Indonesia Broadcasting and Cable TV Market Outlook to 2030

Indonesia Broadcasting and Cable TV Market Overview

• The Indonesia Broadcasting and Cable TV market is valued at USD 1.51 billion, based on a five-year historical analysis. This market is primarily driven by increasing internet penetration, rising disposable incomes, and advancements in technology that enhance access to diverse broadcasting services. The growing consumer demand for high-quality content, particularly in urban areas, contributes significantly to market expansion. As a result, broadcasters are compelled to innovate and diversify their offerings to capture a wider audience base.
• The market is predominantly concentrated in urban centers such as Jakarta, Surabaya, and Bandung. These cities have higher population densities, greater economic activities, and more developed infrastructure, facilitating the widespread adoption of broadcasting and cable TV services. Additionally, the urban populace exhibits a higher demand for diverse and high-quality content, further bolstering market growth in these regions.
• Indonesian broadcasting licenses require companies to meet stringent standards, with Kominfo mandating that new broadcasters secure a license based on content and technical criteria. Approximately 100 licenses were issued in 2023, with a trend toward stricter regulations for newcomers.

Indonesia Broadcasting and Cable TV Market Segmentation

By Technology: The market is segmented by technology into Satellite TV, Cable TV, Internet Protocol TV (IPTV), and Digital Terrestrial TV (DTT). Among these, Satellite TV holds a dominant market share due to its extensive reach, especially in remote and rural areas where terrestrial infrastructure is limited. Satellite TV providers offer a wide array of channels and packages, catering to diverse consumer preferences, which contributes to its leading position in the market.

By Revenue Channel: The market is also segmented by revenue channels into Advertising and Subscription. The Advertising segment commands a significant share of the market, driven by the substantial viewership of free-to-air channels that rely heavily on advertising revenues. The expansive audience base and the effectiveness of television advertising in reaching diverse demographics make it an attractive medium for advertisers, reinforcing this segment's dominance.

Indonesia Broadcasting and Cable TV Market Competitive Landscape

The Indonesia Broadcasting and Cable TV market is characterized by the presence of several key players who have established strong footholds through extensive content offerings and widespread distribution networks. These companies leverage their market experience and resources to maintain competitive advantages in the industry.

Indonesia Broadcasting and Cable TV Industry Analysis

Growth Drivers

• Increasing Internet Penetration: Internet connectivity in Indonesia has expanded rapidly, reaching over 200 million active users in 2024, as reported by Kominfo. This increase aligns with the countrys expanding digital infrastructure, supported by the Palapa Ring project, which aims to provide high-speed internet across 514 districts. This widespread connectivity fuels demand for online content and streaming, thereby enhancing the audience base for cable and broadcasting services.
• Rising Disposable Income: Indonesias per capita income continues to rise, averaging $4,300 in 2024, according to the World Bank. This rise, coupled with an urbanization rate nearing 58%, reflects higher household spending power, especially in urban areas, where consumers increasingly subscribe to premium content and broadcasting services. Higher income levels foster greater demand for diverse and high-quality viewing options, impacting the broadcasting and cable TV market.
• Technological Advancements: Indonesia has adopted various advanced broadcasting technologies, including the shift toward Digital Terrestrial Television (DTT). According to Kominfo, 35% of households are now equipped with DTT, aiming to reach nationwide coverage by the end of 2025. Improved technology offers enhanced viewing experiences, driving consumer demand for high-definition and 4K content.

Market Challenges

• Content Piracy: Indonesia faces a significant challenge in controlling content piracy, which affects revenue for legitimate broadcasters. The Ministry of Law and Human Rights reports that 37% of internet users have accessed pirated content. Efforts to curb piracy, such as digital rights management, are ongoing, but the issue remains a major hurdle for growth in the broadcasting sector.
• Regulatory Constraints: Strict regulations, such as local content quotas and broadcasting licensing requirements, impact the market dynamics. Kominfo requires broadcasters to ensure 10% of their content is locally produced, challenging companies to meet these quotas while balancing popular international content. Regulatory compliance affects operational flexibility and impacts cost structures for broadcasters.

Indonesia Broadcasting and Cable TV Market Future Outlook

Over the next five years, the Indonesia Broadcasting and Cable TV market is expected to experience significant growth, driven by continuous technological advancements, increasing consumer demand for diverse content, and supportive government policies promoting digitalization. The proliferation of high-speed internet and the rising popularity of over-the-top (OTT) platforms are anticipated to reshape the competitive landscape, encouraging traditional broadcasters to innovate and adapt to changing consumer preferences.

Market Opportunities

• Expansion into Rural Areas: The governments focus on digital infrastructure expansion into rural areas opens opportunities for cable and broadcasting providers. According to Kominfo, approximately 45% of rural households lack access to traditional broadcasting services, indicating a potential untapped market. Expanding into these regions can drive growth and widen the viewership base.
• Partnerships with OTT Services: Collaborating with OTT services allows traditional broadcasters to integrate digital content, creating a hybrid service model. In 2024, Telkom Indonesia partnered with streaming platforms to expand its content offerings, reaching an additional 3 million subscribers. This collaboration model enhances audience engagement and provides an alternative to complete OTT dependency.