Trend Industri TIK Media1

Confidential & Proprietary Copyright 2008 The Nielsen Company

Indonesia Consumers Trend : Telecommunication, Technology,

Information & Media

For: KADIN (Indonesian Chamber of Commerce)

28 April 2010

Irawati Pratignyo

Confidential & ProprietaryCopyright 2008 The Nielsen Company

Analytic Consulting Page 2

More drive from Consumers for Convenience to get Connected


Mobile Phone PenetrationHalf of Population (in 9 cities) have been penetrated by mobile (cellular) phones.

49

21 2223

2527 28

30 3132

3437

4043

47 48

06Q1 06Q3 07Q1 07Q3 08Q1 08Q3 09Q1 09Q3

Source: Nielsen Media Index Q3 2009

All people aged 10+, 9 cities (43,873,000), in %


Indonesia: Cell Phone trend usage

Communication

Entertainment

Image generator

Social network


Smart Phone will surpass Regular Features


What is your pin ID?

constantly connected conveniently through online communities

Indonesia has > 500,000 connected Blackberry users


Internet usage increase in most Asian markets, including Indonesia

Source : Nielsen Media Research 2008-2009

%

17

0

20

40

60

80

100

2005 2006 2007 2008 2009

Sin Tai Msia HK Thai Phil Indo



Indonesian Internet habit rockets!

2008 : 300K user

2009 : 16.1 Million User (3rd in the world)

6.84% growth of user in past week (9th in the world)

47% of online population accessing facebook

Friendster

Facebook

Twitter


9April 28, 2010

Consumers are the New Authorities

Then

Turns out the contaminated wheat gluten that

has sickened and killed so many cats and dogs

recently has ended up in quite a few brand

names. I finally found a complete list of the

affected brands here. I feed my cats --- dry food,

and fortunately the dry food was not on the list.

The --- wet is, though. Don't assume that your

brand is safe. Check the list!

- stynes.blogspot.com, 04/05/07

Now



More Convergence & Consolidations


ListenWatch Read

ONLINE: Browse, Surf, Interact, on PC & Mobile

TV Print Radio


Print readers has been falling gradually since 2005.

24

17

9

16

11

06Q1 06Q2 06Q3 06Q4 07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09 Q3 09 Q4

NEWSPAPER MAGAZINE TABLOID

Source : Nielsen Media Index W1 2006 W4 2009

All people 10+, 9 cities, in %, pop 43,873,000

%


Internet Users among newspaper readers are increasing

18 19

22

25

29

34

2004 2005 2006 2007 2008 2009

All people 10+, 9 cities, Read Newspaper , Use Internet in the last 12 Months, in %Source: Nielsen Media Index Wave 3, 2004 - 2009


Radio listening trend declines .

34

42


RADIO


All people 10+, 9 cities, in %, pop 43,873,000


But listening OnLine Increase ..Radio listeners are increasing their internet use and listening to music more via internet

15

19

22

2007 2008 2009

Age 10+, All 9 Major Cities, People listen to radio yesterday & use internet in past 12 months, in %People who listen radio yesterday and hobby listen to music, internet function listen to music, in 000 Source: Nielsen Media Index Wave 3, 2007 - 2009

565

811

1084

2007 2008 2009

Radio listeners - used internet in the past 12 months Radio listeners - hobbies listen to musicinternet function: listen to music


TV viewing is constant

95

93



All people 10+, 9 cities, in %, with TV in home (pop 43,873,000)


TV still also captures most of the audience attention, is Asia

Source : Nielsen Media Research & Panorama 2008-2009,

78

96

84

97 95 96 94

Singapore Taiwan Malaysia Hong Kong Thailand Philippines Indonesia

%

% Penetration


48

86

36

60

3134

8.9

Singapore Taiwan Malaysia Hong Kong Thailand Philippines Indonesia

0.1%

1.4%

8.9%

2006 2007 2008

Indonesia Pay TV (Cable Satellite) Growth 7-8 X

% Penetration Source : Nielsen Media Research 2008-2009,

Indonesia:


239205 223

323

260 262312 316 310

349 329

738

326

283326

676

446416

311

403

W/E

04/01/2009

W/E

08/02/2009

W/E

15/03/2009

W/E

19/04/2009

W/E

24/05/2009

W/E

28/06/2009

W/E

02/08/2009

W/E

06/09/2009

W/E

11/10/2009

W/E

15/11/2009

W/E

20/12/2009

Home Theater

Home Theater sales is increasing .Home Theater as an escape and alternative for cheaper entertainment/indulgence.

