PT Telekomunikasi Indonesia Tbk (Telkom) create digital music service that provides services including music downloads and streaming videos unlimited.
The launch service was marked by the inauguration of a joint venture between Telkom and Korean SK Telecom called PT Melon Indonesia.
"The service is to help creative industries as well as protecting the copyright of the musician and songwriter. Thus, the expected results of their work is more appreciated copyright and piracy rate in Indonesia could be reduced," said president director Rinaldi Firmansyah on the sidelines of the launch of PT Melon Indonesia, Jakarta , Thursday, December 2, 2010.
Melon, or short for Melody On, presents a special digital music service on Telkom and Telkomsel subscribers with unlimited song selection, song catalog number of 400 thousand, subscribe mode (subscription) or even buy the unit (ala carte) and can be played anywhere, including PCs, mobile phones and MP3 players. Until December 31, 2010, users can enjoy unlimited music service free of charge.
Telkom controls 51 percent share ownership of PT Melon Indonesia, while the rest is owned by SK Telecom. Even so, Won Yong Jo of Korea appointed as President Director of Telkom Indonesia Melon.
"They have a good track record in Korea. For this reason, we rely on their Melon. If we (Telkom) that deal is still groping her," said Rinaldi.
In Korea, by rating Rinaldi, melon quite successful. When Melon appeared, the piracy rate in Korea is still high, about 80 percent of outstanding songs are the result of piracy. However, after walking two or three years, piracy can be reduced to 60 percent, which is the percentage of licensed songs and the songs pirated almost balanced.
"In Indonesia, the piracy rate is estimated around 94 percent. This is because people are starting to migrate to the virtual world and left the music outlets. Therefore, we Empower songs via online marketing," said Rinaldi.
With a total investment worth Rp51 billion, and total mastery of 51 percent stake through a subsidiary, Metra, Telkom will take the role of marketing and sales services in the domestic market, supplying the network, billing, and the products.
Meanwhile, SK Telecom with 49 percent ownership stake, with an investment of Rp49 billion, plans to support the company by deploying a solid management capabilities in building a business platform DCEH (Digital Content Exchange Hub), provides the sources of digital content and managing service operations.
"At the end of 2011, we expect that the treasurer could reach one million songs, including local and international materials, with the number of members of about 800 thousand. In 2013, we also expect the existing positive cash flow, BEP has not okay," said Rinaldi .
