Competition and the decline in Western television ...

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Competition and the decline in Western television program popularity in Indonesia during the 1990s a

Tuen-yu Lau & David Atkin

b

a

US-China Institute, University of Southern California, Los Angeles, USA b

University of Connecticut, Storrs, USA Version of record first published: 11 May 2012.

To cite this article: Tuen-yu Lau & David Atkin (2012): Competition and the decline in Western television program popularity in Indonesia during the 1990s, Asian Journal of Communication, 22:3, 320-333 To link to this article: http://dx.doi.org/10.1080/01292986.2012.662516

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Asian Journal of Communication Vol. 22, No. 3, June 2012, 320333

ORIGINAL ARTICLE Competition and the decline in Western television program popularity in Indonesia during the 1990s Tuen-yu Laua and David Atkinb*

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a

US-China Institute, University of Southern California, Los Angeles, USA; bUniversity of Connecticut, Storrs, USA (Received 12 March 2011; final version received 22 September 2011) Despite the country’s population base of 240 million, Indonesian television has not been widely explored in academic and professional venues. This paper examines the impact of competition on the popularity of foreign programs in the Indonesian market during the mid-1990s. Analyzing recently released ratings data from a television ratings service, this paper suggests that competition has given rise to the popularity of local programs, while foreign program popularity has declined steeply during the same three year period. The findings also suggest that cultural proximity is a factor of the popularity of programs. By 1997, Asian programs outnumbered Western programs on the top 100 highest rated program lists in Indonesia. We explore implications of study findings for filling this void in the literature. Keywords: cross-cultural communication; television and radio studies; media management; survey

Introduction Given the proliferation of media outlets over the past 50 years, media programmers now have access to a wider menu of programming options than at any time in history (e.g., Elasmar, 2003; Ogan, 2007). But few Asian countries have exhibited as much dependency on Western media imports as Indonesia, at least through the midtwentieth century. In fact, Tunstall (1977) cites Indonesia as a prime example of a developing nation that, by dint of her colonial history, exhibited a particularly heavy reliance on American film and television fare. Although this dependency fluctuated during the twentieth century, Indonesia’s film and television industries were categorized as modest in scope through the 1980s (e.g., Sen & Hill, 2000; Sumarno & Archnas, 2002). All of that changed, however, with the explosion of new media channels (e.g., satellite TV) that followed. Aggregate program importing data suggests that, from the mid-1990s onward, ‘the bulk of the most popular TV programming was Indonesian produced*with Indonesian soap operas, Indonesianstyle kung fu, and Indonesian comedies in the lead’ (Tunstall, 2008, p. 137). When offering these observations, scholars often rely on general information flow indicators. Varis (1984), for instance, found that the international television market remained concentrated in the decade following 1973, with the US share of exports in 1983 accounting for nearly 90% in the Philippines, 77% for Latin America, etc., for a *Corresponding author. Email: [email protected] ISSN 0129-2986 print/ISSN 1742-0911 online # 2012 AMIC/SCI-NTU http://dx.doi.org/10.1080/01292986.2012.662516 http://www.tandfonline.com

