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Tag: SVOD

  • Netflix raises US prices for the first time since 2017

    Netflix raises US prices for the first time since 2017

    MUMBAI: Is Netflix feeling the heat of well-funded competitors? The king of OTT platforms is increasing its US prices for the first time since 2017. The hike in subscription rate will be applied also to subscribers in Latin American and the Caribbean, where Netflix bills in US dollars. The move comes at a time when Disney is gearing up for its streaming service launch and NBC has just entered the market.

    The move is aimed at easing a large, debt-fueled investment in new films, series and documentaries this year. According to media reports, company executives are looking for more money to pay escalating content bills.

    The most popular subscription plan will see largest hike costing $13 a month, up from $11. Despite the hike, it costs lesser than HBO, whose streaming service charges $15 per month. The cheapest subscription will run $8.99, up from $7.99. The change in subscription will be effective for new customers immediately and for existing customers it will be rolled out during the next three months.

    “We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” the company said in a statement.

    Wall Street put its faith on the move as the company’s stock surged $21.70 to finish at $354.64 on Tuesday, its highest closing price in nearly three months. It shows that investors believe the price increase won’t significantly slowdown Netflix’s subscriber growth.

  • VICE India unveils teaser of crime documentary ‘क Se Crime’

    VICE India unveils teaser of crime documentary ‘क Se Crime’

    MUMBAI: VICE India has launched the teaser of its crime documentary क Se Crime. Touted to be a non-fictional documentary episodic series, क Se Crime covers a whole length of crime-related stories of Uttar Pradesh.

    Present in India since April 2018, VICE India has launched 20+ original video content pieces and 100+ original editorial pieces aiming to be an all-inclusive voice of the youth showcasing the realities and diverse aspects of our country without conforming to the boundaries set by multiple languages or cultures.

    VICE India is a full-scale media company with content at its centre and a multi-platform distribution plan – producing scripted, film, news and culture content from India for television, SVOD, OTT, and digital platforms.

  • Entertainment Goes Online – A $5 Billion Opportunity in India

    Entertainment Goes Online – A $5 Billion Opportunity in India

    Mumbai: Over-the-top (OTT) content market in India is at an inflection point in India, as per the latest report by The Boston Consulting Group titled ‘Entertainment Goes Online’. 

    The report pegs the Indian OTT market to reach $5bn in size by 2023. This growth is being driven by rising affluence, increase in penetration of data into rural markets and adoption across demographic segments including women and older generations. 

    The ‘Entertainment Goes Online’ report is based on a first -of-its-kind consumer survey that seeks to understand consumers’ motivations in adopting OTT content over other conventional modes of content delivery. Survey results showed that there is a room for many types of OTT models such as SVOD (subscription-based platforms), AVOD (advertising-based platforms) and TVOD (transaction-based platforms) to succeed in the market. 

    “Majority of India has a single TV per household. Affordable data has created an alternate medium where consumers, for the first time, can tap into content basis individual preference at a time and space convenient for them. Whilst the current market operates with a largely advertising paid content paradigm, consumers are not averse to paying for convenient content access that OTT unlocks,” said Kanchan Samtani, Partner & Director, The Boston Consulting Group. Affluence and wide variety of content being developed for OTT market including diversity in genres and language gives OTT market a favorable edge over it traditional counterparts.

    The study identified three archetypes of customers in the Indian market, 1) traditionalists – who primarily consume on other than OTT platforms, 2) OTT Experimenter – who has significant consumption on both conventional and OTT platforms 3) Early Adopter – whose primary consumption occurs on OTT platforms. While early adopters are still a more urban phenomenon, going forward it will be more equally distributed.

    48% of India’s internet users (~650 million by 2023) are expected to be from rural areas. With development of regional content by various players, the rural market is poised to become a significantly large opportunity for players. OTT is riding the wave of increased data consumption and internet access in rural India, has opened a new distribution channel that is viable for regional and niche content. 

