PT MNC Vision Networks Tbk - Public Expose May 2021 - IDX
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Listed and traded on the Indonesia Stock Exchange
STOCK CODE: IPTV
PT MNC Vision Networks Tbk
Public Expose
May 2021
1
Disclaimer
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In addition, the information contained in this presentation contains projections and forward-looking statements that reflect the company's current views with respect to future
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2
Macro Drivers Support Industry Growth
Population (in millions) Pay TV/IPTV – Households Penetration Fixed Broadband – Households Penetration
In thousand households In million households
• The world fourth most populous nation.
• GDP per capita approx $4,000. Pay TV/Total HH 14% Fixed BB Pen./Total HH 17%
270 • Real GDP growth of 5.5% per annum.
13%
6.942 14%
5.944
108 96
69 2.634 3.397
32 10 13
6 3.310 3.545
Indonesia Philippines Vietnam Thailand Malaysia Singapore 2019 2024 2020 2025
Pay TV (Excl. IPTV) IPTV
Fixed Broadband Subs Direct SVOD Subs Online Video Revenue
In million In thousands
In $ mn
960
21.616 503
10 13 366
5.142 219 458
148
2020 2025 2020 2025 2020 2025
SVOD AVOD
• A large & young population, 226mn people below age of 54; • 76% of the net addition to total subscriber growth from • With an increase in fixed broadband adoption and ever
growing by 3 to 4mn people every year for the next 15 2019 to 2024 is projected to be from increasing IPTV more affordable mobile data, OTT media demand is
years. subscribers projected to increase substantially over the next 3-5 years
• Fixed broadband subs stood at 10 million households by end • Direct SVOD penetration to total population in Indonesia • Online video revenue (SVOD and AVOD) is projected to grow
of 2020. This figure will grow to 13mn households in 2025, remains one of the lowest in the Asia Pacific region at 2% in from $366 million in 2020 to $960 million in 2025
which represents 5.4% CAGR (2020 – 2025). 2020 – this is projected to grow significantly from 5.1 million
subscribers in 2020 to 21.6 million in 2025, representing a
Source: MPA Research CAGR of 33% 3
The Most Integrated Subscription Platform
with Content Superiority
* As of April 2020
PT MNC Vision Networks Tbk (IPTV)
PT MNC Sky Vision Tbk PT Digital Vision Nusantara PT MNC Kabel Mediakom (i) Play Box PT MNC OTT Network PT Mitra Operator Local (II) Vision Pictures
DTH post-paid Pay TV DTH pre-paid Pay TV Broadband & IPTV Android TV OTT Box OTT – TV Anywhere Local Cable Operator Pay Channel & VOD
• Broadening reach of • Produces and
• Over 90% market • DTH KU-Band for cost • Distribution through • SVOD & AVOD Video
• Provides high speed MVN to untapped operates 13 pay
share with 2.1mn efficient services, MNC Vision, MNC OTT Service
subscribers. FTTH broadband and Pay-TV Market all channels.
capturing mass Play, digital channel
interactive IPTV • Vision+ has 1.8mn over Indonesia. • Produces original
• DTH S-band (2.520 – market segment. (e-commerce), and
services. paid subs and over
2.670 Ghz) for retail dealership. • LCO Partnership content suited for
• Acquires 10,000 - 34mn MAU.
extensive nationwide • 3rd largest broadband through digitalization digital platform
12,000 new • Selling Play Box using
coverage. with 1.5mn home • Vision+ provides or content licensing & (short and medium
subscribers on a daily 3rd party broadband
pass and close to more than 10,000 acquisition form content).
• Hidden treasure: 5G basis. network.
300,000 subs. hours of VODs and up
and LTE spectrum. • Drive subscriptions by • Vision Pictures has
• Currently sitting with • Exclusive FTA, Pay to 120 linear
• Distribute Android TV supplying with MNC produced over
• Distribute Android TV more than 6.5mn channels and VODs at channels with catch
OTT Box. Group superior & 64,000 hours of in –
OTT Box. subscribers. affordable price. up features
premium content house content
i) Playbox: Strategic Business Unit (SBU) under MNC Play
ii) Vision Pictures: Strategic Business Units (SBU) under IPTV
4
MNC Vision - Quality Focused And Continuous Cost Efficiency
• MNC Vision provides DTH-based Pay TV services in Indonesia with 2.1mn subscribers, which represents 90% market share.
Capturing massive market opportunity in an archipelago.
• Subscriber’s growth will be focused on reaching broader segments in tier 2 and tier 3 cities (70% of total households in Indonesia)
and LCO (local cable operator) acquisitions to expand DTH market share.
• Hidden Treasure: Monetization of 5G and LTE Spectrum (150 Mhz).