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collective share of 75% of global program exports. The resulting conception of transnational communication being defined by one-way media flows (Nordenstreng & Varis, 1974) seems consistent with early notions of globalization via media homogenization. Such aggregate consumption measures are incomplete, however, with Straubhaar and Boyd (2002) noting that they fail to provide a comprehensive view influence dynamics. In particular, conventional market share measures leave open the question of actual audience patronage of foreign programs. This paper examines the impact of introducing new privately owned TV networks on viewing preferences, particularly the relative popularity of local and foreign programs, in Indonesia during a period of profound change in the 1990s. Analyzing once-proprietary ratings data from a television ratings service, Survey Research Indonesia,1 the paper addresses the extent to which competition has given rise to the popularity of local programs (and foreign program popularity might have declined during the same time period). The data point commencing in 1995 was useful because a new commercial television network was launched in that year, providing one of the most competitive situations in Asia, with altogether five commercial television networks. A better understanding of this program flow dynamic (e.g., Oba, 2009) can help us obtain clues about broader implications for the general relationship between foreign and local programming in an environment beset by the countervailing trends of media fragmentation and globalization (Yang & Tso, 2007). Background Despite Indonesia’s status as a substantial emerging market, little work addresses her television infrastructure in either academic or professional domains. Tunstall (2008) categorizes Indonesia as one of the ‘big-10’ countries in Asia, noting that she shares several attributes with India, China, Pakistan, Bangladesh and Nigeria (e.g., a colonial legacy, high population density). In fact, Indonesia’s population trebled (from roughly 79 million to 242 million) between 1950 and 2005, when she emerged as the fourth most populous nation in the world. Television broadcasting began in Indonesia in 1961; a dozen years after the former colony won her independence from the Dutch. As such, the industry’s direction was guided by the founding regime of strongman Soekarno (who ruled from 19451967). Although media penetration increased during this time, even radio coverage remained spotty through the 1950s. Commentators (e.g., Vatikiotis, 1994) note that linguistic diversity served as an inhibiting factor to the initial spread of Indonesian broadcast media. In particular, Tunstall (2008) argues that Bahasa Indonesia, the newly selected ‘national language’, had not been widely used in a national mix encompassing hundreds of languages. That said, the government owned Radio Republik Indonesia (RRI) has been broadcast in Bahasa Indonesia, which means literally ‘the language of Indonesia,‘ nationwide since the country gained independence in 1945.2 Conceptually, Indonesia’s broadcast infrastructure could thus be categorized under the ‘authoritarian’ press model during this time (see Siebert, Peterson, & Schramm, 1956).3 The government continued to administer broadcasting as a government monopoly through the 1990s, hoping to unify the island in cultural and linguistic terms. This fit into a larger government policy encouraging ‘National Development’ through media and telecommunications plans aimed as ‘raising the

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standard of living and well-being of the people’ via economic growth and national stability (Moenandir, 1985, p. 79). Jackson and Pye (1978) note that the government required all broadcasters to carry newscasts simultaneously, news in which Soekarno’s successor*Soeharto (19681998)*took center stage (see also Gazali, 2002; Menayang, Nugroho, & Listorini, 2002; Tunstall, 2008). By 1974, Indonesia had 12 TV transmitters (five main, seven relay) providing coverage to the island of Java (including Jakarta, Jogjakarta, Bandung and Semarang), North Sumatra (Medan), South Sumatra (Palembang) and South Sulawesi (Ujung Pandang) (see Eapen & Lent,1978). The government also invested in newer electronic technologies to help unify the far-flung archipelago, including microwave and, in 1976, the Palapa satellite platform (see Winters, 2002). Still, black-and-white sets were still being diffused in Indonesia through the early 1980s, with color sets having been widely used since the late 1970s. Moreover, the imposition of a ban on TV advertising in 1981 left the nation dependent on a government service broadcast model. At the time, local critics decried this nationalization of local culture as an attempt to promote regime doctrine from the main island of Java and quash local diversity (e.g., Jackson & Pye, 1978). Commentators (e.g., Friend, 2003) suggest that this political status conferral via the media helped to perpetuate Soeharto’s family dynasty into the new millennium, as he launched five new TV networks in the decade following 1988. This push to enhance broadcast penetration was also designed, in part, to quash the growing popularity of cross-border media flows in outlying areas*particularly those bordering Malaysia*which might otherwise stoke separatist passions (Tunstall, 2008). The period was marked by the introduction of advertising, as the state interest in broadcasting shifted from development to profit-seeking, mirroring trends that were unfolding throughout Asia (Anokwa et al., 2003). The government network Televisi Republik Indonesia (TVRI) operated two channels, while the remaining five channels were owned and operated by four conglomerates friendly to Sukharto. Additionally, a satellite pay-TV service, Indovision, was available for about 3.5 million satellite dish owners. Until the advent of commercial television broadcasting networks, TVRI dominated the country’s broadcasting service. Television broadcasting before 1998 was not competitive, with only a single commercial television network, Rajawali Citra Televisi Indonesia (RCTI), offering one channel via a subscriber-paid set-top box. The second commercial television network, Surya Citra Televisi (SCTV), began broadcasting in 1990. An Indonesian educational television station, Televisi Pendidikan Indonesia (TPI), which primarily broadcast entertainment programs, went on air in 1991 (Idris & Marwah, 1993). At about this time, program exports from Asia and the US underwent a ‘massive increase’ (Tunstall, 2008), with the US’s global market share reaching as high as 69% during the early 1990s (Dupagne & Waterman, 1998). Two commercial television networks, Anteve (ANTV) and Indosiar Visual Mandiri (IVM), joined the fray in 1994 and 1995, respectively. In terms of the number of terrestrial stations, Indonesia now had its largest number (six TV networks including the government network), second only to Japan. By 2002, Indonesia had more new cable and satellite TV channels, including Citra TV and

