Category: Over The Top Services

India’s OTT paid video subscribers pegged at 1.3 million: Frost and Sullivan

MUMBAI: OTT (over-the-top) was the buzzword in the Indian media and entertainment sector in 2015 with multiple players firming up their game plan to tap into the lucrative and booming digital space. With the emergence of numerous OTT service providers in the past two years coupled with the entry of Netflix in India, the space is poised to grow at a fast pace in the years ahead.

According to Frost and Sullivan’s market insight on the OTT video market in India, there are about 66 million unique connected video viewers in India every month, and about 1.3 million OTT paid video subscribers. Growth in the space can be attributed to increase in smart-phones penetration as well as the improvement in Internet speed in India.

Despite facing several challenges today, the OTT market growth will be fuelled by various disruptive innovations in technology and business models over the next five years, as per Frost and Sullivan.

“With an increase in the use of smart devices in India, content owners and aggregators are using non-TV platforms to improve reach and generate revenues through subscription and advertisement. However, it’s hard to woo the Indian consumer. Success in OTT video distribution will depend on the ability to offer variety of content, new content, at a reasonable price and impeccable user experience,” said Frost and Sullivan research director Vidya Subramanian Nath.

While today a few broadcasters such as the Star TV Network and Zee Entertainment are driving services as well as viewership for OTT video with Hotstar and DittoTV respectively, over the next five years, there will be more broadcasters as well as cable and DTH operators expanding their OTT services. However, inadequate bandwidth speeds and the incumbency of YouTube in the market have challenged market participants.

“India may have over 225 million Internet users, but for consuming video, one needs high-speed broadband access and only about 35 per cent of these users have access to it, informed Nath. “OTT video subscription numbers fluctuate dramatically every month. We find that advertising video on demand (AVOD) is the most preferred mode of OTT video delivery in India currently,” she said.

Among content types, there is an increasing demand for short duration video content. This is primarily attributable to the average low Internet speeds and changing preferences of many Indian viewers. It is common to find online viewership peak during major sports events like the IPL, elections, or breaking news.

Platforms such as YouTube offer opportunities for independent content creators who can publish their videos online without the hassles of negotiation with large networks. Now, with the entry of Netflix in India, independent professional content production will continue to grow. Broadcasters who have their own content or video platforms with a variety of publishers are driving the market. While Viacom18 is all set to launch its service called VOOT next month, Ekta Kapoor’s Balaji Telefilms is also burning the midnight oil to launch its OTT platform – ALT Digital by June this year. Balaji Telefilms CEO Sameer Nair has huge expectations from the platform and expects ALT Digital to have a whopping four million paid subscribers globally by 2020.

With substantial investment being pumped in by companies like by Star India (Hotstar), Sony Pictures Networks India (Sony Liv), Zee Enterprises (dittoTV), Eros International (ErosNow) and Singtel, Sony & Warner (HOOQ) amongst others, the competition in the OTT space is set to intensify with the key differentiators being user experience and variety of content offering.

February 25, 2016
India’s OTT paid video subscribers pegged at 1.3 million: Frost and Sullivan

MUMBAI: OTT (over-the-top) was the buzzword in the Indian media and entertainment sector in 2015 with multiple players firming up their game plan to tap into the lucrative and booming digital space. With the emergence of numerous OTT service providers in the past two years coupled with the entry of Netflix in India, the space is poised to grow at a fast pace in the years ahead.

According to Frost and Sullivan’s market insight on the OTT video market in India, there are about 66 million unique connected video viewers in India every month, and about 1.3 million OTT paid video subscribers. Growth in the space can be attributed to increase in smart-phones penetration as well as the improvement in Internet speed in India.

Despite facing several challenges today, the OTT market growth will be fuelled by various disruptive innovations in technology and business models over the next five years, as per Frost and Sullivan.

