Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Research from SooChow CSSD Capital Markets (Asia)

Equity Bottom-Up

<h2>Production pipeline update </h2><h3>What’s new:</h3><ul><li>FILM just announced a list of Direct-to-OTT movie titles as well as series across a number of prominent OTT platforms such as Disney+Hotstar, WeTV, iflix, Viu, and Netflix, amongst others</li><li>The firm notes that a “digital revolution is taking place in Indonesia, with double digit growth in online viewership, as consumers turn to the internet for their video entertainment”</li><li>Of the 13 movie titles that are currently playing on OTT platforms, we note that at least 8 are direct-to-OTT titles, with the remaining being licensing deals from existing libraries. All 13 titles are playing on Disney+Hotstar, underscoring the commitments between the platform and FILM</li><li>Meanwhile, FILM announced 8 series titles that are all expected to air on WeTV and iflix, demonstrating the deep partnership between the platform and the company. 2 of the 8 series titles are highly rated on the platform, which no doubt, has drawn substantial eyeballs to the platform</li><li>Interestingly, many of Indonesia’s top film stars, such as Angga Yunanda and Syifa Hadju, who starred in the breakaway series Kisah untuk Geri, and Reza Rahadian, and Prilly Latuconsina in the record-setting series, My Lecturer, My Husband, have brought their talents and celebrity power to a number of series that are slated to air on WeTV/iflix. This could lend added celebrity attraction to those upcoming releases.</li></ul><table class="table table-striped"><tbody><tr><td style="width: 23.7pt;">No.</td><td style="width: 149pt;">Production</td><td style="width: 59pt;">Completion/ Target Completion Year</td><td style="width: 51pt;">Release/ Target Release Year</td><td style="width: 192.2pt;">Remarks</td><td style="width: 79.8pt;">OTT platform</td></tr><tr><td style="width: 23.7pt;">A</td><td style="width: 149pt;">Theatrical</td><td style="width: 59pt;"> </td><td style="width: 51pt;"> </td><td style="width: 192.2pt;"> </td><td style="width: 79.8pt;"> </td></tr><tr><td style="width: 23.7pt;">1</td><td style="width: 149pt;">KKN di Desa Penari</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">TBC</td><td style="width: 192.2pt;">Completed</td><td style="width: 79.8pt;"></td></tr><tr><td style="width: 23.7pt;">2</td><td style="width: 149pt;">Ivana</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">TBC</td><td style="width: 192.2pt;">Completed</td><td style="width: 79.8pt;"> </td></tr><tr><td style="width: 23.7pt;"> </td><td style="width: 149pt;"> </td><td style="width: 59pt;"> </td><td style="width: 51pt;"> </td><td style="width: 192.2pt;"> </td><td style="width: 79.8pt;"></td></tr><tr><td style="width: 23.7pt;">B</td><td style="width: 149pt;">Movies Held In Inventory</td><td style="width: 59pt;"> </td><td style="width: 51pt;"> </td><td style="width: 192.2pt;"> </td><td style="width: 79.8pt;"> </td></tr><tr><td style="width: 23.7pt;">1</td><td style="width: 149pt;">Mendarat Durarat</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">TBC</td><td style="width: 192.2pt;">In Post-Production</td><td style="width: 79.8pt;"></td></tr><tr><td style="width: 23.7pt;">2</td><td style="width: 149pt;">Garis Waktu</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">TBC</td><td style="width: 192.2pt;">In Post-Production</td><td style="width: 79.8pt;"> </td></tr><tr><td style="width: 23.7pt;">3</td><td style="width: 149pt;">Naga Naga Naga</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">TBC</td><td style="width: 192.2pt;">In Post-Production</td><td style="width: 79.8pt;"></td></tr><tr><td style="width: 23.7pt;"> </td><td style="width: 149pt;"> </td><td style="width: 59pt;"> </td><td style="width: 51pt;"> </td><td style="width: 192.2pt;"> </td><td style="width: 79.8pt;"> </td></tr><tr><td style="width: 23.7pt;">B</td><td style="width: 149pt;">OTT - Movies</td><td style="width: 59pt;"> </td><td style="width: 51pt;"> </td><td style="width: 192.2pt;"> </td><td style="width: 79.8pt;"> </td></tr><tr><td style="width: 23.7pt;">1</td><td style="width: 149pt;">Asih 2</td><td style="width: 59pt;">2020</td><td style="width: 51pt;">2020</td><td style="width: 192.2pt;">Aired</td><td style="width: 79.8pt;">Disney+Hotstar</td></tr><tr><td style="width: 23.7pt;">2</td><td style="width: 149pt;">Ghostbuser</td><td style="width: 59pt;">2020</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Aired</td><td style="width: 79.8pt;">Disney+Hotstar</td></tr><tr><td style="width: 23.7pt;">3</td><td style="width: 149pt;">Surga Yang Tak Dirindukan 3</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Aired</td><td style="width: 79.8pt;">Disney+Hotstar</td></tr><tr><td style="width: 23.7pt;">4</td><td style="width: 149pt;">Adit Sopo Jarwo – The Beginning</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Aired</td><td style="width: 79.8pt;">Disney+Hotstar</td></tr><tr><td style="width: 23.7pt;">5</td><td style="width: 149pt;">Ghibah</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Airing - 3Q21</td><td style="width: 79.8pt;"> </td></tr><tr><td style="width: 23.7pt;">6</td><td style="width: 149pt;">Till Death Do Us Part</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Aired</td><td style="width: 79.8pt;">Disney+Hotstar</td></tr><tr><td style="width: 23.7pt;">7</td><td style="width: 149pt;">Devil on Top</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Completed</td><td style="width: 79.8pt;">Disney+Hotstar</td></tr><tr><td style="width: 23.7pt;">8</td><td style="width: 149pt;">The Watcher</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">In Production</td><td style="width: 79.8pt;"></td></tr><tr><td style="width: 23.7pt;">9</td><td style="width: 149pt;">Wedding Proposal</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Aired</td><td style="width: 79.8pt;">Disney+Hotstar</td></tr><tr><td style="width: 23.7pt;">10</td><td style="width: 149pt;">The Secret 2: Myster of Villa 666</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Aired</td><td style="width: 79.8pt;">Disney+Hotstar</td></tr><tr><td style="width: 23.7pt;">11</td><td style="width: 149pt;">Incredible Love</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Aired</td><td style="width: 79.8pt;">Disney+Hotstar</td></tr><tr><td style="width: 23.7pt;"> </td><td style="width: 149pt;"> </td><td style="width: 59pt;"> </td><td style="width: 51pt;"> </td><td style="width: 192.2pt;"> </td><td style="width: 79.8pt;"></td></tr><tr><td style="width: 23.7pt;">C</td><td style="width: 149pt;">OTT - Series</td><td style="width: 59pt;"> </td><td style="width: 51pt;"> </td><td style="width: 192.2pt;"> </td><td style="width: 79.8pt;"> </td></tr><tr><td style="width: 23.7pt;">1</td><td style="width: 149pt;">MALAPATAKA</td><td style="width: 59pt;">2020</td><td style="width: 51pt;">2020</td><td style="width: 192.2pt;">Aired</td><td style="width: 79.8pt;"></td></tr><tr><td style="width: 23.7pt;">2</td><td style="width: 149pt;">Kisah Untuk Geri</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Aired; all time highest rated at 9.8/10 on WeTV</td><td style="width: 79.8pt;">WeTV/iflix</td></tr><tr><td style="width: 23.7pt;">3</td><td style="width: 149pt;">My Lecturer, My Husband</td><td style="width: 59pt;">2020</td><td style="width: 51pt;">2020</td><td style="width: 192.2pt;">Aired; highly rated (top 12) at 8.8/10 on WeTV</td><td style="width: 79.8pt;">WeTV/iflix</td></tr><tr><td style="width: 23.7pt;">4</td><td style="width: 149pt;">17 Selamanya</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Airing - 3Q21</td><td style="width: 79.8pt;">WeTV/iflix</td></tr><tr><td style="width: 23.7pt;">5</td><td style="width: 149pt;">Cinta Fitri</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Airing - 3Q21</td><td style="width: 79.8pt;">WeTV/iflix</td></tr><tr><td style="width: 23.7pt;">6</td><td style="width: 149pt;">Layangan Putus</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Airing - 3Q21</td><td style="width: 79.8pt;">WeTV/iflix</td></tr><tr><td style="width: 23.7pt;">7</td><td style="width: 149pt;">Satu Amin Dua Iman</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Airing - 3Q21</td><td style="width: 79.8pt;">WeTV/iflix</td></tr><tr><td style="width: 23.7pt;">8</td><td style="width: 149pt;">Mozachiko</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Pre-Production</td><td style="width: 79.8pt;"> </td></tr><tr><td style="width: 23.7pt;">9</td><td style="width: 149pt;">5 Detik &amp; Rasa Rindu</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Pre-Production</td><td style="width: 79.8pt;"></td></tr><tr><td style="width: 23.7pt;">10</td><td style="width: 149pt;">My Lecturer, My Husband (Season 2)</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Pre-Production</td><td style="width: 79.8pt;"> </td></tr><tr><td style="width: 23.7pt;">11</td><td style="width: 149pt;">Antares</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Airing - 3Q21</td><td style="width: 79.8pt;">WeTV/iflix</td></tr><tr><td style="width: 23.7pt;">12</td><td style="width: 149pt;">Teluk Alaska</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Airing - 3Q21</td><td style="width: 79.8pt;">WeTV/iflix</td></tr><tr><td style="width: 23.7pt;">13</td><td style="width: 149pt;">Jurnal Risa</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Pre-Production</td><td style="width: 79.8pt;"></td></tr><tr><td style="width: 23.7pt;">14</td><td style="width: 149pt;">Ayu Putus</td><td style="width: 59pt;">2021</td><td style="width: 51pt;">2021</td><td style="width: 192.2pt;">Pre-Production</td><td style="width: 79.8pt;"> </td></tr></tbody></table>

