Get to Know Potential Over the Top Market in Indonesia

by | Oct 20, 2021 | Study Insight | 0 comments

The Indonesian market for the over the top industry


Due to the increasing adoption of smartphones and the internet in this modern era, it is not just the telecommunications industry that is growing. But also the service industry is over the top of the media. An over-the-top (OTT) media service is a media service offered directly to viewers via the Internet. This service could be accessed via websites on personal computers, as well as via apps on mobile devices (such as smartphones and tablets), digital media players (including video game consoles), or televisions with integrated Smart TV platforms. 

There are many types of OTT services in the world. However, the service that will be the focus is the OTT service that offers movie downloads that start playing before the download is complete. The big OTT companies include Netflix, VIU, Disney+ Hotstar, and Goplay. In Indonesia, all these companies are considered successful in entering the Indonesian market. Although competing with local OTT services, the development of OTT services from outside the country remains a favorite in Indonesia.

Which outside OTT service brands has successfully expanded their market in Indonesia? What is the outlook for the OTT industry in Indonesia? Read this article to know more!

The Overview of OTT Industries Development in Indonesia 

Availability of a strong 4G network, along with emerging 5G technology is anticipated to enable superior video experience with the availability of large content libraries to users, which is projected to fuel adoption of over-the-top services in Indonesia. 

For instance, according to the 2020 GSMA Mobile Economy Asia Pacific, 5G in Indonesia is projected to make up to around 5% of the total internet connections by 2025. The Indonesia over-the-top market garnered USD 213 million in 2018 and is projected to reach USD 1.50 billion by 2026, registering a CAGR of 27.7% from 2019 to 2026. The report offers a detailed analysis of changing market trends, top investment pockets, major winning strategies, value chain, key segments, and competitive landscape.

Not only caused by the network improvement, but OTT industries in Indonesia also increased caused by pandemic conditions. The COVID-19 outbreak had a positive impact on the growth of the Indonesian OTT market due to the constant rise in demand for over-the-top services. This demand is mainly attributed to continuous growth in online communications services. In addition, the use of online entertainment platforms is increasing remarkably through online gaming and over-the-top platforms. For instance, according to the Media Partners Asia (MPA), total online video weekly streaming minutes on mobile grew 60% in aggregate across Indonesia between January 20 and April 11, 2020.

There are more than 20 OTT services that provide streaming in Indonesia. Some are from abroad, some are from within Indonesia itself. However, of all the OTTs, there are 4 famous OTT brands in Indonesia. The 4 brands are Netflix, Disney+ Hotstar, VIU, dan Goplay. 3 of the 4 OTT services are from abroad which will be discussed further below:

  1. Netflix

Netflix, Inc. is an American pay television over-the-top media service and original programming production company. This company has 193 million paid memberships worldwide, having grown by 10.1 million from the same period last year as a greater number of people seek home entertainment. This company expanded its market in Indonesia in 2016. According to data from, Netflix Indonesia is generating USD 76.6 million with its Indonesian streaming segment in 2020, an increase of 100% from 2019. Although Netflix has experienced some regulatory problems in Indonesia, it shows an increase in revenue every year in Indonesia.

  1. Disney+ Hotstar

Disney+ Hotstar is an Indian brand of subscription video-on-demand over-the-top streaming service owned by Star India and operated by Disney Media and Entertainment Distribution, both a division of The Walt Disney Company. This company has around 46.4 million paid subscribers, taking the global subscriber base of Disney+ up to 116 million. With that, Disney+ Hotstar’s contribution to the Disney+ total has risen from 30% to 40% in the past six months. This company will expand its market in Indonesia by 2020. Even though it is only 1 year, Disney + Hotstar looks successful in expanding its network in Indonesia. Disney+ Hotstar dominates the subscription video service market in Indonesia with a total paid subscriber of 2.5 million.

  1. VIU

Viu is a Hong Kong-based over-the-top video streaming provider from Viu International Ltd, a PCCW Group Company. As of June 2020 interim results, Viu had over 36 million monthly active users from all over the world. This company came to Indonesia in 2016. In Indonesia, Viu had an active user count of up to 5,3 million monthly active users (MAU) at the end of 2020. In addition, video views have also grown 69% to 5.7 billion year on year. The growing user base and increased engagement have supported the video segment’s revenue growth which rose by 32% in 2019.

The Future Prospects of OTT Industries in Indonesia 

According to research conducted by The Trade Desk, an advertising technology company based in California, USA and listed on the Nasdaq exchange, as many as 180 million consumers in Southeast Asia stream eight billion hours of over-the-top (OTT) video content per month which makes OTT one of the fastest-growing media channels in the region. Moreover, in pandemic conditions such as this sat, showing more than half (57%) of OTT users said they streamed more OTT content during the pandemic. This habit is likely to continue even after Covid-19 with 73 percent planning to maintain or increase OTT consumption after the pandemic ends.

A study from The Trade Desk also showed that viewers stream 8 billion hours of OTT per month across Southeast Asia. Of these, Indonesia is in the top position with a total of three billion air hours. This shows that the OTT market in Indonesia is very large. The entertainment sector is expected to be worth USD 130 billion by 2025, according to the e-Conomy SEA 2019 report by Google, Temasek, and Bain & Company. 

Enter The Indonesian Over the Top Market with BRIGHT Indonesia 

Due to the high number of OTT service users in Indonesia, Indonesia certainly has a large OTT market potential. So, to enter the Indonesian market, you need the right local partner to assist you. 

BRIGHT Indonesia is an ideal business partner for you. We will assist you on the ground, including virtual assistants during the mission, logistical planning, and detailed communication. It can cause your company to focus on developing partnership cooperation rather than the hassles of the business trip.

BRIGHT Indonesia provides several services such as Market Insight Research, Business Partnership Engagement, Management and Strategy Consulting, and Foreign Direct Investment. The services will help your business to:

  1. Assist you in expanding and developing your business by identification of potential partners.
  2. Secure the agreement between client companies and future Indonesian business partners by providing a list of potentially suitable partners, arranging business meetings, and acting as a liaison.
  3. Supporting our foreign client companies from the private sector with developing corporate or business unit strategies or helping your company from public sector organizations with public policy.
  4. Link client companies both from the private and public sectors in global foreign direct investment (FDI) through training and assisting your company in entering FDI source countries to gather investment for your company’s local markets.

For more information, email

*This article is written by Sintya Nur Muftiana


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