Indonesia-based ride hailing company Go-Jek plans to launch its own online video subscription service, Go-Play. The video service will be available for daily, monthly and yearly subscriptions and the expected launch date is not disclosed yet.
According to Go-Jek, 95% of the content on Go-Play will be Indonesia-focused. The company will produce original content by its newly launched production house Go-Studios. Go-Jek will also partner with US-based media company Vice to co-produce original content, which includes a sports documentary series and a movie by Indonesian director Joko Anwar.
Adding payment service allows Go-Jek to further expand offerings as a platform
Established as a ride-hailing service for motorbike taxis in Indonesia since 2015, Go-Jek has expanded its service to include food delivery, logistics and payment services in less than three years. Go-Jek claimed that there were 15 million weekly active users on its platform in December 2017, with 900,000 drivers, over 125,000 merchants and over 100 million transactions processed per month.
Since Go-Jek has a large number of active users on its platform, the addition of payment service can ease the transaction process and to directly monetise users. The company continues to strengthen its own payment platform Go-Pay by acquiring three local fintech start-ups, Kartuku, Midtrans and Mapan at the end of 2017. It also teamed up with state-owned Bank Negara Indonesia to include wider financial services such as micro-loans for small and medium-sized businesses. The payment feature gives Go-Jek the ability to further expand service offerings such as video and other commerce related services, to increase its competitiveness as a platform.
Go-Jek diversifies into content by launching video streaming service, but challenges remain
The launch of video streaming service will help Go-Jek to keep its users engaged within its own ecosystem as well as add recurring subscription revenues. Go-Jek’s plan to develop original content on Go-Play before the service launches indicates that the company is well aware of the importance of developing original content for a video service.
Before Go-Play, Go-Jek launched Go-Video annually since 2016, which is a competition that encourages local talents to submit short form video ideas in different categories including drama, comedy, documentary, animation and music video. This initiative can help Go-Jek discover local talent and to gather information on what type of content is popular for its platform users.
Although Go-Jek’s strong user base provides advantages at the early stage of developing a video streaming service, it still faces competition from other video players in the market, such as regional players iflix, Hooq and Viu as well as other local content providers. Iflix’s recent move to diversify its video service to include an advertising-supported model indicates the challenge of monetising users via subscription services in the region as consumers’ propensity to pay for online content is low.
Local knowledge gives Go-Jek an advantage
Go-Play can leverage Go-Jek’s existing advantage in the Indonesian market including branding and local partnership and knowledge. This bodes well for the success of the video service in Indonesia but whether it will successfully co-exist with several other major players will be determined by how well the service competes on price and its content offering.