In today’s competitive streaming landscape, global giants like Netflix and Disney+ dominate headlines, but in emerging markets, Iflix carved its own path. Launched in 2015 and headquartered in Kuala Lumpur, Malaysia, Iflix was designed to meet the entertainment needs of users in Southeast Asia, the Middle East, and Africa. Focused on affordability, mobile-first usability, and locally relevant content, Iflix quickly became a popular alternative to expensive Western services. But how does Iflix works behind the scenes? And what business model allowed it to scale across diverse regions?
Let’s dive into the working mechanics and business strategy that powered Iflix’s rise.
What Is Iflix?
An OTT streaming platform Iflix, provides users access to a vast library of TV shows, original content, and movies. Unlike traditional broadcasters, Iflix delivers content directly over the internet, allowing users to stream or download videos on demand.
How Does Iflix Works?
Let’s dive into how Iflix works, what strategy it used to follow, and more in this guide.
Content Delivery via OTT (Over-the-Top) Technology
Iflix is an OTT video platform, meaning it delivers content directly to users over the internet, bypassing traditional cable or satellite providers. Users simply need a smartphone or an internet-connected device to stream or download content.
The platform supports:
- Mobile apps (Android/iOS)
- Web access
- Smart TVs and Chromecast
It’s optimized for mobile-first consumption, with features like adaptive streaming and offline downloads — a must in regions with inconsistent bandwidth.
Freemium Streaming Experience
Iflix operates on a freemium model, where users can:
- Watch a limited selection of content for free (supported by ads)
- Subscribe to the VIP plan for premium features like:
- Ad-free streaming
- Full access to international and local titles
- Offline viewing
- High-definition playback
This dual-layered model allows Iflix to attract mass adoption while also converting serious viewers into paying subscribers.
Localized Content Strategy
Iflix doesn’t just copy Western platforms — it tailors its content for each region it serves. It invests heavily in:
- Licensed international content (e.g., Disney, Warner Bros., BBC)
- Local TV shows, films, and dramas
- Original productions in local languages and dialects
This local-first content strategy made Iflix more relatable to users in Indonesia, Malaysia, Pakistan, Nigeria, and other regions — a key reason for its early success.
Offline Viewing and Light Data Usage
To accommodate regions with high mobile usage and limited data plans, Iflix provides:
- Offline downloads
- Low-bitrate streaming options
- Adaptive streaming based on connection speed
Users can pre-load content using Wi-Fi and watch it later without eating into mobile data — a big win in developing markets.
Iflix Business Model Explained
Iflix is one of the most well-known subscription video-on-demand (VoD) services related to emerging markets. Its headquarters are in Kuala Lumpur, Malaysia, and now operating successfully in more than 25 countries today with more than 150 content partnerships and numerous telco partnerships. Learn how Iflix works and also explore the Iflix business model to know how it raises revenue.
The platform is self-funded through its own fund and also from the Catcha Group for $30 million. The platform subscription number reached around 200,000 subscribers in November 2015, This number increased continuously as more and more users prefer to use the platform regularly.
Iflix is estimated to make around US$300 million with more than 5 million subscribers during April 2017, and claimed to have around 15 million subscribers, which marketed their service by 250% since January. Before exploring how Iflix works and its business model, learn how it started its journey and bagged massive success later on.
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Freemium + Subscription Revenue
Iflix monetizes through two primary channels:
- Ad-supported free content
- Subscription-based VIP access
This approach opens the door to mass-market adoption while giving users the option to upgrade for a richer, ad-free experience.
Advertising Revenue from Free Users
Ads are embedded into free content streams using advanced ad-tech:
- Contextual targeting to improve relevance
- Programmatic ad buying for optimized inventory sales
This model helps Iflix generate revenue even from non-paying users, crucial in regions with low subscription conversion rates.
Strategic Telecom and OEM Partnerships
To increase reach and simplify payments, Iflix partnered with:
- Mobile operators (e.g., Telkomsel, Globe Telecom, Jazz)
- Device manufacturers (pre-installed apps on smartphones)
- ISPs (bundled streaming offers)
These partnerships helped overcome challenges like:
- Low credit card penetration
- Limited digital payment systems
- High customer acquisition costs
Users could subscribe through mobile credit or bundled data plans — no bank needed.
