Anticipating The Challenges Of NETV Change, Prepare Adaptation Strategies Through The Development Of Audience Segmentation And Creative Content

Photo: Doc. NET TV

Anticipating the challenges of change in the broadcasting media industry, PT Net Visi Media Tbk (NETV) as the parent company of broadcast media NET TV, is preparing an adaptation strategy related to its future business development.

Management is of the view that future conditions can improve along with expectations of a recovery in economic conditions, continued migration of the digital television broadcasting system, as well as efforts to improve the company's rating and audience share performance.

"Amid the uncertainty of economic conditions and the dynamics of industrial change, the company remains focused on commitment to providing quality content, maintaining level of efficiency and cost productivity, and continuing to build adaptability to digital age opportunities and challenges. This is to provide long-term added value to all stakeholders," said CEO of PT Net Visi Media Tbk (NETV) Deddy Hariyanto, in Jakarta, Friday, June 7.

Responding to various dynamics and challenges in 2023, the company clearly Deddy took some strategic priorities to be able to adapt, survive and progress in the future.

First, the company seeks to continue to expand its television audience market share by targeting family and female viewers who are the majority segment of television viewers, by presenting program content that matches the audience's target. Next, given the economic and industrial conditions that are still quite volatile, the company is also implementing a precautionary strategy in cost management.

"By implementing strict efficiency in broadcast and content acquisition costs, during 2023, the company can continue to reduce operational costs," said Deddy.

In the future, this low cost efficiency strategy will need to be reviewed regularly by taking into account the opportunity to improve more stable economic and industrial conditions, so as not to have an impact on sustainable growth opportunities in the long term.

"Facing the capital deficiency that is still experienced by the company in 2023, the company seeks to take various anticipatory steps, including building strategic partnerships and positive support from shareholders," said Deddy.

Responding to the migration of the television broadcasting industry from analog to digital, the company collaborates with multiplexing service providers to minimize capital investment needs. In addition, the company allocates resources for the development of the NETVERSE OTT digital platform, which has consistently shown positive customer growth rates and good engagement rates.

"This step is a long-term strategic step to take advantage of growth opportunities in the realm of digital media in the future. In these strategic efforts, the commitment to the quality of content remains the basic value or value that we continue to maintain," said Deddy.

As is known, economic conditions in 2023 are still experiencing a slowdown as various geopolitical issues continue and pressures at the global inflation rate increase the risk of uncertainty.

This was affected by the television broadcasting industry last year, which experienced a decrease in advertising revenue, as a direct effect of uncertainty over economic conditions. Sectors such as e-commerce and start-ups technology, which were previously a source of growth in the company's revenue, also tightened spending on advertising.

The Google e-Conomy 2023 report states that Indonesia's digital economy's Gross Market Value (GMV) has slowed growth from 20 percent in 2022 to 8 percent last year.

Furthermore, the television broadcasting industry needs to go through a transition period to a digital broadcasting system, which takes time to fully be accepted by the public.

Along with the slowdown in economic growth, revenue from the television advertising industry generally also experienced a slowdown. The company's revenue in 2023 reached IDR 235.75 billion, down from the 2022 achievement of IDR 438.68 billion.

Facing this level of income pressure, the company is carrying out mitigation efforts by increasing efficiency in various operational cost expense lines. The cost burden of programs and broadcasts, as well as general and administrative expenses during this year, can be saved by 7.69 percent and 2.49 percent.

The increase in costs outside of operations that are one-off, including costs for removing supplies, removing down payment for assets is not smooth and the down payment for the investment is above, and the financial burden is running, contributing to the increase in the company's net loss in 2023 to IDR 634.32 billion.

Even so, facing challenging conditions in 2023, the company is implementing various efforts to optimize all available resources to be able to survive while maintaining its commitment to the quality of broadcast content.

In line with this commitment, throughout 2023, the company won a number of awards. Among other things, the 'Muslim Travelers' program won the category of the Cultural Tourism Program at the Syiar Ramadhan Award (ASR) 2023 organized by the Indonesian Broadcasting Commission, the 'Adarans' program was named the winner in the series of Television Drama Program category at the 2023 Indonesian Broadcasting Commission Award (KPI) and NET Gorontalo won the Best TV Institution II Local Content category award at the KPID Awards 2023 Gorontalo.