Indonesia may see a subscription media boom

With analysis by Terence Lee

US-based Patreon, a membership platform for content creators, appears to have done well for itself in recent years.

It was estimated to have made over US$30 million in revenue in 2019. That income comes courtesy of transaction fees, which the company charges whenever users pay a subscription fee to their favorite content creators.

In 2017, the company’s valuation was estimated to be US$450 million – up nearly three times from the previous year.

Even Facebook has a similar vision through its Fan Subscriptions feature, though it is currently only available in some countries on a limited basis.

Patreon of the arts

A number of Indonesian content creators, such as illustrators Mukhlis Nur and Mossygator as well as gravure model Lola Zieta, are drawn to Patreon.

For Nur, Patreon can be a means of financial support when working on personal projects. With the platform, he no longer needs to save up more than two months-worth of funds to finance works outside of his main job as a comic artist. Previously an illustrator in the video game industry, he can now pocket at least US$500 per month from the site.

“With such figures, we are not able to depend only on Patreon income. But the effect is [that] getting client commission in the future will be easier, so monthly income can be more secure,” he says.

For Zieta who joined Patreon in 2018, a content subscription service platform is ideal for distributing works aimed at a niche audience. As such, she no longer needs to create her own website.

“One of the advantages we like about Patreon is actually its stable and secure platform,” Zieta explains.

On good months, the idol says she’s been able to bank up to US$5,000 after deducting income tax.

Digital content revolution?