- Vidio claims streaming dominance in Indonesia despite heavy losses.
- The company remains optimistic about profitability.
- Prominent backers have invested in Vidio, valuing the company at nearly $1 billion.
Emtek Group’s Vidio, a nearly unicorn-valued video-on-demand (VOD) platform, boldly asserts its dominance in Indonesia’s streaming market. The company’s 2024 outlook report showcases Vidio’s triumph over regional and global competitors, including Netflix, Viu, and Amazon Prime Video, across various metrics.
However, a recent study by MPA suggests that Vidio trails Netflix in premium viewership and monetization, capturing 21% of Indonesia’s total VOD viewership in 2023.
Profit and loss nearly at the same time
Vidio’s managing director, Sutanto Hartono, acknowledges the fierce competition from global firms and new media platforms.
The company recorded a 40% year-on-year net revenue growth in Q3 2023, reaching US$48.5 million for the nine months ending September, but its losses widened by 53% to US$42.7 million in the same period.
Hartono remains optimistic about Vidio’s path to profitability, emphasizing the importance of local content, particularly “sinetron” (local soap operas), in capturing market share.
Big investors bet on Vidio’s potential
Vidio’s success has attracted significant investments from prominent backers, including Affinity Equity Partners, Sinar Mas Group, Grab, and Bali United.
The company’s post-money valuation reached US$945 million after a US$45 million funding round in June 2022.
Despite challenges such as high piracy rates, Hartono believes that the ongoing digitalization of media will continue to drive Vidio’s growth, attracting more customers as consumers switch from analog television to digital platforms.
To read the original article: https://www.techinasia.com/emtek-vidio-banks-local-content-win-indonesian-streaming-crown
