• Ir. Hardijanto Saroso MMT, MM

• Jakarta 30 November 2011

DIGITAL TV in INDONESIA: “History and Trend”

Indonesia Television History

2002 2003 2009 2012 1960’s 1970’s 1990’s 1980’s

1962 Asian Games

(ganefo) TVRI

1963 TVRI Go

Commercial Ad

1981 TVRI

Stop Ad

President Decree No 215/1963

About TV Ad MD No.190A/KEP /MENPEN/1987

Limited Regional Channels Broadcasting Permit

1989 SST DKI

1990 SST

Jawa Timur

Kepmenpen No 04A/KEP/Menpen/1993

MD No.27/2007 Digital Broadcast

Trial

MD No.43/2009-Broadcast Network System

MD No.39/2009-Digital Broadcasting

1989-1993 LOCAL/REGIONAL

BROADCATING ERA

1993-2002 NATIONAL BROADCASTING

ERA

2002 NETWORK BROADCASTING

SYSTEM ERA

Law No.32/2002

About Broadcasting

24-4-90

24-4-89

23-1-91

7-3-93

11-1-95

25-11-01

17-1-02

25-11-00

2-9-2008

NATIONAL BROADCASTING SCTV moved to JAKARTA

NATIONAL BROADCASTING

MD = Minister (Information) Decree

2012 Digital

ERA 2018 ASO

ENTERTAINEMENT VENUE & PRODUCT MERCHANDIZING-

NETWORKING

KNOWLEDGE INTENSIVE SERVICES

CREATIVE BUSINESS SERVICES

MEDIA & ENTERTAINMENT

ART

Visual/Performing Arts

Film, Radio, TV,Press

Advertising

Publisihing

Technical Design

Research Consultancy

IT/TECHNICAL Services

Game – Attraction Merchant

COMMUNITY

BUSINESS STAGES – Traditional TV

Total Media Entertainment …….. Full Blown concept …….. 7th generation????

The 7th Generation ?

SO much option .........

Technology is so EASY !!

• Human-Computer Interfacing (HCI) – Keyboard and Mouse!

– Graphical User Interface

– 3D Interface

– Haptic Interface

– Accelerometer

– Camera-based Control

– Motion Control

– Multi-touch Control

– Speech Recognition

– Voice Synthesis

TV-TELCO-INTERNET are getting close

Data Media

• 11 National TV Networks

• 97 Regional

• 30 Pay TVs

• 258 new proposed TV licenses

• 2167 new proposed radio licenses

Indonesia Digital Migration Schedule

9

2007 2008 2009 2010 2015 2020

Switch Off Analog TV Major SRI

Cities In 2012

Switch Off National

Analog TV in 2018

Analog Station TV Network

New Regulation

DVB Digital Format

Indonesia Decided

Digital trial In indonesia

for PT KTDI

MD No. 07 /PER/M.KOMINFO/3/2007

about Standard

Operation of Digital Fixed

FTA

MD No. 39/PER/M.KOMINFO/10/2009 about The framework of Digital Fixed FTA

MD No. 22/PER/M.KOMINFO/11/2011 about the implementation of Digital Fixed FTA

Shannon Limit DVB-T vs DVB-T2 VS ISDBT

DVB-T2 systems reached shannon limit

Technical Specification DVB-T vs DVB-T2

COFDM = Coded Orthogonal Frequency Division Multiplex FEC = forward Error correction, FFT = Fast Fourier Transform,

