Robust Growth Projected for Indonesian Video Industry


Powered by streaming gains, Indonesian video industry revenues are projected to reach $3.7 billion in 2028, an 8 percent compound annual growth rate (CAGR) from this year’s $2.5 billion, according to new Media Partners Asia (MPA) research.

MPA tracked Indonesian video revenues across free, pay and online video. Television’s share of the overall pie, encompassing both advertising and subscriptions, will slip to 48 percent from 56 percent as user-generated/social video and premium AVOD and SVOD platforms gain ground.

Television advertising in Indonesia will see a 4.5 percent CAGR over the next five years, scoring a 40 percent market share, up from 35 percent. SCMA and MNC will remain market leaders. Linear pay TV will continue to erode, but pay providers will see gains through bundled broadband and TV services.

Online’s share of revenues will hit 52 percent, up from 44 percent, as YouTube and TikTok take a growing piece of the ad pie. UGC/social video is expected to grow advertising at a 12 percent CAGR to reach a 26 percent share of overall video revenues. SVOD will have an 11 percent CAGR, lifting its share from 16 percent to 19 percent. Premium AVOD will take a 7 percent share, up from 5 percent, with a 16 percent CAGR.

Overall content investment in Indonesia was up 13 percent in 2022 to $979 million, with free to air being the biggest contributor, while online is the fastest-growing thanks to Netflix, Prime Video and Vidio. By 2028, MPA projects local content investment will top $1 billion, a 6 percent gain on 2022.

Vivek Couto, MPA’s executive director, noted: “The advertising economy endured a poor 1H 2023; this will be partially offset by a stronger 2H 2023. TV is in the doldrums with annual ad declines over 2022 and 2023. TV ratings continue their gradual decline as audiences drift online. Free TV remains critical for mass ad campaigns, but growth is capped, held up largely by local consumer brands. Meanwhile, Indonesia remains Southeast Asia’s most intense battleground for streamers. By consumption and value, it is the largest market in Southeast Asia. Improvements in the quality of local content, combined with the proven viability of Korea content and localized tier-1 U.S. content, has helped drive user acquisition and engagement. More rational pricing and packaging is helping to slowly boost per subscriber economics. The challenge remains the growth of free VOD platforms YouTube and TikTok. Both dominate viewership on mobile while YouTube is also increasingly popular on CTV. YouTube also remains the VOD category leader in terms of revenues by some distance though TikTok is growing rapidly while Netflix leads SVOD.”