“With an increase in the use of smart devices in India, content owners and aggregators are using non-TV platforms to improve reach and generate revenues through subscription and advertisement. However, it’s hard to woo the Indian consumer. Success in OTT video distribution will depend on the ability to offer variety of content, new content, at a reasonable price and impeccable user experience,” said Frost and Sullivan research director Vidya Subramanian Nath.

While today a few broadcasters such as the Star TV Network and Zee Entertainment are driving services as well as viewership for OTT video with Hotstar and DittoTV respectively, over the next five years, there will be more broadcasters as well as cable and DTH operators expanding their OTT services. However, inadequate bandwidth speeds and the incumbency of YouTube in the market have challenged market participants.

“India may have over 225 million Internet users, but for consuming video, one needs high-speed broadband access and only about 35 per cent of these users have access to it, informed Nath. “OTT video subscription numbers fluctuate dramatically every month. We find that advertising video on demand (AVOD) is the most preferred mode of OTT video delivery in India currently,” she said.

Among content types, there is an increasing demand for short duration video content. This is primarily attributable to the average low Internet speeds and changing preferences of many Indian viewers. It is common to find online viewership peak during major sports events like the IPL, elections, or breaking news.

Platforms such as YouTube offer opportunities for independent content creators who can publish their videos online without the hassles of negotiation with large networks. Now, with the entry of Netflix in India, independent professional content production will continue to grow. Broadcasters who have their own content or video platforms with a variety of publishers are driving the market. While Viacom18 is all set to launch its service called VOOT next month, Ekta Kapoor’s Balaji Telefilms is also burning the midnight oil to launch its OTT platform – ALT Digital by June this year. Balaji Telefilms CEO Sameer Nair has huge expectations from the platform and expects ALT Digital to have a whopping four million paid subscribers globally by 2020.

With substantial investment being pumped in by companies like by Star India (Hotstar), Sony Pictures Networks India (Sony Liv), Zee Enterprises (dittoTV), Eros International (ErosNow) and Singtel, Sony & Warner (HOOQ) amongst others, the competition in the OTT space is set to intensify with the key differentiators being user experience and variety of content offering.

February 25, 2016
Netflix to launch original anime series ‘Perfect Bones’ globally

MUMBAI: Netflix has inked a deal with Production I.G that sees the upcoming original Anime series Perfect Bones to premiere only on Netflix. This marks the first ever original Anime title to debut all episodes simultaneously in 190 countries around the world.

Directed by Kazuto Nakazawa, the 12-episode series is set in the future where scientists have tried to create the ‘perfect human’ in hopes of keeping peace in the universe. After nearly achieving their goal through several children, the scientists send their ‘new humans’ for further training where they are kidnapped by an evil organisation set on using their powers to implement their own concept of a new world order.

“We are incredibly excited to work with Production I.G, who have worked on hit series such as Attack on Titan and Psycho-Pass, in bringing one of the most daring new Anime titles produced today to all Netflix members and Anime fans around the world,” said Netflix vice president, international originals Erik Barmack. “In an era where the Internet knows no bounds, we are proud to deliver high quality original Anime to fans all over the world, at the exact same time, no matter where they live whether it be Japan, France, Mexico, the US, and beyond.”

Production I.G president & CEO Mitsuhisa Ishikawa added, “Among all the tv series and films Netflix offers, the titles I personally find the most amazing are Netflix originals. Production I.G is eager to present another impactful title brought through our creators’ passion and imagination. We’re very excited about Perfect Bones!”

This marks a milestone in Anime distribution innovation for Netflix – enabling members around the world access to great stories faster.

February 25, 2016
Netflix to launch original anime series ‘Perfect Bones’ globally

MUMBAI: Netflix has inked a deal with Production I.G that sees the upcoming original Anime series Perfect Bones to premiere only on Netflix. This marks the first ever original Anime title to debut all episodes simultaneously in 190 countries around the world.

Directed by Kazuto Nakazawa, the 12-episode series is set in the future where scientists have tried to create the ‘perfect human’ in hopes of keeping peace in the universe. After nearly achieving their goal through several children, the scientists send their ‘new humans’ for further training where they are kidnapped by an evil organisation set on using their powers to implement their own concept of a new world order.