Production pipeline update What’s new:FILM just announced a list of Direct-to-OTT movie titles as well as series across a number of prominent OTT platforms such as Disney+Hotstar, WeTV, iflix, Viu, and Netflix, amongst othersThe firm notes that a “digital revolution is taking place in Indonesia, with double digit growth in online viewership, as consumers turn to the internet for their video entertainment”Of the 13 movie titles that are currently playing on OTT platforms, we note that at least 8 are direct-to-OTT titles, with the remaining being licensing deals from existing libraries. All 13 titles are playing on Disney+Hotstar, underscoring the commitments between the platform and FILMMeanwhile, FILM announced 8 series titles that are all expected to air on WeTV and iflix, demonstrating the deep partnership between the platform and the company. 2 of the 8 series titles are highly rated on the platform, which no doubt, has drawn substantial eyeballs to the platformInterestingly, many of Indonesia’s top film stars, such as Angga Yunanda and Syifa Hadju, who starred in the breakaway series Kisah untuk Geri, and Reza Rahadian, and Prilly Latuconsina in the record-setting series, My Lecturer, My Husband, have brought their talents and celebrity power to a number of series that are slated to air on WeTV/iflix. This could lend added celebrity attraction to those upcoming releases.No.ProductionCompletion/ Target Completion YearRelease/ Target Release YearRemarksOTT platformATheatrical    1KKN di Desa Penari2021TBCCompleted2Ivana2021TBCCompleted      BMovies Held In Inventory    1Mendarat Durarat2021TBCIn Post-Production2Garis Waktu2021TBCIn Post-Production 3Naga Naga Naga2021TBCIn Post-Production      BOTT - Movies    1Asih 220202020AiredDisney+Hotstar2Ghostbuser20202021AiredDisney+Hotstar3Surga Yang Tak Dirindukan 320212021AiredDisney+Hotstar4Adit Sopo Jarwo – The Beginning20212021AiredDisney+Hotstar5Ghibah20212021Airing - 3Q21 6Till Death Do Us Part20212021AiredDisney+Hotstar7Devil on Top20212021CompletedDisney+Hotstar8The Watcher20212021In Production9Wedding Proposal20212021AiredDisney+Hotstar10The Secret 2: Myster of Villa 66620212021AiredDisney+Hotstar11Incredible Love20212021AiredDisney+Hotstar     COTT - Series    1MALAPATAKA20202020Aired2Kisah Untuk Geri20212021Aired; all time highest rated at 9.8/10 on WeTVWeTV/iflix3My Lecturer, My Husband20202020Aired; highly rated (top 12) at 8.8/10 on WeTVWeTV/iflix417 Selamanya20212021Airing - 3Q21WeTV/iflix5Cinta Fitri20212021Airing - 3Q21WeTV/iflix6Layangan Putus20212021Airing - 3Q21WeTV/iflix7Satu Amin Dua Iman20212021Airing - 3Q21WeTV/iflix8Mozachiko20212021Pre-Production 95 Detik &amp; Rasa Rindu20212021Pre-Production10My Lecturer, My Husband (Season 2)20212021Pre-Production 11Antares20212021Airing - 3Q21WeTV/iflix12Teluk Alaska20212021Airing - 3Q21WeTV/iflix13Jurnal Risa20212021Pre-Production14Ayu Putus20212021Pre-Production 

