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Tag: Reliance Jio

  • Disney+ Hotstar & Netflix dominate India’s SVoD market: Omdia

    Disney+ Hotstar & Netflix dominate India’s SVoD market: Omdia

    MUMBAI: Now here’s further research confirming Netflix and Disney+ Hotstar’s dominance of the Indian streaming market. Research firm Omdia’s  2021 Online Video Market and Consumer Trends Report released on 31 March states that the two streaming giants accounted for 50 per cent of all subscription video on demand (SVoD) signups in India in 2020. This was on the back of the pandemic and nationwide lockdown which saw SVoD revenues spurt 142 per cent from $265 million to $639 million by end 2020. The duo accounted for 78 per cent of that final tally, meaning about $498.42 million.

    While Disney+ Hotstar trebled its subscriber base from eight million to 25.6 million in 2020, Netflix nearly doubled its subs from 2.4 million in 2019 to 4.4 million in the same period. The Indian streamer’s growth partly came from the  bundling of Disney+ and Hotstar, as well as the postponement of the start of the thirteenth  season of the Indian Premier League (IPL) from April to September, as well as competitive pricing plans and exclusive rights to foreign content such as Game of Thrones.

    One of the key factors for the growth of subscriptions for online video is the aggressive pricing models of both Disney+ Hotstar and Netflix, with the latter launching mobile only subscription packages in 2019, reflecting the Indian consumption habits. 82 per cent of online video services are accessed through smartphones with only 39 per cent accessing content through dedicated TV apps (data from Omdia’s 2020 consumer survey).

    Disney+ Hotstar on the other hand offers three specific content packages. The VIP plan (Rs 399 per year) offers dubbed local languages while Premium (Rs 299 per month) offers both English and dubbed version of content. In terms of device access, the VIP plan only allows its subscribers to watch on one screen in HD while Premium allows subscribers to watch on two screens simultaneously in full HD.

    By offering affordable streaming plans and partnering with large telcos such as Reliance Jio, Bharti Airtel and Vodafone India, Omdia expects that mobile-only subscriptions will continue to grow over the next couple of years. However, mobile-only subscriptions will face challenges from traditional pay TV services as pay TV services aggregate OTT video services with their core pay TV plans.

    Whilst retaining premium rights to foreign titles and sporting events have contributed to significant growth in revenues and subscribers, over the past few years there has been an increased focus on investing in original Indian language content, Omdia noted.

    In 2021, Amazon Prime and Netflix will continue their large investment in original Indian content, with the two major US services set to invest around $340 million, representing 52 per cent of the total investment in 2021. Omdia expects that close to 400 original titles (mostly series and films) will be produced in 2021 by the global and Indian OTT services.

    Most of the investment being made is directed towards original content in Hindi, around 65 per cent  of total spending, according to the Omdia report.

    “The online video (OTT) market of India is steadily growing its foothold in every direction,” says Omdia principal analyst – TV & online video, consumer Constantinos Papavassilopoulos. “The Covid2019 pandemic accelerated the growth rate of an already dynamic and robust OTT market. The basic elements that will propel the market to further growth in the near future are already there: very affordable mobile broadband prices, high penetration of smart-phones, a population eager to consume more content, an ever-growing investment in Indian originals and a plethora of choices with more than 40 OTT services operating in the country.”

  • Facebook takes 9.9% stake in Reliance Jio, to invest Rs 43,574 cr

    Facebook takes 9.9% stake in Reliance Jio, to invest Rs 43,574 cr

    Mumbai: Facebook has bought a 9.9 per cent stake in Reliance Jio for $5.7 billion (Rs 43,574 crore), the telecom unit of Reliance Industries Ltd (RIL). The multibillion-dollar deal gives the social media giant a firm foothold in a fast-growing massive market and helps the Indian oil-to-telecom conglomerate to significantly cut debt.

    This investment by Facebook values Jio platforms at Rs 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rs 70 to a US Dollar). Facebook’s investment will translate into a 9.99 per cent equity stake in Jio Platforms on a fully diluted basis.

    Mark Zuckerberg, in a statement, said: “There's a lot going on in the world right now, but I wanted to share an update on our work in India. Facebook is teaming up with Jio Platforms; we're making a financial investment, and more than that, we're committing to work together on some major projects that will open up commerce opportunities for people across India. India is home to the largest communities on Facebook and WhatsApp, and a lot of talented entrepreneurs. The country is in the middle of a major digital transformation and organizations like Jio have played a big part in getting hundreds of millions of Indian people and small businesses online.”

