Piracy and Censorship Pose Challenges for Netflix in Indonesia - eMarketer

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Piracy and Censorship Pose Challenges for Netflix in Indonesia

Consumer attitudes in the country may slow widespread Netflix adoption

May 23, 2016

Netflix is in the midst of an aggressive global expansion of its popular streaming service. The company announced support for more than 130 new markets at the start January 2016. But in spite of these grand ambitions, not all consumers are welcoming Netflix with open arms. In fact, in countries like Indonesia, the online entertainment giant may face considerable challenges due to unstable internet and attitudes towards paying for content.

Leading Reasons that Young Adult Mobile Internet Users in Indonesia Are vs. Are Not Interested in Netflix, Jan 2016 (% of respondents)

A survey conducted by online research firm Jakpat found that nearly 70% of consumers in the country were not interested in a Netflix account. When asked for the top reason why, more than 32% mentioned they simply didn’t want to pay, while more than 22% said they preferred to download, rather than stream, content because their internet was not stable.

As if consumer sentiment wasn’t enough of an obstacle, one of Indonesia’s largest internet service providers, Telekom Indonesia, recently blocked its customers from accessing Netflix, citing the company for providing access to objectionable content.

Subscription Video-on-Demand (SVOD) Households in Select Countries in Asia-Pacific, 2014, 2015 & 2020 (millions)

Netflix doesn’t appear to be the only streaming service facing an uphill battle in Indonesia. A July 2015 forecast of subscription video-on-demand (SVOD) households in several Asia-Pacific countries predicted that Indonesia would have 3 million subscribers by 2020, the lowest number subscribers in the six countries studied.

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