Indonesia Video Streaming Market Outlook to 2030

Indonesia Video Streaming Market Overview

• The Indonesia video streaming market, valued at USD 300 Mn in 2023, is driven by rising popularity of both local and international content platforms. Key drivers include the growing middle class and the shift towards digital consumption, particularly among younger demographics, who prefer streaming over traditional broadcasting.

• The market is dominated by both global and local players, with Netflix, Vidio, Disney+ Hotstar, WeTV, and iFlix leading the charge. Netflix remains a significant player due to its vast content library and localized offerings. Meanwhile, Vidio and WeTV have gained substantial market share by focusing on local content and regional language support. Disney+ Hotstar has also secured a strong position by leveraging exclusive rights to popular franchises and collaborating with local telecom operators.
• As of 2023, Vidio has established itself as the leading streaming service in Indonesia, surpassing competitors like Netflix. The platform boasts approximately 20 million monthly active users on its ad-supported tier, reflecting its strong user engagement and popularity in the market. This growth is attributed to a focus on local content and strategic partnerships.
• Jakarta, Surabaya, and Bandung are the dominant cities in the Indonesian video streaming market, primarily due to their high population density, urbanization, and advanced internet infrastructure. Jakarta, being the capital and economic hub, leads the market with the highest number of subscribers, driven by a tech-savvy population with disposable income. Surabaya and Bandung follow closely, benefiting from similar demographic factors and a strong presence of local content producers, making them key markets for streaming platforms.

Indonesia Video Streaming Market Segmentation

The Indonesia Video Streaming Market can be segmented based on several factors:

By Subscription Model: Indonesia video streaming market segmentation by subscription model is divided into SVOD, AVOD and TVOD. In 2023, subscription-based (SVOD) services held the dominant market share, driven by the widespread adoption of platforms like Netflix and Disney+ Hotstar. Consumers prefer the ad-free experience and access to premium content provided by SVOD services.

By Content Type: Indonesia Video Streaming market segmentation by content type is divided into entertainment, sports and educational. In 2023, entertainment content dominated the market, accounting for the largest share, driven by the increasing demand for movies, series, and reality shows. This segment's growth is attributed to the popularity of platforms like Netflix and Vidio, which offer a wide range of local and international content.

By Region: The Indonesian video streaming market is regionally segmented into North, South, East, and West. In 2023, the Western region, dominates the market due to its advanced digital infrastructure, higher disposable income, and concentrated urban population. The Western regions dominance is also supported by the presence of major local content producers and a higher rate of internet penetration, making it the most lucrative market for video streaming platforms.

Indonesia Video Streaming Market Competitive Landscape

• Netflix collaboration with local content: Netflix is heavily investing in local content in Indonesia, planning to release six new original productions in 2024. This strategy aims to resonate with Indonesian audiences and effectively compete against local services like Vidio, which focuses on sports and original programming. By enhancing its local offerings, Netflix seeks to strengthen its market presence and attract more subscribers.
• Disney+ Hotstar Partners with Indosat Ooredoo: In 2023, Disney+ Hotstar entered into a partnership with local telecom provider Indosat Ooredoo to offer special subscription bundles, which include free data for streaming Disney content. This initiative aims to make Disney+ Hotstar more accessible to a wider audience in Indonesia. Additionally, the platform has expanded its content library with more localized content, including Indonesian movies and series, to cater to the growing demand for regional content.

Indonesia Video Streaming Industry Analysis

Indonesia Video Streaming Market Growth Drivers:

• Rise in Smartphone Penetration and Internet Accessibility: The rapid increase in smartphone usage in Indonesia has significantly driven the demand for video streaming services. As of 2023, Indonesia recorded over 190 million smartphone users, a substantial rise from 177 Mn in 2021. This growth, combined with more affordable data plans, has facilitated greater access to video content, particularly among younger demographics. Internet penetration further accelerating the adoption of streaming platforms. The widespread availability of high-speed internet and affordable smartphones is expected to continue driving the market in the coming years.
• Growth in Local Content Production: The Indonesian video streaming market has seen a significant boost due to the rise in local content production. In 2023, local production houses and streaming platforms invested heavily in producing original series and films tailored to the tastes of the Indonesian audience. This increase in local content has not only attracted more subscribers but also encouraged international platforms like Netflix to invest in Indonesian original content, further driving market growth.
• Partnerships Between Streaming Platforms and Telecom Operators: The collaboration between streaming platforms and telecom operators has emerged as a crucial growth driver in the Indonesian market. In 2023, Disney+ Hotstar partnered with Indosat Ooredoo to offer exclusive data bundles that included free access to streaming services, which significantly boosted subscriber numbers. Similarly, Vidio's partnership with Telkomsel, announced in 2023, led to an increase in its user base. These partnerships have made streaming services more accessible to a broader audience, particularly in regions with lower internet penetration.

Indonesia Video Streaming Market Challenges:

• Content Piracy and Unauthorized Streaming: Content piracy is a major issue in the video streaming market, causing significant revenue losses for legitimate services. Despite government efforts, the widespread availability of illegal streaming sites makes enforcement difficult. This problem also deters investment in high-quality, original content.
• High Competition Among Streaming Platforms: The video streaming market is highly competitive, with numerous local and international platforms vying for market share. New entrants have intensified the competition, leading to higher content acquisition costs and making it challenging for smaller platforms to compete with larger players.

Indonesia Video Streaming Market Government Initiatives:

• Digital Indonesia Initiative: In 2023, the Indonesian government launched the "Digital Indonesia" initiative, which aims to enhance the country's digital infrastructure and promote digital literacy among its population. As part of this initiative, the government allocated funds to expand broadband access in rural and underserved regions. This initiative is expected to significantly increase internet penetration, making video streaming services more accessible to a larger segment of the population.
• Anti-Piracy Legislation Enhancement: In 2024, the Indonesian government introduced stricter anti-piracy laws to combat the growing issue of content piracy in the digital space. The revised legislation includes harsher penalties for individuals and organizations involved in the distribution and consumption of pirated content. Additionally, the government has increased its collaboration with international content providers to identify and shut down illegal streaming websites.

Indonesia Video Streaming Future Market Outlook

The Indonesia Video Streaming Market is expected to show significant growth by 2028 driven by continuous investments in local content production and the expansion of broadband infrastructure in rural areas. The government's Digital Indonesia initiative will play a crucial role in bridging the digital divide, enabling more Indonesians to access video streaming services.

Future Market Trends

• Increased Localization of Content: In the coming years, streaming platforms will increasingly focus on localizing their content offerings to cater to the diverse cultural preferences of Indonesian viewers. This trend will see more investments in Indonesian original series and films, as well as the inclusion of regional languages in content and user interfaces. Platforms that prioritize localization are likely to gain a competitive edge, attracting a broader audience base.
• Expansion of OTT Partnerships with Telecom Providers: The next five years will witness a rise in strategic partnerships between OTT platforms and telecom providers. These partnerships will focus on offering bundled services that include video streaming as part of mobile data plans, making content more accessible and affordable for users. Such collaborations are expected to drive subscriber growth, particularly in regions with lower internet penetration.