CASBAA releases report on pay TV market

Indonesia - The Cable & Satellite Broadcasting Association of Asia (CASBAA) has released an update on its 'Indonesia in View' report, providing a snapshot of Indonesia's pay-TV market conditions.

The May 2008 CASBAA report 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.

According to CASBAA, with just 2% 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 doubling to 785,000 in the first quarter of 2008.

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, unauthorised redistribution remains a significant issue, although regulator KPI is attempting to curb the problem through announcements in two provinces that unauthorised 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.