    Indian content including music, Bollywood content and cricket have large following in the Indian diaspora also. OTT Players with Indian content have potential to tap into this market too. “While the NRI content market is huge and demonstrates willingness to pay, it is not only dominated by cricket – Bollywood music and films are very significant. With their large content libraries, Indian OTT players are sitting on a metaphorical gold mine to serve this increasingly important customer base”, said Gaurav Jindal, Principal, The Boston Consulting Group.

    “One of the key insights of our consumer work was that, while OTTs rely on top-notch hero content to attract consumers to the platform, the stickiness of these consumers is not very high unless accompanied by ways in which they engage more deeply with the platform and is associated with strong marketing efforts," said Kanchan Samtani when discussing the subscriber acquisition and retention strategy of various OTT platforms.

    While Indian OTT players have taken many steps to capture the market, there is a lot that needs to be done before, Indian OTT market achieves the same penetration and maturity as its western counterparts.
     

  • SVoD subscriptions to see massive growth worldwide

    SVoD subscriptions to see massive growth worldwide

    MUMBAI: Streamers across the world are ready to pay for online video. According to a new study by analyst firm Digital TV Research, SVOD subscriptions will more than double between 2017 and 2023. While Global pay-TV and SVoD subscriptions are expected to reach 1.877 bn by 2023, traditional pay-TV(http://www.indiantelevision.com/dth/dth-operator/dish-tv) will only add 94 mn subscribers.
    At the end of 2017, the number of subscribers stood at 222 mn in US which is predicted to reach to 289 mn subscriptions by 2023. But China will see the highest rate of growth by adding 171 mn subscriptions during this period to take its total to 610 mn. However, its pay TV subscription will grow by 32 mn only. India will add 49 mn pay-TV and SVoD subscriptions in this period.
    Based on the new subscriptions, total subscription revenues (https://indiantelevision.com/iworld/over-the-top-services/global-ott-revenue-to-reach-129-bn-by-2023-says-study-180921) will increase by 11 per cent ($25.4 bn) to total $251 bn in this period. Due to cord cutting traditional pay-TV revenues will drop by $18.5 bn to $183 bn. On the other hand, SVoD’s revenue will climb by $43.7 bn to $69 bn. This revenue jump will lead to an increase in total share from 11 per cent in 2017 to 27 per cent in 2023.
    The market leader US will see total revenue from $108 bn in 2017 to $105 billion in 2023. While Pay-TV subscription revenues will drop by $20 bn, SVoD additions will not be able to make up the shortfall.

  • Global OTT revenue to reach $129 bn by 2023 says study

    Global OTT revenue to reach $129 bn by 2023 says study

    MUMBAI: OTT business across the world is now in a high growth period. In the next five years, revenue from online TV episode and films will reach $129 billion, which is more than double of same recorded in last year. Back in 2017, it stood at $53 billion and in 2018 alone $16 billion will be added. Global OTT TV & Video Forecasts has found the data after surveying 18 countries.

    The research has also found the top five markets will command 69 per cent of worldwide revenues by 2023, down from 73 per cent in 2017. While online video viewing was a typical trend of some particular developed countries a few years back also, it is clear that emerging markets are rapidly growing, boosting the overall ecosystem. The report predicts that OTT revenues will exceed $1 billion in 17 countries by 2023.

    Among all the business models in OTT market, SVOD has highest upward growth in total revenue share. In 2016, it became the largest OTT revenue source by overtaking AVoD. The share of the total will increase from 47 per cent in 2017 to 53 per cent in 2023. However, AVOD is still very relevant in the game being left with enough opportunities. AVOD revenues are projected to increase by $27 billion between 2017 and 2023.

    “No prizes for guessing that the US will remain the dominant territory by some distance,” Digital TV Research principal analyst Simon Murray commented. “However, its share of global revenues will fall from 43 per cent in 2017 to 37 per cent by 2023. We forecast that revenues in the US will more than double between 2017 and 2023 – adding nearly $25 billion to reach $48 billion."

    China, another growing player, will add $17 billion over this same period to nearly triple its revenues to $26 billion. Its market share will increase to 20 per cent in 2023 from 17 per cent in 2017.

