JAKARTA: Vidio, Indonesia’s answer to Netflix Inc, is aiming to double its paid subscribers to eight million in the next two to three years ahead of plans to go public in a market where streaming still has much room to grow.

The company, owned by Indonesian media conglomerate PT Elang Mahkota Teknologi Tbk, is also planning to raise a new fund this year to bankroll the growth of its streaming service, chief executive officer Sutanto Hartono said in an interview.

Vidio will push for an initial public offering once market sentiment becomes more positive, he said.

Indonesia is one of the fastest-growing economies in Asia, with a youthful population of over 270 million. But the digital media sector is still in its infancy, as free-to-air TV remains dominant and 5G penetration low.

As such, Vidio and foreign competitors including Netflix and Hong Kong’s Viu see huge potential for growth in the country.

Total online video revenue in Indonesia is expected to grow to US$2.25bil by 2028 from US$1.3bil last year, according to consultancy Media Partners Asia.

Meanwhile, the overall economic impact of Indonesia’s film and TV industry is estimated to expand to around US$10bil by 2027, a 20% increase from 2022, according to research conducted jointly by consultancy PwC and the University of Indonesia.

“In the past, Indonesia was always a sexy market for a lot of global players because of the population,” Hartono said.

However, he cautioned that Indonesia also poses many challenges.

Among these are low subscription prices in a market where ad-dependent platforms like TikTok and YouTube prevail, making it harder for global streamers with premium subscription models to crack the market.

Some global streamers have already stepped back from the country. Walt Disney Co, for example, paused its investment in content in Indonesia and increased its subscription prices late last year.

Amazon.com Inc has also retrenched from the market as part of a broader global restructuring.

Netflix, however, is still investing in Indonesia, following the popularity of its original series Cigarette Girl in November, which also became one of the most-streamed shows in countries such as Mexico and Spain.

The US streaming giant plans to release six new original productions in Indonesia this year, with the goal of eventually catching up to regional content powerhouse Thailand, said Malobika Banerji, senior director of content for South-East Asia at Netflix.

“We are already seeing very promising signals, and the task for us is to make this drumbeat more consistent,” Banerji said. “But first, we want to make massive and big hits in the local industry.”

Vidio had the highest number of paying subscribers in Indonesia.

 - Bloomberg