Shift toward the local content and integration of advanced technologies create new opportunities in the coming years. Rise in prominence of direct carrier billing, surge in subscription of over-the-top video (SVoD), increase in penetration of smartphones and compatibility with OTT applications, and high speed of internet drive growth of the Indonesia over-the-top market.
Major market players – CatchPlay, Iflix, HOOQ, PT. Media Nusantara Citra Tbk. (MNC Media), Mola TV, PT Telekomunikasi Selular (Telkomsel), Netflix Indonesia, Tbk (Telkom Indonesia), PT. Telekomunikasi Indonesia, Vidio.com, and Viu.
The OTT market in Indonesia garnered $213 million in 2018, and is projected to reach $1.50 billion by 2026, registering a CAGR of 27.7% from 2019 to 2026. The report offers a detailed analysis of changing market trends, top investment pockets, major winning strategies, value chain, key segments, and competitive landscape.
The report offers a detailed segmentation of the Indonesia over-the-top market based on component, device type, content type, revenue model, user type, and end user. Based on component, the solution segment held the major share of the overall Indonesia over-the-top market in 2018, and is estimated to maintain its highest contribution during the forecast period. However, the services segment would register the highest growth rate from 2019 to 2026, as they are available in reduced cost and offer improved performance of OTT platforms.
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Based on revenue model, the advertisement segment accounted for the highest market share in 2018, and will maintain its contribution by 2026. Based on user type, the commercial segment held the highest share in terms of revenue in 2018. However, based on end user, the education & training segment is projected to portray a considerable growth rate in the upcoming years.
Based on device type, the smartphones segment dominated the market share in 2018, and is estimated to maintain its dominance during the forecast period. This is due to rise in adoption of smartphone devices and surge in delivery of content over mobile networks with excellent mobile broadband coverage.
- There is a massive spike in utilization of over-the-top platforms. Indonesian people have been adopting them as a source of entertainment to pass their time as they have to stay at homes during the lockdown.
- OTT providers have capitalized on the situation by implementing innovative strategies to increase paid subscriber base, which in turn, will raise profitability.
- With increase in the subscription user base, OTT players are expected to achieve more profitability from subscriptions than in-app advertisements.
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