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Emerging online viewing habits are likely to boost SVOD in Indonesia

With an influx of SVOD players like Netflix, Iflix, Hooq, Maxstream and Viu in recent years, the supply of digital content in Indonesia has increased in bids to satisfy the demands of a growing digital consumer base. The number of internet users in Indonesia has grown by 23 million in the last three years, and is expected to grow by another 21 million in the next three. The growth potential for SVOD is therefore tremendous, but to date Indonesians simply haven’t been willing to open their wallets for online video content. Will this change?

To keep our clients’ fingers on the consumers’ pulse, Pioneer Consulting Asia runs yearly surveys across 8 major urban areas in Indonesia with an online panel. Our recently completed 2018 survey had some interesting findings on respondents’ intent to sign up.

The survey found that 48% of respondents who did not have a paid subscription but watched online video were planning to sign up for an SVOD service in the next three months.

The demand for access to SVOD content could be linked to an impressive 14% increase in the number of consumers watching video on their mobiles for over an hour in 2018 versus 2017. As consumers start to spend more time with mobile video (enabled by better connectivity), they are moving away from purely short form genres and looking for long form content, the best of which is most often found on SVOD services. While not all respondents who say they will sign up will follow through, it appears emerging habits are trending in favor of SVOD services.

Exhibit: Indonesian Respondents who Spent Over an Hour per Day Watching Online Video Content on Their Mobile Phone (%)

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