Indonesia may have been lagging behind on available streaming services, but now these groups are flocking to the region.
(CCM) — Netflix, HOOQ, VIU, Apple Music, and Spotify are just a few of the streaming services that have launched in Indonesia this year. According to The Jakarta Post, this new rush of foreign-based video and music services coming to Indonesia is due to the country's market potential. Indonesia is home to over 260 million people, according to the latest United Nations estimates, and has a smartphone penetration rate of 49 percent. Roughly 35 percent (89 million) of Indonesians have active access to the internet, and this number is growing.
While many streaming services are flocking to the region, not all of them have had a smooth launch. Shortly after its launch in Indonesia in January, Netflix's service was blocked from Telkom Indonesia’s network. The service is still available from other internet and mobile providers, but this was a hit for Netflix's launch. To avoid potential problems like Netflix's, other companies have opted to partner with local telecommunications operators, including PT XL Axiata, Indostat Ooredoo, and even Telkom Indonesia’s IndiHome internet service. HOOQ, Guvera, and Yonder Music have all set up local offices in Indonesia to support their new customers and meet the country's regulations. Earlier this year, the Communications and Information Technology Ministry released a circular stating that foreign OTT companies must establish local entities or forge local partnerships to continue operating in the region. Streaming services and other internet companies had until April 2016 to meet these new regulations or cease operations in the country.
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