The Indonesian economy grew by 6.5 percent in Q4 2011, “a level not seen since before the 1990s Asian crisis” – and the media economy is growing even faster with the country’s pay-TV industry recently passing the 2-million subscriber mark. With growth spurred by innovative pricing strategies, higher quality content and new advertising strategies, there is plenty of room to expand as new players enter the landscape…but competition could be tough, said Simon Twiston Davies, CEO, CASBAA in the International forum for Asia digital Pay TV , content, platforms,advertising and video delivery focused that was held in 29 February 2012 in Jakarta.
As one of region’s most competitive television market, there are 15 networks and near two dozen local channels vying for a potential TV audience from 240 million population number and around 35 million households based on estimates by Badan Pusat Statistik and more than 60 percent of the households own televisions. This may seem vast, but it is highly concentrated.The Nielsen research company estimates that more than 40 percent of audience share is lead by the MNC groups [RCTI,Global TV,MNC TV, and SindoTV]. Follows the Trans TV groups Trans TV and Trans7 22 percent share, then Surya Citra Media or Emtek groups SCTV 16 percent and the Viva groups TVone, ANTV 10 percent. But most of these channels are free to air, along side the Pay TV segment is considerably smaller but it is growing.The market is estimated to have grown by some 5 percent in 2011, with surveys indicating growth projections of anywhere between 3 to 8 percent through to 2015.
Although the development of the Pay TV industry here in Indonesia compared to other Asian countries is still slow, the industry seem has evolved positively through out the year. This shown by increasing competition on an operator level. This, in turn is creating more demand for channels that offer something compelling and different to help drive not just overall penetration but also will stimulates number of ARPU. While on the operator end, increased competition to chased different target market, regions, services and platform include different channel packages. Indonesia is always been a big welcome for launch pad to those many new channels.
According to CASBAA, the Pay TV penetration in Indonesia’s scene is definitely moving forward. Before there was just 1.1 million households in 2011 [the Indonesian Statistic Department places the figure higher at 1.7 million]. But this number would grow markedly if viewers can be convinced to switch from multiple free to air TV channels. Operators are already pushing hard to deliver content at competitive prices, particularly in the urban area such Jakarta and other big cities in Java areas include experimenting in alternative technologies platform that will latch on to other key digital trends of the country. It is a pattern replicated across other Pay TV broadcasters for setting up an affordable buy in access and experimenting with non traditional methods of delivery such the potential VOD and OTT is also great here in Indonesia, particularly the latter as the smarphone penetration rate number here is almost double size the equivalent rate in Pay TV. However, the broadband infrastructure to support mainstream adoption of multiple digital platform is still lacking and limited to Java areas only.
Despite the hiccups, the market for the growth of Pay TV in Indonesia has always possessed great and untapped potential. The sheer size of the population, the expanding consumer class, include the low penetration rate of Pay TV arguably makes Indonesia become the most exciting market in Asia. Observers agreed that Indonesia is a market of vast opportunities that will only grow as Pay TV penetration continues. Aside what else can be done here to make it more attractive to industry players, both foreign and local ? To transition into a mature market however, requires a number of challenges to be overcome, not least the entry cost of a basic Pay TV proposition. Solving this will require a lot of cooperation and understanding between operators and programmers and whether they want this to be a market of yield or volume.
Taken from the Wiki+encyclopedia this worldmap shows the implementation of digital signals TV transition
- Red country : transition completed, all analog signals terminated
- Orange country : transition completed for full power stations, not yet completed for low power stations
- Yellow country : transition in progress, broadcasting both analog and digital signals
- Green country : Transition not yet started, broadcasting analog signals only
- Blue country : Does not intend to transition, broadcasting analog signals only
- Grey area : No further information available