Sales in billion Rp | Home Theater I Total Key AccountsLebaran

2009

Source: Nielsen ScanTrack Service


LCD TV Price has been dropping each yearHome Entertainment has becoming more and more affordable for self indulgence

LCD TV

2009 Price

+/- Rp. 5,000,000

LCD TV

2008 Price

+/- Rp. 8,000,000


Indonesian Consumers are exposed to Three Screens

Penetration in %, 10 Cities TV Population (46,719,473 individuals) and 9 Cities Internet (7,575,000 individuals) and

Cell phone Population (20,868,000 individuals)

Source: TV Establishment Survey 2009 and Media Index

FTA TV

95%

Cellphone

49%

Internet

17%

Pay TV

8.9%


Indonesia: Time spent on the screens

Base: 10 Cities TAM Source: TV Audience Measurement & Three Screens Report

TV Avg Time/Day

2008

TV Avg Time/Day

2009

Internet Cellphone

3:02 3:05

2:19

0:52


Indonesian TV viewers also use cell phone as short context communication medium

1-


Page 24

Viewers use the best screen available

+ +153:47*

hrs

3:37^

hrs3:22**

hrs

Usage is independent of time

Usage is independent of location

Monthly Time Spent Viewing Video in Hours: Minutes Per User 2+, Q4 2009

Source: The Nielsen Company Q4 2009; * TV in the home includes live viewing plus playback within 7 days. ** Internet includes home and work who used internet to watch online video. ^ Mobile video audience consist of 13 or older mobile phone users who access video through any means.


Page 25

Younger demos screen usage is more dispersedAge G

roup

Source: CRE Study, 2009

65+

5564

4554

3544

2534

1824

0% 20% 40% 60% 80% 100%

41.2%

50.1%

44.9%

58.5%

67.7%

84.4%

3.4 6.7 5.1

3.1 6.9 2.7

3.4 5.3

3.43.6

1.72.7

1.42.3

13.2 4.0 2.9 12.1 5.7

10.9 8.80.6

9.8 3.7

14.4 9.1 2.8 12.0 4.8

8.0 9.0 2.6 9.1 3.1

8.2 7.4 7.0 2.4

3.92.23.1

1stScreen Live TV

Playback via DVR

DVD or VCR

Console Game 2ndScreen

Web

Software

Computer video

Share of Average Daily Minutes of Screen Media

Email

IM

Mobile talk

Mobile other

Mobile video

Mobile text

Mobile web

3rdScreen

Environmental/Other video

In-Cinema movie

4thScreen

GPS navigation %

Total Screen Time (h:mm)

8:18

8:32

9:34

8:33

8:31

8:30



More Content with Context challenges


Content Explosions


Content with Context created by the Consumers

Consumers and Marketers are now able to interact through these type of web-community

The following are examples of currently live web-community


29April 28, 2010

2007 Nielsen BuzzMetrics, a Nielsen Company business affiliate

iPhone Sentiment (1/1/07 6/15/07)

Negative

15%

Neutral

35%

Positive

21%Mixed

29%

Sentiment behind the consumers buzz ?

Positive drivers:

Cool features (visual voicemail, touch screen, music library, internet browsing, etc.)

General excitement

Ease-of-use

Switching providers in order to get the iPhone

Negative drivers:

High price point

Availability with only one service provider

Concern about Cingulars coverage and service

No keyboard

Battery life

No 3G functionality

I am with Nextel, I have the top of the line phone through them, and it doesn't do HALF the crap that this iPhone does and it still cost me over $300 when I bought it. I am switching to Cingular/AT&T as soon as this phone comes out.

HowardForums, 1/15/2007


Global Trends?


Key Take Outs

Consumers will be driving the growth of Telecommunication, IT & Media Industry. They would like to be more and more Connectedat their Convenience. Online Mobile Social Networking

Convergence will bring opportunities to transform classic media into the new platform: Online and on Mobile.

Content will be crucial; particularly when it is followed by the right Context to reach the audience/consumers

Consolidation is a trend for Industrys efficiencies, but growth can accelerate even more, when supported with sufficient infrastructure.

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Trend Industri TIK Media1