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Metro TV News. Indonesia thus offers one of the most competitive markets in the Asia Pacific region (see Anokwa, Lin, & Salwen, 2003; Hidayet, 2002). These five commercial television networks are subsidiaries of influential conglomerates. The Bimantara Group, which is controlled by former President Soeharto’s son, owns both RCTI and SCTV. The former President’s daughter owns TPI. The largest private company, Salim Group, owns IVM. The Bakrie Group owns ANTV. These conglomerates originally had sufficiently deep pockets to support their networks’ operations. However, the economic crises that began in 1997 dominated the decade to follow in Indonesia. That, combined with the plunge in advertising revenues since July 1997, placed all of the television networks under financial stress. Before the economic crisis in July 1997, only RCTI made profits. All other networks have struggled to find the right programming mix to attract ratings and advertising dollars. At the turn of the millennium, the television penetration rate nationally was about 76% in Indonesia. The capital, Jakarta, averaged about 80% penetration. The maximum television rating points during prime time were about 50, totaling 10 million people watching each night. Television advertising revenues had been rising until the economic crises intensified in July of 1997. With estimated annual advertising revenues of about US$1 billion at that time, Indonesia has been one of the biggest television markets in Asia. As in the US and elsewhere, the proliferation of conventional and multichannel TV channels increased the demand for programming. Although some of this demand was met by foreign programmers*including emerging Asian distributors*the bulk of programming was provided by rejuvenated domestic film and TV production industries (Sumarno & Archnas, 2002). Questions remain, however, about which of these emerging domestic and foreign programming strains commanded the highest levels of actual audience viewership. Current study Given the structural changes outlined above, the late 1990s offer a rare opportunity to gauge the impact of privatization on viewing in the Indonesian television industry. Although there’s a dearth of literature addressing this domain, we might obtain clues about viewing realignments by observing parallel regional cases. DuPagne and Waterman (1998, p. 208) argue that the rich scholarship on the perceived dominance of American entertainment can be broadly categorized into two conceptual schools: (1) The ideological perspective, which is concerned with media imperialism, American hegemony and the ‘discourse of denunciation’; (2) The social scientific perspective, which is primarily concerned with economic models and audience preference arguments. The authors conclude that extreme variations of the ideological school, such as Schiller’s (1992) conspiratorial notions that American multinationals seek to supplant local media with US imports, are overly simplistic. They further break the social science school into economic and noneconomic perspectives. With regard to the latter, Straubhaar and Boyd (2002) emphasize the importance of audience taste, casting program imports as a function of political, cultural and economic

