Indonesian TV network stands out with Indian soap operas

 

Anindya recently talked about his business approach, including the story behind ANTV’s decision to widely broadcast Bollywood-style shows such as Mahabharata and Uttaran. Here are excerpts from the interview.

 

Q: Of all the Bakrie family members, why were you chosen to handle the media business?

 

A: I was not chosen. When I returned to the country after finishing my masters’ degree at Stanford Business School in 2001, I sat down with Pak Ical, [and Aburizal’s brothers] Nirwan and Indra. He [Aburizal] said ‘your school tuition fees were expensive. So, what do you want to do to express your gratitude?’ I replied that I didn’t want to work in well-established companies because my contribution would be nothing. ‘What if I focused on bankrupt companies?’ I asked. ‘Oh, OK. Here’s the list,’ he said.

 

So, I chose technology-related companies and ANTV because I have a financial and engineering background. I like problem solving and am comfortable with uncertainty.

 

The ANTV 15 years ago was different from that of today. Its debt used to reach Rp 1.3 trillion [US$99 million]. Without creativity in solving the debt problem, ANTV could not be as good as it is now, when its market capitalization [at the Indonesia Stock Exchange] reaches Rp 13 trillion, with zero debt. This was not an instant success. I don’t know if I have the energy to make another Rp 13 trillion market-capitalized firm in the next 15 years.

 

Q: When did ANTV start making a profit?

 

A: ANTV started to make a profit in 2010 and finally observed a clearer business path from 2013. I had to fast for nine years before the company eventually started to make profits.

 

Our strategy is ‘know your viewers’. And the reason why people keep watching our programs is because we want to do what other TV stations don’t.

 

Q: What is the idea behind ANTV’s decision to bring in Indian soap operas?

 

A: We want to prove that Viva Group [MDIA’s parent company, for which Anindya serves as president director] can compete effectively in this free market. The television business has become a totally retail business; people watch our programs and that will be translated into higher ratings and more advertisements.

 

A few years ago, our competitors had more money and stronger cash flows and infrastructure, while we didn’t, so people went to them automatically. How could I win in this unfair game?

 

I then sat down with Pak Erick [Thohir, MDIA president director] and some other colleagues. I told them if they came and asked for money to buy soap operas, I didn’t have the money. So, we decided to buy such products from countries that are very similar to Indonesia. During the process, we were looking for a country that not only had a huge population and similar gross domestic product value to Indonesia, but which also had a population that used 3 to 12 kilograms of gas to cook per month or consumed 300 to 1,200 watts of electricity per month.

 

What differentiates us from other firms is that we don’t believe this business is about feelings and aesthetic only. It is actually a data-based business. That is why we believe this will not stop at Indian soap operas but will continue to Turkey and the Philippines.

 

The point is we have chosen Indian soap operas because we want to win in this unfair game. We do it because we need to.

 

Q: How much do the soap operas cost?

 

A: That’s confidential. But the prices are around a quarter to one-fifth of that of new Indonesian soap operas, per episode.

 

We first broadcast them during the [2014] World Cup to test the waters. It turned out that the ratings were quite good despite the major sports event. So, we did not stop there.

 

We invited the artists to Indonesia and included them in our program strategy so they did not merely come and attend meet-and-greet events but also appeared in other programs, such as Pesbukers and Eat Bulaga.

 

Q: What is ANTV’s plan for the future?

 

A: We will improve our infrastructure as currently, we still rent studios. We want to be Indonesia’s Star World.