Dynamic development in local television industry<\/p>\n
By Marselli Sumarno<\/p>\n
JAKARTA (JP): The emergence of five private televisions in
\nIndonesia over the past six years has triggered an explosion in
\nlocal TV production houses and commercials. There is brisk
\ncompetition to win the hearts of TV viewers in commercials.<\/p>\n
Fortunately the stations do not have to vie with government-
\nowned station TVRI, which celebrated its 33th anniversary
\nyesterday (Aug. 24), for commercial accounts. Private TV
\nstations, however, do have to contribute a part of their income
\nfrom commercials to TVRI. Minister of Information Harmoko said
\nlast year that they should hand over 12.5 percent of the money
\nthey generate from commercials to TVRI. This state television,
\nwhich now covers 80 percent of Indonesia's territory, also
\nreceives revenue from television license fees collected from TV
\nowners.<\/p>\n
In line with the pace of economic progress, more money has
\nbeen spent on advertising. The significant growth of four
\nbusiness sectors: automotive, pharmaceuticals, household goods
\nand the property business, has greatly contributed to the
\nincrease of spending on commercials. This year TV advertisement
\nspending is estimated to reach US$350 million.<\/p>\n
Is the \"advertisement cake\" big enough to be distributed
\nbetween the five private TV stations, whose average overhead cost
\nis $4 million each month?<\/p>\n
Last year the biggest portion of commercials went to RCTI (41
\npercent), followed by TPI, SCTV and ANteve. The composition of
\nearnings from advertisement this year will obviously change
\nbecause of the emergence of Indosiar in January. Indosiar soon
\nwon public attention by telecasting good quality films from the
\nU.S. and Hong Kong.<\/p>\n
Apart from vying for advertising clients, private TV stations
\nare also engaged in a competition to expand their national-scale
\nbroadcasting networks and to attract viewers. New tactics have
\nbeen launched to steal people's hearts. For example, in May
\nANteve joined hands with MTV Asia Network with an inauguration
\nwhich was symbolically marked by superstar Jon Bon Jovi being in
\ntown. Under this cooperation, some 4 million viewers of ANteve
\ncan now watch MTV musical programs for six hours a day in three
\nsessions of two hours each.<\/p>\n
The competition between private TV stations is becoming
\ntougher, but at the same time there is dynamism in terms of
\nbusiness.<\/p>\n
The number of locally produced TV films, miniseries and
\nserials (known here as sinetron) rocketed to 730 last year. That
\nwas up from just 112 in 1990. This year the total is expected to
\nreach 800.<\/p>\n
There is a demand for more and more local programs. However it
\nis not that easy to meet the demand. An imported program can be
\npurchased at a low price, ranging from between US$1,500 and
\n$2,500, but the production of a local program of the same
\nduration may cost between $20,000 and $30,000. Meanwhile, the
\nrate of booking a locally made commercial at prime time is only
\n$4,500 while that of an imported one is between $5,000 and
\n$7,000.<\/p>\n
There is an indication of saturation in local programs,
\nparticularly TV films. Some are boring while others are
\ncarelessly made. A few, however, have really won the hearts of
\nviewers of all walks of life, for example Si Doel, Anak Sekolahan
\n(Doel, the Graduate), a drama comedy directed by Rano Karno, who
\nis also in the main cast. This comedy, telecasted by RCTI, which
\ncelebrated its 6th anniversary also on Aug. 24, is simple but
\nfresh.<\/p>\n
Si Doel was the most popular program in Indonesian TV history
\nin 1994. While this year it seems that the title is to go to The
\nReturn of Condor Heroes, a Hong Kong kung fu serial, which was
\naired by Indosiar.<\/p>\n
Another phenomenon which is worth exposing here is the boom of
\ntelenovellas (Latin America miniseries). These include Maria
\nMercedez, Kassandra, Valerie Valerie, Ines the Secretary, and
\nSimplementa Maria. One of the reasons why telenovellas have
\nbecome popular is because they are dubbed in Indonesian, although
\nthe quality of dubbing is poor.<\/p>\n
The competition goes on and on. Now the TV stations have new
\ncompetitors they must reckon with, namely foreign TV broadcasting
\nnetworks. These foreign TV stations, which get into people's
\nhouses through satellites, must be taken into account because the
\nIndonesian government has permitted ownership of parabolic
\nantennas and adopts an open sky policy.<\/p>\n
The Indovision Group, the licensed holder of cable TV
\nbroadcasting in Indonesia, and PT Matahari Lintas Cakrawala, as
\nits customer service department, have served as agents for the
\nAmerican \"Gang of Five\" group made up of CNN, ESPN, HBO Asia, The
\nDiscovery Channel, and TNT & The Cartoon Network.<\/p>\n
As of last June, Indovision serves about 10,000 houses and
\n18,000 hotel rooms. Peter Gontha, president of Indovision,
\nexpected that eight percent, or around 1.4 million, of
\nIndonesia's estimated 17 million households with TVs will become
\nsubscribers to Indovision.<\/p>\n
Indovision also established cooperation with Star TV in April.
\nJakarta has since become the headquarters of Star TV for
\nSoutheast Asia. This TV network has appointed David Dennis as its
\nSoutheast Asia Regional Director.<\/p>\n
\"The largest business potential over the next five years in
\nSoutheast Asia is here,\" David Dennis said to Variety
\nentertainment weekly. Star TV has set a target of some 70,000
\nsubscribers in Indonesia.<\/p>\n
According to research conducted by the Ministry of
\nInformation, 70 percent of a total of between 800,000 and one
\nmillion owners of parabolic antennas use their antennas to
\nimprove the quality of local TV transmissions. There may be a
\nshift in the use of parabolic antennas in future. But one thing
\nis sure: the TV industry in Indonesia reflects a dynamic
\nbusiness.<\/p>",
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