Mobile Helps Music Industry Take on Pirates in Indonesia

Shinta Dhanuwardoyo, founder of Indonesian ad agency Bubu, has said that music featurephones in the country have helped music companies take some revenue back from pirates. 

“Music downloads make music affordable and available. In Indonesia, 70-80 per cent of music industry revenues come from mobile,” she says. 

Almost 90 per cent of all music sales in the country is pirated, she says, while the biggest legitimate distributor of music is KFC, which operates promotional schemes for selling music. 

However, phone company Esia Hidayah has sold 500,00 music featurephones to date, generating US$100,000 of monthly revenue for major labels. 

Dhanuwardoyo also said that other types of featurephones have allowed mobile operators and device manufacturers to make money from mobile. Esia Hidayah has also sold 700,000 Islamic featurephones, which offer over religious content to Muslim subscribers. 

Social networking

Facebook oriented featurephones are another success story in the country with 1m units sold. 

Indonesias population of 240m provides 40m Facebook users – 2nd in the world behind the US. 

The device market in Indonesia is very different even to its local neighbours such as Singapore. iPhone hype is almost non-existent, says Dhanuwardoyo, while local, affordable brands steal the spotlight. Nexían, a local brand puts out a new phone “every two to three weeks”, and the consumer interest in these featurephone handsets is high. 

Dhanuwardoyo was speaking at the final day of the Mobile Marketing Associations (MMA) MMA Forum, taking place in London today.