undercover.co.id – OTT Platform , Indonesia is a country that has high economic potential with a 2021 Gross Domestic Product (GDP) of Rp 62.2 million per capita, higher than before the pandemic (Rp 59.3 million in 2019), as quoted from a statement by Coordinating Minister Airlangga in Jakarta, 8 February 2022. An increase in household consumption of around 2.02% in 2021, including entertainment and recreation, will certainly bring fresh air to the film industry.

Seeing its journey, the Indonesian film industry has experienced a transition along with the development of cinema as an industry from time to time. Starting with the concept of a projector in an open space, which later became the forerunner of ‘screen tancap’ (mobile cinema). 

Developed into a permanent cinema in the early 20th century, for example Metropole which was founded in the early 1930s on Jl. Diponegoro (later changed his name to Megaria). Then the concept of a sineplex, a permanent cinema with more than one screen, was introduced in the 1980s. Until it became the large multiplex chain that we currently know.

However, along with the increasing internet penetration coupled with the proliferation of digital products and services, the question arises where is the future direction of the conventional film and cinema industry?

Undoubtedly, the internet has provided a huge space for the growth of alternative consumer choices to enjoy movies (content). And, the Over The Top (OTT) platform is one of these disruptive innovations.

Launching from the Harvard Business Review , the OTT platform is a forum for distributing video content that is distributed directly to consumers via the internet. OTT makes viewing experience more comfortable, content more accessible.

Not only that, in terms of price, it is also more affordable for a wider user segment. Today, anyone with a cell phone and internet connection can watch movies anywhere and anytime.

In its early stages, OTTs like Netflix, Prime Video, Hulu, and many more, were just treated as apps for watching movies that came out in theaters. Now, OTT has evolved by producing unique content such as web series or original films that only air exclusively on each platform to attract consumers to the platform.

As a result, this platform is growing quite rapidly. According to data released by Allied Market Research, the OTT market in Indonesia reached US$ 360 million in 2019, and is projected to increase to US$ 4.45 billion by 2027.

According to Media Partner Asia, the total weekly streaming minutes of online videos in mobile devices grew 60% in aggregate across Indonesia. This is driven by supporting factors such as fast internet connectivity, cheaper smartphones , competitive data packages and greater bandwidth capacity .

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OTT Platform

OTT and Indonesian Consumers

With the pandemic, watching movies on the OTT platform is a logical alternative to the conventional way of watching movies in theaters. Although the ambience with large screens and state-of-the-art sound systems makes the cinema viewing experience irreplaceable, this pandemic has created a huge void in the film industry because no one knows how long it will take to make cinemas full again as before.

In addition, the large number of films that cannot be shown in theaters -because cinemas have to be more selective in the midst of limited number of screens and seats- increasingly encourage OTT to take up its role in the film industry in the country.

From here, more and more consumers are turning to sources of home entertainment. Online video streaming applications are considered to be sufficient to meet expectations. With subscription prices ranging from IDR 30,000 to IDR 50,000 per month, consumers can watch as many movies as they like on the platform. The integration of technologies such as content personalization and viewing history recommendations also makes the viewing experience easier.

In other words, the OTT platform has made the movie viewing experience more practical, cheap and easy, while offering a wider variety of choices.

OTT and Indonesian Film Producers

 The emergence of various OTT platforms in Indonesia also creates opportunities and opportunities for film producers and local content creators. This is because many of these OTT platforms are focused on creating local content. In addition, public interest in quality local films is also experiencing growth in demand. The presence of the OTT platform has also become an alternative distribution channel to introduce the work of local creators.

In an increasingly borderless world, OTT also provides opportunities for content creators so that their content can be accessed by millions of potential consumers throughout Indonesia with distribution and promotion costs that are much cheaper than releasing conventional films.

Launching the film on OTT even allows the film to be accessible internationally. Thus, content creators have the opportunity to be able to introduce their content to a wider market which allows cast and crew to reach audiences across borders and ultimately create new opportunities.

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Today’s OTT has become a ‘game changer’ in the film industry. Only by integrating with technology, the film industry can grow and develop in the ‘new normal’ era when everyone who owns a cell phone/tablet/laptop can enjoy entertainment to their heart’s content.

In short, the experience of watching movies and enjoying entertainment has been redefined in a new way. The film industry will take it to new heights, with more content to watch, and new movies releasing weekly (or even daily) across OTT platforms.

In conclusion, any customer-centric business will see technology not only as an opportunity for growth, but also as a necessity to survive. And for film producers, OTT is a reliable ally.

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