Digital music, video and online gaming
industry for an Asian country
Client
 A National Association for Information and Communications
Technology (ICT) Industry in South-East Asia
 Support the member companies in developing an understanding
of the Indonesia’s digital music, video and online gaming market,
by analyzing:
Objective
̶ Market dynamics and prevalent business monetization models
̶ Online customer segments and prevalent buying patterns
̶ Business environment in Indonesia
 Helped the client identify targetable consumer segments and
their digital media consumption behavior/preferences
Client
Impact
 Provided intelligence on addressable market, key players across
the value chain and potential collaborators
 Also, identified the successful business and revenue models,
and online payment gateways used in the country
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Table of Contents
 Country Analysis: Indonesia’s Business Environment Analysis
‒ Limited liability company is the most common type of presence for a foreign investor
‒ Corporations are taxed at a rate of 25%
‒ 10 regions designated as Special Economic Zones
‒ Despite several terrorists attacks since 2000, Indonesia is politically stable
‒ Government committed to a free-trade policy
 Digital Consumer Market Analysis
‒ Internet penetration is higher amongst males and younger consumers
‒ Broadcast TV is the leading media in the country
‒ Desktop PC and mobile phones are the most popular means of accessing the internet
 Online Gaming Market Analysis
‒ Industry expected to grow at a CAGR of 16.6% during 2010-15
‒ Player 1 is the largest player in the country
‒ XX games hold majority of the country’s online gaming market share
‒ Sale of virtual goods is the most common monetizing method
 Digital Music and Video Market Analysis
‒ Value chain comprises of content creation, formatting, aggregation and distribution
‒ Key players in the digital music include Player 1, Player 2, Player 3, etc.
‒ Player X, Player Y and Player Z are leading players in the digital video industry
‒ Prevalent business monetization models include subscription, direct sales, licensing
and bundling
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Key Insights
 The most common type of presence for a
foreign investor in Indonesia is by
establishing an Indonesian incorporated
limited liability company
 Under the Indonesia Economic
Masterplan 2011 - 25, the country aims to
develop six Indonesia economic corridors
 Of 22% of the internet population in
Indonesia, 15-19 age group comprises of
the most active users
 Broadcast TV is the leading media in the
country with highest time spent on it
 Ownership of an internet-capable mobile
phone is more than double to that of a
desktop or notebook computers
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Key Insights
 Indonesia is the third largest online
gaming market in the Southeast Asia
 Online games are available in a number
of genres including MMORPG, Casual,
Web Games and FPS
 By 2012 end, there were 11 online game
publishing companies in the country, with
6 new companies set up during the year
 Some of the players in content
distribution include Player 1, Player 2,
Player 3 etc.
 Online payment systems are in the
development stage with industry
witnessing new entrants
 Digital music industry offers a variety of
revenue streams to the service providers
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