Market Insight

NEW COUNTRY: Indonesian data and forecasts added to Television Media

July 18, 2013

David Scott David Scott Associate Director – Research and Analysis, Service Providers & Platforms
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  • DTH dominates the Indonesian pay TV industry whilst cable is also important and IPTV continues to grow from a small base.

 

  • Indonesia has one of the lowest pay TV penetration rates in the Asia-Pacific at just over 11% of TV households by end June 2014.

 

  • A rising middle class, strong economic growth and a large and young population is facilitating strong pay TV growth.

 

IHS Technology has added coverage of Indonesia to its Television Media service. The coverage of Indonesia’s television market comprises detailed data tables containing: by operator, platform and countrywide metrics. These metrics provide historical subscriber and revenue data dating back to 1996. In addition, the platform level pay and free-TV subscriber and household data is complete with five-year market forecasts.

 

IHS also takes into account multi-set usage providing all summary data in two forms: “primary set” and total. This allows users to distinguish between Indonesia’s main form of television in the home and secondary forms, where used.

 

As with the existing levels of data available via the IHS Television Media service, the new Indonesian data set delivers consistent metrics (households, subscribers and revenues) and is available in local currency, Euros and US dollars. The result is directly comparable data across countries, key world regions and both Worldwide and International totals, providing both a segmented and whole view of the Indonesian TV market.

IHS welcomes any feedback on the new Indonesian data and forecasts from its Television Media subscribers, which will help to ensure we provide the most realistic, and accurate reflection of the Indonesian TV market available.

 

Our take

 

Satellite dominates the Indonesian pay TV industry whilst cable is also important and IPTV continues to grow from a small base. The advantage of satellite technology over its counterparts is its extensive coverage of the Indonesian archipelago. Indonesia’s 13,500 islands are home to a population of over 250 million people and more than 63 million TV households. By comparison, TV homes total 1.5 million in Singapore, 8.9 million in Australia and 52 million in Japan.

 

Indonesia has one of the lowest pay TV penetration rates of TV households in the Asia-Pacific. A large number of illegal service providers, a rise in the quality of free TV content, low disposable household income levels and a lack of competition has historically kept pay TV penetration low. Just over 11% of TV households in Indonesia subscribed to a Pay TV service by the end of June 2014. By comparison, pay TV penetration rates reached 29% in Australia, 63% in Singapore and 71% in Japan over the same period.

 

However, Indonesia now has one of Asia’s fastest growing pay TV markets and offers enormous potential. A rising middle class, strong economic growth and a large and young population is facilitating strong pay TV growth as is shown by the increase of subscribers from 5.9 million in June 2013 to almost 6.8 million by the end of the first half of 2014. As a result, competition is becoming fierce with the entrance of new players adopting innovative pricing strategies, offering additional channels and providing high quality local content that addresses the many communities and languages of Indonesia.

 

MNC Sky Vision (MSV) is the leading pay TV operator in Indonesia by subscriber base. MNC Sky Vision launched its DTH pay TV service in early 1994 under the Indovision brand. Indovision predominantly serves the middle-to-upper socio-economic classes of Indonesia. The company also distributes content via the Top TV and OkeVision brands. Launched in 2008, Top TV and Oke Vision primarily target the low-to-middle socio-economic classes in Indonesia. MSV surpassed the one million subscriber milestone in 2011, two million in 2013 and reached just over 2.5 million by the end of June 2014. 

 

The other major DTH pay TV service in Indonesia is Transvision, formerly PT. Indonusa Telemedia "TelkomVision". In 2013, Trans Media acquired TelkomVision and rebranded the service as Transvision in May 2014. The Transvision DTH subscriber base has grown steady from nearly 1.2 million in June 2013 to almost 1.3 million by the end of June 2014. Transvision also serves around 65,000 subscribers via Transvision-branded cable service and a further 60,000 customers via its IPTV-based service known as Groovia TV, which launched in August 2011.

 

Other major operators in the Indonesian pay TV market include DTH providers Orange TV, Aora, Skynindo and Centrin; cable providers First Media and Max3; and Zumstar, the Multi Kontrol Nusantara (MKN) owned IPTV service, all of which IHS Technology covers in its new Indonesian television profile.

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