Focus on Emerging Markets
While competitors targeted premium urban markets, Iflix focused on:
- Tier 2 and Tier 3 cities
- Countries with rising smartphone adoption
- Regions underserved by global platforms
This geographic niche helped Iflix build loyalty and scale in places where other platforms struggled to localize effectively.
Original Content Production
Iflix also invested in Iflix Originals, such as:
- Magic Hour The Series (Indonesia)
- Oi! Jaga Mulut (Malaysia)
- Cinta Di Balik Awan
By producing regional original shows, Iflix built a stronger identity and reduced reliance on expensive international licenses.
Initial Strategy of Iflix: How Iflix Works?
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Iflix do not work out very well, as most people have alternative and other internet-based services. Some of the free video streaming is provided by internet providers, they mainly focus on providing local content with selected Hollywood as well as western content. They also provide various services at a lower cost, payable through phone calls directly.
Iflix vs. Netflix: Which Streaming Service is Best to Choose?
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Undoubtedly, Netflix is one of the popular streaming platforms with 182 million paying streaming subscribers globally. It beats Iflix, especially when it comes to western content, while Iflix beats Netflix when it comes to regional content. In simple terms, Iflix lacks new Western content at the moment.
Netflix is trying to improve its service continuously; in the same manner, Iflix is also trying to improve its service by providing excellent service to customers. It is opting for new strategies and business models, helping them to enhance their customer base and profit to a great extent in a shorter time.
How Iflix Makes Money?
Now you know how Iflix works, it’s time to find out how it makes money. Recently, the CEO responded that Iflix’s business model was superficial. He also added that they must move towards advertising to make more revenue. Well, this is one of the lessons learned that Western models do not fit the rest of the world!
While writing about the same, they stated that the free tier model is a perfect match for most businesses compared to the premium content model. Learn to know how Iflix makes money by considering opting for a new business model to cater to all the needs of its customers in the most effective way to ensure their satisfaction.
Iflix’s Recent Strategy: Learn to Know How Iflix Works & Makes Money
B2B partnerships have gained huge popularity among businesses worldwide, and Iflix is not an exceptional case in adoption. The business giant has made partnerships with telcos to introduce and implement the subscriber base quickly. Now you might be thinking about how much the subscriber base has grown since then.
The Iflix CEO concluded that their business model doesn’t compete with an app like Netflix and further added that they are just focusing on replacing the DVD market in emerging markets and trying to build their presence over smartphones. Seriously, what a peculiar strategy!
However, it also raised another question: what percentage of the internet streaming population really aims to stream local content? For instance, if we go to Netflix Indonesia, then it is quite similar to Netflix Sri Lanka, but when you explore Iflix Indonesia and Iflix Sri Lanka, then you will find that both are different because they are local. Iflix Indonesia possesses more than 50% of Indonesian content, whereas Iflix Sri Lanka has quite a large percentage of regional and local content, while Netflix is predominantly and offers English content.
Pricing Model of Iflix
Iflix provides free content and also “VIP” content. When any of the people want to leverage Iflix VIP content, then they are requested to pay a monthly subscription fee (RM10/mo) or have to pay yearly (RM8/mo), and they also have to pay through phone bills and credit cards.
Iflix keeps changing its price according to the promotions, its subscription was around RM5/mo at one point or RM30 for 12 months. Their marketing team is very aggressive and has the flexibility to offer huge discounts, they even offer free access for a few months for newbies.
While Iflix claims to have more than 15 million subscribers, there are certain changes that people might not subscribe to the channels at all. Thus are known to subscribe to customers on their behalf via their mobile carrier accounts, where Iflix gives out free accounts.
Iflix had five million registered users during. It instead hailed “tremendous growth” that includes around a 3X increase in subscriber numbers, whereas a 2X rise in user engagement during the past years. Its revenue is expected to jump and reach around 230% year-on-year, but it is keeping quiet on raw figures. Having a 3X increase in subscribers and more than 2.3X revenue growth basically shows that there are very few customers who own a free account.
