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Market Overview    
 
Multimedia

Indonesia is perceived to be the next highest Internet penetrated country in Asia. The next few charts below will show this statement.

 
 

Nonetheless, the major Indonesia ISP (Internet Service Provider) companies also see this trend in the next coming years. They are beginning to cut down their broadband subscription fees by at least 50% compared to last year as well as heavily investing in building their network infrastructure around the major cities of Indonesia. Not only in Jakarta (the capital city).

Further research has also shown that Online Advertising is the next fastest growing medium. Target marketing has become very popular these days. Mass media advertising costs have shown to be very expensive and ineffective for some of the high-end products and services.

A new technology is invented recently (2004-Now), Mobile TV standards. It is a technology for broadcasting digital live TV to mobile devices like handsets and car-TVs etc. A few technology standards for Mobile TV are invented: DMB (Digital Multimedia Broadcast), DVB (Digital Video Broadcast) and MediaFlow. The DMB technology was invented and began in Asia, where people spend more commuting time than in other parts of the world and where the need for mobile TV is therefore more apparent.
The first commercial mobile TV was launched in 2004 by Mobile Broadcasting Corp. (MBCo) of Japan, owned by a consortium led by Toshiba and SK Telecom of Korea using a technology called Satellite Digital Multimedia Broadcasting (or S-DMB), the standard still in use in Korea today. In 2005, TU Media (Korea), which means “TV for You,” became the second commercial Mobile TV operator in the world using S-DMB technology. MBCo’s subscriber base is unknown but industry estimates (e.g., Media News) place its subscriber base at more than a million. TU, which began service in Oct 2005, ended the year with almost 400,000 subscribers in just two months of service. It ended 2006 with over a million subscribers and it expects to exceed the 2 million mark in 2007. (No data are available to show whether TU reached its target.)

Since 2005, two other new technologies were developed for Mobile TV: DVB-H and MediaFlo

DVB-H is a set of standards developed by the DVB consortium from Europe (www.dvb.org and www.dvb-h.org). It clearly states that since then there are at least 40 countries or 76 operators that are in trial or commercial stage that implemented Mobile TV services by using the DVB-H standard. 15 operators in 10 countries are already in commercial operations (including “MyTV” owned by SMART Communications in the Philippines, “MiTV” in Malaysia, “DD Mobile TV” owned by Doordarshan in India and “VTC Mobile TV” owned by VTC Corporation in Vietnam). Currently, the biggest installation of DVB-H is in Italy by 3 (Hutchison), TIM TV and Vodafone with an estimated subscriber base >5 Million.

This technology is perceived by many studies all over the world to be the next trend in digital era. The below chart and explanations are a few examples:

 
 

Total mobile TV revenue across cellular and broadcasting platforms will jump from US$1.9 billion in 2007 to 25 billion by 2010. (Source: Gartner)

Mobile broadcast TV subscribers will total 155.6 million worldwide by the end of 2012, up from 4.4 million in June 2007 (Source: Datamonitor)

The Asia-Pacific region is set to have the highest number of mobile subscribers, followed by Europe and North America (Source: Datamonitor)

 
At least three companies in Indonesia have officially announced that they will be implementing this Mobile TV services: SCTV group, M2V and Global Mediacom. This business seemed to be one of the most impressive multimedia business in Indonesia due to the high popularity in the Telecommunications and Media Entertainment industries as mentioned above.
 
 

This chart also gives an impressive outlook for the future medium of advertising since its capability to reach customers / viewers not only at (terrestrial TV) prime time.

The fact that Indonesia’s highest generating medium for advertisement revenue is in Terrestrial TV, gives Mobile TV a very strong outlook for generating high advertisement revenue if it’s implemented in the country.

 
 
 
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