MAX DATA RATE

MAX ROBUST

Technical Specification DVB-T2

Sample class service allocation in DVBT2/Mpeg4

SDTV SDTV SDTV R R R R HDTV/6 HDTV/6 SDTV SDTV SDTV MUX 1 MUX 2 MUX 3 MUX 4 MUX 5

SDTV SDTV SDTV SDTV SDTV SDTV SDTV SDTV SDTV SDTV

HDTV/8 HDTV/8 HDTV/8 HDTV/8 HDTV/8 SDTV DATA

H H H H HDTV/8 R R R R SDTV HDTV/6 SDTV H H H H H

H H H HDTV/8 HDTV/6 SDTV SDTV R R H H HDTV/8 SDTV

Mobile

Online TV

Analog

Domain

Digital

Domain CONVERGENCE

HARDWARE-CONTENT DOMAIN

HARDWARE-CONTENT-APPLICATION-SERVICES DOMAIN

TV on desktop device

TV on Notebook device

TV on tablet device

Smart TV

MIGRATION AND CONVERGENCE

2010 2011 2012

ANALOG

DIGITAL DVB-T2 SDTV ONE WAY

DIGITAL DVB-T2 SDTV TWO WAY/VOD

DIGITAL DVB-Mobile/ DVB-Light

DIGITAL DVB-T2 HDTV

Broadcasting

• DVB-T/S/C

• DAB

• DRM

TELECOMMS

• GSM

• GPRS

• 3G/HSDPA

IT

• Storage Media

• Processor Speed

IP

Coding / Compression

DSL LTE

Wimax

DVB-H/ DVB-Light

DATA STREAM

Indonesia Demographic

118.320.256 in cities/urban area

119.321.070 in village/rural area

94,76% 67,73% 45,59%

People distribution Jawa = 57,5% Non Jawa = 42,5%

Spending per head (2009) Rp. 631.500 Poverty (2010) 31 million = 13,33% Sumber kompas 21 Nov 2011, BPS

Potential Business User

• Indonesia Population: ±235 million

• Televisi coverage : ± 180 -190 million

• Internet user: ± 40 million

• Handphone : ± 170 million

• PayTV : ± 2 million

• Facebook : ± 21 million

• Tweater : ± 17 million

Ecosystems FAMILY Ecosystem reveals insights about consume revolution

Family “Help me take care of my family”

Work & Study “Help me with my career or my study”

Entertainment “Entertain me”

Promises the greatest immediate return. Music Video Gaming

Has the most unmet demand. Home Systems Family Communications Scheduling Health & Fitness Community

Mobile workers are key. Productivity Communications Scheduling Commuting Work Skills Work/Life Balance Education Information

Data Flow

News-Information

Entertainment

Education

Consultation

Art/ Culture

Entrepreneurship

etc

Application of Content in Digital TV

Culture entrepreneurship Training

Scenery Education entertainment

News Information

SDTV HDTV HDTV HDTV SDTV SDTV SDTV SDTV

ADEX 2011* (by type of media Rp.Billion)

(*) Projected full year 2011 Source : MEDIA SCENE 2010/2011 & AGB Nielsen

• TV spending still take the biggest chunk, followed by NPP

Pay TV Subscriber

75%

25%

PayTV's Subscriber in Indonesia

Satellite PayTV

Cable PayTV

Year Total of Official Providers Pay TV in

Indonesia

1994 1 Provider

1996 2 Provider

2007 5 Provider

2011 10 ProviderYear Total of Pay TV's Subscribers in

Indonesia

2003 204,000

2007 596,075

2008 700,000

2009 900,000

2011 >2 million

Source Bloomberg

TV is King: “high reach & spread”

99%

39%

28%

26%

16%

12%

9%

Television

Newspaper

Radio

Internet

Tabloid

Cinema

Magazine

2010

2009

Based on 18-34 ABC+ , Urban Indonesia, Roy Morgan SS

But efficiency is decreasing, because of overcrowding

Top 5 multi-tasking activities while watching TV

1.Online

2.Reading the mail

3.Listen to the radio

4.Read newspapers

5.Read magazines

Source: Advertising Age, 2007

TV still the most consumed medium, while radio trend has been declining since 2009

TV and Radio “ most consumed”

Print media consumption trend also declining, starting from 2008

The Consumption of Print Media

Source: Internet World Stats, emarketer

36 mn Internet Users (15%) 160 mn mobile phone users

16.9 mn Internet Users (65%) 30 mn mobile phone users

17.4 mn Internet Users (65%) 83 mn mobile phone users

Digital: Large base, huge potential

Indonesia’s netizen sit in number 4th in Asia

Netizen = net citizen

Shifting in Internet function this year.

