Vidio banks on local content in Indonesia’s video-on-demand battle

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Hello reader,

One of my New Year’s resolutions for 2024 is to read two books a month, and I’m on track so far.

I wish I could say the success so far is because I’ve become very disciplined, but the truth is much simpler. I moved into a new apartment early this year, and it doesn’t have a smart TV, so I’ve spent a lot less time watching TV shows and movies than last year.

It would amaze you how much less appeal Netflix has when you have to watch it on a tiny laptop instead of a big screen. Turns out, convenience is a big factor for me when it comes to streaming.

For Indonesian viewers, it seems like having access to local content is a big draw. At least, that’s what Vidio is betting on. The video-on-demand player reckons that a focus on local shows will help it beat out international competitors – and eventually reach profitability.

Today we look at:

• For Vidio, the path to profit is local
• J&T Global Express hits profitability shortly after going public
• Other newsy highlights such as Reddit co-founder Alexis Ohanian, Sr.’s plan to invest in Japanese firms and HSBC Singapore providing a finance injection for Akulaku.

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Vidio takes on the (streaming) world

Image credit: Timmy Loen

Indonesian video-on-demand player Vidio claims to have surpassed heavyweights like Netflix, Viu, Disney+, Amazon Prime Video, and WeTV across several categories in its home market.

However, the Emtek Group-owned firm is still seeking profitability in an extremely competitive space.

• Streaming wars: Sutanto Hartono, managing director of Emtek Group, says the price competition in the video-on-demand industry means a relatively low average revenue per user. This makes it tough for companies in the segment to achieve positive margins. Case in point: Vidio recorded a total loss of about US$42.7 million in the first three quarters of 2023.
• Local flavors: Vidio’s outlook report found that 59% of Indonesian video-on-demand users prefer local content over international shows. Hartono said the firm has been investing in producing original “sinetron” (local soap operas) for its platform to take advantage of local tastes. From 2022 to 2023, Vidio produced 51 original TV series via collaborations with production houses in Indonesia.
• Friends in high places: Vidio partners with a wide range of companies in Indonesia, from telecom firms to electronics brands and ecommerce platforms. It also has the backing of big-name investors such as Affinity Equity Partners, which injected US$150 million into Vidio in November 2021.

Read more: Emtek’s Vidio claims to have Indonesia’s streaming crown, but sees heavy losses

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