Over-the-top Market in Indonesia is projected to reach $1,502 million by 2026 | CatchPlay, HOOQ, Iflix, Mola TV, PT. Media Nusantara Citra Tbk. (MNC Media), Netflix Indonesia

The subscription segment expected to witness highest growth rate in the upcoming years. This is attributed to continuously falling smartphone prices along with the improving 4G infrastructure is contributing toward the growth of SVOD services. In addition, number of SVOD service providers are partnering with the telecommunication operators primarily to facilitate billing and use this as a marketing tool to reach broader audiences.

The Indonesia over-the-top market size was valued at $213 Million in 2018, and is projected to reach $1,502 Million by 2026, growing at a CAGR of 27.7% from 2019 to 2026.

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Increase in the popularity of direct carrier billing in over-the-top market, Increase in subscription of over-the-top video (SVoD) in Indonesia, rise in penetration of smartphones and their compatibility with OTT applications, economical charges for the usage of OTT services and faster internet speed are some of the major factors that fuel the growth of the small cell 5G network market. However, challenges in consumer engagement and dominance in piracy of digital streaming ecosystem are expected to hinder the Indonesia over-the-top market growth. On the contrary, shift in focus toward the generation of local content and integration of advanced technologies in OTT services are expected to provide lucrative opportunities for the growth of the Indonesia over-the-top services market in the coming years.

Based on device type, the smartphones segment dominated the market share in 2018, and is estimated to maintain its dominance during the forecast period. This is due to rise in adoption of smartphone devices and surge in delivery of content over mobile networks with excellent mobile broadband coverage.

The report offers a detailed segmentation of the Indonesia over-the-top market based on component, device type, content type, revenue model, user type, and end user. Based on component, the solution segment held the major share of the overall Indonesia over-the-top market in 2018, and is estimated to maintain its highest contribution during the forecast period. However, the services segment would register the highest growth rate from 2019 to 2026, as they are available in reduced cost and offer improved performance of OTT platforms.

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Based on revenue model, the advertisement segment accounted for the highest market share in 2018, and will maintain its contribution by 2026. Based on user type, the commercial segment held the highest share in terms of revenue in 2018. However, based on end user, the education & training segment is projected to portray a considerable growth rate in the upcoming years.

Leading market players analyzed in the research include CatchPlay, Iflix, HOOQ, PT. Media Nusantara Citra Tbk. (MNC Media), Mola TV, PT Telekomunikasi Selular (Telkomsel), Netflix Indonesia, Tbk (Telkom Indonesia), PT. Telekomunikasi Indonesia, Vidio.com, and Viu.

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Covid-19 scenario:
• There is a massive spike in utilization of over-the-top platforms. Indonesian people have been adopting them as a source of entertainment to pass their time as they have to stay at homes during the lockdown.
• OTT providers have capitalized on the situation by implementing innovative strategies to increase paid subscriber base, which in turn, will raise profitability.
• With increase in the subscription user base, OTT players are expected to achieve more profitability from subscriptions than in-app advertisements.

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