Market Trends of Indonesia Digital Media Industry
Digital Video Games to Witness Significant Growth
- Online gaming technology and player preferences have given rise to profound transformations in the Indonesian digital video games market. The country is embracing the future of digital gaming, and industry players are expected to embark on a journey of innovation and evolution. In Indonesia, digital video games have become increasingly popular among all age groups. The introduction of mobile video games has allowed smartphones to operate the most popular games efficiently. As a result, the Indonesian digital video game market is getting bigger, giving rise to local and foreign game developers to expand their footprint in Indonesia.
- Trends of cloud gaming are increasing, allowing users to play video games without the need for consoles or installations. These games run on remote servers and are accessed via an app. Cloud gaming represents a shift in the Indonesian digital video games industry because players no longer require high-end hardware to enjoy resource-intensive games. Game developers are leveraging this aspect to reach new markets effectively.
- Another major trend is the rise of e-sports, which ranks alongside music and film as one of the major players in entertainment. The growth of the e-sports industry in Indonesia can be attributed to mainstream awareness of e-sports (and video games in general) among the people, which led to the rising demand and rapid growth in the e-sports market.
- According to GSMA Intelligence, The Mobile Economy Asia-Pacific 2023 report, Indonesia ranks among the top three smartphone markets in Asia-Pacific. In Indonesia, video and online gaming are among the top services and content utilized by 5G users. For instance, Telkomsel’s Dunia Games, the leading e-sports organizer in Indonesia, holds the Dunia Games WIB Championship, attended by over 45 professional teams and over 14 million online viewers.
- In Asia-Pacific, video game developer Riot Games Inc. regained publishing rights to the League of Legends and Teamfight Tactics PC. The company announced the launch of Teamfight Tactics (TFT) Mobile in Indonesia and plans to introduce Riot’s third self-published mobile title in the country and the region, joining Legends of Runeterra and League of Legends: Wild Rift in its stable mobile game offerings.
Understand The Key Trends Shaping This Market
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Rise of Video-on-demand Propelling Growth
- Video on demand (VOD) refers to video broadcasting via over-the-top (OTT) applications. The proliferation of connected devices, such as mobile phones, TVs, tablets, desktop PCs, and laptops, increased access to video content via OTT applications in Indonesia. The rise of reliable internet connection provides an experience with significantly improved sound and visual quality.
- Growing internet usage in Indonesia, particularly among mobile users, altered consumer preferences about entertainment consumption. The growing popularity of Netflix in Indonesia results from rising internet penetration. Netflix streaming service is one of the biggest OTT providers with a subscription model. Most Indonesians prefer streaming video-on-demand services and contribute a sizable amount of OTT service revenue.
- Indonesia has witnessed a significant increase in the number of people consuming streaming services, both paid and free. Paid VoD services, such as Netflix, HBO, Prime Video, and Apple TV, witnessed the most growth.
- More away-from-home activities further boosted the demand for paid or free video streaming services, resulting in increased demand for video streaming services on smartphones.
