Cinema - Indonesia

Indonesia

Highlights

In Indonesia, revenue in the Cinema market is projected to reach US$698.20m in 2024.
Revenue is anticipated to demonstrate an annual growth rate (CAGR 2024-2029) of 6.64%, which will lead to a projected market volume of US$963.20m by 2029.
Within Indonesia's Cinema market, the number of viewers is expected to reach 69.9m users by 2029.
User penetration in Indonesia will be 20.9% in 2024 and is expected to increase to 24.1% by 2029.
The average revenue per viewer in Indonesia is projected to be US$11.93.
In a global context, the majority of revenue will be generated the United States, which is expected to reach US$20.98bn in 2024.
Indonesia's cinema market is experiencing a surge in local content production, reflecting a growing demand for culturally relevant storytelling among its diverse audiences.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Cinema market in Indonesia has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: One of the key factors driving the growth of the Cinema market in Indonesia is the changing preferences of customers. With the rise of digital streaming platforms, there has been a shift in consumer behavior towards on-demand content. However, despite the availability of streaming services, many customers still prefer the experience of watching movies in a theater. The cinema provides a social experience that cannot be replicated at home, and the large screens and immersive sound systems enhance the overall viewing experience. Additionally, the release of blockbuster movies and the growing popularity of local films have also contributed to the increasing demand for cinema tickets.

Trends in the market: One of the notable trends in the Cinema market in Indonesia is the increasing number of multiplexes and modern cinema chains. These multiplexes offer a wide range of movie choices and provide a comfortable and modern viewing environment. This trend is driven by the growing middle class in Indonesia, who have more disposable income to spend on entertainment activities. Furthermore, the rise of shopping malls and entertainment complexes has also contributed to the growth of the cinema market, as these venues often include multiplexes as part of their offerings.

Local special circumstances: Indonesia has a large and young population, which presents a significant opportunity for the cinema market. Young people in Indonesia are increasingly seeking out entertainment options, and going to the movies is seen as a popular and affordable way to spend leisure time. Additionally, the Indonesian film industry has been gaining recognition both domestically and internationally, leading to a greater interest in local films. This has further contributed to the growth of the cinema market, as audiences are eager to watch and support homegrown talent.

Underlying macroeconomic factors: The growth of the Cinema market in Indonesia is also influenced by underlying macroeconomic factors. Indonesia has been experiencing steady economic growth, which has resulted in an increase in disposable income. As people have more money to spend on leisure activities, they are more likely to go to the movies. Additionally, the government has been supportive of the film industry, implementing policies and incentives to promote the growth of the sector. This has created a favorable environment for cinema operators and has attracted investment in the industry. In conclusion, the Cinema market in Indonesia is developing due to changing customer preferences, the rise of multiplexes, the country's young population, and underlying macroeconomic factors. As the market continues to grow, it presents opportunities for both local and international cinema operators to expand their presence and cater to the evolving needs and preferences of Indonesian audiences.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the Cinema market, which comprises revenues from box office, advertsing and concessions. The market includes both consumer and advertising spending. All monetary figures refer to consumer spending on tickets and concessions. This spending factors in discounts, margins, and taxes.

Modeling approach / market size:

The market size is determined through a bottom-up approach. We use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., Consumer Insights), as well as performance factors (e.g., user penetration, price per product, usage) to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as various macroeconomic indicators, historical developments, current trends, and reported performance indicators of key market players. In particular, we consider average prices and annual purchase frequencies.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant market. For instance, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The main drivers are GDP per capita, consumer spending per capita, and 4G coverage.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Consumer Insights data is reweighted for representativeness.