Digital Indonesia

Internet and TV trend

NXTCon 2014, Gd. Sapta Pesona By Sutanto Hartono

Indonesia is among the highest online population in Asia Pacific

Source: Wearesocial.org, US Census Bereau, Internet World Stats, Facebook, ITU

591MChina 101M

Japan

213MIndia

18MAustralia

73M

Indonesia

19MMalaysia

4MSingapore

36M

Vietnam

38M Philippines

5M Hong Kong

Indonesia Internet Growth Driver1. Strong economic growth,

translates into more buyers2. Urbanization trend to bigger

cities3. Youth segment domination4. Growth in use of mobile

phones

Indonesia Internet demographic dominated by younger generation with higher education

>45

35-44

25-34

12-24

21%

21%

26%

32%

Younger Segment Higher Education

Worker, students, and housewives Middle Class Economy

Graduate & Post

Diploma

High School

Elementary & Mid School

22%

11%

48%

19%

Unemployment

Housewives

Workers

Students

6%

15%

54%

26%

>3 IDR Mio

2-3 IDR Mio

1-2 IDR Mio

28%

33%

39%Monthly Spending

Source: APJII (Asosiasi Penyelenggara Jasa Internet Indonesia), Profil Internet Indonesia, 2012

While the number of online population is high, the penetration is still below APAC average

Source: Wearesocial.org, US Census Bereau, Internet World Stats, Facebook, ITU

New Ze

aland

South

Korea

Australi

aJap

an

Taiw

an

Singa

pore

Hong Kong

Mala

ysia

Mac

auBru

neiChina

Vietnam

Philippines

Thail

and

Indonesia

Bangla

desh

Sri La

nkaIndia

Laos

Pakist

an

Cambodia

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

89%84%

81% 79%76%

73% 73%

65% 64%59%

44%39%

36% 35%

29%22%

18% 17%11% 10%

5%

APAC Avg 32%

Social media penetration drives internet penetrationand still below average APAC

Source: Wearesocial.org, US Census Bereau, Internet World Stats, Facebook, ITU

APAC Avg 26%

Taiw

anBru

nei

Hong Kong

Singa

pore

Australi

a

New Ze

aland

Mala

ysia

Mac

auChina

Thail

and

Philippines

South

Korea

Indonesia

Vietnam

Japan

Sri La

nka

Cambodia

IndiaLa

os0%

10%

20%

30%

40%

50%

60%

70%64% 63%

61%59%

57%55%

53%51%

46%

36%32%

27%25%

22%

17% 17%

8% 7% 6%

Mobile internet also drives the internet penetration, 66% access internet through smartphone

Source: APJII (Asosiasi Penyelenggara Jasa Internet Indonesia), Profil Internet Indonesia, 2012

Tablet

Notebook

Desktop

Smartphone

2%

45%

52%

66%

• Mobile browsing intensity is the highest, double than the US

• 112% Mobile penetration compare to total population

• 74% mobile users using social media apps on their phone

• 94% smartphone users searching for local information through their phone

• 95% smartphone researching products through their phone

Therefore the growth opportunity of internet penetration is still high

Source: eMarketer 2013

2011 2012 2013 2014 2015 20160

20

40

60

80

100

120

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

4360

7384

9310318%

24%

29%

33%

37%

40%

Internet user in mio % Penetration

Despite of the internet rapid penetration in Indonesia, the speed is still a big challenge

Source: Akamai Q3 2013

21.9

12.812.2

8.3 7.9

5.8 5.3 4.83.4 3

2 1.8 1.6 1.5

94%

83% 81%

68% 67%

55% 54% 54%

29%25%

4% 4% 3% 2%

Avg Speed Mbps % Above 4 Mbps

21.9

We are here

Internet continues to reach more audience, whileTelevision audience reach remains the highest

94%60%

29%

25%

7%

13%

Source: Consumer & Media View, People Age 1-+. 9 Cities, Q2 2012

69%

TV

outdoor

phone

internet

radio

newspaper

tabloid

6%magazine

People spent time mainly on TV and Internet, trend on internet spent time will follow other countries

