Overview of Over-The-Top (OTT) Video Streaming Trend in Indonesia
According to the Allied Market Research, Indonesia over-the-top (OTT) market was valued at $870 million in 2020, and is projected to reach $16,386million in 2031 with CAGR of 31.3% from 2022 to 2031.
The pandemic had a positive impact for the OTT market in Indonesia, the demand for the OTT platforms, online gaming, and other online communication services continuous growth since the trend of stay-at-home regulation was enacted by the government. Also, the rise of popularity on Subscriptions Video on Demand (SVoD) by the Indonesians makes the OTT market Indonesia grew so fast during the pandemic.
Current Condition of OTT Video Steaming in Indonesia
Based on the Statista, around 79% of the OTT media service viewers in Indonesia 2020 dominated by millennials and gen Z people, 41% from age group 25-34 years old and 38% from age group 18-24 years old.
Picture 1: Share of OTT Media Services Viewers by Age Group in Indonesia 2020 (Source: Statista)
Smartphone is the common device that used to watch the OTT media services, especially the SVoD. Almost 77% of the Indonesian SVoD users using their smartphone, followed by using laptop with 43% and smart TV with 42% in 2021.
Picture 2: Leading Electronic Devices for Watching Subscription Video on Demand (SVoD) Content in Indonesia 2021 (Source: Statista)
In addition, according to the Rthree research, the growth of OTT media services in Indonesia can be attributed to the growing penetration of smartphones due to affordable device prices and internet access, also improved mobile broadband coverage in Indonesia.
The Popular Subscription Video on Demand (SVoD) Services in Indonesia
Based on the Statista, Netflix is the 1st placed as the most popular SVoD services platform in Indonesia 2021, followed by the Disney+ Hotstar on 2nd placed and Viu on 3rd placed. Around 72% of the respondents using Netflix as their SVoD services platform.
Picture 3: The Most Popular Subscription Video on Demand (SVoD) Services in Indonesia 2021 (Source: Statista)
Meanwhile, for the frequency of using SVoD services by the Indonesian users, most of them using in several times a week. Only a few Indonesian users who using SVoD services every day.
Picture 4: Frequency of Using Subscription Video on Demand (SVoD) Services by Age in Indonesia 2021 (Source: Statista)
Furthermore, the main reasons why the Indonesian using SVoD services it offered variety of content rather than TV cable and satellite, also enjoying the content without advertisements. Each SVoD services platform have original and exclusive content that can allow the users to have more than one SVoD subscription platforms.
Picture 5: The Reason for Subscribing to Subscription Video on Demand (SVoD) Services by Gender in Indonesia 2021 (Source: Statista)
Conclusion
The presence of SVoD content services has had a significant impact on the entertainment industry, particularly in Indonesia cinema. SVoD can either replace or support the DVD/Bluray sales and rentals, as well as traditional TV broadcasts.
Also, the growth of OTT media market and ad-supported in Indonesia can be opportunities for marketers to used SVoD as the marketing channels. It can provides a new ad placements that combine the eye-catching quality of television content with the highly targeted impressions of digital channels.
However, the volume, cost, and nature of inventory advertisers receive in return for their investment are the main challenges of investing in OTT advertising in Indonesia. Since the scale of OTT market in Indonesia still a long way rather than TV and Social Media. Based on RThree report, during the pandemic in Indonesia, 59% of people watched traditional TV and 61.8% of the total population used social media, compared to 24% of the total population adopting OTT.
Hebronstar Strategy Consultants
Muhammad Ari Bagaskara / Business Analyst
Sources:
Nurhayati-Wolff, H. 2022. Share of over-the-top (OTT) media service viewers in Indonesia as of October 2020, by age group. Statista https://www.statista.com/statistics/1257589/indonesia-over-the-top-media-service-viewers-by-age-group/
Nurhayati-Wolff, H. 2021. Devices used to watch SvoD contents Indonesia 2021. Statista. https://www.statista.com/statistics/1260142/indonesia-devices-for-watching-subscription-video-on-demand-contents/
Nurhayati-Wolff, H. 2021. Most popular subscription video on-demand (SvoD) services in Indonesia as of May 2021, by age group. Statista. https://www.statista.com/statistics/1260246/indonesia-leading-subscription-video-on-demand-services-by-age-group/
Nurhayati-Wolff, H. 2021. Leading reasons for subscribing to subscription video on demand (SvoD) providers in Indonesia as of May 2021, by gender. Statista. https://www.statista.com/statistics/1259846/indonesia-reasons-for-subscribing-to-subscription-video-on-demand-providers-by-gender/
Parrot Analytics. 2021. Indonesia streaming television market share Q3 2021 for Netflix, Disney+ Hotstar, Amazon Prime Video, HBO Max, Apple TV+ and more. Parrot Analytics. https://www.parrotanalytics.com/insights/streaming-wars-who-is-winning-indonesia-q3-2021/
Andaresta. 2021. Platform Digital OTT, Peluang Bagi Industri Film Indonesia. Bisnis.com. https://lifestyle.bisnis.com/read/20210407/254/1377963/platform-digital-ott-peluang-bagi-industri-film-indonesia
Allied Market Research. 2022. Indonesia OTT Market Share by Component, Content Type, Revenue Model, User Type, and End User: Opportunity Analysis and Industry Forecast, 2021-2030. Allied Market Research. https://www.alliedmarketresearch.com/indonesia-over-the-top-market
