The value of the market for online video content consumption in Indonesia is growing at 33% per year and is estimated to be worth nearly USD 5 Bn. by 2027 (Source: Media Partners Asia). This growth is fuelled by the ‘mobile-only’ characteristics of the vast Internet user base in Indonesia, whereby the smartphone is the access vehicle of choice for online content across all end user segments.
Indonesian mobile telco operators are currently reporting increases in cumulative data payload on their networks of up to 50% per year, as the spiralling demand for video-based content continues to accelerate during the COVID-19 period. New usage behaviours driven by the pandemic - ‘Work From Home’ and ’Learn From Home’ - have further increased the demand for high-speed, ‘always-on’ data services.
In this Wellington Perspective we examine the ‘co-opetition model’ that is being established in Indonesia between the mobile telecoms operators (such as Telkomsel, Indosat Ooredoo and XL Axiata) and their counterparts in the video streaming platform category (YouTube, Netflix, Lionsgate, Amazon Prime Video, Disney Plus, etc.).
Our assessment of the market highlights the ‘win-win’ business partnerships that are emerging between the telcos and the online content providers, in response to the growing demands of Indonesian consumers across all demographic groups.
Mutual benefits are flowing from this new business partnership phenomenon.
Expanded audience reach, increased subscriber loyalty, recurring revenue streams, and enhanced margin performance all substantiate the current buoyancy and long-term sustainability of the online content streaming market.
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