Source: Consumer & Media View, People Age 1-+. 9 Cities, Q2 2012

Time spent (in hours) per week

SG

ID

MY

VN

TH

PH

12 25 5

20 14 4

11 20 4

17 16 4

11 17 4

13 22 4

Television Internet Print

Average time internet users spent their time onmobile phone and social media

Source: Wearesocial.org, US Census Bereau, Global Web Index

5H 27MAverage time internet users spend using internet each day through a desktop or laptop

2H 30MAverage time mobile internet users spend using mobile internet each day

2H 54MAverage time social media users spend on social media each day

TV still dominates advertising expense, while internet is projected to growth and become the 2nd contributor

Adex Contribution

69%

21%

3%4%2% 2%

TV Newspaper MagazineOnline OOH Radio

Adex Growth

TV

Newspaper

Magazine

Online

OOH

Radio

15%

13%

13%

41%

12%

10%

16%

11%

10%

29%

13%

10%

CAGR 2012-2016 CAGR 2007-2012

Source: Consumer & Media View, People Age 1-+. 9 Cities, Q2 2012

TV and internet habit is complement to each other as the three screens user penetration also increases

TV and internet habit is complement to each other as the three screens user penetration also increases

Three Screens User Penetration(Watch TV, use mobile phone and computer)

Source: Three screens user penetration, All People10+, 10 cities, Q2 2012 vs 2013 & Nielsen Global Online Surbey 2010

“ 52% use their smartphone while watching TV ”

2011 2012 2013

21% 21%

26%

“ The multiscreen viewing habit will grow rapidly in the young and

productive segment ”

Campaign will be more effective on both TV & Internet

TV Only Also exposed to web0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

21%

42%

Brand Recall of TV ad

Nielsen’s Southeast Asia Digital

consumers report reveal that 45% of digital consumers in Indonesia watch TV dan access internet simultaneously.

Campaign that covers the audiens who watch TV and access internet will give better results in terms of branding.

Source: Nielsen

People use internet for social network, growth potential on the video consumption

Source: eMarketer 2013

Download or watch podcasts

Post a comment to a blog

Listen to online audio

Watch online videos

Share videos or photos

Read a blog

Send or receive email

Find information about specific topic

Latest news

Social network services

27%

28%

29%

32%

35%

38%

44%

50%

72%

96%

People are willing to pay for niche content,Pay TV population is expected to grow by 33%

Source: MPA 2013

Indonesian Pay-TV Subscriber Projection2011-2016 (in million)

33%

2011 2012 2013 2014 2015 2016

1.4

2.1

2.9

3.9

4.9

5.9

Emtek as leading media group move towards the multi-content and multi-platform business

CONTENT

Focus on Home Shopping

Producer of award-winning drama programs

Diversified animation house

New production house for drama

Inhouse Productions Inhouse Content and Exclusive Rights

BPLTimnas U-19Sea Games

Indonesia Got Talents

Share*

16,7%Share*

13,2%• Payment Gateway• Card Solutions• VSAT integrated solutions• Telecommunications retail

distribution across Java & Kalimantan

Screenplay

AS Production

FTA PAY TV ONLINE SOLUTIONS

Champions

Source: Nielsen Arianna W1417 (20-26 Apr) 2014

• First DTT Pay TV platform with proposition of convenience and affordable

• BPL Exclusive rights for 3 seasons (2013-2016)

D Academy Keluarga Somat

As online become our focus, we have done significant improvements in Liputan6.com

41183 41214 41244 41275 41306 41334 41365 41395 41426 41456 41487 41518 41548 41579 41609Pageviews (in Mn.) Alexa Rank

Rank 195th

Rank 31th Pageviews & Alexa Rank

2012-2013 (PV in Mio)

Scalable Platform1 Revamp Content2 SEO and SEM3

To foster online industry growth, we believein partnership as we did with traditional TV business

Production house drama programs

New Partnership

Diversified animation house

Television Online

Emtek

Online Media ECommerce Game Studio