and HBO pursue SEA, they compete with
regional start-ups such as GoPlay (Indonesia), Viu (Hong Kong), and iflix (Malaysia). The
latter may have market advantage due to their geographic proximity and local market
knowledge.
Source: https://www.businesswire.com/news/home/20200225005696/en/Global-Video-Streaming-Market-Expected-Grow-CAGR

Confidential
Local players of SEA streaming
39
GoPlay
Indonesia’s tech giant GoJek
launched GoPlay in 2019 to grow
their all-encompassing
ecosystem, engage users for
longer, and increase customer
lifetime value on their platforms.
The basic subscription plan for
GoPlay is about $6 per month,
which includes unlimited access
to the platform’s library and the
ability to download content for
offline consumption. GoPlay is
also offering a bundle plan at $7
per month, which additionally
provides users with GoFood
delivery vouchers worth around
$42.
Iflix
This Malaysian start-up was
established in 2014 to beat
domestic rival Astro, which
operates satellite and cable
services, into streaming. Rapid
expansion and integration
with telco providers enabled
Iflix to secure its market
position. They attracted capital
investment from MGM in 2015
and Indonesian media
heavyweight SCM in 2016. Iflix
raised $30Mn in July 2020 from
Fidelity that slashed its
valuation by 25% to$300Mn.
Viu
The large HK telco provider
PCCW established Viu in 2015.
It expanded to SEA in 2016.
Viu focuses on supplying
Korean, Chinese and South
Asian content. It has
embarked on producing
numerous original series.
HOOQ
(Defunct)
Established in 2015, HOOQ
was a collaboration amongst
Singtel (SG telco firm),
Warner Bros and Sony
Pictures. It had major
operations in SG, TH, PH, ID,
and IN. It’s strategy is was to
partner on local feature films.
It filed for liquidation in 2020
as (1) Global and local content
providers are increasingly
going direct, (2) cost of
content remains high, and (3)
emerging market consumers’
willingness to pay has
increased only gradually
amidst an increasing array of
choices.
Source: https://theconversation.com/streaming-into-southeast-asia-how-netflix-hbo-compete-with-regional-players-like-iflix-and-hooq-132453

Conﬁdential
Sporting has multiple stakeholders
40
Leagues
Leagues perform three relevant
functions: organising
competitions, creating valuable
events, and structuring media
rights tenders.
Goods Suppliers
Investor in sports club to
promote their brand, products
and services. Associate their
brands with a sports club and
provide uniforms and sports
goods for the team.
Club Management
(i) Design offers for different
targets (fans, enthusiasts, etc.)
(ii) manage money ﬂow into
tickets, licenses, sponsorships,
media rights, (iii) manage
brand, athletes, infra, staff.
Fans’ Engagement
Sports clubs’ customer-oriented
strategies to engage public fans
to purchase tickets,
memberships or merchandise.
Stadium or Arena
Facilities, naming rights,
architecture, advertising inside
the stadium, etc.
Partnerships &
Sponsorships
Co-creators of value chain
offering facilities inside and
outside the venue.
Media &
TV Broadcast
Buying rights for TV or
alternative platforms, as cable
tv, pay-tv, websites, social
networks, gaming apps.

Conﬁdential
Gaming is expanding into new realms
Marketing products and
services
Championing relevant
topics
Supporting year-end
female sports
More corporate
sponsorships
41
Growth in streaming &
broadcast
New branding &
sponsorship
opportunities
Markets ripe for new
franchise leagues &
city-based teams
One-stop solutions for
players and teams
In-game betting boost
fan engagement
Hiring sports- betting
analysts & increasing
data-capture
capabilities.
Collaborating with video
streaming services to
create a complete,
on-screen betting
experience
Becoming their own
brand
College sports free
agency
New form of agent and
talent representation
specifically for college
athletes
Streaming services
In-stadium fan
experiences
VR products
Women’s Sports Esports Legal betting College Sports 5G & Cloud

Conﬁdential
42
To supply PCs & Consoles on which games
can be played
Hardware Manufacturer
To oversee design & software programming
Developer
To provide funds to develop and distribute
games
Publisher
Marketing and Distribution broker between
Developers, Publishers and Retailers
Distributor
To sell ﬁnished products (Hardware and
Software) or consumers
Retailer
Esports value
chain
Contracting as new business
models of digital gaming,
direct-to-consumer, emerge

