How Can Rapid Digitalization Shift OTT Streaming In Indonesia?

In Indonesia, the OTT market is anticipated to experience intensive growth over the past years due to the increasing popularity of smartphones and the internet, which have dramatically altered the distribution of content in the country. The increase in OTT subscriptions improves the localization efforts in the country, which focus on creating local original content, maintaining competitive price points, and building local partnerships. The availability of high-speed internet and smartphone applications has augmented the growth of the OTT market and has contributed to the rise of OTT platforms in Indonesia.

Role of active OTT players in Economy

The market value for OTT platforms in Indonesia was $360 million in 2019 and is expected to reach $ 4,450.61 million in 2027. The over-the-top market is expected to undergo further innovation and advanced transformation that will enable consumers to access the content. The use of paid OTT video subscriptions in broadband households was estimated at 36.4% in 2018 and is expected to grow at a CAGR of 16.4% in the next five years. The growth of this market is expected to be fuelled by OTT players, strengthening and adding local content deals. Local and Asian content dominates Indonesia’s Play store entertainment category.

User penetration on OTT platforms in Indonesia

The surge in OTT viewership in Indonesia is 79% with the age group ranging 18 to 34 years making 86% of the population watching videos on phones. With the remote working during the pandemic, many consumers have turned towards the OTT platforms for entertainment. OTT is being watched by 66% of Indonesians more than it was before, and 73% plan to maintain or increase the amount of time they watch OTT content in the future.

Advertising trends for OTT platforms

Marketers can easily use the TV video ad on the low-cost OTT platform as a means to promote their products to customers and boost sales with trackable data in real-time. Consumers need to be directed to their official mobile stores from their mobile phones as by using this the process from watching the ad to making a purchase will be streamlined. With the trackable tool and user-friendly process, the marketing strategy will continuously be converted into sales and revenue.

As OTT advertising evolves, it will provide a one-to-one advertising experience, driven by big data analysis, behavioral targeting, and data analysis capabilities that are currently unavailable in linear TV and radio advertising. The advertiser has more solutions to analyze what content helps to drive sales and it will also help the advertiser to create more attractive creative.


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