Indonesia’s ride-hailing giant Gojek launches video streaming service GoPlay

On-demand video streaming giant Netflix, which is increasingly expanding its footprint in developing markets, now has a new competitor in Indonesia: Gojek.

The Indonesian ride-hailing giant on Thursday launched a video streaming service called GoPlay that features exclusive access to "hundreds of movies and TV shows" as well as snackable short clips. The streaming service is currently available only in Indonesia.

The service, which Gojek began testing with select users in June, focuses on local content, Edy Sulistyo, CEO of GoPlay said. Gojek, which was valued at $9.5 billion in its last financing round, said it has partnered with major local production houses such as Base Entertainment, Kalyana Shira Films, and Wahana Kreator for production of original titles. The firm said it has also tied up with some international studios to source foreign content.

"Despite a rise in demand for local content and a growing number of mobile audiences in Indonesia, access has still been limited especially for consumers living outside of urban areas. With GoPlay, we aim to enable all Indonesian consumers to enjoy high-quality on-demand entertainment at their convenience, while providing a platform for local content producers to showcase their creative work," said Sulistyo in a statement.

Gojek is offering the video streaming service through two aggressively priced monthly plans: IDR 89,000 ($6.27), which offers access to the full catalog in HD; and IDR 99,000 ($7), which will additionally also provide users with access to GoFood delivery vouchers.

GoPlay will compete with a range of streaming services such as Netflix, iFlix, and Hooq. Netflix last year began testing a low-cost mobile-only plan in some developing markets including Indonesia to boost its presence in those nations. The global giant eventually launched the affordable tier in India earlier this year. A Netflix spokesperson told TechCrunch this week that it currently has no plans to expand the low-cost tier to other markets.

Like many other major firms in Southeast Asia, Gojek is increasingly bulking up its ride-sharing platform to enter additional categories. Today, it offers an online payments service and a gaming platform. The firm began working on its video streaming service last year after it set up an in-house content studio.

Grab, Gojek's arch rival in Southeast Asian markets, and India's Ola, have also expanded their offerings in recent years. While Grab, like Gojek, offers everything including a video streaming service, Ola launched a credit card in May.

Grab has a partnership with Hooq for its video streaming service. In the run up to GoPlay's launch, Hooq CEO Peter Bithos told TechCrunch in an interview that Gojek lacks the reach Hooq maintains in Southeast Asian markets. "Gojek hasn't been able to get to anything like the scale or reach that we've got," he said.

About 125 million people in Indonesia, or half of the nation's population, is currently online. Sulistyo said Gojek sees a lot of potential for GoPlay's growth in the country.

Indonesia has emerged as one of the fastest growing economies in Asia in recent years. According to a study conducted by Google and Singapore's Temasek, Indonesia's internet economy is estimated to be worth $100 billion by 2025.