Conﬁdential
Esports opportunity is booming
43
2020 Global Gamers Per Region with YoY Growth Rates
55% of global gamers are in APAC (fastest growing region)
2020 Gaming Market per Device & Segment
with YoY Growth Rates
Mobile Game Revenues in 2020 will account for 48% of the
global market ($77.2Bn)
Source: https://venturebeat.com/2020/05/08/newzoo-2-7-billion-gamers-will-spend-159-3-billion-on-games-in-2020/

Conﬁdential
Numerous Esports players of varying sizes are
emerging
Publishers:
Tencent (RMB 3000B), Riot (Acquired by Tencent )
Activision Blizzard (50B) , Electronic Arts (33B), Take-Two
Interactive Software (14.3B), Hi-Rez Studio (N/A),
Wargaming (N/A)
Game streaming:
Twitch (3.79 B), Youtube Gaming (N/A), smashcast.tv
(N/A), Facebook gaming (N/A)
Leagues (valuation not available):
GSL, LOL, Overwatch League, The International Dota 2,
Eleague, ESL Pro League
Teams:
Cloud 9 (310M), Team Solomid (250M), Team Liquid
(200M), Echo Fox (150M), Optic Gaming (130M), Fnatic
(120M), Gen.G Esport (110M) , G2 Esport (105M),
Immortals (100M), Envy Gaming (95M), 100 Thieves
(90M), Counter Logic Gaming (50M)
44
Source:: https://newzoo.com/insights/articles/industry-ﬁrst-report-evolution-esports-ecosystem/

Conﬁdential
45
(1) Greater access to high-quality internet and
hardware
(2) Larger endemic investments
(3) Rollout of SEA wide leagues and tournaments
(plus the governing bodies to maintain them)
(4) Professionalization and regulation of the industry
(5) Scores of “periphery companies” looking to
capitalize
(6) A big focus on data and software
Top trends affecting the SEA landscape
Source::
https://datareportal.com/reports/digital-2020-global-digital-overview?utm_source=Reports&utm_medium=PDF&utm_camp
aign=Digital_2020&utm_content=Dual_Report_Promo_Slide

Conﬁdential
Local Players of SEA Gaming
46
Founded in 2015
Virtual reality content creator for the online Esports competition platform call eArena
GameWith (Japanese Gaming Company) invested in 2019
In 2020, added online events to list of services
Founded in 2017.
Built teams in Mobile Legends: Bang Bang, CS:GO, PUBG, Leagues of Legends, Overwatch, Hearthstone, Clash Royale,
Arena of Valor, Rules of Survival and Tekken. Secured top 5 ﬁnishes and some tournaments wins across multiple
games.
Founded in 2016
Originally built gaming centres call Dojos, then pivoted to organise local gaming tournaments. In 2020, the company
made inroads into eSports by hosting online FIFA tournament, in partnership with BALRZ TV and Athlete Adam
Nizam.
Founded in 2017.
Portfolio of 4 professional teams in Arena of Valor, League of Legends, FIFA and PUBG Mobile, with a regional
footprint of >2Mn fans and >US$620k in prize money.
Raised US$1.5Mn Seed Round by Octava Foundation in 2019.
Founded in 2016
Runs 13 competitive eSports teams across six major games in 5 countries.
Insignia Venture Partners led $4.4Mn Series A in 2019, Korea Investment Partners led $12Mn Series B in 2020
Source: https://techcollectivesea.com/2020/01/17/southeast-asias-top-5-esports-startups/

Conﬁdential
Global Esports establishing
footprints in SEA
47
Founded in 2014, Europe
Global esports team best known for their Dota 2 team.
Established a base of operations in Singapore, last year they sourced and built a team of talents from Asia.
Esports organisation founded in 2004
Largest esports organisation in SEA
Recently underground rebranding and expansion ; Physical gaming cafes, SEA focus Esports content portal, Pro
Teams and MET events,
Founded in 2017
Gaming and esports entertainment pioneer and leader in SEA.
Raised an undisclosed amount of ﬁnancing on its recent Pre Series A round led by Gobi Partners.
Founded in 2016
French professional esports organisation producing content and cross-promote on social media. PSG Esports also has
partnerships with Monster Energy, DouYu, HLA Jeans, IPASON, China CITIC Bank, Clear and Philips. Entering SEA
through partnerships with Talon Esports.
Esports team raising money to bolster and improve their capabilities and evolve into an one stop solution
for everything gaming (Content, partnerships, talent, sponsorship)
Source: https://esportsobserver.com/tier-one-entertainment-investment/

