Indonesian digital publisher IDN Media has concluded an investment from a consortium of global investment firms that is lead by North Base Media and joined by GDP Venture, East Ventures, and MNM Creative, a multimedia and entertainment company.
The investment, which is undisclosed, will help scale IDN Media and grow its leading portals IDNtimes.com and Popbela.com.
It will also fund the expansion of IDN Media’s mobile-first digital video programs, IDNtv. The firm will also use the proceeds to expand its team for branded content (IDN Creative) and in building an automated ads platform for brands (IDN Ads).
Winston Utomo, co-founder and CEO of IDN Media, said, “It’s a fascinating time for the media industry, where social, mobile, and digital converge to shift the way people consume content.”
With this round, IDN Media hopes to leverage on the investors’ experience in the media, technology, consumer goods, and movie production space.
Willson Cuaca, Co-Founder and Managing Partner at East Ventures, said, “They reach a massive, loyal audience and have proven to be among the most creative, popular and influential new media players.”
Indonesian media market
Michael Y. Chow, Managing Director at MNM Creative, said, “In such a short period, they (IDN Media) have established themselves as a market leader for Millennials.”
The investment comes at a time when spending on entertainment and media in Indonesia has grown rapidly in recent years, driven by the country’s expanding middle class and rising disposable incomes.
In an official statement, Sasa Vucinic, Managing Partner at North Base Media, said, “IDN Media has built an exceptional market-winning, data driven company that harmonizes latest technology and editorial skills to create and deliver unique content in innovative ways.”
A report by PWC forecasts that overall spending on entertainment and media in Indonesia is expected to rise during the 2013- 2018 at a compound annual growth rate (CAGR) of 10.1 per cent.
This growth rate is exceeded only by India (11.6% CAGR), China (10.9% CAGR), and Pakistan (10.6% CAGR), with Indonesian growth being on par with Vietnam’s and ahead of the predicted Asia Pacific average CAGR of 5.7 per cent, it noted.
It is notable that newspapers will continue to remain Indonesia’s largest entertainment and media segment, with overall revenues growing much faster than in most other countries, which are seeing declines.
This comes at a time when the print media business model is shifting in reaction to competitive pressures, with global newspaper circulation revenues larger than newspaper advertising revenues in 2015, and a growing business-to-consumer emphasis. For the 2010-2015 period, digital advertising has been increasingly dominated by Facebook and Google.