This post is also available in: Indonesia
Are you one of the users of Disney+ Hotstar? If so, that means you’re one of the many digital media connoisseurs. Yes, now many people are utilizing digital media in enjoying movies.
The development of technology is one of the reasons people gradually abandon conventional ways such as using television. Not only tv lost its existence, but radio, books, newspapers, and correspondence became outdated items.
Through technology, many platforms offer a variety of local and overseas films. Access is not difficult, only through the internet you can enjoy a variety of spectacles. Disney+ Hotstar is one of the video on demand platforms that successfully took the hearts of Indonesians.
Disney+ Hotstar managed to get the number of paid users up to 2.5 million users. The success of Disney+ in terms of attracting the hearts of Indonesians needs to get a thumbs up.
There are many advantages that Disney+ Hotstar offers in its platform so that people choose to use it. The platform has a very competitive price, not to mention the movies available are more diverse so that it becomes a plus. Disney+ has established a partnership with the local mobile operator that has the most users in Indonesia, Telkomsel. It is also a success factor of Disney+ Hotstar.
The Covid-19 pandemic caused some cinemas to close. This is an opportunity for video on demand platforms to spread their wings in countries such as Indonesia.
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The world of film seems to be suspended when the Covid-19 pandemic strikes the world. There should be no crowds forcing cinemas to close their businesses for a while. This forced cinemas to reduce the number of employees in order to stay afloat.
The same thing also came from the famous cinema company in Indonesia, CGV. It revealed that losses due to the Covid-19 pandemic caused its revenue to decline by 75 percent.
The number of employees who dropped out of work with CGV even exceeded half of the total number of existing employees. They are not categorized as layoff employees, but rather fall into the resignation category. It aims to keep the good name of CGV.
In addition to CGV, another company affected by the Covid-19 pandemic is Cinema XXI. Although there were no layoffs for its employees, the company’s finances forced him to make savings. Any money left they use to pay employees with the consequences of withholding remuneration payments to the board of commissioners.
Not only from the cinema sector, the film industry is also a victim that is no less battered during the pandemic. One of the famous film directors of the country, Joko Anwar revealed how cinema has a role in giving income to the production house.
According to him, cinema contributes a very large part by contributing 80-90 percent of the revenue overall. He noted that the death of cinema has a profound impact on the film industry.
He added that there were 140 titles of films that they canceled due to pandemic situations. Joko Anwar has also stopped producing films since February. This is very down,considering the local film industry began to triumph in 2019 films with ticket sales reaching 50 million. In previous years, local films were only able to sell up to 38 million tickets.
Digital Platforms Have Not Been Able to Replace Cinemas
Although Disney+ Hotstar has 2.5 million paying users, the fact is that the platform is still unable to replace cinemas. Joko Anwar said that film revenue from digital platforms is still too small to cover the cost of producing films.
A film production has several different production cost ranges ranging from low budget, medium budget,to big budget. A low budget production costs between 3-4 billion rupiah, Medium budget spends 6-8 billion, and big budget spends 8 to 10 billion.
Although digital channels like Disney+ Hotstar have a lot of users, the fact is that the production says something else. The revenue of a film from streaming video on demand is still not able to cover the cost of production. Joko Anwar revealed that the platform only provides revenue of about 3 billion. However, there is also a platform that delivers only 100 million down.
The New Face of Digital Era Cinema during the Covid-19 Pandemic
In addition to the battering of the local film industry, global cinema is also no less chaotic. One of them is Jurassic World which was filming during the Covid-19 pandemic. Fees that usually only reach 200 million USD should swell to 209 million USD. The addition to finance various health protocols is very strict that they have to do during filming.
Although the video on demand service gives a little opinion on the country’s cinema. It doesn’t seem to be the case with global cinema. Universal Pictures released The Trolls World Tour on April 10, 2020 when the pandemic struck. Despite the pandemic’s release on online channels, The Trolls World Tour managed to gross 100 million USD on the weekend of its release.
Several other films also chose to release the films they produced on online channels. One of them is The Lovebirds who released the film on the Netflix platform.
Some of the world’s film industries see great opportunities on online channels. World statistics show a significant increase in the number of users of online movie services. In 2019, the number of users of online film services reached 70.6 million.
The closure of cinemas is the reason many people turn to watching movies online. Because of this, the number of users will still continue to increase every year. This is also the reason why Indonesian paid users on the Disney+ Hotstar platform are soaring for children watching cartoons,or adults watching other movies.