The dynamic and fiercely competitive landscape of digital entertainment in South and Southeast Asia is witnessing a significant strategic realignment, as Rohit Jain, the incumbent president of Lionsgate Play Asia, takes over the ownership of the streaming platform in these crucial markets. This pivotal transaction sees the Canadian-American entertainment conglomerate Starz Entertainment Corp., formerly Lions Gate Entertainment Corporation, divest its direct-to-consumer streaming service in a move that places Lionsgate Play under founder-led stewardship, marking a distinct pivot in its regional strategy. While the specific financial terms of the acquisition were not publicly disclosed, the deal underscores a broader trend of recalibration within the global streaming ecosystem, particularly concerning market-specific operational models.
Under the terms of the agreement, Lionsgate Play in South and Southeast Asia will transition to Jain’s independent management, allowing him to fully dedicate his focus to the platform’s strategic growth and operational execution. Notably, all other Lionsgate film and television production and distribution ventures in India and Southeast Asia will continue to operate under the studio’s direct purview. This separation allows Lionsgate to maintain its established content licensing and production footprint in the region while empowering Lionsgate Play to cultivate a more agile and localized approach to its streaming business. A multi-year licensing agreement further solidifies this strategic partnership, ensuring that Lionsgate Play retains access to the coveted Lionsgate brand name and its extensive library of films and television series, a critical differentiator in a crowded market.
Rohit Jain’s leadership has been instrumental in establishing Lionsgate’s brand presence across South and Southeast Asia over the past eight years. His tenure saw Lionsgate Play evolve from a nascent offering, initially available through telecommunication partnerships with entities like Vodafone Idea Ltd., to a standalone streaming application launched in 2020. During this period, the platform is estimated to have amassed a subscriber base of approximately 5 million users and invested a substantial sum, reportedly around $100 million, in content specifically tailored for South Asian audiences. This investment encompassed not only a rich array of Hollywood blockbusters and critically acclaimed series – from iconic franchises like The Hunger Games, John Wick, and Twilight to prestige dramas such as Knives Out and The Big Sick – but also a foray into localized original productions, including titles like Feels Like Home and Minus One, signaling an early recognition of the need for indigenous content.
The strategic rationale behind this divestiture from Lionsgate’s perspective appears multifaceted. Global media conglomerates are increasingly scrutinizing the profitability and scalability of their direct-to-consumer (DTC) operations in diverse international markets. The Asian streaming landscape, while offering immense growth potential, presents unique challenges, including intense price sensitivity, fragmented audiences across numerous languages and cultures, and the dominance of well-entrenched local players alongside global giants. For a major studio like Lionsgate, streamlining its international operations and focusing on its core competencies – content creation and global distribution – while leveraging licensing deals, can be a more capital-efficient strategy than directly managing and funding a regional DTC platform that requires continuous, high-stakes investment in marketing and content acquisition.
From Rohit Jain’s vantage point, assuming full ownership of Lionsgate Play presents an opportunity for unparalleled entrepreneurial flexibility. Founder-led enterprises often exhibit greater agility, a sharper focus on market nuances, and swifter decision-making capabilities – attributes that are critical for navigating the rapidly evolving Asian streaming market. "Under his stewardship, the Lionsgate brand has gained greater resonance with audiences in South Asia and Southeast Asia, and Lionsgate Play has emerged as a distinctive premium streaming platform in one of the world’s fastest-growing digital entertainment markets," commented Brian Goldsmith, Lionsgate’s chief operating officer, acknowledging Jain’s significant contributions. Jain himself has articulated a vision for Lionsgate Play to transcend its current identity as primarily a Hollywood content destination, aiming to shape a more differentiated, future-ready streaming platform for the entire region. This could involve an accelerated push into diverse regional language content, exploring innovative distribution models, and forging deeper local partnerships, all unencumbered by the broader corporate mandates of a Hollywood studio.
The timing of this transaction is particularly salient, occurring amidst a period of unprecedented pressure and consolidation within the Indian and broader Asian streaming sectors. The market is characterized by a "content arms race," where platforms are spending billions annually to acquire and produce exclusive content. This environment has significantly inflated content and talent costs, making it increasingly difficult for mid-tier or niche players to compete effectively. Global behemoths such as Netflix and Amazon Prime Video continue to invest heavily, expanding their local content libraries and marketing reach. Simultaneously, powerful domestic players like the newly merged JioCinema-Viacom18 entity (JioHotstar, post-Disney Star India merger), MX Player, and regional specialists like hoichoi (Bengali content) and aha (Telugu content) command substantial market share and local affinity.
Industry analysts have frequently highlighted the structural disadvantages faced by platforms primarily focused on English or singular Hindi content in India. These platforms often lack the financial muscle of their larger rivals, who can leverage vast capital reserves to produce content across multiple languages, genres, and formats, catering to India’s incredibly diverse linguistic tapestry. As Girish Dwibhashyam, a prominent streaming industry expert, noted, "It is a classic case of big fish ruling over the small ones. These platforms can’t afford big-ticket rights the way Netflix, Prime Video or broadcaster-owned OTTs can. Regional apps may not yet be profitable, but they are innovating and have a clearer story for investors. The problem with some other players is that they are neither niche nor capable of matching the big players on capital investment." This sentiment reflects the challenges that have led some smaller players, like Eros Now and Hungama Play, to scale back their original programming and marketing efforts, struggling to carve out sustainable niches.
The Asian streaming market, particularly India, is projected for explosive growth. Market research firm Statista forecasts that the Indian OTT video market alone will reach nearly $10 billion by 2028, driven by increasing internet penetration, affordable data plans, and a burgeoning youth demographic that is mobile-first in its content consumption habits. However, this growth comes with intense competition for subscriber eyeballs and, more critically, subscriber wallets. Average Revenue Per User (ARPU) in Asian markets remains significantly lower than in developed Western economies, necessitating massive scale or highly differentiated niche offerings to achieve profitability.
For Lionsgate Play under Rohit Jain’s independent leadership, the path forward will likely involve a delicate balance. Leveraging the continued licensing of premium Hollywood content will remain a core strength, differentiating it from platforms heavy on local fare. However, to truly "expand beyond that," as Jain suggests, the platform will need to deepen its investment in localized original programming, potentially exploring partnerships with regional production houses, and innovating on its pricing and distribution strategies. The agility of a founder-led model could enable quicker adaptation to evolving consumer preferences, a more efficient allocation of content budgets, and a nimbler response to competitive pressures.
This transaction also serves as a microcosm of broader global trends in media and entertainment. Major studios like Warner Bros. Discovery and Paramount Global have undergone significant strategic shifts, rationalizing their DTC investments and exploring various models, including bundling, content licensing to third parties, and even spinning off non-core assets. The Lionsgate Play deal in Asia signifies a similar strategic optimization, allowing a global player to de-risk its direct market exposure while maintaining brand presence through a mutually beneficial licensing arrangement. For the Asian market, it signals a maturation phase where strategic clarity and operational efficiency, rather than just sheer content volume, will dictate long-term success. As Lionsgate Play embarks on this new chapter, its ability to fuse global content appeal with hyper-local relevance under an entrepreneurial vision will be a critical test case for the future of streaming in one of the world’s most dynamic digital markets.
