Pay-TV in Indonesia to grow at 18.3% CAGR till 2015: Study

MUMBAI: There is enormous room for growth on the pay-TV front in Indonesia, with segment service revenue growing at an 18.3 per cent CAGR between 2010 and 2015, reaching $778 million by the end of the period, according to a new report from Pyramid Research.

Pyramid Research expects the Indonesian telecom market, worth $11.9 billion in service revenue in 2010, to be one of the fastest growing telecom markets in Asia/Pacific and worldwide, expanding at a 10.3 per cent CAGR over the next five years.

‘Indonesia: Mobile Services Set to Satisfy National Thirst for Broadband Connectivity‘ offers a precise profile of the country’s telecommunications, media and technology sectors based on proprietary data from Pyramid’s research in the market. It provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services and monitors the introduction and spread of new technologies.
Pyramid Research director Leslie Arathoon said, “Home to the fourth largest population in the world, Indonesia is also characterized by relatively low penetration levels across most services, which will enable further growth in the fixed, mobile, broadband and pay-TV markets during the next five years."

Indonesia’s pay-TV market is characterized by a very low household penetration, which reached 3 per cent in 2010. Pyramid expects this figure to expand to 7 per cent by 2015, driven by an improving economic situation and the greater market competition since PT Telkom-owned Telkomvision entered the market in 2007.

Indovision, Telkomvision and First Media dominate the market, with about 95 per cent of total pay-TV subscribers in 2010. 
The first two operate a DTH network, and the third a cable network, but Telkomvision will launch the nation’s first IPTV solution during 2011. Despite benefiting from Telkom’s ability to offer triple-play bundles, IPTV will account for only six per cent of total pay-TV accounts by year-end 2015.

“With the country’s geography working in its favor, DTH will remain the dominant technology, accounting for about 88 per cent of total pay-TV subscriptions through 2015. The most negatively affected from IPTV’s entry will be cable, whose market share will shrink from 10 per cent to only six per cent in 2015,” Arathoon said.

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