Home Blog The Potential of Indonesia’s Video on Demand Industry Business Licenses | Company Registration | Indonesia The Potential of Indonesia’s Video on Demand Industry InCorp Editorial Team 24 June 2025 5 minutes reading time Table of Contents The Concept of Video on Demand and Its Rise in Popularity The Biggest Video on Demand Platform in Indonesia Forecast on Video on Demand in Indonesia Challenges and Considerations Invest in the Video On Demand Industry with InCorp Entertainment consumption is experiencing a significant paradigm shift. The convenience and cost-effectiveness of Video on Demand (VOD) platforms are steadily eclipsing traditional, linear cable subscriptions. The growing trend offers numerous profitable business prospects for budding entrepreneurs and well-established companies. The Concept of Video on Demand and Its Rise in Popularity The popularity of Video on Demand (VoD) has surged due to its convenience, flexibility, and personalized viewing options. VoD represents a digital media distribution model, enabling users to conveniently access and watch video content, typically through online platforms. Video on Demand platforms typically offer diverse content, such as movies, TV shows, documentaries, and more, accessible instantly or for later viewing. VoD grants users the freedom to select content, decide when to watch it, and how to view it. This eliminates the need for fixed broadcasting schedules or physical media, as users can stream or download content whenever they want. The Growing VOD Market in Indonesia Indonesia’s over-the-top (OTT) video-on-demand (VoD) industry has experienced significant growth in the past five years. According to the latest report from Media Partner Asia, VoD company revenue in the country reached USD 366 million or IDR 5.7 trillion in 2023, marking a 72% annual increase. The online video market in Indonesia is USD 1.3 billion, with the premium VoD segment reaching USD 500 million. Each segment captures 21% and 17% of the audience share. The increase in the middle-class population, particularly among Generation Z, reached 52% of Indonesia’s total population in 2023. This figure is expected to continue growing at least until 2028. READ MORE:Industry 4.0: The Challenges And Opportunities Of Making Indonesia 4.0The Role Of Digital Transformation In ASEAN’s EconomyAddressing Business Challenges In The Indonesian Market The Biggest Video on Demand Platform in Indonesia According to the latest report by JustWatch, Netflix maintains its position as the leading video streaming platform in Indonesia during the fourth quarter of 2023. The OTT giant has consistently controlled a stable market share for three consecutive quarters (Q2-Q4) throughout 2023, with percentages of 23%, 24%, and 24%, respectively. Following Netflix is Disney+ Hotstar, which holds the second position and shows steady growth. Its market share reached 22% in Q4 2023, only 2% behind Netflix. Iflix and Viu are also experiencing positive growth, capturing 16% and 12% market shares, respectively. Vidio, the only local OTT platform, holds the fifth position in market share throughout 2023. In Q4 alone, Vidio captured an 11% market share, showing a slight increase of 1% from the preceding three quarters, which remained stable at 10%. Forecast on Video on Demand in Indonesia The projection also shows that the industry will thrive in Indonesia, given the current positive trend in the VoD industry. Below is the forecast: Increase in Market Share The VoD market in Indonesia is predicted to make around USD 756.70 million in revenue by 2024. This revenue is expected to grow annually at a rate of 8.10% from 2024 to 2027, resulting in a market volume of about USD 955.90 million by 2027. Among the different parts of the market, Video Streaming (SVoD) has the most significant market volume, with around US$354.10 million in 2024. Increase in Number of Users The number of users in Indonesia’s VoD market is expected to reach 98.8 million by 2027. The user penetration rate, which shows the proportion of users compared to the total population, is expected to be 29.5% in 2024 and is likely to increase to 33.8% by 2027. Rise of Local Content Indonesia’s VoD market is experiencing a rise in local content consumption, mainly due to the growing popularity of Indonesian movies and TV shows. Challenges and Considerations Local players in the video-on-demand industry in Indonesia face several challenges: Competition with Global Players Local companies must compete with well-established global giants in the industry, which can be daunting due to their extensive resources and brand recognition. Low Subscription Culture with Payment There’s a prevalent culture of reluctance to pay for subscription services, resulting in low adoption rates for paid streaming platforms among Indonesian consumers. High Piracy Rates Piracy is widespread in Indonesia, posing a significant challenge to legal streaming platforms as it reduces their potential audience and revenue. Difficulty in Increasing Average Revenue per User (ARPU) Local companies need help raising the average amount each user earns due to various factors, such as consumer pricing sensitivity and competition from free or pirated content sources. Guide to Doing Business in Jakarta Mailchimp Free eBook Indonesia Business Insight Notify Full NameEmail I have read InCorp's Privacy Policy and agree to InCorp using my information provided to contact me about related content, and services.*Subscribe Invest in the Video On Demand Industry with InCorp The video-on-demand industry offers a promising future in Indonesia, with current trends showing positive results. These circumstances provide investors with huge opportunities to explore this lucrative sector, especially considering the potential increase in the middle-class population, particularly among Generation Z, who primarily use video-on-demand services. Start your journey with InCorp Indonesia (an Ascentium Company) as we provide the following: Streamlined Business Setup: We handle company formation and licensing complexities, allowing you to focus on your core business activities. Local Market Expertise: Our team possesses in-depth knowledge of Indonesian regulations and the VOD industry, ensuring your business operates smoothly. Reduced Risks and Costs: We help minimize potential risks and associated costs by navigating legalities efficiently. Take advantage of this exciting investment opportunity. Contact InCorp Indonesia by filling out the form below. Read Full Bio Verified by Hotdo Nauli Senior Legal & Delivery Manager at InCorp Indonesia Hotdo heads the Legal and Delivery team at InCorp Indonesia, managing Product Registration, Legal Advisory, and Business Licensing. With over 8 years of experience, she focuses on compliance and integrity, ensuring all client operations align with Indonesian laws and regulatory standards, including contract reviews and sector-specific licenses. She is also a licensed advocate and a member of the Indonesian Advocates Association (PERADI). Frequently Asked Questions Can you have a nominee arrangement when setting up PMA? A nominee arrangement is an arrangement that uses another person’s name as a subject. In Indonesia, it is prohibited. This restriction aims to prevent situations where a company is owned by one party but beneficially owned by another. According to the law, any nominee agreement between a local party and a foreign investor is deemed null and void. What requirements are needed if my Indonesian company registers the product? Register the product with BPOM (National Agency of Food and Drugs) and MoH (Ministry of Health). The type of testing and document requirements depend on the type of product you want to register. Also, the time frame for registration could vary between 3 to 15 months. What is a CV? CV (Commanditaire Vennootschap) is a proprietary business entity that houses several individuals to run a business. Can investors own shares with preferential rights? Under Indonesian Company Law, shareholders can hold shares with various preferential rights, such as voting rights, nomination rights for board members, priority dividend or liquidation proceeds, and options for conversion or withdrawal after a set period. Get in touch with us. 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