Indonesia’s TV Industry to Grow 18 Percent by 2016

JAKARTA: Media Partners Asia (MPA)’s latest report, Indonesia’s Television Industry: The Next Five Years, forecasts that revenue from Indonesia’s TV sector will grow at a CAGR of 18 percent by 2016, reaching $3.3 billion.

Free TV is expected to contributed $2.5 billion, while pay TV contributes $0.8 billion.

Net advertising revenues will grow at 15-percent CAGR over the next five years, the highest in the Asia Pacific, reaching $3.6 billion by 2016. TV advertising will grow at 16-percent CAGR, reaching $2.5 billion in net terms. In pay TV, the market will reach 5.5 million subscribers by 2016, representing 14-percent penetration of TV homes, with ARPU of $12 per month.

“The high growth story is attractive for international investors, especially PE firms who have taken up positions in free TV, pay-TV and broadband assets,” said Vivek Couto, MPA’s executive director. “Media equities have also outperformed most of MPA’s Asia media indices in 2011 and 2012 with the average market value of Indonesian media companies approaching $2 billion. More transactions across both free and pay TV are expected this year, while we eventually see more consolidation and M&A across pay- and free-TV markets in the medium term.”