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Indonesia Consumers Trend :

Telecommunication, Technology,
Information & Media
For: KADIN (Indonesian Chamber of Commerce)
28 April 2010

Irawati Pratignyo

Confidential & Proprietary Copyright 2008 The Nielsen Company

More drive from Consumers for


Convenience to get Connected

Analytic Consulting

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Mobile Phone Penetration


Half of Population (in 9 cities) have been penetrated by mobile
(cellular) phones.
All people aged 10+, 9 cities (43,873,000), in %

47

48

49

43
40
37

21

06Q1

22

23

06Q3

25

27

07Q1

28

30

07Q3

31

32

08Q1

34

08Q3

09Q1

09Q3

Source: Nielsen Media Index Q3 2009

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Indonesia: Cell Phone trend usage

Social network

Entertainment

Image generator

Communication

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Smart Phone will surpass Regular Features

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constantly

connected conveniently through online


communities

Indonesia has > 500,000 connected Blackberry users

What is your pin ID?

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Internet usage increase in most Asian markets,


including Indonesia
%
100

80

60

40

20

17

0
2005

2006

Sin

Tai

2007

Msia

HK

2008

Thai

2009

Phil

Indo

Source : Nielsen Media Research 2008-2009

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Indonesian Internet habit rockets!

2008 : 300K user


2009 : 16.1 Million

Twitter

User (3rd in the


world)

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

47% of online

Facebook
Friendster

population
accessing facebook

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Confidential
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2009
The
Nielsen
Company
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Consumers are the New Authorities


Then

Now
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

April 28, 2010

9
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More Convergence & Consolidations

Analytic Consulting

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TV

Watch

Print

Read

Radio

Listen

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

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Print readers has been falling gradually since 2005.


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

%
24

17

16

11
9
NEWSPAPER
06Q1

06Q2

06Q3

06Q4

MAGAZINE
07Q1

07Q2

07Q3

TABLOID
07Q4

08Q1

08Q2

08Q3

08Q4

09Q1

09Q2

09 Q3

09 Q4

Source : Nielsen Media Index W1 2006 W4 2009

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Internet Users among newspaper


readers are increasing
34
29
25
22
18

19

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

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Radio listening trend declines .


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

42

34
RADIO
06Q1

06Q2

06Q3

06Q4

07Q1

07Q2

07Q3

07Q4

08Q1

08Q2

08Q3

08Q4

09Q1

09Q2

09 Q3 09 Q4

Source : Nielsen Media Index W1 2006 W4 2009

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But listening OnLine Increase ..


Radio listeners are increasing their internet use and listening to music more
via internet
Radio listeners - used internet in the past 12 months

Radio listeners - hobbies listen to music


internet function: listen to music

1084

22
19
811
15
565

2007

2008

2009

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

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

95
93

06Q1

06Q2

06Q3

06Q4

07Q1

07Q2

07Q3

07Q4

08Q1

08Q2

08Q3

08Q4

09Q1

09Q2

09 Q3

09 Q4

Source : Nielsen Media Index W1 2006 W4 2009

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TV still also captures most of the audience attention,


is Asia
%
96

97

95

96

94

Hong Kong

Thailand

Philippines

Indonesia

84
78

Singapore

Taiwan

Malaysia

Source : Nielsen Media Research & Panorama 2008-2009, % Penetration

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


Indonesia:
8.9%

86

60

1.4%
0.1%
2006

48
36

31

2007

2008

34

8.9

Singapore

Taiwan

Malaysia

Hong Kong

Thailand

Philippines

Indonesia

Source : Nielsen Media Research 2008-2009, % Penetration

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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 Accounts

Lebaran
2009

738
676

416
403
323
239

205

223

312

316

310

349

446

326
326

260 262

311329

283

W/E
W/E
W/E
W/E
W/E
W/E
W/E
W/E
W/E
W/E
W/E
04/01/2009 08/02/2009 15/03/2009 19/04/2009 24/05/2009 28/06/2009 02/08/2009 06/09/2009 11/10/2009 15/11/2009 20/12/2009

Home Theater

Source: Nielsen ScanTrack Service

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LCD TV Price has been dropping each year


Home Entertainment has becoming more and more affordable for self
indulgence

LCD TV
2008 Price
+/- Rp. 8,000,000

LCD TV
2009 Price
+/- Rp. 5,000,000
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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)

FTA TV
95%
Cellphone
49%
Pay TV
8.9%
Internet
17%

Source: TV Establishment Survey 2009 and Media Index

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Indonesia: Time spent on the screens


3:02

3:05

2:19

0:52

TV Avg Time/Day
2008

TV Avg Time/Day
2009

Internet

Cellphone

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

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Indonesian TV viewers also use cell phone as


short context communication medium
Based on 15+ mobile phone users in TV population, 10 Cities in Indonesia (Universe: 22,689,000 individuals)

1-<30 min.
22%
<1 min.
36%

30-<60 min.
16%

>120 min.
5%

60-120 min.
21%

Source: Three Screens Report 2009

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Viewers use the best screen available

153:47*
hrs

3:22**
hrs

3:37^
hrs

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

Usage is independent of time

Usage is independent of location


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 24

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Younger demos screen usage is more dispersed


65+

84.4%

4554

67.7%

5564

58.5%

44.9%

3.4 5.3

50.1%

1824

41.2%

1st Screen

0%

Source: CRE Study, 2009

20%
Live TV
Playback via DVR
DVD or VCR
Console Game

3.4 6.7

8.0

14.4

3.1

6.9 2.7

5.1

13.2

8.2

7.4

9.0

9.1

10.9

2.8

8.8

4.0 2.9

Software
Computer video

Mobile talk
Mobile text
Mobile web
Mobile other
Mobile video

9.1

12.0

0.6

12.1

Share of Average Daily Minutes of Screen Media


40%
60%
80%
Web
Email
IM

7.0

2.6

2.4

3.1

4.8

9.8

3.7

8:32

9:34

8:33

8:31

5.7

8:30

100%
4th Screen

2534

1.7 2.7

3.4 3.6

3rd Screen

3544

2nd Screen

Age Group

Total Screen Time (h:mm)


3.1
8:18
1.4 2.3 3.9 2.2

Page 25

Environmental/Other video
In-Cinema movie
GPS navigation %

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More Content with Context challenges

Analytic Consulting

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Content Explosions

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Content with Context created by the Consumers

The following are examples of


currently live web-community

Consumers and Marketers are now able to


interact through these type of web-community

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Sentiment behind the consumers buzz ?


 Positive drivers:

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


Positive
21%

Mixed
29%

Negative
15%

Neutral
35%
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
April 28, 2010
2007 Nielsen BuzzMetrics, a Nielsen Company business affiliate

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
29
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Global Trends?

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Key Take Outs


Consumers will be driving the growth of Telecommunication, IT &
Media Industry. They would like to be more and more Connected
at 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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Thank You

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