Popularity Indicators and Revenue Model of Iflix
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If only 30% of the 5 million subscribers pay for their services, revenues are estimated to reach around RM15 million a year at full price. While it is expected to double to 10 million subscribers at full price. It’s expected that the platform will make around RM100 million. At the time, they were at RM15 to 100 million in revenues, which is not great for companies that raised around $300 million, but as they have a longer-term picture to deal with, time will tell us everything.
Alongside pre-roll ads, the video streaming platform also offers product placement options, which are for local as well as regional content, plus in-app ads. Moreover, Iflix now wants to diversify its risk of small revenues by running multiple types of ads. Let’s explore some clear calculations to understand this and also to know if Iflix is making money and how much they are earning!
- The revenue of YouTube is $1 to $6 per 1,000 views.
- It is assumed that people watch Iflix ads 365 times a year, which is estimated to make around 3.65 trillion impressions for 10 million subscribers.
- This works impressively out to about $11m or RM44m in revenues.
Check the Iflix Valuation to Know How Much it Earns
Previous investment of Iflix was valued at around $90m at $500M, while it experienced an increase of $133m. It was found that around 33% of its equity was given away to match the $400m valuation, hence, it was estimated to reach around 16%, which would be very favorable to them at $800m.
Launch Your App Like Iflix Today!
Netflix is setting records — over $20.54 billion in revenue, and a staggering $6 billion spent on original content this year alone. But it’s also facing a $2.5 billion cash outflow and expects to stay free-cash-flow negative for years.
That’s where regional disruptors like Iflix come in — leaner, smarter, and laser-focused on emerging markets with agile business models.
Want to build the next Iflix? That’s where Alphanso Technology comes in.
At Alphanso Technology, we specialize in launching custom OTT platforms that are scalable, secure, and monetization-ready. With over a decade of experience building entertainment products across Asia, Europe, and North America, we’ll help you:
Build your platform fast – from video-on-demand to live streaming
Implement freemium, SVOD, or pay-per-view models
License or create content pipelines with global partners
Integrate analytics, AI-based recommendations, DRM, and more
Launch on all platforms – mobile, web, smart TVs, and Android boxes
Whether you’re targeting niche regional audiences or going global, Alphanso gives you the tech and strategy to scale like Iflix without Netflix-level spending.
Ready to launch your streaming platform? Let’s talk.
FAQs
Is Iflix still available in 2025?
After being acquired by Tencent in 2020, much of Iflix’s content was merged with the WeTV platform, though the brand may still exist in select markets.
How does Iflix differ from Netflix or Disney+?
Iflix focused on affordability, local content, and emerging markets, while platforms like Netflix target global premium audiences with a subscription-only model.
Can Iflix be used offline?
Yes. VIP users can download movies and shows for offline playback — ideal for users with limited or costly internet access.
What languages does Iflix support?
Iflix supports multiple local languages depending on the region, including Bahasa Malaysia, Tagalog, Arabic, Urdu, and Swahili.
How did Iflix monetize its free users?
Through contextual ads, pre-roll and mid-roll video ads, and partnerships with advertisers targeting emerging market demographics.
What type of content was available on Iflix?
Iflix offered a wide mix of Hollywood blockbusters, Asian dramas, local TV shows, children’s content, and original series, curated for regional preferences and cultural relevance.
Was Iflix free to use?
Yes. Iflix used a freemium model, offering a free, ad-supported version and a VIP paid plan with enhanced features like HD streaming and offline downloads.
What were Iflix Originals?
These were exclusive shows and films produced by or for Iflix, tailored to regional audiences. Examples include Oi! Jaga Mulut (Malaysia) and Cinta Di Balik Awan (Indonesia).
Could I pay for Iflix without a credit card?
Absolutely. Iflix enabled carrier billing through telecom partnerships, allowing users to pay via mobile credit or prepaid balances — no credit card required.
How did Iflix personalize recommendations?
Iflix used AI algorithms and user behavior analytics (watch history, language preferences, device type) to suggest personalized content on the home screen.
Did Iflix support multiple profiles or parental controls?
Iflix allowed users to create multiple profiles and included kids’ content zones with age-appropriate filters, ensuring a family-friendly experience.