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Pay-TV market penetration low in Indonesia: Casbaa

Indiantelevision.com Team

(7 May 2008 9:30 pm)

MUMBAI: With just 2 per cent of approximately 40 million+ TV households, Indonesia's pay-TV market penetration is low compared with other Asian markets. This is the latest findings of the Cable and Satellite Broadcasting Association of Asia’s (Casbaa) report “Indonesia in View”.

The report provides a snapshot of Indonesia’s pay-TV market conditions with a summary of opportunities and challenges in terms of regulatory and political factors. The report says that the pay-TV growth in Indonesia has been brisk over the past 12 months with legitimate pay-TV subscriptions doubling to 785,000 in Q1 2008.

A newly competitive environment has seen operators differentiate consumer offerings through premium content. Some have secured new channels and launched additional local-language programming such as a new Muslim channel and music channels. The launch of low cost pre-paid services has also driven pay-TV take up.

Nevertheless, unauthorized redistribution remains a significant issue.

According to Casbaa, competition in 2008-09 should pick up further. In September 2007, beyond the existing operators, another five preliminary licenses for satellite subscription TV services were issued and a further 28 companies have submitted applications for subscription TV licenses.

The Report was released as part of Casbaa’s Asian Pay TV CEO Roundtable: “Indonesia’s Pay TV Industry Embracing the Future” staged in Jakarta on 7 May. The May 2008 “Indonesia in View” Casbaa report also provides data, regulatory and stakeholder analysis of the current Indonesian industry, along with key contacts and a draft of Indonesia’s Broadcasting Bill 2008.

Roundtable welcome addresses were made by communication and information technology minister Mohammad Nuh H.E, chairman of the Indonesian broadcasting commission Sasa Djuarsa Sendjaja and Casbaa CEO Simon Twiston Davies.

Core presentations were delivered by Permanent Committee on Telecommunications for the Indonesia Chambers of Commerce and Industry chairman Anindya Novyan Bakrie, and Clarity Research Indonesia technical advisor Bettina Cavenagh.

Also participants were Indovision CEO Rudy Tanoesoedibjo, HBO Asia CEO Jonathan Spink, First Media CEO Yen Hsu, GroupM technical advisor Ranjana Singh, Sony Pictures Television Int’l EVP Todd Miller , Telkomvision CEO Rahadi Arsyad among others.