Asia's booming 'DVD Phenomenon'

Eric Teo Chu Cheow, Singapore

The "DVD phenomenon" in Asia is of strategic importance to governments and a psychological value to consumers, despite the copyright infringement issue; in fact, the DVD is fast replacing the VCD as the best-selling item on the consumer market in Asia today.

Even the poorer consumers in Asia's least developing countries are beginning to have access to the DVD. From China and Indonesia to Thailand and Laos, the DVD is ironically fast becoming symbolic of Asia's rise and well-being; it also helps maintain stability and a sense of regional integration.

China's DVD explosion is undoubtedly reaching out to the masses; priced at about RMB8 in Beijing (or US$1), the DVD brings back to China the "film phenomenon", especially of Western movies, from which China was virtually shut off for years.

The simultaneous launch of the latest Star Wars episode, including in Beijing, was meant to fight piracy; but just two days after the launch, pirated copies had reportedly popped up in DVD shops and in the back lanes of the Chinese capital.

Undoubtedly, the "DVD phenomenon" in China is one of a "catch- up" for lost time on the cinema, when just only a trickle of Western films a year were allowed to be screened in China; this phenomenon is also synonymous with China's "opening up", as the Chinese public discovers Western cinema and through it, the world at large.

But more interestingly, the whole of Asia seems to be caught up in a DVD frenzy as well. Three important trends of this "DVD Phenomenon" could be observed throughout Asia, a facet that needs to be better analyzed than just the issues of piracy and copyrights alone.

First, cheap DVDs sold to the masses are giving Asians the feeling of a sound economic well-being; Asia's economic emergence and its indomitable rise of consumer power could in fact be hinged on this "DVD phenomenon". The massive sale of DVDs (though for the most part of it, pirated ones) in the lower Asian classes has injected a "feel good" sentiment into Asian consumerism, which in turn could propel economic growth further.

In a way, the "DVD phenomenon" (both in terms of sales of DVD machines and disks) provides the Asian consumer with a sense of growing wealth and well-being. In the Central Market in downtown Vientiane, Laos, the "explosion" of VCD and DVD machines is phenomenal, costing each between $20 to $30, and all made in Guangdong in Southern China; in these same stores, DVDs and VCDs cost less than half a $1 each.

Similarly, in downtown Jakarta's Chinatown, pirated disks could be found at less than $1 too, just like an array of cheap and affordable DVD machines could also be found in the alleys, mostly imported from China.

Second, the "DVD phenomenon" is clearly to Asian governments' delight, as it helps maintain political and social stability. Cheap DVDs keep Asian consumers at home watching them, especially those Korean series that take 40 to 60 hours to complete the whole sequel.

Protests and social discontent could thus be kept off the streets, as nothing could be more politically potent than idle minds, with nothing to do after work; Vientiane's, Jakarta's and Beijing's current policies of "allowing" the development of pirated DVDs could surely be linked to this overall "stability pact", which DVDs offer. The DVD phenomenon is thus also a social and political one, which has apparently helped guarantee Asia's mid-term stability.

Moreover, it provides a sense of social re-distribution, whereby the poorer classes could feel that they could now have the means to consume (even though they buy cheaper pirated versions of dubious quality), thus keeping social instability in check. If DVDs are priced at $12-15 a piece (as in the developed world), then the Asian poor would never have any hopes of accessing this consumerism facet.

In fact, Malaysia has tried to lower the "official" prices of DVDs to a median between the prices of authentic and pirated versions, so as to fight piracy, but has failed thus far, given the "hard line" taken by local importers not to compromise on copyrights or more egoistically, reduce their own profit margins. But downtown Bangkok's night markets are doing brisk trade in the Silom and Sukhumvit areas, peddling Asian and international pirated DVDs to both locals and Asian tourists, alike at $3 to $4 a piece.

Thirdly, the "DVD phenomenon" is also of integrative value, as the DVD may contribute to greater Asian understanding in far subtler ways than one could imagine. The production and distribution of Asian movies and cinema (via pirated DVD) and China's massive sales (if not, thanks to dumping) of cheap and affordable machines are in fact "pooling" Asia together psychologically.

Although Asians are by and large still attracted to American movies, ranging from Star Wars and Harry Potter to Batman, Asian serial dramas and contemporaries are now circulating widely throughout Asia, ranging from Taiwanese, South Korean and Japanese soaps to the new genre of Chinese, Hongkong and Thai movies.

Soon enough, the feeling of "Asian-ness" would pervade in a region, which remains more fractured than ever on the official 60th anniversary of the end of the Pacific War this August. The "DVD phenomenon" could thus prove to be the spectacular tool, like the mobile phone, to unite a disparate Asia of rich but diverse cultures.

Cultural dissemination could then promote better understanding amongst Asians, which in turn could provide the basis for future Asian regionalism; China remains the center piece of this "cultural web" and there are no doubts that the DVD could even serve Beijing's future interests in "uniting" this region culturally, economically and then, perhaps, politically (vis-a- vis the West).

The "DVD phenomenon" is therefore providing Asia with a sense of economic well-being of rising consumerism, social and political stability, as well as a feeling of cross-cultural fertilization and people-to-people understanding, which could undoubtedly help build the Asia of tomorrow.

This phenomenon cannot be discounted as a powerful trend, which goes beyond the condemnable issues of piracy and copyrights for Asia, its economy, its governments and its society.

Eric Teo Chu Cheow, a business consultant and strategist, is Council Member of the Singapore Institute for International Affairs (SIIA).