Manoj Punjabi’s Bold Gambit: Resurrecting Free-to-Air TV in the Age of Streaming
Manoj Punjabi, the Indonesian billionaire filmmaker and head of MD Entertainment, has made a surprising move. Despite the global shift towards streaming platforms, he has acquired a majority stake in Net Visi Media, a struggling free-to-air television channel, rebranding it as MDTV Media Technologies. This acquisition, costing $105 million, might appear counterintuitive, given the channel’s meager 1.4% market share and history of losses. Punjabi himself acknowledges the challenges, likening the venture to rescuing a "sinking ship." However, he sees immense potential in revitalizing this traditional medium, aiming to transform it into a key component of MD Entertainment’s expanding content empire.
Punjabi’s confidence stems from his proven track record in the Indonesian entertainment industry. He produced the 2022 horror blockbuster, KKN di Desa Penari, which became the highest-grossing Indonesian film of all time, attracting 10 million viewers and revitalizing cinemas struggling in the wake of COVID-19 restrictions. With MD Entertainment’s extensive library of over 14,000 hours of content, Punjabi intends to leverage MDTV as a crucial distribution platform, reaching the vast segment of the Indonesian population that still relies on free-to-air television. This strategic move is particularly relevant in Indonesia’s geographically diverse landscape, where internet access and cinemas are not universally available.
Beyond content distribution, Punjabi envisions MDTV as a catalyst for enhanced content creation. The channel will serve as another medium for producing shows, complementing the company’s existing productions for cinemas, digital TV, and over-the-top (OTT) services. While acknowledging the current modest revenue generated by free-to-air TV, Punjabi anticipates it becoming a significant revenue stream, potentially accounting for 50% to 70% of MD Entertainment’s total revenue in the future. This growth is not expected to come at the expense of cinema revenue, which is projected to remain robust. Instead, the revitalized MDTV is expected to open up new avenues for revenue generation, transforming the company’s financial landscape.
The acquisition of MDTV marks the culmination of a long-held ambition for Punjabi. He had previously explored acquiring a TV station in 2012 but couldn’t finalize a deal. He momentarily abandoned the pursuit, questioning the viability of free-to-air TV in a changing media landscape. However, the opportunity to acquire Net Visi Media, previously owned by companies linked to the late Sudwikatmono, a prominent figure in the Indonesian cinema industry, rekindled his interest. This acquisition provides MD Entertainment access to the lucrative advertising market associated with free-to-air TV, a market currently dominated by consumer goods companies targeting a mass audience. Punjabi sees MDTV as a crucial "stepping stone" towards building a comprehensive entertainment ecosystem.
Manoj Punjabi’s journey in the film industry is deeply rooted in his family history. His father, Dhamoo Punjabi, co-founded Panorama Film in the 1960s, initially importing and later producing films in Indonesia. The family later ventured into television production, launching Tripar Multivision Plus (MVP) in 1990, specializing in Indonesian soap operas (sinetron) that became popular on newly established private TV channels. Punjabi himself, a lifelong film enthusiast, joined MVP in 1995 after brief stints in other industries. He worked his way up from selling sinetron in laser-disk format to becoming a production manager. In 2002, due to family disagreements, Punjabi and his father sold their shares in MVP and established MD Media, later renamed MD Entertainment, with the support of Punjabi’s wife and mother. This marked the beginning of a competitive rivalry between the two branches of the Punjabi family in the Indonesian entertainment industry.
MD Entertainment initially focused on producing soap operas, but in 2007 ventured into film production. Early efforts met with limited success until the 2008 release of Ayat-Ayat Cinta, which became a box office hit, demonstrating the potential of Indonesian films to compete with Hollywood productions. For years, Hollywood films had dominated the Indonesian box office, discouraging local producers due to the perceived low chance of success and low ticket prices. However, the success of Ayat-Ayat Cinta and subsequent MD Entertainment films like Surga yang Tak Dirindukan gradually shifted audience preferences towards local content. By 2022, Indonesian films, spearheaded by MD Entertainment, dominated the market, holding a 60% share of the box office. This trend has continued into 2024, with Indonesian films capturing a 67% market share, with MD Entertainment commanding a significant 21% slice of that market. However, the landscape remains competitive, with other players like Media Nusantara Citra and Verona Indah Pictures making significant investments and forming strategic alliances, intensifying the competition in the Indonesian entertainment market. Despite these challenges, Punjabi remains confident in his ability to navigate the evolving media landscape and solidify MD Entertainment’s position as a dominant force in the industry.
