1. “Trend of Digital Media
and Games Pimpinan Telkom Group
Rapat in Indonesia”
Gamechanics : Aula Barat ITB, 19 Maret 2013
Joddy Hernady
Senior General Manager
Innovation & DesignCenter
PT Telekomunikasi Indonesia
3. Huge number of event happens within 60 secs...
Source: Shanghai Web Designer, http://www.syncreload.com/2011/09/what-happens-in-1-minute-on-internet.html, 2011
3
4. Mobile Traffic Drivers
Mobile devices:
Global: 10B, SmartPhone:
27%
APAC: 5B, SmartPhone:
26%
*Indonesia: ~180M,
BySmartphone:~30%be
2017, there will
1.4 mobile connections
(devices and M2M) for
every member of the
world’s population
Mobile Data Traffic
(2017)
4G: 45%
3G: 51%
2G: 4%
Mobile File Sharing (5.5%)
Mobile M2M (8.3%)
Mobile Web/Data (22.9%)
Mobile Video (63.3)
Note: * posisi tahun 2012
4
5. Average Traffic Per Mobile Device Type will grow
significantly in the future …
5
6. Perubahan Signifikan terjadi juga di Industri Game dunia
Stand Alone Network Social Cloud
Smart X
Tablet
Smartphone
Mobile Phone
Mobile Console
Console
PC
Arcades
Trend of Last 1 year : social games and Free Items Games
11. Potensi Indonesia
High quality talents (artist & developers)
Lower development cost
Large and fast growing market
Multicultural - rich contents & storylines
− Strong educational support
− Adequate training facilities
− Exposure to global standard & partner
− Need stronger government support
13. TELKOM Support for Indonesian Game Industry
• Indigo Fellowship Program
• Indigo Venture Program
• Bandung Digital Valley Program, etc.
• Indigo Incubator
14. Telkom Game Platform & Ecosystem Architecture
B2C
Social Online
Virtual
Game Store Network Content Mobile
Supplier Coin
/Portal Game Management
Store
System
Platform
Game Online
Developer In-App/ Web Store Gamers
s In-Game Subscriber Settlement ( Kids,
In-Game
Chatting Management System Students
Purchase
Social , young
Game Networks &
Publishers Game Center Game
User API Game
Center Report & product-
(Topup, Center ive
Consume, Payment Statistics In-Game
User SDK people)
PC Client Game, Web Transfer) API Purchase
Game, Mobile Game
Direct Voucher E-Money Offline
B2B Billing Providers Providers Device Distribution
(Tsel, Flexi, (Tsel, (Delima, T- Manufactures Channels
Speedy) Telkom) Cash, etc)
Service Enabler
B2B2C
16. Digitisation is creating major shifts within the
media value chain ...
Media Value Chain – Convergence Trends around Digitisation Non-Exhaustive
Content Content Content User
Creation Packaging Delivery Device
Content creators and
aggregators moving into content
delivery
Content delivery companies
launching their own devices
Equipment manufacturers
moving into content packaging
and delivery
Content aggregators moving
across the entire value chain
Telcos moving into content
3 60 packaging
Individual creative artists taking
on their own packaging and
delivery
16
18. And so the TIME ecosystem continues to undergo
substantial change – the boundaries are becoming
increasingly blurred
Evolving ecosystem
Automotive Utilities
Telecommunications
Consumer Banking &
Electronics Insurance
Media & Information
Entertainment Technology
Media & Health
Advertising Care
Source: A.T. Kearney A.T. Kearney Telkom MultiMedia 01-Feb-2012
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19. Overall, digitisation is facilitating access to new
audiences and personalised services, hence growing
the pie‘ overall
After digitization
Blockbusters
Content Grades ‘in Scope’ – First broadcast
Before and After Digitization
Archives Hits
Before digitization End of
catalogue
1
Blockbusters Numerized
Archives
First Broadcast Niche Content
2
Archives Hits User-Generated
Value Content
Creation
End of
Threshold catalogue
Archives
1 Existing content that is now economically viable to distribute
2 New content finding an audience thanks to the internet
19
20. How About The Indonesia Market?
Indonesia Media Summary Profile
20
21. Signs indicate there is a tremendous market opportunity
available, driven by buoyant consumer demand for media
Media Opportunity in Indonesia
20.3 hrs of TV/ Increasing
xx
week (#1 in SEA, Attractiveness 29% growth in
Intense of Media Increasing
2x Malaysia) online advertising
Media Sector Advertising
8.3 hrs of radio/ Usage Spend(1)
week
19% growth in
(#1 in SEA) multi-channel TV
Rising advertising
Consumer
6th highest number of
Twitter users globally Spend(1) 10% growth in
(Jakarta is ranked the newspaper
13th tweet-city) advertising
41m Facebook users = 22% growth in 10% growth
pay TV in online 6% growth in
90% of Indonesian subscriptions gaming spend
online users (#1 in SE magazine
Asia) advertising
12% growth in #3 country in
78% digital music sales Global Consumer
Internet- Confidence Index 12%
enabled phone growth in
penetration 6% growth in 8% growth in DVD out-of-home
(#2 after newspaper sales sales – despite the advertising
Singapore (with most other ongoing prevalence
in SEA ) markets in decline) of piracy
(1) All Consumer and advertising spend data relates to 2010-2014 annual CAGR
Source: Nielsen, PWC Media & Entertainment outlook, A.T. Kearney analysis
Telkom_M&E_strategy_kickoff_111122 6
22. TV and newspapers dominate the Indonesian Media
landscape
Indonesia Media Market Size (IDR Trillion)