    Reliance Industries Ltd chairman and managing director Mukesh Ambani said: “When Reliance launched Jio in 2016, we were driven by the dream of India’s digital Survodaya – India’s inclusive digital rise to improve the quality of life of every single Indian and to propel India as the world’s leading Digital Society. All of us at Reliance are therefore humbled by the opportunity to welcome Facebook as our long-term partner in continuing to grow and transform the digital ecosystem of India for the benefit of all Indians. The synergy between Jio and Facebook will help realise prime minister Narendra Modi’s ‘Digital India’ Mission with its two ambitious goals — ‘ease of living’ and ‘ease of doing business’ – for every single category of Indian people without exception. In the post-Corona era, I am confident of India’s economic recovery and resurgence in the shortest period of time. The partnership will surely make an important contribution to this transformation.”

    Jio Platforms, a wholly-owned subsidiary of Reliance Industries Ltd, is a next-generation technology company building a digital society for India by bringing together Jio’s leading digital apps, digital ecosystems and India’s #1 high-speed connectivity platform under one umbrella. Reliance Jio Infocomm Limited, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms.

    Jio’s vision is to enable a digital India for 1.3 billion Indians and Indian businesses, especially small merchants, micro-businesses and farmers. Jio has brought transformational changes in the Indian digital services space and propelled India on the path towards becoming a global technology leader and among the leading digital economies in the world. 

    Jio has built a world-class digital platform powered by leading technologies such as broadband connectivity, smart devices, cloud and edge computing, big data analytics, Artificial Intelligence, Internet of Things, Augmented and Mixed Reality and Blockchain.

    Jio has created an eco-system comprising network, devices, applications, content, service experiences and affordable tariffs for every Indian to experience the Jio Digital Life. During the current Covid-19 crisis, Jio’s platforms have been a dependable and inclusive Digital Lifeline for India, said a company statement.

    As one of the largest countries in the world, India is home to some of Facebook’s most thriving communities on WhatsApp, Facebook and Instagram. Over the years, Facebook has invested in India based on a strong belief in country’s entrepreneurial talent and opportunity, to help create meaningful impact for Indians and Indian businesses using their multiple platforms.

    The partnership between Facebook and Jio is unprecedented in many ways. This is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India. The investment values Jio Platforms amongst the top five listed companies in India by market capitalisation, within just three and a half years of launch of commercial services, validating Reliance Industries’ capability in incubating and building disruptive next-generation businesses, while delivering market defining shareholder value.

    The investment will enable new opportunities for businesses of all sizes, but especially for small businesses across India and create new and exciting digital ecosystems that will empower, enrich and uplift the lives of all 1.3 billion Indians.

    This partnership will accelerate India’s all-round development, fulfilling the needs of Indian people and the Indian economy. The partnership focus will be India’s 60 million micro, small and medium businesses, 120 million farmers, 30 million small merchants and millions of small and medium enterprises in the informal sector, in addition to empowering people seeking various digital services.

    The partnership assumes special significance for India in the wake of the severe disruptions caused by the COVID-19 pandemic in the Indian — and the global — economy. In the post-COVID era, comprehensive digitalisation will be an absolute necessity for revitalisation of the Indian economy.

    Concurrent with the investment, Jio Platforms, Reliance Retail Limited (Reliance Retail) and WhatsApp have also entered into a commercial partnership agreement to further accelerate Reliance Retail’s New Commerce business on the JioMart platform using WhatsApp and to support small businesses on WhatsApp. WhatsApp already plays an important role in helping people and businesses connect in India. Reliance Retail’s New Commerce platform, JioMart, is being built in partnership with millions of small merchants and kirana shops to empower them to better serve the needs of Indian consumers. The companies will work closely to ensure that consumers are able to access the nearest kiranas which can provide products and services to their homes by transacting seamlessly with JioMart using WhatsApp.

    The transaction is subject to regulatory and other customary approvals. Morgan Stanley as financial advisor and AZB & Partners and Davis Polk & Wardwell as counsels advised on the transaction.