Conﬁdential
48
Esports Revenue
Figure exclude from betting, fantasy league, cash payouts and core games revenues.
2021 Esports Revenue Streams
Global | With Year-on-Year Growth
1,084.1M
2021 Total Esports Revenues
+14.5% YoY
Sponsorship
$641.0M
+11.6%
Media
Rights
$192.6M
+13.4%
Publisher
Fees
$126.6M
+22.6%
Merchandise
& Tickets
$66.6M
+13.8%
Digital
$32.3M
+50.4%
Streaming
$25.1M
+25.7%
Esports Revenue Growth Forecast
Global | 2019, 2020,2021 and 2024
2024
$1617.7M
+11.1%
CAGR 2019-2024
2021
$1084.1M
+14.5%
2020
$947.1M
-1.1%
2019
$957.5M
Source: https://www.esportznetwork.com/how-do-esports-teams-make-money/

Conﬁdential
49
Esports
Ecosystem
Overview
Source:: Newzoo Global Esports & Live Streaming Market Report

Confidential
SEA should continue to build foundations for a digital economy
51
Please refer to Appendix [C] & [D] for a detailed breakdown of SEA’s key digital economy indicators
The first is to improve connectivity. Half the population of ASEAN still lacks affordable, reliable high-speed Internet access.
In some of the larger economies only 2 out of 5 people have access to high speed (4G) mobile internet—in the lower income economies
it’s only 1 out of 5. More investment by telecom companies is needed. Policymakers can also help through regulatory reforms that open
up the sector. In some countries, the broadband market is dominated by one or two large firms, often state-owned. Reforms that promote
competition, including in less well served rural areas, could help lower prices and increase quality of service.
Countries should also focus on strengthening the population’s digital skills. Although the region already
has good literacy and numeracy foundations, education systems could be nimbler in developing the skills needed for the digital economy.
Achieving this requires a focus on lifelong learning -- not necessarily acquiring specific degrees but developing skills for life. Singapore’s
SkillsFuture initiative, which provides resources for ongoing re-training and skills development, is one example.
Make digital payments an essential part of a digital economy. In many countries in this region payments are
overwhelmingly cash based. The latest World Bank Global Findex data shows that only 19 percent of financial account holders in the
region access their accounts using a mobile phone or the Internet. Governments can help by putting the right regulatory infrastructure in
place and by allowing citizens to pay for government services and receive pensions and other payments online.
Policies that promote trust are essential for growing participation in the digital economy. These cover
a range of areas from data privacy, to cybersecurity, to consumer protection. Fewer than half of ASEAN countries have comprehensive
data protection laws, and the capacity of data protection authorities remains limited. Policies are also not coordinated regionally, making
it hard for individuals and businesses alike to know what regulations apply when their data moves across borders.

Conﬁdential
Digital Content is bound to grow in SEA
52
(1) Increasing internet penetration as
mobile devices become more
affordable
(2) Consumption of media content is
increasing. Viewing online video is now
a common pastime for digitally active
consumers.
(3) More than 9.5Mn esport enthusiasts.
Over two-thirds (67%) of the region’s
game revenues come from mobile.
(4) Number of local content and
tournaments are increasing
dramatically and players gain more
exposure
(1) Traditionally lagging behind international
counterparts due to a lack of capital
investment and infrastructure.
(2) Can hardly compete with best team outside
of SEA (good performance on the global stage
is important to increase esport enthusiasm in
the region).
(3) Esports and local-content platforms are
setting up, but are far from expanding and
capturing market share over a fragmented
SEA market.
HEADWINDS TAILWINDS