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relationships among nations. He notes that earlier one-way conceptions of media imperialism have been replaced by a ‘glocalization’ dynamic in Latin American and other national contexts. Similarly, Lau et al. (2008) found evidence of some viewing fragmentation as East Asian media (including Singapore and Hong Kong) were deregulated during the 1990s. This contradicts the rather straightforward media addiction hypothesis, which was based on the assumption that developing countries were dependent on Western fare owing to its inherently higher production value and lower cost (e.g., Schiller, 1992; Tunstall, 1977). But after popularizing the term ‘media imperialism’ some 30 years earlier, Tunstall’s (2008) update cites the case of Indonesia to bolster his view of declining influence for Western media (i.e., ‘the media were American’). Scholars rooted in the economic perspective stress the importance of free market forces that offer a competitive advantage to larger nations, with empirical work finding support for this dynamic in Western Europe (e.g., Dupagne & Waterman, 1998). Although much of this work was based on pure theory, the fact that intellectual copyright remained America’s primary export through the new millennium suggests that her competitive advantage remains strong (Anokwa et al., 2003). Fu and Sim’s (2010) more recent analysis of theatrical movie distribution indicates ‘that trade traffic rises with exporters’ and importers’ home cinema economies, but is lessened by cultural distance between them’; however, the content flow’s ‘cultural discount’ was moderated by the exporter’s market size, as the content flow escalates when both sides speak a common language. Thus, as Fu and Wildman (2008, p. 92) note, ‘(M)edia industries in most Asian countries have undergone remarkable transformation over recent decades due to a combination of technological change, regulatory innovation, and newly unleashed market forces.’ Drawing from this corpus of work, we might expect to see one of three likely scenarios play out during this key period of transition in Indonesia: (a) no significant change program preference patterns; (b) foreign program popularity decreased and local popularity increased; or (c) foreign program popularity increased and local program popularity decreased. More formally, the present study examines two research questions: (1) Was there a change in the percentage of broadcast hours between foreign and local programs between 1995 and 1997? (2) Was there a change in the popularity of foreign and local programs between 1995 and 1997? These research questions are different from those underpinning media imperialism studies conducted by such scholars as Nordenstreng and Varis (1974), Lee (1980) and Varis (1984), which examined the flow of programs based on number of hours of foreign and local programs aired. Waterman (1988) as well as Wildman and Siwek (1988) examined the international trade in films and television programs. Their focus was more broadly configured to reflect overall global markets. Lau and Ang (1998) and Lau (1999) examined the increasing of competition in the Indonesian market, but their studies did not offer data to support a change of the popularity of foreign and local programs. Similarly, Straubhaar (1984) examined the decline of American influence on Brazilian television, as Tunstall (2008) has done in the Indonesian context, focusing on program flows. Such work provides a solid starting point for

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analysis on cross-border media consumption, but fails to provide a complete picture of actual viewing habits. The present study expands on static profiles of aggregate program imports and focuses on trend data, using the top 100 most popular programs as the unit of analysis.

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Methods The current study is designed to examine the impact of competition on the popularity of foreign and local programs in Indonesia. Competition is defined as the number of players in the market and is assumed to increase if the number of players increases for the first time. A sub-field in economics theory, the Industrial Organization Paradigm (IOP), proposes that a change in the market structure (that is more competition) will affect the player’s performance and conduct (see Albarran & Chan-Olmsted, 1998; Atkin, Lau, & Lin, 2006; Caves, 1982; Lau et al., 2008; Picard, 1989). In the case of Indonesia, 1995 is a good starting point because it represents the year during which competition was opened up to the largest number of players. IVM was launched on 11 January 1995 and, thus, we assume that all other commercial TV networks must take action to prepare for the competition from IVM. Therefore, the study uses 1995 data as the basis for comparison. Because the Asian economic collapse presents an anomaly that can skew the data beginning in 1998, the study will only cover ratings data in complete years for 1995, 1996 and 1997. It is also assumed that competition intensifies each year as the proliferation of new media outlets intensifies the network rivalry for ratings and advertising dollars. In the present case, foreign and local programs are classified by their sources of origin. All imported programs are classified as foreign programs. Those foreign programs dubbed into Bahasa Indonesia, the national language, are still classified as foreign programs. Those repackaged programsi.e., those programs that use foreign footage as part of the content but add local actors and creative content*are considered local programs. Additionally, all programs produced by the Indonesian television stations and local production houses are considered local programs. All programs, except news, are included in the study. The study also examines the total number of broadcast hours in terms of the ratio between programs of foreign and local origin. Survey Research Indonesia (SRI) provided weekly ratings data with samples drawn from five major cities, including Jakarta, Surabaya, Medan, Bandung and Semarang. In 1998, SRI switched from the traditional diary data record system to the electronic people-meter method. Since more recent people-meter data remains proprietary, the present study focuses upon diary data obtained between 1995 and 1997. Reflecting a fuller range of viewing habits than their electronic successors (Abelman & Atkin, 2011), these diaries allow a detailed profile of TV viewing during a period where the media environment was undergoing profound structural changes in its program distribution network, outlined earlier. According to SRI, 6000 households were used in the survey in these five cities. The sample size included all people five years old and above in these households. Program popularity is thus measured by SRI ratings. The annual top 100 highest rated programs between 1995 and 1997 are used to measure popularity. These top

