The entertainment world has positioned itself in the midst of digital advancement, which in the future will be strengthened by mainstream adoption of 5G. The trends have always represented a shift that has not only changed entertainment consumption but also created new distribution channels and tools for content.
Older systems are being replaced by younger ones that are better suited to the new environment, but some of the previous generation systems are still surviving, albeit in decline. Others, like video games, have reinvented themselves and are generating more income than ever before.
With so many elements changing the industry, one important thing remains the same: people never stop wanting to be entertained, and for the Indonesian market, this is a highlight of how entertainment content enters society.
1. Video streaming service that focuses on local content
There are many video streaming service platforms operating in Indonesia, whether they operate locally, regionally, or globally. Although their presence is still classified as a niche, especially targeting young people, their positioning is quite strong in that target market.
The pioneer of this service, Netflix, despite being the most premium among all services, is starting to embrace local content creators in order to reach the Indonesian market. What Netflix is ??doing is arguably a blueprint for similar services to embrace this market. Call it Iflix. Iflix has undergone a transforming transformation. Starting from exclusive shows to old Indonesian cinema film content. Now Iflix's focus is on presenting original content from Indonesia and other countries in Asia. No longer focusing on Hollywood products, with this concept it is hoped that it can embrace more middle to lower segments to use Iflix. While some are in the process of replicating Netflix's approach, some have not.
In Southeast Asia, Hooq ended its services as of April 2020. This was caused by the majority shareholder who filed for liquidation on the pretext of wanting to focus on the main business. They considered the video streaming business model that Hooq was running to be less significant. So far, Hooq's coverage has focused on local film and television series content, including allowing users to stream television shows through applications. Efforts have also been made to an original content approach, but the market is not welcome.
2. Indonesian games are bigger than most people think.
Gaming is the largest sector of the global creative economy. It is also the fastest-growing sector, not least thanks to the stay-at-home policy sparked by the pandemic. Indonesia began eyeing its creative economy in 2015 when President Joko Widodo realized his increasing role in increasing domestic consumption and exports. The President then established the Creative Economy Agency (Bekraf) with the aim of making the country a global creative economy player by 2030. If this goal is to be achieved, Indonesia must not ignore the gaming industry.
The service business model has had the most negative impact on the gaming industry. In addition, the demand for game development has decreased because many companies have made efficiency and budget allocations for priority handling of Covid-19. In addition, for the service business in publishing games, there are adjustments to the rules and job descriptions related to WFH, so those who do not have adequate equipment at home will find it difficult to WFH. The WFH policy for so long will certainly slow down the entire internal process.
In fact, game developers in Indonesia have repeatedly shown their excellence in the international game market. Players such as Agate Games, Touchten, Toge Production, Mojiken Studio, and many more, have proven to steal attention from casual gamers to hardcore gamers. The flood of positive reviews on platforms such as Steam and Google Playstore, world-class awards, and the support of technology giants like Googlein accelerating business are just a few examples of how Indonesian game developers are running.
3. VR and AR have finally realized their potential.
There are at least 13 technology companies that develop VR and AR technology in Indonesia. Each, with its own uniqueness, offers products for corporations, startups, and e-commerce services. Several companies that develop VR and AR technology in Indonesia and are members of the Indonesian VR / AR Association (INVRA) are Festivo, DCIMAJI, Magnate, ARnCO, Octagon Studio, Primetech, Avergo, Shinta VR Omni VR, Invoya, INVR, DAV, Varcode. Although still dominated by China in terms of product distribution and technological equipment development, Indonesia has great potential to be able to develop VR and AR technology.
With the highlight above, the question then: is entertainment tech already commonsensical in Indonesia? Taking a look at the players, it seems that the emergence of new distribution channels and entertainment formats will always create opportunities for innovative newcomers to disrupt the market. The more diverse content and how to enjoy it could actually be welcomed by the Indonesian market if the only access to that content was easier and more affordable. For example, subscriptions to VR streaming platforms and consoles are cheaper.
The potential that 5G will bring as adoption grows will also present the right situation for companies with visionary mindset to become one of the pioneers in marketing in potential areas, such as Augmented Reality, subscription model games and 4K mobile video distribution. Opportunities will be available to anyone who wishes to adapt to the new normal by understanding that society is ready to consume content if it is easily accessible.