2011 Market Size Rp. 2016 Market Size Rp.
53 tr 93 tr
Online Online
Music 1% Music 3%
2% Other 1% Other
OOH 6% OOH 4%
3% 2%
Magazines Magazines
5% TV 4% TV
32% Gaming 38%
5%
Gaming
7%
Newspapers
45%
Newspapers
42%
Although newspapers still have a large share of revenues the industry
has weak med-long term prospects, the growth will be on TV and Online
22
24. Indonesia’s media market continues to grow at a strong
overall rate of 12%, led by TV, Music, and online segments
24
25. FTA, Pay TV and online segments have the highest
growth together with moderate-high profitability
Media Category Attractiveness Summary
Indonesia Market Size:
Size of bubble denotes
High Online Music Social Networking relative 2010 revenues in
15x Search Rp. tr
Online
Games FTA
(13tr)
Radio >10
Physical
Games OOH
TDA
ion
Books
EV/EBIT
Valuati
3-4
Pay TV
B2B
Cinema Maga- Online Portals 2-3
zines
1-2
News-
papers <1
Low (23tr)
Avg. EBITDA %
2x
Low High 0- 10- 20-
2% Growth 20% 10% 20% 30%
30-
2011-2016 CAGR 40% >40%
Size & Growth: Indonesia; Profitability & Valuation: International Players
Sources: A.T. Kearney Analysis Telkom_M&E_strategy_external analysis 36
25
26. TV will remain the most attractive segment
Summary Insights on Size, Growth, Profitability, Valuation
TV will continue to
TV will continue to be the medium of choice for advertisers as
1 dominate media in
CAGR continues to grow at ~15%
Indonesia
Online and digital Online and digital segments have highest growths of between
2 segments demonstrate 20%-60%; however, impact by 2016 will still be limited given
strong growth current small size of online / digital market
Despite the emergence of the online market cutting into the
Print is declining, yet
3 remains sizable
print share, print still contributes to over 30% of market size
in 2016
Valuations are highest
Valuations for gaming and online advertising segment is the
4 in Online and Gaming
strongest amongst media segments at 11x-14x
category
26
27. The new Kings of Media ?
Old Kings New Kings
Name: R. Murdoch Name: M. Zuckerberg
Age: 80 Age: 27
Net Worth: $7.6 billion Net Worth: $17.5 billion
Focus: TV, Movies, Publishing Focus: Social media
Background: Philosophy, Politics, Background: Engineering
Economics
Name: T. Turner Name: L. Page/S. Brin
Age: 73 Age: 28
Net Worth: $2.1 billion Net Worth: $33.4 billion
Focus: TV, Radio Focus: Search, Music, TV
Background: Classics, Economics Background: Computer Science
Name: A. Lagardère Name: J. Bezos
Age: 50 Age: 47
Net Worth: $2.4 billion Net Worth: $19.1 billion
Focus: Publishing Focus: Music, Video, Devices
Background: Economics Background: Computer Science
A.T. Kearney Telkom MultiMedia 01-Feb-2012 5
27
28. The Next hit can come from anywhere !
- Japanese hologram pop star, Hatsune Miku
Who is she? Key Lessons
Initially 2-D animated spokesmodel for Think outside the box – creatively
Vocaloid, an audio synthesizer and innovatively
program – now a 3D superstar!
Creativity is not just in terms of
Has become an international star content creation, but also in
‒ Video game (Sega) delivery and partnerships
‒ Manga series
‒ Social networking site
‒ Likeness was launched into space
‒ 2012 Olympics performance poll
‒ Official Japanese sponsor for
Toyota Corolla
12
28
31. The Future Trend of TV
TV will be an digital device-connected like any other!
Users will choose their programming on TV streams and
watch where they go!
Simple standards that allow content to be published to
TV will evolve
Any connected device shall be able to provide TV
experience
Dynamics of Television Industry will change
tremendously!
31
32. Toward The King of Digital Society
IDN 2015
id-Con:
Covergence
Digital
Innovation
SDP
APPLICATION
Application Server Single Subscriber
id-Ring:
Nationwide
BB Backbone
id-Access:
2015:
15 M Household True
1 M AP Wifi Broadband
Access
Broadband for Business Broadband for Broadband for Broadband for Digital Society:
& Government Home Community mobility InDiSo & InDiCo
32
34. Strategy Implementation of Digital Media 2013
Launch
Launch Single Launch
Launch IPTV eEntertainment MLTV
OTT Portal
1. SD-IPTV 1. Music
1. Mobile (Low-BitRate) 2. eBooks
2. Desktop/ 2. HD-IPTV 3. Games
Laptop (High-BitRate) 4. eStore
3. SMART TV 5. eRadio Aug 2013
Nov 2012 Feb 2013
Jun 2013
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