• Distribute Android TV OTT Box.
Revamping MNC Vision Business Model - Sale of STB/Equipment
1. New customer acquisition to purchase STB/equipment for a more efficient operational expenditure.
2. Reduce costs of STB/equipment, viewing card/CAS, outdoor unit, and low noise block (LNB) by at least 25%, which enables the
Company to sell the equipment for $31/set, from $44/set.
3. This model will decrease overhead cost, such as sales, technical, and other related expenses.
4. Sale of STB leads to higher revenue and healthier cash flow.
5. Starting November, MVN has transitioned into selling its equipment to customers and has been fully implemented to our new
customers.
6. Acquisition target: 2000 new subscribers per day – upon the full implementation of the new model.
5
K Vision – Pay TV Platform for the Mass Market
(in thousands) Customer Acquisition 514
• Prepaid Pay TV, which captures mass market in
August: Acquired by MVN
382 388 Indonesia with 20+ mio target homes that can
344 potentially be a subscriber.
288 290 304
250 263
240
262 257 • Acquires 10,000 – 12,000 new subscribers on a
226
213 205
186 204 daily basis with more than 6.5mn subscribers as of
161 155 April 2021.
135
107,8
82,2 • LCO Partnership through digitalization and
45,3
content licensing.
• QR Link to ramp up voucher sales to Rp50 to
Jun-19
Jun-20
Oct-19
Oct-20
Mar-21
Mar-20
Nov-20
Jan-21
Jul-19
Nov-19
Apr-21
Sep-19
Dec-19
Jan-20
Apr-20
May-20
Feb-20
Jul-20
Sep-20
Dec-20
Feb-21
Aug-19
Aug-20
60bn/month
(in billions) Top Up Voucher Purchase 20,2
18,6
16,7 16,4
14 14,4 14,6
13,6 13,4 12,8
12,3 12,2 11,8 12
11,4
10 9,5 10,1
6
Fixed Broadband and IPTV- Coverage Expansion For Extensive Growth
• MNC Play is the 3rd largest broadband and IPTV operator with close to 1.5mn home pass and 300,000 subscribers since its
inception in 2014.
• Secured various partnership with neutral network providers to expand its home pass network that lower capex and opex
requirement in the future and allows the Company to focus on the delivery of its services (internet & IPTV)
• Distribute Android TV OTT Box.
3 strategic stance for broadband & IPTV expansion
1 2 3
Subs & HP Growth 2015 - 2020
400 1600
350 1400
300 1200
250 1000
200 800
150 290 300 600 MNC Play has secured partnership with ICON+,
265
100 175 400 FiberStar and Moratelindo, which allows the
50 57 115 200 Company to lease excess network capacity to
0 0 penetrate into customer homes.
2015 2016 2017 2018 2019 9M-
Introduction of Playbox (android TV OTT box) in
2020 This will expedite MNC Play’s future growth, both in
terms of number of subscribers and home pass May 2020 to penetrate all broadband
Subs HP in thousands (000) expansion, without having to do internal home pass households in Indonesia
rolling out activities.
7
Penetrating Untapped Pay-TV Market – Local Cable Operator (LCO) Partnership and Acquisition
• In May 2020, MVN completed its first LCO
No of Registered LCO:
acquisition located in Batam, Kepulauan
417
Riau. There are 3 acquisitions on the
pipeline in H1-2021 to be completed in East
Java, Central Java, and West Nusa Tenggara
with a total subscribers base of around
100,000.
• There are many cable operators that obtain
MNC Group’s channels illegally and
redistributing it in their own region.
Acquiring these LCOs will help to prevent
piracy and broaden MVN networks. This
strategy lets the Company gain stronger
presence in those areas
LCO PARTNERSHIP - METHODS • By supplying MVN’s content to local cable
operators, it will help them better perform
and grow rapidly in their respective region.
Digitalization/Content
LCO Acquisition OR
Licensing
• Target LCO Partnership (subs based): 2
million subscriber 8
Vision+ – TV Anywhere, Anytime
Subscription Video on Demand (SVOD):
• Vision+ provides more than 10,000 hours of VODs and up to 120 linear channels with catch
up features, which are offered independently and through bundling with the packages
offered by MNC Vision, K-Vision, MNC Play, and Playbox.
Advertising Video on Demand (AVOD):
• Vision+ offers free viewing with ad support for certain VODs and linear channels.
• Free users may upgrade to subscription with no ads if they wish to enjoy premium content,
available in sachet pricing, starts from daily, weekly & monthly subscription fee.