  • Reliance Jio brings new recharge plans for JioPhone users

    Reliance Jio brings new recharge plans for JioPhone users

    MUMBAI: Reliance Jio has launched new 'All-In-One' monthly plans for JioPhone users. The new plan will give JioPhone user unlimited plans with all services in a single plan. It also offers a new bonanza for data users by doubling users data by paying only ₹30.

    In a release, Jio said the ₹75 recharge plan is the cheapest one in the market that comes with unlimited voice and data. According to Livemint report, Jio had recently launched a similar 'All-In-One' plans of ₹222, ₹333, ₹444 and ₹55wo5 which offers both data and voice calls.

    The report said, “During the Diwali festival season, Jio has reduced the price of its JioPhone model by over 50% to ₹699. Those buying a new JioPhone under the Diwali 2019 offer and recharging it with at least ₹99 will get free data benefits valued at approximately ₹700. For the first seven recharges, Jio has promised to offer ₹99 worth of free data.”

  • Struggling telco operator BSNL strikes content deal with YuppTV

    Struggling telco operator BSNL strikes content deal with YuppTV

    MUMBAI: State owned telecom operator Bharat Sanchar Nigam Ltd (BSNL) and over-the-top (OTT) platform YuppTV have entered into a partnership. Under the signed memorandum of understanding (MoU), Yupp TV content will be made available to both BSNL mobile broadband and fixed line users.

    “BSNL has 120 million users. Yupp brings content on global scale. We will work on a very unique proposition to bring highly rich experience to customer on strong technology backbone. Marriage between infotainment and telecom networks will happen," BSNL chairman and managing director P K Purwar said at the MoU signing ceremony, Mint reported.

    All the major telecom players including Reliance Jio, Airtel, Vodafone Idea have struck deals with almost all major streaming services for betterment of average revenue per user (ARPU). Telco-OTT partnerships have been a noticeable trend not only in India but across the world as it makes a win-win deal for both the parties. Till now, OTT players in India get the largest chunk of subscription revenue from telco deals.

    Purwar said during the ceremony that content is key to drive data consumption and original content is the game of the day. He also added that the bundling proposition will be a compelling one for BSNL subscribers.

    At a time when the once telco king of India is struggling hard to run its operation, this deal marks a move by the public sector unit to retain and grow its subscriber base as the company has been making losses continuously since 2009-10. However, it will also help YuppTV to deliver its content easily to BSNL’s 120 million subscribers.

  • ALTBalaji COO Sunil Nair steps down

    ALTBalaji COO Sunil Nair steps down

    MUMBAI: ALTBalaji chief operating officer (COO) Sunil Nair has stepped down from his current position. However, he will be serving the Ekta Kapoor-led OTT platform till 30 September.

    After nearly 4 years of association with ALTBalaji, he has resigned from his role as the COO to pursue new adventures.  

    He joined the organisation in June 2015, even before the service was launched successfully on 16 April 2017. He was responsible for building India's first pure-play original video content platform. He also worked with brands like Reliance Jio, Star India.

    Notably, Balaji Telefilms group CEO Sunil Lulla also quit last month. A few days after his resignation, Lulla announced his in-residence consulting service, The Linus Adventures.

  • Tata Sky introduces HD set top box and Binge bundle offer at Rs 4,999

    Tata Sky introduces HD set top box and Binge bundle offer at Rs 4,999

    MUMBAI: After the formal announcement of Reliance Jio Fiber plans, other DTH operators are also taking measures to face the upcoming challenge. DTH operator Tata Sky has introduced an attractive offer for consumers.

    Under the new offer, Tata Sky HD set-top-box and Tata Sky Binge bundle is available for new subscribers for just Rs 4,999 along with other benefits. Consumers will get the HD set-top-box worth Rs 1,499 under the same price and Rs 2,499 will also be credited in their account. Users can select different packs and the amount will be deducted from the cashback amount of Rs 2,499.

    Moreover, they will get six months worth of Binge subscription for free which otherwise costs Rs 1,494 along with three months of free Amazon Prime subscription. The Binge service which was introduced earlier in May, the service offers digital content from, Hotstar, Sun NXT, Eros Now, Hungama Play. 

  • Reliance GigaFiber may launch on 12 August

    Reliance GigaFiber may launch on 12 August

    MUMBAI: Reliance Jio is likely to announce the launch of its massive fibre network operations at its annual general meet on 12 August, according to a report by The Hindu. Jio GigaFiber will offer home broadband, entertainment and IoT solutions.