Conﬁdential
However, differentiated business models are key
53
Streaming and Gaming players are opting
for AVOD over SVOD given high tolerance
to ads in SEA
AVOD vs
SVOD
When compared to instead of Subscription
video-on-demand (SVOD) models used by US
companies, Advertisement-based
video-on-demand (AVOD) models monetize
differently, requiring companies to make
signiﬁcant investments to build out a sales
team and capabilities in developing ad-tech
infrastructure.
Unique
Demography
SEA poses a challenge for OTT companies
given relatively lower disposable incomes,
abundance of low-cost local competitors and
traditionally higher piracy rates in the region.
Consumers are less willing and able to pay for
content, unlike in the US market where
consumers are likely to have multiple
subscriptions and can possibly sustain a few
winners.
Each country in SEA (from Indonesia to
Brunei to Singapore) are at different levels
of demographic maturity in terms of
income levels, infrastructure and
preferences.
Share vs
Monetize
Distribution strategies (for example: via Digital
Payments, Telco credits, Advertisements VOD
or In-App purchases) are more important
than pure content generation in SEA’s
fragmented market. Investing in copyright
(books, long video, music) and thereafter
building distribution and following are key.
Distribution (Customer service, UI,
Features, Localisation) > than Content in
SEA.

Confidential
Predictions for Digital Content 2.0
54
Lines are blurring between
different types of Digital
Content providers
Gaming, Tournaments, Watching (Money
Heist and Garena), Shopping (Kuaishou),
Listening are blurring as
computer-generated realities become
ubiquitous. Hence, streaming companies
are competing not just with themselves
but also with user-generated content,
cable TV, piracy, and more.
Focus on distribution platform
innovations (i.e., improved customer
service, new product features, better
user interface, and deeper localization).
This way, content providers will then
have more time to figure out and
monetize distribution (i.e., creating
downstream sales capabilities in the
AVOD model).
Double down on value
proposition
Unlike other markets, SEA players are
unlikely to conquer a ‘one size fits all’
model. Even in the US, where
demographics are fairly similar,
households usually have multiple
subscriptions (HBO, Disney+, Netflix). The
question that remains is if convergence
will occur - with larger players creating
different offerings for each country OR
different players with niche offerings?
Route to convergence
remains to-be-seen
Source: https://preview.mailerlite.com/f1s0q9/1559718503563400873/t1i5/
https://technode.com/2020/02/11/short-video-app-kuaishou-2019-revenue-said-to-reach-7-billion/
https://www.techinasia.com/making-sense-video-streaming-market-southeast-asia

55
Conﬁdential
Thank You
hello@goldengate.vc

Confidential
56
Contributors
Kelly Ang was working in a family office which focuses on
hospitality real estate investment prior to joining Golden Gate
Ventures. She now juggles between providing management
support, investor relationship and fundraising. Intrigued by
the disruptions and positive changes accelerated by the tech
industry, Kelly strives to be a key contributor within GGV
focusing on research and development in key technology
sectors.
Jean-Francois has over 12 years of agency experience
working with global 500 brands. He's currently at
Ultrasupernew where he co-founded the Singapore office and
is currently leading its commercial development across APAC
as the Head of Growth. Outside the office, when he's not
playing world of warcraft, he enjoys experimenting in the
kitchen and hiking with his two dogs.
Michael Lints is a Partner at Golden Gate Ventures. He has
over 20 years of experience helping innovative businesses
obtain the resources, insights, and expertise they need in
order to be successful. Michael has been a startup operator,
investor, and mentor, and is currently a Partner at the
Singapore-based venture capital firm Golden Gate Ventures.
He joined the firm in 2013 and is currently leading growth
venture efforts, which include LP fundraising and portfolio
management for Golden Gate Venture's investments at Series
B and beyond.
Nidhi Singh pursued Computer Engineering and Business at
Nanyang Technological University and started her career with
Citi Credit Sales & Trading in Hong Kong. Eager to intersect
her love for tech with her background in finance, she then
joined a Series-B B2B AI Startup HQ in Singapore. In 2 years,
she has helped her Founders raise, build and grow the
business as Director of Corporate Strategy. Nidhi is headed to
The Wharton School for her MBA in Fall 2021. Outside of work,
Nidhi enjoys reading non-fiction, Formula 1, running, playing
golf, travelling and exploring bars!