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100 programs are classified according to sources (foreign versus local) and types (including drama series, movies, sports and other types of programs). Specifically, foreign programs are classified into one of four kinds: Western (including mainly the English programs from the United States and United Kingdom, Australia*the major English program suppliers); Asian (subdivided into Chinese, Japanese, Indian, Arabian and other Asian countries); Latin American; and other countries not falling within in the previous three categories outlined above.

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Results Data on the prevalence of TV program sources in Indonesia is provided in Table 1. Here we see that the percentage of broadcast hours of foreign programs decreased from 51.7% to 50.2% to 45.4% between 1995 and 1997. This decline occurred despite the fact that there was an increase of broadcast hours from 35,339.6 hours in 1995 to 37,483.2 hours in 1996 and 39,363.3 hours in 1997. Focusing on the geographical region of origin for various programs, Table 1 also documents a 10% decline of Western programs versus a 7% increase of Asian programs. The amount of broadcast time devoted to Western programs declined from 34.8% in 1995 to 28.8% in 1996 and 25.9% in 1997. Broadcast time devoted to Asian programming increased from 9.6% in 1995 to 15.9% in 1996 and 16.6% in 1997. Broadcast hours devoted to Latin American programs almost dropped by 50% between 1995 and 1997 (6.5% in 1995; 5.5% in 1996; and 2.9% in 1997). Only Chinese and Indian program broadcast hours saw an increase between 1995 and 1997. Chinese programs increased (from 3.7% in 1995 to 5.3% in 1996), before declining in 1997 to 4.8%. Indian programs increased from 1.9% in 1995 to 5.8% in 1996 and 6.9% in 1997. Table 2 shows the breakdown of the top 100 highest rated programs between 1995 and 1997. In 1995, 72 out of the 100 top rated programs originated from foreign sources. However, the number of foreign programs declined to 62 in 1996 and 52 in 1997. The data indicate a significant increase of the popularity of local programs between 1995 and 1997. In 1995, only 28 out of the 100 top rated programs originated from local sources. The number of popular local programs shot up to 38 in 1996 and to 48 in 1997. As further outlined in Table 2, Asian programs had overtaken Western programs as the more popular fare. Of the 68 top rated foreign programs in 1995, 21 were from Western sources, versus 50 from Asian sources. Similar patterns were seen in 1996 (16 Western programs versus 45 local programs) and 1997 (15 Western programs versus 37 Asian programs). In terms of Asian-originated programs, Table 2 shows that the number of Chinese programs attaining top ratings has increased between 1995 and 1997 (15 in 1995; 12 in 1996; and 28 in 1997). However, the number of Indian programs achieving top ratings decreased between 1995 and 1997 (from 33 in 1995; 33 in 1996; and 9 in 1997). The data further indicate that local drama series became the top ratings achievers between 1995 and 1997. In 1995, only nine local drama series made it into the top 100 program list. That number doubled in 1996, with 18 local drama series placing among the top 100 list. Then, in 1997, some 23 out of the top 100 rated programs were drama series. Local movies also did well, averaging between 16 programs in 1996 and 20 programs in 1997.

Foreign Sources Breakdown in percentages Asian Sources Breakdown Year Total Broadcast Hours Local % Foreign % Western Latin America Asian Others Chinese Japanese Indian Arabian Other Asian 1995 1996 1997

35,339.6 37,483.2 39,363.3

48.3 49.8 54.4

51.7 50.2 45.4

34.8 28.8 25.9

Sources: Survey Research Indonesia Ratings Data, 19951997.

