CASBAA unveils Pay-TV report on Indonesia

Mumbai: The Cable & Satellite Broadcasting Association of Asia, CASBAA has released an update of its Indonesia in View report for its members, providing a snapshot of Indonesia’s pay-TV market conditions with a summary of opportunities and challenges in terms of regulatory and political factors.

The May 2008 Indonesia in View CASBAA report also provides data, regulatory and stakeholder analysis of the current Indonesian industry, along with key contacts and a draft of Indonesia’s Broadcasting Bill 2008.

The Report was released as part of CASBAA’s Asian Pay TV CEO Roundtable: "Indonesia’s Pay TV Industry Embracing the Future" staged in Jakarta on 7 May.

Roundtable welcome addresses were made by Minister for Communication and Information Technology Mohammad Nuh H.E.; Indonesian Broadcasting Commission chairman Sasa Djuarsa Sendjaja; CASBAA CEO Simon Twiston Davies. Closing remarks were given by Director General of Communications and Information Dissemination, Dr. Freddy Tulung.

Core presentations were delivered by Indonesia Chambers of Commerce and Industry chairman Anindya Novyan Bakrie and Clarity Research Indonesia technical advisor Bettina Cavenagh.

According to CASBAA, with just two per cent of approximately 40 million TV households, Indonesia’s pay-TV market penetration remains low compared with other Asian markets. However, pay-TV growth in Indonesia has been brisk over the past 12 months with legitimate pay-TV subscriptions.

A newly competitive environment has seen operators differentiate consumer offerings through premium content, while some have secured new channels and launched additional local-language programming such as a new Muslim channel and music channels. The launch of low cost pre-paid services has also driven pay-TV take up.

Nevertheless, unauthorized redistribution remains a significant issue, although regulator KPI is attempting to curb the problem through announcements in two provinces that unauthorized distributors must become resellers for licensed pay-TV operators or face legal sanctions.

According to CASBAA, competition in 2008/2009 should pick up further. In September 2007, beyond the existing operators, another five preliminary licenses for satellite subscription TV services were issued and a further 28 companies have submitted applications for subscription TV licenses.