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Tag: Jehil Thakkar

  • Are OTT players finding a sweet spot for pricing?

    Are OTT players finding a sweet spot for pricing?

    KOLKATA: A recent report from Kantar spoke about the massive surge in SVoD growth in urban India. Hence, it is clear that Indians have started loosening the purse strings for premium online content. As there is no single right pricing for a diverse audience, OTT players are adopting innovative pricing strategies. Experimentation in subscription packages seems to be the latest trend among both international and homegrown streaming services. However, they might have found a sweet spot below Rs 500 to woo the users, at least for now.

    Streaming giant Netflix has become more aggressive about international markets since its growth in the home market started saturating. Realising the nature of the local market, it ignited the experimentation with pricing last year while announcing the Rs 199 per month mobile-only package. The platform recently started testing a low-cost HD plan at Rs 349 per month which allows accessing the service on a mobile, tablet, laptop and desktop but not on TV. If Netflix rolls out the subscription plan, the platform will have plans ranging from Rs 199 to Rs 799. Nevertheless, it remains most expensive among all players. 

    On the other hand, ZEE5 has also taken a creative stance to lure in and hold on to subscribers. It has launched ZEE5 Club at Rs 365/year. It offers exclusive access to most popular shows before telecast on TV, ZEE5 originals apart from select ZEE5 and ALTBalaji shows, blockbuster movies, ZEE Zindagi shows and several live TV channels. Significantly, it comes at almost one-third price of its premium pack.

    “This is a fabulous time for consumer acquisition both from getting people on OTT platforms as well as to convert from free to subscription. Typically, water is being tested around different pricing. If you ask Hollywood or western content, you are being priced at a certain level. The OTT platforms are offering premium Indian content at Rs 300-400 range. Most players are staying in that range because that range seems suitable for acquisition,” Deloitte India media and entertainment partner and leader Jehil Thakkar said. He also added that it creates a psychological barrier beyond Rs 500 while below the range of Rs 300-400 it would be possibly considered too low.

    The leader in the pack had slightly altered its pricing during the rebranding of the service. While Disney+ started its journey in India, it also launched Disney+ Hotstar VIP plan at Rs 399 per month which does not give the user access to the platform’s entire library but to movies like The Lion King, Frozen II, Aladdin, Toy Story 4, and several others along with Bollywood movies and Indian content. Initially, Hotstar VIP was priced at Rs 365 annually.

    However, SonyLIV has significantly increased its pricing. The platform which refined its service recently with a new logo and premium originals took up its monthly plan to Rs 299 from Rs 99. It also increased the value of its other packs. 

    PwC India Entertainment partner media and sports advisory leader Raman Kalra says that some OTT players had packages below the bracket of Rs 300-400 and some with a much higher package, but now the middle range is becoming the sweet spot. He also mentions that it is the beginning of a series of price experimentation. Thakkar also says that as the major players are now in customer acquisition spree, competitive pricing will continue.

  • Cable TV distribution to get fillip from demonetisation

    Cable TV distribution to get fillip from demonetisation

    MUMBAI: The cable television distribution business, a section of which has been infamous for dealings in unaccounted money, will have to upgrade addressability in the backdrop of the decision to demonetise higher value currency. It is estimated that the analog subscriber base will come down by 37% this year as they switch over to digital cable under DAS III and IV, according to sector estimates.

    According to a FICCI-KPMG report, there are approximately 65 million analog cable television subscribers in India, around 37 million digital cable television subscribers, 44 million pay DTH (direct-to-home) subscribers and some 15 million free DTH (FTA) subscribers. The benefit of dealing in cash prompts most operators to under-report subscriber numbers and eventually revenue. However, this may substantially reduce with the new government move, experts said.

    KPMG partner – media & entertainment Jehil Thakkar said that, with digitisation (under DAS III and IV), TRAI has proposed new pricing for TV channels. The purpose was to make it affordable. With demonetisation, the cable operators may have to clean up their operations so that there was transparency in dealings with broadcasters.

    DAS could act as a catalyst for cable operators to reduce under-reporting. Demonetisation, experts said, could become a trigger for the switchover. Under-reporting of subscription revenue by the cable operator per individual or household had been estimated to be 15-20%. DTH, however, has overcome this issue by using a pricing strategy based on the number of channels seen by a consumer.

    Meanwhile, the release of a number of Telugu films including Intlo Deyyam – Nakem Bhayam and Ram Charan Teja’s Dhruva have been postponed. Box office earnings have gone substantially down for Tamil, Telugu, and Malayalam films owing to demonetisation. Producers are being forced to defer releases due to low turnouts.

    Several film shoots have been suspended, and many theatres in Kerala are planning to shut shop owing to non-availability of low denomination notes. Work on national award-winning director Sidharth Siva’s new movie Sakavu too has been deferred.

    Income Tax officials meanwhile raided the house of the campaign manager of Puducherry chief minister V Narayanasamy and ex-MLA A John Kumar, seizing Rs. 14 lakh in cash. The ex-MLA of Nellithope, whose business is cable TV distribution, real estate etc, is also the manager of Narayanasamy’s campaign.

  • Cable TV distribution to get fillip from demonetisation

    Cable TV distribution to get fillip from demonetisation

    MUMBAI: The cable television distribution business, a section of which has been infamous for dealings in unaccounted money, will have to upgrade addressability in the backdrop of the decision to demonetise higher value currency. It is estimated that the analog subscriber base will come down by 37% this year as they switch over to digital cable under DAS III and IV, according to sector estimates.

    According to a FICCI-KPMG report, there are approximately 65 million analog cable television subscribers in India, around 37 million digital cable television subscribers, 44 million pay DTH (direct-to-home) subscribers and some 15 million free DTH (FTA) subscribers. The benefit of dealing in cash prompts most operators to under-report subscriber numbers and eventually revenue. However, this may substantially reduce with the new government move, experts said.

    KPMG partner – media & entertainment Jehil Thakkar said that, with digitisation (under DAS III and IV), TRAI has proposed new pricing for TV channels. The purpose was to make it affordable. With demonetisation, the cable operators may have to clean up their operations so that there was transparency in dealings with broadcasters.

    DAS could act as a catalyst for cable operators to reduce under-reporting. Demonetisation, experts said, could become a trigger for the switchover. Under-reporting of subscription revenue by the cable operator per individual or household had been estimated to be 15-20%. DTH, however, has overcome this issue by using a pricing strategy based on the number of channels seen by a consumer.

    Meanwhile, the release of a number of Telugu films including Intlo Deyyam – Nakem Bhayam and Ram Charan Teja’s Dhruva have been postponed. Box office earnings have gone substantially down for Tamil, Telugu, and Malayalam films owing to demonetisation. Producers are being forced to defer releases due to low turnouts.

    Several film shoots have been suspended, and many theatres in Kerala are planning to shut shop owing to non-availability of low denomination notes. Work on national award-winning director Sidharth Siva’s new movie Sakavu too has been deferred.

    Income Tax officials meanwhile raided the house of the campaign manager of Puducherry chief minister V Narayanasamy and ex-MLA A John Kumar, seizing Rs. 14 lakh in cash. The ex-MLA of Nellithope, whose business is cable TV distribution, real estate etc, is also the manager of Narayanasamy’s campaign.