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Consolidation next

Territory report: Indonesia

JAKARTA — Competition among Indonesia’s 10 commercial networks (which now include five newcomers) and with pubcaster TVRI is heating up, while advertising is up 10% over last year to $1.2 billion.

That’s the good news.

The bad news is that, apart from the top three top private stations — Indosiar, RCTI and SCTV — the remaining eight are in the red.

As a result, consolidation of several of the players is likely over the next year, with the big guys probably taking over some of the smaller companies.

On the programming front, things are equally tough.

Local programming still dominates the ratings but such shows are expensive, putting them out of reach of some of the weaker stations.

That’s why foreign movies are so sought after: Only problem is that they can go for $30,000 a title and upward. Foreign series make very little impact and cost $5,000 per hour.

Thus, not surprisingly, programmers have turned to cheap formats like Star Search” and various gameshows.

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