“We are incredibly excited to work with Production I.G, who have worked on hit series such as Attack on Titan and Psycho-Pass, in bringing one of the most daring new Anime titles produced today to all Netflix members and Anime fans around the world,” said Netflix vice president, international originals Erik Barmack. “In an era where the Internet knows no bounds, we are proud to deliver high quality original Anime to fans all over the world, at the exact same time, no matter where they live whether it be Japan, France, Mexico, the US, and beyond.”

Production I.G president & CEO Mitsuhisa Ishikawa added, “Among all the tv series and films Netflix offers, the titles I personally find the most amazing are Netflix originals. Production I.G is eager to present another impactful title brought through our creators’ passion and imagination. We’re very excited about Perfect Bones!”

This marks a milestone in Anime distribution innovation for Netflix – enabling members around the world access to great stories faster.

February 25, 2016
Viacom18 to launch VOOT VOD service in April; firms up content pipeline

MUMBAI: The latest addition to the growing digital family in India, Viacom18’s new digital video-on-demand (VOD) platform – VOOT is all set to launch its service in the first week of April armed with a slew of shows from various content houses.

According to information available with Indiantelevision.com, among the few production companies that Viacom18 has roped in to produce original content for VOOT are Endemol Shine India, Saurabh Tiwari Films, Colosceum Media, Frames Production Company, Sunshine Production, Shakutantalam Telefilms and Bodhi Tree.

Unlike Netflix’s subscription based revenue model, VOOT will follow the advertising based VOD model, wherein content will be offered free for subscribers.

When asked to comment on VOOT’s decision to go for the ad based VOD model, a senior media planner on condition of anonymity says, “It’s very early to predict anything. Getting an advertising pipeline takes time. Initially they will be making money out of advertising and it will be limited to certain brands, which they already have in their portfolio and slowly they will be able to expand in the market.”

Speaking on their show for VOOT, Frames Production co-founder Ranjeet Thakur says, “Yes, Frames is producing show for VOOT called Soadies. It’s a shows based on how Roadies has influenced families and their behaviour.”

Soadeis will be an eight-episodic story of 20-25 minutes duration.

According to information available, the per episode production cost of Soadies is said to be between Rs 5-6 lakh.

Sudhir Sharma’s Sunshine Production is also in the process of producing two shows for VOOT. Though production is in its early stages, the production house has begun casting for one of the shows, which will comprise four episodes.

Additionally, Colosceum Media will be producing a dating reality show for the VOOT platform.

VOOT’s launch comes at a time when Netflix has already made a big bang entry into India, following the likes of Star India’s Hotstar, Sony Pictures Networks India’s Sony Liv, Zee Enterprises’ dittoTV, Eros International’s ErosNow and HOOQ amongst others. With a handful of more players like Balaji Telefilm’s Alt Digital and Vuclip poised to enter the space, the OTT content production space is likely to get a shot in the arm.

February 24, 2016
Viacom18 to launch VOOT VOD service in April; firms up content pipeline

MUMBAI: The latest addition to the growing digital family in India, Viacom18’s new digital video-on-demand (VOD) platform – VOOT is all set to launch its service in the first week of April armed with a slew of shows from various content houses.

According to information available with Indiantelevision.com, among the few production companies that Viacom18 has roped in to produce original content for VOOT are Endemol Shine India, Saurabh Tiwari Films, Colosceum Media, Frames Production Company, Sunshine Production, Shakutantalam Telefilms and Bodhi Tree.

Unlike Netflix’s subscription based revenue model, VOOT will follow the advertising based VOD model, wherein content will be offered free for subscribers.

When asked to comment on VOOT’s decision to go for the ad based VOD model, a senior media planner on condition of anonymity says, “It’s very early to predict anything. Getting an advertising pipeline takes time. Initially they will be making money out of advertising and it will be limited to certain brands, which they already have in their portfolio and slowly they will be able to expand in the market.”

