The arrival of foreign platforms, such as Netflix and Disney+ has made the competition heat up. The platform managers are now also starting to produce original content that involves domestic filmmakers, to screen local films. This means that having original content is now a necessity, no longer a differentiating factor.
According to research conducted by digital marketing consultants TradeDesk and Kantar (thetradedesk.com), the total viewing time spent by all video on demand (VOD) service customers in Indonesia reaches 3 billion hours per month. The number of subscribers is estimated at 66 million people, with 43% of them saying they will continue to subscribe even though the pandemic is over.
Although Indonesia has the highest number of subscribers in Southeast Asia, the research states that the penetration rate of the VOD platform in Indonesia is only 24%. This means that the room for growth is still wide open. It is not surprising then that foreign VOD platform managers, such as Netflix, Disney +, HBO Go, and Amazon Prime, decide to enter Indonesia. Lionsgate Play also stated that it will be present in Indonesia, that mentioned in dailysocial.id.
Both GoPlay and Vidio both stated that their business was growing during 2020. Rezki Yanuar, Chief Marketing Officer Vidio, stated that his company had an average of 60 million monthly active users (MAU) in 2020. This figure is claimed to have increased 150% from the year previous. Referring to the research of Media Partners Asia (MPA), Vidio is estimated to have 1.1 million paid subscribers by 2020.
Meanwhile, CEO GoPlay Edy Sulistyo, stated that the streaming time on his service has increased tenfold compared to 2019. He is reluctant to mention the current number of subscribers. In addition to focusing on the realm of live events, GoPlay also collaborates with several record labels, as well as event organizers to hold virtual concerts or music festivals. The company also conducts a film review involving the director or actors in it, so that customers can interact directly with content creators. GoPlay has added interactive features to make interactions more diverse, both among viewers and between viewers and content creators. Some of these features include chat features, sending virtual gifts, to giving tips (id.techinasia.com).
Disney + managed to outperform players who were already present in Indonesia that has 2.5 million paid customers in the country, the most among other platforms. Such as Viu with 1.5 million subscribers, Vidio with 1.1 million subscribers, and Netflix with 850,000 subscribers. These four platforms contribute around 85% of the total 7 million VOD paid subscribers in Indonesia.
Regarding the success of Disney+ in garnering a large number of subscribers within three months, there are two factors. First, Disney + directly collaborates with Telkomsel, a major telecommunications provider in Indonesia. This move helps Disney+ to promote its services and penetrate the market quickly, as quoted (dailysocial.id).
Second, subscription prices are relatively affordable compared to other foreign service providers in Indonesia. Disney + subscription packages start at Rp39.000 per month, cheaper than Amazon Prime at US$4,99 (around Rp85.000) and Netflix at Rp49.000 per month for mobile packages, or Rp109.000 for standard packages (non -HD).