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Vidio faces profitability challenges amid tight OTT market
Homegrown streaming platform Vidio, along with its competitors, faces a challenging road to profitability despite growing users, particularly because of a tight market and costly content acquisition.
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Local content played a pivotal role in driving subscriber acquisition for streaming platforms in Indonesia. According to a Media Partners Asia report, for homegrown streaming platform Vidio, sports remain significant . (Unsplash/Tech Daily) (Unsplash/Tech Daily)
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omegrown streaming platform Vidio witnessed a substantial revenue upswing in the first half of the year, while doubling losses in the same period.
According to its recent financial statement, Vidio’s net revenue surged by 34 percent year on year (yoy) in the first half of 2023 to Rp 477.9 billion (US$31.1 million).
However, the company faced a large financial setback with net losses swelling to Rp 510.5 billion in the first half of the year, doubling from Rp 226.5 billion in the same period last year.
Institute for Development of Economics and Finance (Indef) researcher Nailul Huda said the over-the-top (OTT) streaming industry is a fiercely competitive market, marked by price battles among platforms.
Even streaming giants like Netflix have voiced concerns about this cutthroat competition, he said, which caused the firm to lose subscribers for the first time in a decade in 2022.
“It will take quite a while for OTT platforms [to reach profitability],” Nailul told The Jakarta Post on Friday.
Read also: Vidio’s winning strategy with local content power