Speaking on their show for VOOT, Frames Production co-founder Ranjeet Thakur says, “Yes, Frames is producing show for VOOT called Soadies. It’s a shows based on how Roadies has influenced families and their behaviour.”

Soadeis will be an eight-episodic story of 20-25 minutes duration.

According to information available, the per episode production cost of Soadies is said to be between Rs 5-6 lakh.

Sudhir Sharma’s Sunshine Production is also in the process of producing two shows for VOOT. Though production is in its early stages, the production house has begun casting for one of the shows, which will comprise four episodes.

Additionally, Colosceum Media will be producing a dating reality show for the VOOT platform.

VOOT’s launch comes at a time when Netflix has already made a big bang entry into India, following the likes of Star India’s Hotstar, Sony Pictures Networks India’s Sony Liv, Zee Enterprises’ dittoTV, Eros International’s ErosNow and HOOQ amongst others. With a handful of more players like Balaji Telefilm’s Alt Digital and Vuclip poised to enter the space, the OTT content production space is likely to get a shot in the arm.

February 24, 2016
Lookup launches merchant app Lookup Biz

MUMBAI: Lookup, a free chat-based local commerce app, has introduced a merchant app called Lookup Biz, which provides a free suite of tools to showcase a business and connect it to the Lookup shoppers’ community.

With the help of this app businesses can track their customers, respond to their queries and product searches. Moreover businesses can push their offers through geo-targeted push notifications. Businesses can even re-market their products to customers who have made purchases from their stores earlier by re-engaging with them. A separate section gives important business analytics, which helps merchants understand customers better and receive feedback on their offerings.

It also gives businesses a way to manage bill cycles, invoicing and online payments. Lookup is also introducing a hyper-local advertisement network for offline merchants across Delhi, Mumbai, Pune and Bengaluru to promote their brand and reach out to shoppers in their vicinity of five to seven kilometers. Merchants will be able to reach out to the right target, living and looking for product. Lookup is powered by NLP and a functional AI. The app offers recommendations of various shops, request matching, and competitive product suggestions based on trends, special sales of new arrivals.

Lookup Biz founder and CEO Deepak Ravindran said, “Lookup Biz is aimed at assisting our partner merchants to come on board with greater facility and reach out to customers in more effective ways. Besides smoothening out daily business tasks like managing invoicing and payments, the app also allows businesses to foster greater engagement with existing and potential customers through their mobile profiles and more targeted offers.” Lookup Biz app is also planning to come up with a cloud-based POS so that businesses can manage all their operations. The POS will include menu management, real time analytics, and receipts and invoicing, apart from this, future enhancements include allowing owners of a chain of stores to claim multiple stores either as a chain of a brand or as independent stores.

February 22, 2016
Lookup launches merchant app Lookup Biz

MUMBAI: Lookup, a free chat-based local commerce app, has introduced a merchant app called Lookup Biz, which provides a free suite of tools to showcase a business and connect it to the Lookup shoppers’ community.

With the help of this app businesses can track their customers, respond to their queries and product searches. Moreover businesses can push their offers through geo-targeted push notifications. Businesses can even re-market their products to customers who have made purchases from their stores earlier by re-engaging with them. A separate section gives important business analytics, which helps merchants understand customers better and receive feedback on their offerings.

It also gives businesses a way to manage bill cycles, invoicing and online payments. Lookup is also introducing a hyper-local advertisement network for offline merchants across Delhi, Mumbai, Pune and Bengaluru to promote their brand and reach out to shoppers in their vicinity of five to seven kilometers. Merchants will be able to reach out to the right target, living and looking for product. Lookup is powered by NLP and a functional AI. The app offers recommendations of various shops, request matching, and competitive product suggestions based on trends, special sales of new arrivals.

