Pay TV Set to Double in Indonesia

CAMBRIDGE: Pay-TV service revenues in Indonesia are forecast to grow at an 18.3-percent CAGR between 2010 and 2015, reaching $778 million be the end of that period, according to a new report from Pyramid Research.

"Indonesia’s pay-TV market is characterized by a very low household penetration, which reached 3 percent in 2010," says Leslie Arathoon, director at Pyramid Research. Forecasts expects this figure to grow to 7 percent by 2015, driven by an improving economic situation and the greater market competition. Indovision, Telkomvision and First Media are leading the market, with about 95 percent of total pay-TV subscribers in 2010. "The first two operate a DTH network, and the third a cable network, but Telkomvision will launch the nation’s first IPTV solution during 2011," she explains.

IPTV is expected to account for only 6 percent of total pay-TV accounts by year-end 2015. "With the country’s geography working in its favor, DTH will remain the dominant technology, accounting for about 88 percent of total pay-TV subscriptions through 2015. The most negatively affected from IPTV’s entry will be cable, whose market share will shrink from 10 percent to only 6 percent in 2015," she adds.

Pyramid Research expects the Indonesian telecom market to be one of the fastest growing in the Asia Pacific and worldwide, expanding at a 10.3-percent CAGR over the next five years. "Home to the fourth largest population in the world, Indonesia is also characterized by relatively low penetration levels across most services, which will enable further growth in the fixed, mobile, broadband and pay-TV markets during the next five years," says Arathoon.