Confidential
Additional Sources
1. https://www.comscore.com/Insights/Blog/How-COVID-19-has-continued-to-impact-Digital-Media-Cons
umption-in-APAC-March-2020
2. https://www.media-partners-asia.com/article.php?id=2325
3. https://datareportal.com/reports/digital-2019-leading-online-retailers-in-southeast-asia
4. https://aseanup.com/southeast-asia-digital-social-mobile/
5. https://www.sportspromedia.com/from-the-magazine/sports-tech-investment-satisfi-labs-formalytics-
minute-rezzil-spalk
6. https://sport-tech.startupcity.com/vendors/most-promising-sports-tech-startups.html
7. https://techcollectivesea.com/2019/10/10/emerging-sports-tech-startups-in-southeast-asia/
8. https://taggbox.com/blog/benefits-and-challenges-user-generated-content/
9. https://medium.com/@griffin.an90/5-key-benefits-of-ugc-user-generated-content-19f42be6a63e
10. https://shanebarker.com/blog/short-form-vs-long-form-content/#ShortForm_Content_Understanding_
the_Concept
11. https://www.oecd.org/going-digital/southeast-asia-connecting-SMEs.pdf
12. https://medium.com/qara/sports-industry-report-3244bd253b8
58
Bibliography

Conﬁdential
The
evolution of
TV and Movie
59
Source: https://www.iab.com/insights/ott-video-streaming-playbook-for-advanced-marketers/
Appendix A

Conﬁdential
Global
streaming
share of
recorded
music revenue
and OTT share
of home video
revenue (%)
60
Source: https://www.pwc.com/gx/en/entertainment-media/outlook/perspectives-from-the-global-entertainment-and-media-outlook-2018-2022.pdf
Appendix B

Conﬁdential
61
Source: http://documents1.worldbank.org/curated/en/328941558708267736/pdf/The-Digital-Economy-in-Southeast-Asia-Strengthening-the-Foundations-for-Future-Growth.pdf
Appendix C

Conﬁdential
62
Source: https://www.oecd.org/going-digital/southeast-asia-connecting-SMEs.pdf
Appendix D

Legal Notices
The subject matter of this presentation is evolving and subject to further change by the firm and/ Or the general partner in its/ Their sole and absolute discretion; Provided, however, that, except as otherwise
indicated herein, this presentation speaks as of the date hereof and neither the firm nor the general partner, nor any affiliate or representative thereof, assumes any obligation to provide any recipient of this
presentation with subsequent revisions or updates to any historical or forward-looking information contained in this presentation to reflect the occurrence of events and/ Or changes in circumstances after
the date hereof. The information contained in this presentation has been compiled from sources reasonably believed reliable.
This presentation is exclusively for the use of the party or parties to whom it has been provided by the firm. By accepting this presentation, the recipient acknowledges and agrees that he, she or it (a) will
maintain the information and data contained herein in the strictest of confidence and will not, in any circumstances whatsoever, reproduce these materials, in whole or in part, or disclose any of the
contents hereof to any other person without the prior written consent of the general partner, (b) is not subject to any contractual or other obligation to disclose this presentation to any other person or
entity, (c) will return this presentation, and any other materials that the recipient may have received in the course of considering an investment in the fund, to the general partner immediately upon request
or if the recipient does not wish to pursue an investment in the fund, and (d) will promptly notify the chief financial officer of the firm of any unauthorized release, disclosure or use of this presentation.
The limited partnership interests in the fund will be offered only to investors who meet certain qualifications. The general partner reserves the right to approve each investor. An investment in the fund will
involve significant risks due to, among other things, the nature of its investments. Investors should have the financial ability and willingness to accept the risks and lack of liquidity inherent in an investment
in the fund. Investors must be able to withstand a total loss of their investment. There will be no public market for the limited partnership interests in the fund, and such interests, subject to certain limited
exceptions, will not be transferable. Except as permitted pursuant to the terms of the partnership agreement, investors should be aware that they may be required to bear the financial risks of an investment
in the fund for an indefinite period of time.
Except for the general partner and certain other identified representatives of the firm, no person has been authorized to give any information or to make any representation relating to the fund or the
limited partnership interests therein. Each prospective investor will be afforded the reasonable opportunity to: (A) obtain all additional information which he, she or it may reasonably request relating to the
fund or the offering of its limited partnership interests; And (b) ask questions of the general partner and certain other identified representatives of the firm concerning the terms and conditions of the
partnership agreement, any information set forth in this presentation, and any supplemental information that may be provided to prospective investors by the firm.
63
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