Nuon Accelerates Integrated Monetisation to Strengthen National Digital Music Ecosystem

PT Nuon Digital Indonesia (Nuon) is targeting a major transformation in the business model of the national digital music industry to break the dependency on distribution alone. The Telkom Group subsidiary is promoting an integrated monetisation scheme to ensure that the economic value of music continues to circulate strongly within the domestic ecosystem. With a digital consumer base exceeding 190 million users, Indonesia has become one of the largest digital music markets in the region. However, this high level of consumption has not yet been fully matched by the optimisation of economic value for domestic industry players in a tangible way. Nuon’s Chief Executive Officer, Aris Sudewo, stated that the main challenge facing the industry currently lies in its fragmented monetisation structure. Additionally, the dominance of global platforms causes much of the economic value to flow out of the national ecosystem, to the detriment of local players. As part of this strategy, Nuon is developing a digital music ecosystem that includes streaming services via Langit Musik and content aggregation. The company is also utilising music for commercial needs through its PlayUp background music service to expand revenue channels. The goal is to broaden monetisation avenues beyond the conventional streaming model that has dominated the market thus far. Nuon is further leveraging the strength of the Telkom Group ecosystem, which reaches over 158 million mobile users and 4 million broadband households. This is being done to enhance distribution and massively convert users across all societal layers. This scheme is seen as capable of increasing access to premium digital music services while driving revenue growth for creators. According to Aris, strengthening the ecosystem must also be accompanied by increased ownership of local intellectual property (IP) as a strategic economic asset. This is considered essential to ensure that economic value derives not only from consumption but also from the management of creative assets. Strong IP management is viewed as the key to maintaining sovereignty in the creative industry amid global competition. “Going forward, the industry’s focus should not only be on user growth but also on ensuring that every interaction within the ecosystem generates economic value that can be retained domestically,” he added. Synergy among creators, distribution platforms, and infrastructure providers is essential to bolster the foundations of the national creative economy.