SCCM | FILM IJ -Production Pipeline Updates, Traction with OTT Platforms Grows(BUY: TP IDR700/Share)

<h2>OTT budgets are soaring; No ceiling in sight</h2><h3>What’s new:</h3><ul><li>Purely Streamonomics, a Fintech platform that accelerates payments to content producers, recently published a report that highlighted emerging trends in the global Film &amp; TV industry (attached)</li><li>By 2025, Purely expects global SVOD subscriptions to jump to 1.6bn, implying a 16.4% CAGR from 2019’s 642m. This would be fueled by a deluge of new streaming platforms while existing platforms continue to gain traction</li><li>As more platforms enter the OTT space, Purely points out that content spending has reached new highs. In Asia, it notes that spending jumped 19.8% YoY to US$27.7bn. We note that this still dwarfs spending North America, which grew 16.1% YoY to US$149.3b. With Asia’s growing spending and consumption clout, we have no doubt that localized content production will indubitably surge as OTT platforms shift their focus to Asia</li><li>Production budgets are soaring as OTT platforms look to stay competitive as market share is up for grabs on fickle content consumption patterns. Average series budgets in the US jumped 16.5% YoY to US$59.6m in 2020</li><li>Importantly, Purely believes that the global OTT story appears to have “no ceiling in sight” as users continue to consume content through OTT platforms. <section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/215/858/original/image003+%282%29.png?1624932104" class="editor-image img-responsive" data-smartkarma-image-id="215858"></figure></section></li></ul>

OTT budgets are soaring; No ceiling in sightWhat’s new:Purely Streamonomics, a Fintech platform that accelerates payments to content producers, recently published a report that highlighted emerging trends in the global Film &amp; TV industry (attached)By 2025, Purely expects global SVOD subscriptions to jump to 1.6bn, implying a 16.4% CAGR from 2019’s 642m. This would be fueled by a deluge of new streaming platforms while existing platforms continue to gain tractionAs more platforms enter the OTT space, Purely points out that content spending has reached new highs. In Asia, it notes that spending jumped 19.8% YoY to US$27.7bn. We note that this still dwarfs spending North America, which grew 16.1% YoY to US$149.3b. With Asia’s growing spending and consumption clout, we have no doubt that localized content production will indubitably surge as OTT platforms shift their focus to AsiaProduction budgets are soaring as OTT platforms look to stay competitive as market share is up for grabs on fickle content consumption patterns. Average series budgets in the US jumped 16.5% YoY to US$59.6m in 2020Importantly, Purely believes that the global OTT story appears to have “no ceiling in sight” as users continue to consume content through OTT platforms. 

SCCM | FILM IJ - OTT Budgets Are Soaring; No Ceiling in Sight (BUY; TP IDR700/Share)

Indonesia

PT MNC Vision Networks Tbk. provides broadcasting services. The Company offers distribution of subscription television shows. MNC Vision Networks serves customers in Indonesia.

PT Sarana Menara Nusantara Tbk, through a subsidiary, builds telecommunications towers. The Company constructs, operates, and rents the towers to mobile telecommunications services providers.

