Indonesia’s Gojek is spinning off its video streaming service GoPlay and has secured capital from Southeast Asia-based investors for the unit, multiple people aware of the development told DealStreetAsia.
GoPlay has bagged about $15 million from venture capital (VC) firms including Openspace Ventures, Golden Gate Ventures, Ideosource Ventures and ZWC Partners, said three industry sources.
Gojek declined to comment for this story. The VC firms had not responded to DealStreetAsia queries at the time of publishing.
Gojek had on Wednesday announced strategic funding from Facebook and PayPal as part of an ongoing funding round. Existing backers Google and Tencent also topped up their investments in the firm, bringing its Series F total to over $3 billion.
GoPlay operates under Gojek Entertainment Group, a separate business division that comprises GoStudio (in-house film studio), GoLive (online gaming), Loket (event management and ticketing), and GoTix (movie and event ticket purchasing).
The firm offers Indonesian and Asian films on its platform as well as original content. GoPlay has also produced several films in partnership with Ideosource Entertainment, which operates an Indonesian film fund.
Last year, GoPlay chief executive Edy Sulistyo told Reuters that the firm had joined hands with South Korean entertainment powerhouses CJ E&M and SM Entertainment for partial access to their libraries. Gojek has also reportedly secured the streaming rights of hundreds of Indonesian films and shows.
Its aim is to take on the larger streaming players operating in Indonesia, including US streaming giant Netflix and Hong Kong’s VIU. This is a significant undertaking by GoPlay, given the lacklustre growth seen by other local streaming players such as Malaysia-based iflix and the now-shuttered HOOQ.
This still doesn’t rub the sheen off the massive potential in Indonesia’s online streaming market. According to Statista, Indonesia’s streaming market is projected to reach $274 million in revenue by 2024 from $138 million in 2019. This will be backed by a surge in user growth that is expected to rise to 32.9 million from 19.4 million people over the same period.