Vision+ Subscriber's Growth (in millions)
2.562
1.820
1.610
Paid Subs
5.8mn 34mn 1.117
Registered MAU
2019 2020 Q1-21 2021P
*data as of Q1-2021
9
Vision Pictures: Largest in in-house production and number of
channels in Indonesia
• MVN Group is exclusively supported by
Vision Pictures, which produces and
operates 13 pay channels from various
genres.
• Exclusive rights to carry MNCN’s 4 FTA
channels, which command an average
audience share of 50% on FTA market.
Free-to-Air (FTA) • Local channels have always been the
audience first choice even on Pay-TV
market
10The Most Extensive Indonesian Content Selection, Including Exclusive
MNC Group Content
Most extensive Indonesian contents with exclusive support from MVN group exclusive original content developed by Vision+…
We offer the broadest selection of Indonesian language content as a result of our partnership with Vision+ shows more than 80 title of exclusive content from MNC Pictures, and initiates a process
MNC. to develop and produce up to 20 new original content production every month
This partnership allows access to its content library, including MNC Pictures, Indonesia’s largest
drama production house by revenue and productivity
Top 5 exclusive Indonesian contents
Ikatan Cinta
• TV Rating: 10.9 (ranked 1st out of the top 10 programs nationally) 2
• Audience share: 40.4%3
Master Chef Indonesia
• TV Rating: 4.3 (ranked 2nd out of the top 10 programs nationally) 2
• Audience share: 23.4%3
Amanah Wali 4
• TV Rating: 4.2 (ranked 3th out of the top 10 programs nationally) 2
• Audience share: 20.6% 3
…as well as extensive Asian content library
Putri untuk Pangeran
• TV Rating: 3.5 (ranked 4th out of the top 10 programs nationally) 2
• Audience share: 16.7%3 Focus on acquisition of Asian content that appeals to Indonesian audience, with more than 80
Asian titles per year
Audisi Idol SPC Season 2020 Strong ability to obtain Asian content distribution rights due to established track record of senior
• TV Rating: 3.0 (ranked 5th out of the top 10 programs nationally) 2
• Audience share: 18.8%3
management in building content library
MNC Group commands the largest market share in both Indonesia Pay TV (25.9% market share)
and FTA market (consistently +50% market share)1
FTA Channels (FTA Market) Pay TV Channels
Rank Channel Share (%) Rank Channel Share (%)
1 MNC Group 25.90
1 MNC Group 50.0
2 TRANS Group 19.01
2 SCM Group 23.8 3 SCM Group 15.19
3 VIVA Group 11.9 4 VIVA Group 13.71
4 Trans Group 11.6 5 FOX & Disney 8.20
5 Metro 1.5 6 Warner 5.74
6 TVRI 1.2 7 METRO 5.07
8 Sony 1.54
9 VIACOM 1.38
Note: 1) December 2020; 2) December 2020 (excl blocking program) 10 TVRI 0.92 11Local Channels Thrive in Pay-TV Market (FTA TV Rank 1 – 10)
Number #1 Indonesia Pay TV Market position by 25.90% market share
(FTA Channels generate highest audience share)
The Top 10 Pay TV channels
Rank Channel Share (%) Rank Channel Share (%) Rank Channel Share (%)
in Indonesia.
1 RCTI Pay 11.59 26 FOX ACTION MOVIES 0.72 51 ASIAN FOOD CHANNEL 0.17
2 TRANS Pay 10.65 27 NATIONAL GEOGRAPHIC 0.62 52 MNC SHOP TRENDY 0.17
3 TRANS7 Pay 8.36 28 S-ONE 0.59 53 DMAX 0.17 Rank Channel Share (%)
4 SCTV Pay 7.98 29 NICKELODEON 0.53 54 COMEDY CHANNEL 0.16 1 MNC Group 25.90