6.5 5.5 2.9

9.6 15.9 16.6

0.8 0.0 0.0

3.7 5.3 4.8

2.5 2.4 1.9

1.9 5.8 6.9

0.7 0.9 0.8

0.8 1.5 2.2

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Table 1. TV program sources in Indonesia, 19951997.

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Focusing on program types, foreign movies*especially those from Western or Chinese sources*were clearly the winner in the ratings war. In 1995, 65 foreign movies made it into the top 100 list. The number declined in 1996 to 60 and declined further in 1997 to 51. Foreign drama series were not as successful as local drama series in garnering high ratings between 1995 and 1997. Only five foreign drama series made it into the top 100 list in 1995 and the number sharply declined to 1 in 1996 and 1997, respectively. Contrary to Tunstall’s (2008) observation underscoring the popularity of sports fare in Indonesia, our individual-level data suggest that sports programs did not earn high ratings. In 1995 and 1997, no sports program*neither foreign nor local*made the top 100 list. In 1996, two local sports programs (the Indonesian’s favorite Badminton championship game) and one foreign sports program (a Mike Tyson fight) made it to the top 100 list. Discussion The present study set out to explore viewing shifts accompanying the introduction of new, privately owned, TV networks in Indonesia. On balance, study findings indicate that there is a change in terms of the broadcast hours and popularity of foreign versus local programs in Indonesia between 1995 and 1997. First, the findings suggest that the broadcast hours for local programs increased even as airtime devoted to foreign programs decreased. Second, the popularity of local programming increased, while the popularity of foreign programs decreased between 1995 and 1997. This is similar to the statistical profile of Hong Kong’s television broadcasting development, which emphasized local in-house program productions (Lau, 1998). More broadly, these trends seem to confirm the ‘glocalization’ dynamic that Straubhaar (2003) has noted in the developing world. As such, our findings contradict the Western program ‘addiction’ arguments favored by proponents of media imperialism. The findings also suggest that cultural proximity is a factor underpinning the popularity of foreign programs. Between 1995 and 1997, Asian programs outnumbered Western programs on the top 100 highest rated program lists. Thus, it would seem that the proliferation of new media is helping to overcome the firstcomer and capitalization advantages that Western media purveyors have traditionally enjoyed in the Indonesian market. Ironically, as emerging telecommunication media make distance less significant, in line with McLuhan’s conception of a global village, Indonesian viewers were increasingly turning to imports from their more proximate neighbors. Do these findings suggest a possible causal relationship between competition and popularity of foreign and local programs? The Industrial Organization Paradigm assumes that the market structure (that is, degree of competition) will impact on industry performance and conduct (e.g., Albarran, 2002; Atkin et al., 2006). We assume that, if local programs were not more popular than foreign programs, then Indonesian programmers would not have scheduled more local programs over time (all other factors considered equal). Their programming decisions were further supported by the superior ratings garnered by local programs during this period of transition, especially for drama series. As the program concepts and production skills of Indonesian television professionals have improved, local programs continued to

Sources Foreign Break-down Year

Total

1995 N  100 1996 N  100 1997 N100

Local Foreign Western 28 38 48

72 62 52

21 16 15

Latin Am 1 1 0

Type of Sources

Asia Break-down

Local

Foreign

Asia Chinese Japanese Indian Drama movies sports others drama movies Sports others 50 45 37

15 12 28

2 0 0

Source: Survey Research Indonesia Top 100 Highest Rated Programs, 19951997.

33 33 9

9 18 23

17 16 20

0 2 0

2 2 5

5 1 1

65 60 51

0 1 0

2 0 0

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Table 2. Indonesian TV program popularity based on sources and types of programs, 19951997.

