Piracy killing SVoD in Indonesia
Despite the growing success of OTT in Indonesia, the conversion rate from AVoD to SVoD is less than 1%. This alarmingly low conversion rate can be largely attributed to a high level of piracy in Indonesia. DTH piracy market thrive as illegal cable operators re-transmit DTH signals to their own subscribers.
Crispin Tristram, vice-president of digital lifestyle at Telkomsel, in highlighting the challenges of monetising OTT platforms, at an Indonesia in Viewconference organised by Asia Video Industry Association (AVIA), warned that unless the pirated digital streaming ecosystem is being addressed, the conversion rate for paid OTT services remain low.
At the gathering of thought-leaders, from Indonesian government officials, key business associates to local and foreign experts, AVIA Coalition Against Piracy (CAP) and YouGov confirmed the detrimental effects of pirated video content. It revealed that in a survey conducted in Indonesia that 66% of the respondents cancel partial or all of the subscription to cable TV and 33% of them cancel SVoD after buying illicit streaming devices (ISDs).
Content piracy is not a standalone problem in Indonesia; similar results were recorded across Asia in AVIA’s regional survey — 15% of Singapore respondents, 20% of Hong Kong respondents, 25% of Malaysian respondents, 28% of Filipino respondents, and 34% of Taiwanese respondents — utilised ISDs to watch pirated TV and video content!