Pay-TV revenues in Indonesia to double by 2015

There appears ample room for growth on the pay-TV front in Indonesia, with segment service revenue growing at an 18.3% CAGR between 2010 and 2015, according to a new report from analyst firm Pyramid Research.

If realised this would see revenues reaching $778 million by 2015, a huge growth compared with the current market worth.

"Home to the fourth largest population in the world, Indonesia is also characterised 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," commented Leslie Arathoon, director at Pyramid Research. 

 "Indonesia's pay-TV market is characterised by a very low household penetration, which reached 3% in 2010,"

Pyramid expects penetration to expand to 7% 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% 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," added Arathoon.

Despite benefiting from Telkom's ability to offer triple-play bundles, IPTV will account for only 6% of total pay-TV accounts by year-end 2015.

"With the country's geography working in its favour, DTH will remain the dominant technology, accounting for about 88% 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% to only 6% in 2015," Arathoon concluded in the report Indonesia: Mobile Services Set to Satisfy National Thirst for Broadband Connectivity. Source: Rapidtvnews