Indonesia’s streaming platform Vidio, under the ownership of local conglomerate Emtek Group, has set its sights on a significant expansion in its paid subscriber base. Vidio aims to increase its number of paid subscribers to 8 million within the next two to three years according to a report from Bloomberg. This target would represent a doubling of its current figure of 4.1 million paid subscribers as of 2023.
Emtek Managing Director Sutanto Hartono shared his insight with the publication, highlighting the goal to double its number of paid subscribers amid plans for an Initial Public Offering (IPO) and a fundraising initiative through its parent company.
Notably, Vidio maintains a higher paid subscription count than its rivals such as Viu, Disney+, and Netflix in Indonesia according to data from consulting and research firm Media Partners Asia. However, despite this advantage, Vidio comes second to Netflix in metrics like premium viewership and monetization.
Hartono, the Managing Director of Vidio, believes that in the Indonesian market, there is widespread adoption of paid streaming subscriptions in consumers’ daily routines. He further underscores Vidio’s strategic emphasis on sports broadcasts, local soap operas, and other initiatives to facilitate the transition of more customers from traditional TV to streaming platforms.
In a previous statement, Hartono revealed that Vidio attained a valuation of US$945 million, nearing unicorn status, following its latest funding round of US$45 million in June 2022. The funding was secured from investors like Sinar Mas Group, Grab, and Bali United.
However, Vidio continues to face profitability challenges, despite its growth in net revenue, as indicated by its financial performance for the nine months ending September 2023. During this period, Vidio marked a significant 53% increase in losses compared to the previous year’s loss of US$42.7 million. This increase in losses occurred despite a notable 40% rise in net revenue, reaching US$48.5 million over the same period.
Furthermore, a significant surge in online video revenue is forecasted by 2028, as Indonesia’s digital media market continues to ascend, reaching US$2.25 billion compared to US$1.3 billion in 2023, as reported by Media Partners Asia. Additionally, to further catalyze growth in the digital streaming sector the nationwide rollout of 5G technology is expected.