Backed by FILM’s blockbuster powerhouse status. PT MDTV Media Technologies Tbk (NETV), formerly PT Net Visi Media Tbk, entered new strategic phase following PT MD Entertainment Tbk (FILM, BUY: IDR 13,500 TP) having acquired 80% controlling stake in 3Q24. This acquisition effectively positions NETV as the final piece in FILM’s extensive IP monetization chain—after theatrical and digital distribution—allowing FILM to extend the commercial life of its blockbuster titles through FTA. As the studio behind some of Indonesia’s most successful films, including KKN di Desa Penari (10.1mn viewers), Sewu Dino (4.9mn), Ipar Adalah Maut (4.8mn), and Pabrik Gula (4.7mn), FILM will provide steady pipeline of high-appeal content that NETV can leverage to rebuild audience engagement. Given FILM’s strong track record of producing hit movies that can attract 2–10 million viewers, we expect NETV’s audience share of 1.2% to rise to 2.0% in 2026F and 2.6% by 2027F. This trend should translate into meaningful top-line growth with revenues projected to reach IDR 200bn in 2026F (+116% YoY) and IDR 283bn in 2027F (+42% YoY).

 

SBS synergies as game changer. In FILM’s 2Q25 rights issue, SBS Co. Ltd. (South Korea’s second-largest broadcaster) participated by exercising 413.8 million shares, equivalent to 3.8% stake. SBS subsequently reinforced its commitment by appointing Hyongmin Kim, its senior financial strategist, to FILM’s board of directors in August 2025. In our view, this move signals intent that goes well beyond passive ownership and points toward deeper operational collaboration. Our research suggests that NETV stands to benefit from access to SBS’s premium content pipeline—particularly Korean drama formats, which remain the single biggest driver of OTT migration in Indonesia (Page 8). With nearly 80% of Indonesian OTT users shifting primarily to watch Korean dramas, access to curated K-content is a transformational catalyst for NETV, ensuring that it would regain its audience traction despite the current struggling free-to-air industry. Hence, we expect MDTV to be the first among Indonesia’s traditional broadcasters to be able to see a significant reversal in its downward market share trend.

 

Earnings turnaround ahead: BUY, DCF-based TP of IDR 170 (42% upside). We initiate coverage on NETV with BUY rating and DCF-based TP of IDR 170, implying 42% upside from current levels. We expect NETV to deliver meaningful earnings turnaround as synergy benefits begin to materialize, with bottom line projected to swing from a loss to IDR 7bn gain in 2026F, before reaching IDR 45bn in 2027F (+550% YoY), supported by stronger collaboration with FILM and SBS. Thus, improved programming coupled with lower interest rates starting in 2025 should pave the way for increased ad revenues in 2026F and beyond. Risks to our call: less-than-expected efficiency gains, slower realization of SBS-related synergies, delayed monetezation of FILM’s blockbusters, and softer macroeconomic recovery.