PT Tower Bersama Infrastructure Tbk provides telecommunication infrastructure services to Indonesian wireless carriers. The Company develops and operates telecommunication supporting infrastructure including tower and in-building systems across Indonesia.

PT XL Axiata Tbk provides a wide range of mobile telecommunications services in Indonesia.

PT Mahaka Radio Integra Tbk is a radio broadcasting company. The Company operates FM radio stations that primarily broadcast across Jakarta and Surabaya.

PT Smartfren Telecom Tbk provides telecommunication services and general trading.

PT Mahaka Media Tbk operates media businesses. The Company daily newspapers, magazines and books; offers billboard advertising; produces online content and animations; and operates radio stations.

PT Inti Bangun Sejahtera Tbk is is an independent tower company.  The Company engages in leasing space and other broadcast equipment for wireless signal transmission at tower sites under long-term lease agreement with mobile operators and wireless cable television providers.

PT Link Net Tbk provides internet services. The Company offers high-speed internet connection through fiber optic lines. Link Net caters to retail and corporate customers throughout Indonesia.

PT Bali Towerindo Sentra Tbk operates in the tower leasing industry. The Company leases  antenna space on self-owned multi-tenant Base Transceiver Station towers primarily to mobile cellular operators.

Lions Gate Entertainment Corporation develops and distributes film entertainment contents. The Company produces motion pictures, television programming, animation, and digital media. Lions Gate Entertainment serves customers worldwide.

Pearl Abyss Corp. operates as a computer games making company. The Company offers games development, games exporting, and other services. Pearl Abyss serves customers worldwide.

China Ruyi Holdings Limited operates as a holding company. The Company, through its subsidiaries, focuses on online streaming video and internet community businesses. China Ruyi Holdings also manufactures and sells photographic, electronic, and multimedia accessories.

AMC Entertainment Holdings, Inc. operates as a holding company. The Company, through its subsidiaries, provides theatrical exhibition, movie screening, food distribution, online ticket booking, and other related services. AMC Entertainment offers movie theaters worldwide.

Zhejiang Huace Film & TV Co., Ltd. specializes in entertainment media production. The Company's products include Mandarin films, TV programs and advertisements.

Zhejiang Huace Film & Televisi (300133 CH)

37 Interactive Entertainment Network Technology Group Co.,Ltd designs, develops, and operates mobile games and web games. The Company also provides game promotion, customer service, top-up payment, and other services. 37 Interactive Entertainment Network Technology Group conducts its businesses in China.

37 Interactive Entertainment N (002555 CH)

Saregama India Limited manufactures, sells and deals in Audio Cassettes, CD's and DVDs, which they market in India, Europe, the USA, Canada, the Caribbean Islands and South Africa. The Group's range of music encompasses both new and old Hindi films, regional films, ghazals, classical, Indipop and International. Saregama also has a film business, which produces films and TV serials.

Modern Times Group MTG AB is a strategic and operational investment holding company in esports and gaming entertainment. Founded in Sweden, the shares are listed on Nasdaq Stockholm ('MTGA' and 'MTGB').

Netmarble Corporation develops and publishes mobile games. The Company develops and publishes casual games, action, sports games, strategy, simulation games, and social casino games. Netmarble offers services worldwide.

Kakao Games Corp. operates as a multiply platform gaming company. The Company provides mobile games, computer games, virtual reality games, and other related products. Kakao Games markets its products worldwide.

PT MD Pictures Tbk operates as a motion picture production company. The Company produces movies, television shows, and live concerts. MD Pictures Tbk serves clients in Indonesia.

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SCCM | FILM IJ -Production Pipeline Updates, Traction with OTT Platforms Grows(BUY: TP IDR700/Share)

Production pipeline update What’s new: FILM just announced a list of Direct-to-OTT movie titles as well as series across a number of prominent OTT...

SCCM Asia Research

SCCM | FILM IJ - OTT Budgets Are Soaring; No Ceiling in Sight (BUY; TP IDR700/Share)

Purely Streamonomics, a Fintech platform that accelerates payments to content producers, recently published a report that highlighted emerging...

SCCM Asia Research