Internet mostly used for social networking

Source: Nielsen, All people 10+, 9 cities, in %, population: 50.701.000

2010 2011

Indonesia is the 3rd largest market for Facebook

1.9 mn new users in Facebook from Indonesia from 2009 to 2010.

Social Media in Indonesia

The Most Visited Website Majority netizen visit google for seeking the information

WEBSITE %

GOOGLE 81.0

FACEBOOK 77.3

YAHOO! 54.1

YOUTUBE 25.7

DETIK.COM 9.0

WIKIPEDIA 8.2

FRIENDSTER 7.7

KOMPAS.COM 6.9

KASKUS - KOMUNITAS INDONESIA 6.4

BLOGGER.COM 4.9

Source: Nielsen, All people 10+, 9 cities, in % based on internet users, W2 2011, population: 50.701.000

Broadband Penetration 2010

Source Frost and Sullivan

Wireless Broadband Penetration 2010

Source Frost and Sullivan

Average Revenue Per Unit

Mobile internet growth in Indonesia far exceeds growth in other countries

WE ARE ALL “ in the MOVE” From VOICE Community to TEXT Community

THE NEXT SHIFT: “Advanced Menu” From TEXT Community To ADVANCE MENU

COMBINE : why not HYBRID??

Internet Video, Premium Content

Broadcast/Broadband Broadcast Broadband

Leading Network

Broadcast Network

% B

road

cast

TV

Vie

win

g

53% 34% 0%

“Chek the world leader trend “

58%

22%

22%

35% 55%

6%

0%

20%

40%

60%

80%

100%

TV Usage Online Usage

Light Medium Heavy

MSN

Res

po

nd

ents

' Med

ia C

on

sum

pti

on

Source: June 2005 Millward Brown Ad Accountability Study

PC and TV - a different audience

The online video audience hardly overlaps the traditional broadcasters’ audience

39

One Alternatives Digital TV Implementation

PC Broadband

HbbTV (hybrid broadcast broadband TV)

Application Scenario in Hbbtv

Quiz

Portal

Teletext

P+

P-

Portal Portal

TV-Progr. 1

TV-Progr. 2

TV-Progr. 3

TV-Progr. 4

TV-Progr. 5

TV-Progr. 6

TXT

Info

Weather

flickr

YouTube

TV4 VoD

TV Services Broadcast related applications

Broadcast independent applications

HbbTV Examples

MHEG (Multimedia Hypermedia Expert Group)

Live content feeds & updates

e.g. Weather, News, Sports (XML)

DSMCC

Object Carousel

MHEG Engine

Receiver

Program Video & Audio

(Video Server playout)

MHEG Appl’n

TV

Display

Content

Management

Systems

iTV Authoring

Tools

Mux MHEG

Tools

DVB

TX MHEG content

MHEG content

MHEG Appl’ns

Broadcast Playout

Viewer Premises

IP Interaction

Channel

Internet

Transaction

Services A/V content

servers

Mediator

Server

Example MHEG

Video Stream Selection Shopping VOD

Interactive Advertising EPG EPG

FUTURE TV ..........................

Perfect Combo: Building your client’s business

Generate Awareness Engage / Involve

Develop Interest Enables Transaction

Gain Familiarity Ongoing Dialogue

Build brand credibility

Customer Relationship

NEW BUSINESS

What are Connected?

• Desktop computers • Server computers • Mobile devices

– Smart phones, iXYZ, e-books, etc.

• Embedded systems and appliances – Set-top boxes, game consoles (Wii, PS3, XBox), etc.

