Pay television has plateaued in Indonesia, and while DTH services are the biggest victims of increased broadband penetration, cable numbers are increasing, meaning the overall pay TV market remained significant, even if ARPU’s were under pressure, according to AVIA’s latest “Indonesia in View” report.
The study highlights that all eyes are now on the premium OTT market. Subscription video on-demand in Indonesia has grown by more than 50% from 2020 to 2021 to 11.5 million subscribers, while digital advertising grew by 33% over the same period.
These data were presented during the Indonesia in View 2022, an event that welcomed some of the industry’s biggest players for a day of discussions dissecting the opportunities for growth in this expansive market. For the first time in three years, the Asia Video Industry Association (AVIA) returned to Jakarta to host this event.
Also during Indonesia in View 2022, in a conversation around growth and monetization, Hermawan Sutanto, COO of Vidio, talked of the need to educate the market to pay for premium OTT services, and Guntur Siboro, Country Head for Lionsgate Play, further made the point that ad supported VOD (AVOD) was a different ballgame which required significant investment to monetize successfully.
Furthermore, whatever the business model, Avijit Duta, Deputy Country Manager for Viu, emphasized the need for the business to be sustainable, and noted that everyone was witnessing rising production costs as the production talent pool was still limited today.
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