5 IVM Pay 7.21 30 DRAMA CHANNEL 0.49 55 MNC FASHION 0.15 2 TRANS Group 19.01
6 TVONE Pay 7.07 31 CELESTIAL MOVIES 0.44 56 FOOD AND TRAVEL 0.15 3 SCM Group 15.19
7 ANTV Pay 6.64 32 MOVIE CHANNEL 0.42 57 THRILL 0.12
4 VIVA Group 13.71
8 METRO Pay 5.07 33 FOX CHANNEL 0.41 58 FOX LIFE 0.12
9 GTV Pay 4.33 34 CCM 0.38 59 DISCOVERY CHANNEL 0.12 5 FOX & Disney 8.20
10 MNCTV Pay 3.63 35 BEIN SPORTS 1 0.36 60 DIVA 0.11 6 Warner 5.74
11 DISNEY JUNIOR 1.49 36 BERITA SATU 0.31 61 EXTREME CHANNEL 0.11 7 METRO 5.07
12 CARTOON NETWORK 1.44 37 HEALTH AND BEAUTY 0.30 62 FOX SPORTS 0.1 8 Sony 1.54
13 FOX FAMILY MOVIES 1.34 38 INFOTAINMENT 0.28 63 SOCCER CHANNEL 0.10 9 VIACOM 1.38
14 HBO 1.33 39 Z BIOSKOP 0.28 64 ANIMAL PLANET 0.10 10 TVRI 0.92
15 FOX MOVIES 1.20 40 TOONAMI 0.28 65 GAMES CHANNEL 0.09
16 CNN INDONESIA 1.15 41 HBO HITS 0.27 66 AUTO AND GADGET 0.09 Pay TV Market is dominated by local group:
17 MNC ENTERTAIMENT 1.01 42 FOX SPORTS 2 0.27 67 PREMIERE 0.08
18 INEWS Pay 0.96 43 HBO FAMILY 0.25 68 GEM 0.08
79.8% Audience Share
19 TVRI1 Pay 0.92 44 MNC LIFESTYLE 0.25 69 HOME AND LIVING 0.08
20 NICK JUNIOR 0.85 45 KIDS CHANEL 0.24 70 ANIMAX 0.07
21 CINEMAX 0.82 46 FOX CRIME 0.22 71 IDX CHANNEL 0.06
22 MNC NEWS 0.82 47 MUSIC CHANNEL 0.22 72 CHANNEL V 0.06
23 BABY TV 0.82 48 HIDAYAH 0.22 73 FX 0.02
24 DISNEY CHANNEL 0.80 49 MNC SPORTS 0.21 74 NGC WILD 0.01
25 AXN 0.80 50 HBO SIGNATURE 0.2 75 TRAVEL LIVING CHANNEL0.01
Source : Nielsen 12Vision Pictures Performance – Pay Channels Ranking (non-FTA)
Number #1 Indonesia Pay TV Market position by 26.1% market share (Excl FTA Channels)
Rank Channel Share Rank Channel Share Rank Channel Share
1 S-ONE 7,80 21 MUSIC TV 1,86 41 AXN 0,64
2 KIDS TV 5,86 22 BABY TV 1,86 42 BEIN SPORTS 1 0,60
3 TOONAMI 5,45 23 INFOTAINMENT 1,75 43 THRILL 0,57
4 NICK JUNIOR 5,40 24 NATIONAL GEOGRAPHIC CHANNEL 1,72 44 ANIMAL PLANET 0,56
5 CNN INDONESIA 4,91 25 FOX SPORTS 2 1,69 45 NGC PEOPLE 0,50
6 CARTOON NETWORK 4,00 26 MUSLIM TV 1,68 46 MNC SHOP TRENDY 0,44
7 FOX MOVIES 3,93 27 FOX CHANNEL 1,62 47 ASIAN FOOD NETWORK 0,37
8 VISION PRIME 3,86 28 HBO FAMILY 1,48 48 CNN INTERNATIONAL 0,30
29 FOX CRIME 1,37
9 MNC NEWS 3,43 49 SOCCER CHANNEL 0,29
30 ZEE BIOSKOP 1,22
10 CINEMAX 2,72 50 ANIMAX 0,25
31 LIFE CHANNEL 1,10
11 HBO 2,68 51 BESMART 0,18
32 LIFESTYLE AND FASHION 0,87
12 FOX ACTION MOVIES 2,59 52 CHANNEL V 0,11
33 DISCOVERY CHANNEL 0,86
13 NICKELODEON 2,55 53 TRAVEL LIVING CHANNEL 0,09
34 MNC SPORTS 0,85
14 NGC WILD 2,39 54 IDX CHANNEL 0,08
35 CELESTIAL MOVIES 0,81
15 ENTERTAINMENT 2,32 55 CNBC ASIA 0,03
36 FOX LIFE 0,78
16 BERITA SATU 2,27 56 AMC 0,00
17 FOX SPORTS 2,21 37 CCM 0,74 57 GEM 0,00
18 DISNEY CHANNEL 2,12 38 FOX FAMILY MOVIES 0,73 58 DIVA 0,00
19 OK TV 2,08 39 DISNEY JUNIOR 0,72 59 DMAX 0,00
20 HBO HITS 2,06 40 HBO SIGNATURE 0,64 60 E! ENTERTAINMENT 0,00
Source: Nielsen Pay-TV October 2020 13IPTV FY-2020 Financial Results
*) exclude depreciation and amortization
14For further information, please contact Investor Relations Division:
Samuel Hartono Tanoesoedibjo
samuel.tanoesoedibjo@mncgroup.com
Stefanie Laurensia Prasetyo
Stefanie.prasetyo@mncgroup.com
https://www.mncvisionnetworks.com/
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