• Network equipments – Routers, switches, firewalls, etc.

• Detachable or removable devices – USB devices, cards, RFIDs, Octopus!

• People! WE CONNECTED

Interactive Broadcast

Enhanced Electronic Program Guide (EPG).

Full Internet Access Facilities

Enhance Video, Audio, Text, COMMUNICATION

Digital TV – Enhanced ……….. (A lot)!!

Enhanced Multi Channel Facilities

Many Channel Or Multichannels Jakarta 60 Channels Surabaya 60 Channels

Digital Quality Audio and Video

Fixed and Mobile Reception

Interactive Menu

Many Channel Jakarta 24 Channels Surabaya 17 Channels

Analog Quality Audio and Video

Fixed Reception

No Interactivity

More “Educated” and More Appropriate Entertainment Program Not Just Multichannel

Digital Quality is just “BETTER” unless HDTV

Fixed is OK, Mobile Is the BEST

Interactive Menu vs Parental LOCK

WAIT ………Just think ……… !!!!!

VIEWER

Consumer Access to Internet Content on/for the TV Different devices come to the market

+

PC-centric

Windows Media Extender

Desktop PC

Media Center Software

+

Media Center PC for the living room

+ Flexible platform + Processing power - Complicated - Costly

Vertical operators

• Multi-play bundles • HD on-demand • PVR functionality • Media Guide • Local content

Differentiators

+ Television focused + Managed Service - Closed system - Limited offer - Monthly subscription charge

CE-centric

Integrated

• Philips NetTV • Sony’s Bravia Link • ActiVila in Japan

Dedicated-device approach

Vudu

Xbox 360

Game consoles

PS3

TiVo Apple TV

+ Easy experience + Cost effective +/- (semi-) open system

Digital TV Framework Application

•Stock Market •Whether •Sport

•Catch Up TV

•Catch Up TV

INTERACTIVITY BUSINESS

E-learning : DIGITAL TV Webcast Setup

Head Office

Branch Server Room

Campus

Powerpoint Presentation

Q&A

AMA WAN

Camera

Webcast Equipment (Pinnacle)

LCD Projector

Students

Projection Screen

Backhaul Connection

Local Loop Connection

Network Server

Network Server

Audio System

Bayantel Branch Office

Bayantel Main Office

Network Hub Online Faculty

SUMMARY

• Innovation happens – In devices (mobile phones, PDA, i-pod, PC, …)

– In networks (broadband, 3G, DVB-H, …)

– In services (on demand, interactive, breaking news, podcast …)

• Innovation creates – Competitive markets

• New economic models

• New content, concepts and advertising models

• New (alternative) players or bring them together

– New offer or a better deal (service, price) for the consumer

• Innovation causes – important changes in our eco-systems/value chain

– an (r)evolution and cannot be stopped

As long as you are in control of new (technical) implementations, you can ‘control’ the (r)evolution, ...................

For thought ……..

57

IMPLEMENTATION FRAMEWORK

FAIR: EXISTING VS NEW

FEASIBLE

LOOK TO THE

FUTURE

NATIONAL POLICY

INCENTIVE

FIT

ADAPTABLE

AFFORDABLE

PROFITABLE

MANAGEABLE RISK

“Balance every wing”

Convergence

BRING ADDED VALUE

NOT JUST MULTICHANNEL

LOW COST

PROMOTE DEVELOPMENT OF

THE NATION

STAKEHOLDER BENEFIT

INDUSTRY REVOLUTION = TECHNOLOGY REVOLUTION + NEW BUSINESS REVOLUTION + LAW REVOLUTION ………. ?

Challenges Today

• SSJ vs TV Digital

• Frequency Refarming – Public FTA Digital vs PAY TV

– Fixed vs Mobile

• SET TOP BOX POLICY

• NATIONAL PRIORITY

• NATIONAL PROJECT

THANK YOU