Traditional TV & Home Video - Indonesia

In Indonesia, revenue in the Traditional TV & Home Video market market is projected to reach US$2.69bn in 2024.
Revenue is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 2.57%, leading to a projected market volume of US$3.05bn by 2029.
The average revenue per user (ARPU) in Indonesia is anticipated to amount to US$13.26.
In a global context, the majority of revenue will be generated the United States, which is projected to reach US$146.60bn in 2024.
The number of TV Viewers in Indonesia is expected to reach 212.9m users by 2029.
User penetration in the Traditional TV & Home Video market market withIndonesia is projected to be at 72.4% in 2024.
The average revenue per TV user (ARPU) in Indonesia's Traditional TV & Home Video market market is projected to amount to US$13.26 in 2024.
Indonesia's traditional TV viewership is experiencing a gradual decline as digital streaming platforms increasingly capture the attention of younger audiences.

Definition:

The Traditional TV and Home Video market involves the distribution and consumption of audiovisual content through conventional broadcast television channels and physical media formats like DVDs and Blu-ray discs. It encompasses the production, broadcasting, and viewing of television programs, movies, and other video content within households. Additionally, the market includes advertising placements within television programming and the collection of public TV Licence fees to support public service broadcasting networks, contributing to the diverse landscape of content delivery and revenue generation within the industry.

Structure:

The traditional TV and home video market comprises several key components, including pay TV services, physical home video sales, traditional TV advertising, and public TV Licence fees. Pay TV services involve subscription-based access to premium television channels and content, often delivered through cable, satellite, or internet-based platforms. Physical home video sales encompass the distribution of movies and TV shows on DVDs, Blu-ray discs, and other physical media formats for consumer purchase or rental. Traditional TV advertising involves the placement of commercials within broadcast television programs, generating revenue for broadcasters and advertisers alike. Public TV Licence fees refer to the mandatory charges imposed on households to fund public service broadcasting networks and channels. Together, these elements form the backbone of the traditional TV and home video market, catering to diverse viewer preferences and consumption habits.

Additional Information:

The market comprises revenues, ad spendings, viewers, average revenue per user, and penetration rates. Revenues are generated through purchases. Key players in the market are companies, such as NBCUniversal, CBS Corporation, and The Walt Disney Company.

Pay-TV subscriptions such as DirectTV, AT&T TV, and Sky
Physical home video such as DVD & Blu-ray sales
Traditional TV advertising such as commercial breaks
Public TV license fees such as BBC License in the UK and the Rundfunkbeitrag in Germany

OTT (Over-the-top content) services such as Netflix, Hulu, iTunes, and Pluto.tv
Public license fees collected in the form of a tax such as income tax in the Nordic countries
DVD & Blu-ray rental

The Traditional TV & Home Video market in Indonesia has been experiencing significant growth in recent years. Customer preferences have shifted towards digital streaming services, leading to a decline in traditional TV viewership. However, the demand for home video products remains strong due to the local special circumstances and underlying macroeconomic factors in the country. Customer preferences in Indonesia have been evolving with the advancement of technology. The younger generation, in particular, prefers to consume content through digital streaming platforms rather than traditional TV channels. The convenience and flexibility offered by these platforms, such as on-demand access to a wide range of content, have attracted a large number of subscribers. Additionally, the availability of affordable internet packages and the widespread use of smartphones have further contributed to the popularity of digital streaming services. Despite the shift towards digital streaming, the demand for home video products remains robust in Indonesia. Many households still rely on physical media, such as DVDs and Blu-rays, to watch movies and TV shows. This preference can be attributed to factors such as limited internet access in certain areas, the cost of data packages, and the cultural significance of owning physical copies of media. Additionally, the affordability of home video products compared to subscription fees for digital streaming services makes them an attractive option for budget-conscious consumers. The traditional TV market in Indonesia is facing challenges as viewership declines. This can be attributed to the rise of digital streaming platforms and the increasing availability of online content. As a result, traditional TV broadcasters are adapting to the changing landscape by integrating their content with digital platforms and offering online streaming services. This allows them to reach a wider audience and cater to the preferences of consumers who prefer to watch content on their own schedule. Local special circumstances in Indonesia also play a role in shaping the trends in the Traditional TV & Home Video market. The country's diverse population and cultural heritage contribute to the demand for a wide range of content in different languages and genres. This creates opportunities for both local and international content providers to cater to the specific preferences of Indonesian viewers. Additionally, the government's efforts to promote the local film industry and support local content production have further fueled the demand for home video products. Underlying macroeconomic factors, such as the growing middle class and increasing disposable income, have also contributed to the development of the Traditional TV & Home Video market in Indonesia. As more people have the means to afford home entertainment products, the demand for TVs, DVD players, and other related devices has increased. This has created a favorable market environment for both local and international manufacturers and retailers. In conclusion, the Traditional TV & Home Video market in Indonesia is experiencing a shift towards digital streaming services, while the demand for home video products remains strong. Customer preferences, local special circumstances, and underlying macroeconomic factors are driving these trends in the market. As technology continues to advance and consumer behavior evolves, the Traditional TV & Home Video market in Indonesia is expected to further develop and adapt to meet the changing demands of consumers.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Traditional TV & Home Video and OTT (over-the-top) Services. All monetary figures refer to consumer spending on digital goods or subscriptions in the respective segment. This spending factors in discounts, margins, and taxes.

Modeling approach / Segment size:

The segment 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 segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations, such as GDP, number of internet users, and internet consumption.

Forecasts:

We apply a variety of forecasting techniques, depending on the behavior of the relevant segment. 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.

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.

This report presents a comprehensive analysis and additional information on the Advertising & Media market, in a PDF format.