Lookup Biz founder and CEO Deepak Ravindran said, “Lookup Biz is aimed at assisting our partner merchants to come on board with greater facility and reach out to customers in more effective ways. Besides smoothening out daily business tasks like managing invoicing and payments, the app also allows businesses to foster greater engagement with existing and potential customers through their mobile profiles and more targeted offers.” Lookup Biz app is also planning to come up with a cloud-based POS so that businesses can manage all their operations. The POS will include menu management, real time analytics, and receipts and invoicing, apart from this, future enhancements include allowing owners of a chain of stores to claim multiple stores either as a chain of a brand or as independent stores.

February 22, 2016
Q3-2016: Radio City revenue up 15%

BENGALURU: Music Broadcast Limited (MBL), which runs Radio City, reported 14.9 YoY (year-on-year) growth in operating revenue (OpRev) for the quarter ended 31 December, 2015 (Q3-2016, current quarter) at Rs 64.80 crore as compared to Rs 56.39 crore for the corresponding prior year quarter. Revenue in Q3-2016 was 16.7 per cent higher QoQ (quarter-on-quarter) as compared to Rs 55.54 crore in the immediate trailing quarter.

Note: (1) 100,00,000 = 100 lakh = 10 million = 1 crore

(2) Margins have been calculated on operating revenue in this report.

For the nine month period ended 31 December, 2015, (9M-2016, year to date or YTD), MBL reported 11.3 per cent higher OpRev at Rs 167.72 crore as compared to Rs 150.65 crore in the corresponding prior year nine month period. Though PAT in the current quarter and nine month period has reduced as compared to corresponding prior year periods, operating profit (Operating revenue minus expenses) has increased.

The company’s profit after tax (PAT) in Q3-2016 declined 5.4 per cent YoY to Rs 16.17 crore (25 per cent margin) as compared to Rs 17.10 crore (30.3 per cent margin), but increased by more than a third (increased by 34.2 per cent) from Rs 12.05 crore (21.7 per cent margin). PAT for 9M-2016 declined 30.7 per cent to Rs 25.99 crore (15.5 per cent margin) from Rs 37.53 crore (24.9 per cent margin) in the corresponding period of the previous year.

As mentioned above, Operating profit increased 22.1 per cent in the current quarter YoY to Rs 25.40 crore (39.2 per cent margin) as compared to Rs 20.80 crore (36.9 per cent margin) and increased 59.7 per cent QoQ from Rs 16.09 (29 per cent margin). Operating profit in 9M-2016 increased 17.6 per cent to Rs 56.01 crore (33.4 per cent margin) from Rs 47.63 crore (31.6 per cent margin) in 9M-2015.

Expenses in Q3-2016 were 10.7 per cent higher YoY at Rs 39.40 crore (60.8 per cent of OpRev) as compared to Rs 35.59 (63.1 per cent of OpRev) and almost flat (reduced by 0.1 per cent) QoQ as compared to Rs 39.45 crore (71 per cent of OpRev). Expenses in 9M-2016 increased 8.4 per cent to Rs 111.71 crore (66.6 per cent of OpRev) from Rs 103.02 crore (68.4 per cent of OpRev).

Jagran Prakashan numbers in brief

MBL’s parent company, Indian publishing company Jagran Prakashan Limited (JPL) reported 22.5 per cent increase in YoY consolidated operating revenue in Q3-2016 to Rs 576.36 crore as compared to Rs 470.46 crore. JPL’s advertising revenue increased 28.5 per cent YoY to Rs 434.82 crore from Rs 338.35 crore. Circulation revenues increased two per cent to Rs 102.02 crore from Rs 100 crore. JPL’s PAT in Q3-2016 increased 40.1 per cent YoY from Rs 66.62 crore.

For 9M-2016, JBL reported 17.1 per cent increase in operating revenue to Rs 1577.02 crore from Rs 1347.02 crore in the corresponding prior year nine month period, advertising revenue increased 22.6 per cent to Rs 1169.36 crore from Rs 954.17 crore, circulation revenue increased 3.5 per cent to Rs 302.36 crore from Rs 292.15 crore. PAT in 9M-2016 after extraordinary item (Rs 116.30 crore) more than doubled (up 104.3 per cent) to Rs 364.52 crore from Rs 178.43 crore in 9M-2015.

