What happened: Tencent launched its first overseas video streaming service in Thailand on June 14, Reuters reported. The service, WeTV, will feature original Chinese content with Thai dubbing from Tencent’s film production and distribution subsidiary, Tencent Penguin Pictures, as well as content created with local partners in Thailand. According to the senior vice president of the subsidiary, the country’s existing user base for Tencent products makes it a good starting point to push into Southeast Asia. Prior to WeTV, Tencent had already launched music-streaming service JOOX and mobile game “PUBG Mobile” in Thailand.
Why it’s important: Tencent posted its slowest revenue growth in Q1 2019 as its Chinese gaming business slowly recovers from regulatory changes. The strategy to expand its businesses overseas could potentially help to offset a slowdown in the China market. Growth for the Chinese version of Tencent’s video streaming service, Tencent Video, has been strong. It recorded a 43% year-on-year increase in subscriptions in the first quarter of 2019, and has more than 89 million subscribers and upwards of 200 million daily active users.