    Reliance Industries chairman Mukesh Ambani mentioned in a letter to stakeholders that wireline network connectivity in India is underserved and Jio is working towards offering better connectivity with its GigaFiber services. It has set a target of connecting 50 million homes across the country.

    In order to do this, Reliance has strategically invested in both Hathway Cable and Datacom and DEN Networks.

    It has been rumoured that the service will cost Rs 600 a month for 50 mbps. The connection is also likely to give access to Jio’s Home TV service. 

  • Netflix testing Rs 250 mobile-only subscription in India

    Netflix testing Rs 250 mobile-only subscription in India

    MUMBAI: Giant video-streaming service Netflix is believed to be experimenting with a mobile-only subscription for a select group of users in India. Rs 250 per month is what the streamer is hoping to charge for its mobile-only plan, half of its Rs 500 entry-level subscription price in the country.

    According to ET Tech, subscribers can only consume standard definition (SD) content on one mobile or tablet screen at a time. This plan, however, is not part of Netflix’s currently monthly subscriptions that cost users Rs 500-800 depending on the nature of the plans.

    “We will be testing different options in select countries where members can watch Netflix on their mobile device for a lower price and subscribe in shorter increments of time. Not everyone will see these options and we may never roll out these specific plans beyond the tests," a Netflix spokesperson said commenting on the development.

    Last year, Netflix chief product officer Greg Peters, during earnings call, had said that the company would experiment with their pricing strategy in India in a bid to draw more users to its platforms.

    Competing against the likes of Amazon Prime Video, Hotstar, ZEE5 among others, Netflix will remain the most expensive streaming service in India.

    Earlier this week, Netflix CEO Reed Hastings had described the Indian OTT market as ‘super competitive’ and ‘exciting’.

    "There is also lots happening on Amazon, and on Hotstar, which is now going to be owned by Disney… It's a super competitive, exciting market,” he said.

    One of the hallmarks of the Indian market, Hastings highlighted, is the ongoing telecom revolution triggered by Mukesh Ambani’s Reliance Jio. According to him, there is "nothing more impressive in the world than what Reliance Jio has done in the past four years in India" to democratise internet accessibility.

    This latest move by Netflix, in a sense, hopes to grab a share of the consumer’s attention and wallet by riding on Jio’s disruptive force.­

  • Eros Now aims to accelerate subs addition within millennial, post-millennial audiences

    Eros Now aims to accelerate subs addition within millennial, post-millennial audiences

    BENGALURU: The Sunil Lulla-led Eros International Media Ltd (Eros) reported higher revenues on more film releases and a slight decline in profit after tax for the quarter ended 31 December 2018 (Q3 2019, quarter or period under review) as compared to the corresponding year ago quarter (Q3 2018). 

    Eros released 25 films and 3 Eros Now original series in Q3 2019 as compared to just four films in Q3 2018. Twenty three of the releases in Q3 2019 were small budget, while two were medium budget films as compared to four small budget films in Q3 2018. Further, in Q3 2019, six of the releases were Hindi, two were Tamil/Telugu and the rest (17) were regional films. In Q3 2018, Eros released three Hindi movies and one regional movie.

    Eros’s revenue streams have undergone a marked shift in contributions to overall revenue over time. The percentage of theatrical revenues has come down, while television plus others and overseas has gone up.  For fiscal 2018 (year ended 31 March 2018, FY 2018), Eros had reported 42.8 percent of revenue from theatrical releases, 46.3 percent revenue share from television and others which included revenue from digital platforms and 10.9 percent from overseas.  For Q3 2019, the company has reported 24.6 percent, 52.4 percent and 23 percent contributions from theatrical releases, television and others, and overseas respectively.

    Eros has projected rapid growth in paid subscribers for its digital platform ErosNow at the end of fiscal 2019 (year ending 31 March 2019) at 16 plus million as compared to 13 million at the end of Q2 2019. The company is banking on its long standing and exclusive partnerships with major Indian telecom and mobile data players – Jio, Airtel and the merged Vodafone-Idea to add more paid subscribers to ErosNow.