February 22, 2016
Q3-2016: Radio City revenue up 15%

BENGALURU: Music Broadcast Limited (MBL), which runs Radio City, reported 14.9 YoY (year-on-year) growth in operating revenue (OpRev) for the quarter ended 31 December, 2015 (Q3-2016, current quarter) at Rs 64.80 crore as compared to Rs 56.39 crore for the corresponding prior year quarter. Revenue in Q3-2016 was 16.7 per cent higher QoQ (quarter-on-quarter) as compared to Rs 55.54 crore in the immediate trailing quarter.

Note: (1) 100,00,000 = 100 lakh = 10 million = 1 crore

(2) Margins have been calculated on operating revenue in this report.

For the nine month period ended 31 December, 2015, (9M-2016, year to date or YTD), MBL reported 11.3 per cent higher OpRev at Rs 167.72 crore as compared to Rs 150.65 crore in the corresponding prior year nine month period. Though PAT in the current quarter and nine month period has reduced as compared to corresponding prior year periods, operating profit (Operating revenue minus expenses) has increased.

The company’s profit after tax (PAT) in Q3-2016 declined 5.4 per cent YoY to Rs 16.17 crore (25 per cent margin) as compared to Rs 17.10 crore (30.3 per cent margin), but increased by more than a third (increased by 34.2 per cent) from Rs 12.05 crore (21.7 per cent margin). PAT for 9M-2016 declined 30.7 per cent to Rs 25.99 crore (15.5 per cent margin) from Rs 37.53 crore (24.9 per cent margin) in the corresponding period of the previous year.

As mentioned above, Operating profit increased 22.1 per cent in the current quarter YoY to Rs 25.40 crore (39.2 per cent margin) as compared to Rs 20.80 crore (36.9 per cent margin) and increased 59.7 per cent QoQ from Rs 16.09 (29 per cent margin). Operating profit in 9M-2016 increased 17.6 per cent to Rs 56.01 crore (33.4 per cent margin) from Rs 47.63 crore (31.6 per cent margin) in 9M-2015.

Expenses in Q3-2016 were 10.7 per cent higher YoY at Rs 39.40 crore (60.8 per cent of OpRev) as compared to Rs 35.59 (63.1 per cent of OpRev) and almost flat (reduced by 0.1 per cent) QoQ as compared to Rs 39.45 crore (71 per cent of OpRev). Expenses in 9M-2016 increased 8.4 per cent to Rs 111.71 crore (66.6 per cent of OpRev) from Rs 103.02 crore (68.4 per cent of OpRev).

Jagran Prakashan numbers in brief

MBL’s parent company, Indian publishing company Jagran Prakashan Limited (JPL) reported 22.5 per cent increase in YoY consolidated operating revenue in Q3-2016 to Rs 576.36 crore as compared to Rs 470.46 crore. JPL’s advertising revenue increased 28.5 per cent YoY to Rs 434.82 crore from Rs 338.35 crore. Circulation revenues increased two per cent to Rs 102.02 crore from Rs 100 crore. JPL’s PAT in Q3-2016 increased 40.1 per cent YoY from Rs 66.62 crore.

For 9M-2016, JBL reported 17.1 per cent increase in operating revenue to Rs 1577.02 crore from Rs 1347.02 crore in the corresponding prior year nine month period, advertising revenue increased 22.6 per cent to Rs 1169.36 crore from Rs 954.17 crore, circulation revenue increased 3.5 per cent to Rs 302.36 crore from Rs 292.15 crore. PAT in 9M-2016 after extraordinary item (Rs 116.30 crore) more than doubled (up 104.3 per cent) to Rs 364.52 crore from Rs 178.43 crore in 9M-2015.

February 22, 2016