[ad_1]
The top-to-the-top (OTT) players reduced their subscription prices to expand their customer base with a two-pronged strategy: offering packages for shorter periods and allowing consumers to choose their content.
Netflix recently announced its weekly and monthly packages starting at Rs 65 a week and Rs 250 a month for some mobile users. That's half the price of its standard base package of Rs 500. Unfortunately, it's still more expensive than Amazon Prime which costs Rs 129 per month or the Hotstar Premium Monthly Pack of a value of 199 Rs.
Hotstar has launched a Hotstar VIP pack at Rs 365 a year, well below its premium service, which is priced at Rs 999 per year. Both packs differ in terms of access to original content and sports coverage. Even the SonyLIV app tests weekly packages. It currently has a monthly subscription of 99 Rs.
Area-based apps like ZEE5 have launched last year monthly packs from 49 Rs in languages including Tamil, Telugu and the kannada. This was to compete with its competitor Sun NXt, on which consumers can listen to content in Tamil, Telugu, Kannada and Malayalam, which has a quarterly pack of Rs 130.
According to a KPMG report OTT space in India has 2-2.4 million subscribers using the services directly. The others are considered paid subscribers through phone company-based packages. This leaves OTT actors a lot of room to attract new consumers, increase subscriber revenues and improve bottom line results.
The advertising revenues of these actors would not be sufficient to recover the cost of content, marketing and distribution. YouTube and Facebook social media players account for 70% of total digital advertising revenue. The rest, or 30%, is shared by OTT players.
According to the data, revenue from the video streaming industry will increase, its rate growth is expected to decline over the next four years, as will average revenue per user.
"Thanks to these price reductions and the rationalization of pack duration, OTT players are looking to expand their base of pay subscribers. higher priced packs and improved profitability, "Girish Menon, Partner at KPMG, told Financial Express.
The prices of OTT services in India are higher than those of cable television, which is not the case in the West. In the United States, Netflix costs $ 15 while a cable connection costs $ 100. If major players publish cheaper packages, this gap can be resolved in India. These packs can also help get impulsive users and would also facilitate content sampling.
"Most OTT broadcasters have strong partnerships with advertisers, so it's not difficult to get advertising even for original content." Uday Sodhi, Business Manager Digital Networks at Sony Pictures Networks India, aims to make customers buy cheaper and use paywalls for premium content.
[ad_2]
Source link