    Company speak

    Eros executive vice chairman and MD Lulla said, “We are pleased to announce strong results during the quarter, delivering 62.1 percent total income growth and consistent profits. Our focused approach of choosing a balanced slate spanning genres, languages and budgets, continues to deliver positive results. During the quarter, we released a total of 25 films and three digital series, comprising of an interesting mix of genres ranging from comedy to horror and crime thriller, which received encouraging responses. The theatrical slate included the critically acclaimed Tumbbad, Boyz 2 (Marathi), Mumbai Pune Mumbai 3 (Marathi) and our twin Telugu releases Amar Akbar Anthony and Savyasachi amongst others. A strong slate of overseas releases of Andhadhun (Hindi), Helicopter Eela (Hindi) and Namaste England (Hindi) further supported performance during the quarter.

    "In this quarter, we released three original web series – the crime thriller Smoke, the entertaining and quirky Date Gone Wrong and the fun-series Paisa Fek Tamasha Dekh on ErosNow, which received positive audience ratings and were equally applauded by the critics. We are committed to bring fresh and engaging digital content targeted primarily to the millennial audiences on the ErosNow platform, and have an exciting pipeline of original content lined up for the upcoming quarters. We are confident with our exciting content offering the pace of subscriber addition for ErosNow will further aaccelerate

    "As we look ahead, we have a compelling film slate which includes Saif Ali Khan starrer Kaptan, the trilingual remake of Haathi mere Saath, Kaamiyab, Ticket to Bollywood, and a host of regional releases. In addition, we have a host of remarkable originals such as Dashavtar, Ponnyin Selvan, Flesh, Bhumi coming up on ErosNow, that we look forward to releasing in the upcoming quarters.”

    Let us look at the numbers reported by Eros

    Eros reported a 52.9 percent jump in operating revenue for the quarter ended 31 December 2018 (Q3 2019, period or quarter under review) at Rs 292.88 crore as compared to Rs 193.51 crore in the corresponding year ago quarter (y-o-y comparison). Profit after tax (PAT) and total comprehensive income (TCI) for the period under review fell 7.4 percent and 58.9 percent (more than respectively) respectively y-o-y. Total income increased 62.2 percent y-o-y in Q3 2019 to Rs 332.28 crore as compared to Rs 201.97 crore in Q3 2018. PAT in Q3 2019 was Rs 62.19 crore as compared to Rs 67.16 crore in Q3 2018. TCI in Q3 2019 was Rs 23.06 crore as compared to Rs 56.16 crore in Q3 2018.

    Eros reported 107.9 percent y-o-y increase in total expenditure in Q3 2019 at Rs 255.42 crore from Rs 122.86 crore in Q3 2018. Films rights costs including amortisation costs increased 101.3 percent y-o-y to Rs 145.51 crore from Rs 72.30 crore in the corresponding quarter of the previous fiscal. Employee benefits expense in Q3 2019 declined 11.2 percent y-o-y to Rs 12.56 crore from Rs 14.14 crore in Q3 2018.

    Finance costs reduced 13 percent y-o-y in Q3 2019 to Rs 15.95 crore from Rs 18.33 crore in the previous year’s corresponding quarter. Other expenses in the quarter under review more that quintupled (increased by 402.2 percent) y-o-y in Q3 2019 to Rs 77.54 crore from Rs 15.44 crore in Q3 2018.

  • Rajan Raheja resigns as non-exec director of Hathway Cable and Datacom

    Rajan Raheja resigns as non-exec director of Hathway Cable and Datacom

    MUMBAI: Billionaire industrialist Rajan Raheja has resigned as non-executive director of Hathway Cable and Datacom Ltd on 30 January. A pioneer in the Indian cable TV industry, he has been widely credited for Hathway’s expansion.

    The resignation came in accordance with the agreement between Hathway and Jio Content Distribution Holdings Private Ltd, Jio Internet Distribution Holdings Private Ltd, Jio Cable and Broadband Holdings Private Ltd and the existing promoters of the company.

    Last October, Mukesh Ambani’s Reliance Industries Ltd (RIL) acquired majority stake in two leading cable TV broadband companies – Hathway Cable and Datacom and Den Networks. “We are glad to join hands with Rajan Raheja (Hathway promoter) and Sameer Manchanda (DEN), two of the pioneers in MSO industry,” Ambani said in a statement after the acquisition.

    After Jio launched its flagship fibre-to-home service Jio GigaFiber, the company asserted that it is open to work with local cable operators. Many experts looked at it optimistically terming the deal “win-win” situation for all the parties.