Is India ready for a content e-commerce market? Or is telecom bundles the way forward? – Brandwagon News

According to an EY report, approximately 43 million households paid 97 million video OTT subscriptions in 2023. Compared to 2022, paid video subscriptions decreased by 2 million in 2023 (45 million subscribed households were paying for his 99 million video OTT subscriptions).Video OTT subscriptions increased by 6% to reach Rs 7,260 crore in 2023 as premium cricket facilities migrated to his AVOD This reduced the number of Disney+Hotstar paid subscriptions by approximately 19 million.

“Add-ons” to the streaming wars

The streaming wars are heating up after JioCinema reduced the subscription price for ad-free premium content to Rs 29 per month. Meanwhile, other streaming platforms charge premium subscription fees for their content. Netflix's Rs 199, Prime Video's Rs 299 and Disney+Hotstar's Rs 1,499 are expensive compared to JioCinema's Rs 29. Things like JioCinema and Amazon. Prime Video and Zee5 Global also feature content from other production companies such as Lionsgate, Peacock, Warner Bros, Hoichoi, Chaupal, Sony Pictures Stream, Oho Gujrati, Simply South, and EPIC On.

industry Experts believe that although the spending trend remains, Indian consumers will see less value in add-on services, especially if the services continue to coexist with telecom bundles. Experts believe that Indians are not yet ready to pay for large-scale additional services. “Some people may agree with this, but it doesn't make business sense. For growth and expansion, everyone should do what Jio did yesterday, people don't care about paying.” I think we have to rely on delivering something at a very bullish price point like that,” Golwalkar added.

However, OTT platforms are not shying away from trying to replicate the same model by allowing third-party platforms to be used on their platforms. This makes it accessible to viewers who want to see something special. These platforms typically follow a revenue-sharing model in which revenue is shared when a user subscribes to another OTT service. “We have seen ZEE5 Global become the leading platform for South Asian content and established our leadership in the US. It was therefore a natural progression for us to evolve into the leading aggregator of South Asian entertainment in this market. The add-on helps solve both content and consumer fragmentation, giving subscribers access to all their favorite content from a single destination with unified access and billing, with prices starting at $1.99. It is a risk-free revenue opportunity for our partners as they can leverage their reach in the US and save huge customer acquisition and marketing costs,” said Zee5 Global Chief Business Officer. says Archana Anand. The platform claims that she has partnered with more than seven platforms and will offer content across languages ​​such as Hindi, Telugu, Tamil, and Gujarati.

In contrast, other industry experts believe that bundling supports large-scale economies. of OTT platforms. However, while the big players can afford to bundle with telecom players, the smaller players are feeling the heat and don't have as deep pockets. “Popular players can benefit by partnering with existing regional content platforms to expand their reach in tertiary and tertiary 4 cities, while regional players can benefit from a huge amount of content from urban and tier 1 cities. Every platform wants more reach and more customers, so add-on services make it a win-win situation for everyone.” Analyst Girish Johar emphasized.

Telecommunications carriers are also participating

Telcos are bundling OTT services at affordable prices for Indian consumers. According to a joint study by software and service provider Amdocs and consulting firm Ovum, around 44% of Indian respondents said bundling media services with their telecom plans meant they were paying more for their mobile and broadband bills. He says this is the main reason he is willing to spend. The study further states that 56% of Indian digital consumers subscribe to more than one paid online video service.

Airtel Xstream offers bundles of subscriptions to platforms like Netflix, Prime Video, Disney+Hotstar, and Airtel Xstream app for Rs 1599. Jio is offering a similar bundle for Rs 899, allowing users to enjoy his Disney+ Hotstar, Zee5, SonyLiv, SunNXT, Hoichoi, AltBalaji, EROS Now, Lionsgate, ShemarooMe, JioCinema, ETV Win, EPIC ON, DOCUBAY. Industry experts believe that smaller production companies are seeking monetization opportunities through content. Moreover, in order to understand customer demands, communication services are becoming increasingly diverse. “Communications bundling will impact business models. Carriers everywhere are monetizing content more efficiently to compete with other operators. There is also talk of platforms using user channels. Players in this space are looking for differentiated objectives to serve their customers,” said Manoj Dobhal, CEO, Dish TV. .

In India, some people use both add-on services and bundles.it remains to be seen which services will stand the test of time based on consumer preferences.

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