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dominate prime time programming in Indonesia (Sumarno & Archnas, 2002). The supply of programming and the traditional models of program choice proposed by Owen and Wildman (1992) should provide a helpful guidepost for later work in this area. However, there are limitations to the assumption of a causal relationship outlined here, as external and internal factors can affect the inference of causality. First, external factors, such as government regulations, especially an import quota of foreign programs, should be considered when interpreting the present findings. Between 1995 and 1997, the Ministry of Information in Indonesia did not impose import quotas on foreign programs. It was only after the discussion of the first broadcasting bills at the end of 1996 that a 40% local content clause was proposed. The bills also argued on the definition of local programs. They did not accept foreign programs dubbed into Bahasa Indonesia as local programs. The controversial broadcasting bills have done little to prompt enforcement of the local content rule (Tunstall, 2008). Other internal factors, such as broadcast programming strategies and audience preferences, also may affect the findings. Some local broadcasters, who think that they may have broadcast too many foreign programs during prime time, would deliberately broadcast more local cultural programs during fringe hours to influence the annual statistics. For example, Indosiar Visual Mandiri broadcast on every Friday and Saturday night from 6 p.m. to 11 p.m. local traditional puppet shows, Wayang Kulit, since 1995. Such actions will affect subsequent tallies on broadcast hours of foreign and local programs. It should be noted that after 1998, when the Reformasi (Reform) occurred, a second wave of private stations was established. This was followed by a new Broadcasting Act in 2002, the impacts of which would be a good subject for a follow-up study. Another study limitation is that program costs and the resources available to produce local programs are not considered. The findings show that foreign movies, especially Western and Chinese blockbusters, can easily garner high ratings during cutthroat prime time ratings wars. Television networks will seek to schedule these movies during prime time, which the local industry defines as from 6 p.m. to 10:30 p.m. A famous foreign movie may cost US$20,000 in the Indonesian television market. Each 30-second commercial spot could command about US$3500 in 1997. With a maximum of 24 spots per hour, the total maximum advertising revenues for a two-hour movie slot were about US$168,000. However, a one-hour episode of a local drama series may cost about US$5000 to produce or purchase locally. The one-hour time slot would obtain maximum advertising revenues of US$84,000. Therefore, programmers found it more attractive to produce local drama series. Before 1995, local drama series production was not well-developed owing to the lack of a professional television workforce in Indonesia. The then new television network, IVM, specifically used local drama series as a selling point. IVM has devoted resources to train and establish its in-house drama production crews. The continuation of the popularity of local programs, especially drama series, will thus depend on how soon all television networks in Indonesia can establish their in-house production teams. The local television production industry, although relatively nascent at the time of this study, continues to grow in Indonesia and the relative popularity of indigenous fare should continue to grow with it.

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Additionally, the SRI ratings data are unable to determine if there is a difference between urban and rural viewers in Indonesia. The data were collected from five major cities in Indonesia, including Jakarta, Surabaya, Medan, Bandung and Semarang. These are mainly urban areas, with Jakarta ranking as the largest urban area, with 11 million people. However, an analysis based on Jakarta and outside-ofJakarta area viewers will not detect any underlying urban-rural differences. Because some households in the Jakarta sample are from the rural areas, the urban-rural difference may be worthy of exploration in later work. As Fu and Wildman (2008) conclude, Asian markets have been at the forefront of dramatic recent changes in programming and, as such, may serve as harbingers for changes now sweeping the global media marketplace. What lessons can be learned from this Indonesian case study? For local broadcasters, study findings suggest that they need to build up their own production team to produce more quality local programs. Foreign broadcasters seeking to sell programs to Indonesia need to know the changing taste of the local audience and some may need to set up co-production programs, particularly those about which the US entertainment executives are aware (Landler, 1994; LaPastina & Straubhaar, 2005). For policy makers, the rise of domestic platforms may contribute to a rise in popularity of local programs, enabling them to bypass more contentious policy remedies like the imposition of program quotas. For researchers, many questions remain, governing such topics as viewer program choice, enhanced content diversity and its influence on political discourse and involvement (e.g., Mou, Atkin, & Fu, 2011) in a fragmenting program environment. Notes 1. Now a subsidiary of ACNielsen. 2. These broadcasts did not reach the West Papua region. The notion that linguistic diversity impaired the spread of Indonesian media is further undermined, however, by the fact that there was at least one daily paper published in the Bahasa Indonesian language during that time. 3. Note that the liberalization of television ownership undertaken subsequently during the 1990s resulted in an opening of the Indonesian media, which is consistent with the Developmental press model, This media ferment, along with a loss of military support (Winters, 2002), contributed to Soeharto’s removal from power in 1998.

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