  • Netflix could lose subscribers if it starts running ads

    Netflix could lose subscribers if it starts running ads

    MUMBAI: Netflix users enjoy watching ad-free seamless content. The subscription-based video on demand service recently confirmed that it tested the idea of inserting promos for its shows and movies between episodes of existing programmes. A recent study found that if Netflix content includes ad, it could cost it the overall number of subscribers.

    Hub Entertainment Research in its recent study The Future of Monetization examined consumer reaction to several alternatives of Netflix pay model. It surveyed 1,612 TV consumers from ages 16 to 74 who watch at least an hour of TV per week and have broadband at home.

    If Netflix increases its subscription by $5, 23 per cent of the respondents said they may cancel the subscription. If it’s being raised to $10 more per month, 28 per cent would consider cancelling it. If the platform were to raise its monthly fee by $2, only 8 per cent said they would cancel.

    More importantly, almost one-fourth of the respondents said they would drop the streaming service if it began running ads during Netflix content. Its ad-free consistency is one of the topmost features which attract subscribers.

    “I think there are ways that they could arrange it so they retain as many customers as possible, but I think if they add ads at all, even at price reduction, there will be some people who leave,” Hub principal Jon Giegengack said.

    Principal at Hub and co-author of the study Peter Fondulas said Netflix’s low price, no ads, vast amount of programming and original shows help it to stand out in the crowded US market.

  • MNX challenges legacy players in the movies category

    MNX challenges legacy players in the movies category

    MUMBAI: The rise in India’s urban educated millennials has also led to the spurt of channels in the English entertainment and movies genre. Over the last few years, several new additions have made their way including MN+, &Prive and Sony Le Plex.

    In this space, Times Network has found the right set of audience for all four channels claims Times Network EVP and head English entertainment cluster Vivek Srivastava. He is aware that beating a legacy player is not an easy task. The channel says it has been head and shoulders above HBO in six metro markets.

    The group has close to 1500 titles and 25-30 shows for its movies channels. The content comes from four major production houses like Disney, MGM, NBC and Warner which are long term deals. The network holds the second output of NBC after Sony Pictures Network.

    English cluster of Sony Pictures Network, on the other hand, picks up the content from Disney, Warner Bros, NBC Universal, Lionsgate and PVR Pictures. &Prive and &Flix of Zeel also have a bigger library with exclusive titles sourced from many independent Hollywood players and studios such as Paramount and PVR.

    According to week 32 of BARC data in the six metros, Times Network has two of its flagship channels, Movies Now and MNX, in the top five list. Movies Now is going to be an eight year old brand in December 2018 and is a home for all the blockbusters. On the other hand, MNX, the youngest channel in its English movies portfolio has been consistent in ratings since its launch in July 2017. The company endeavours to broaden the audience base to be in the top five list.

    “The quarter is gone by and the revenue of MNX is extremely healthy. MNX actually completes the portfolio. We have a family brand as Romedy Now, a sophisticated brand in MN+, Movies Now is the flagship brand that houses the superhero franchise. All the blockbusters will find a space on the channel. MNX being the youngest brand in the mix, it caters to all audiences and all the various titles get a space on this channel,” Srivastava adds.

    In the last two-three years, the Indian audience has evolved and become smarter and knows what to expect. “In this context, the marketing has become a lot easier as the consumer knows the content very well,” he adds. In FY19 Q1, the network got brands like Amazon, Pepsi, Airtel, Trivago, Ford, Flipkart, PhonePe, Myntra to name a few, for all its English movies and entertainment channels.

    As far as the category is concerned in terms of revenue, Srivastava estimates the genre to grow by 15-20 per cent more than the previous year’s figure which was Rs 700 crore.

    On the content acquisition cost, Srivastava points, “There is a little bit of correction expected in the content acquisition cost as we move forward. The correction will come on account of two things – revenue growth across years in the genre and secondly the evolution of business models as some broadcasters are sharing their first output windows with SVOD players.”

    HD is the next array of growth as far as the category is concerned. According to Srivastava, there are only two genres which drive HD viewership, sports and movies. MN+ is an HD-only channel which is performing well, both from a viewership and revenue standpoint.

    He gives out the formula for a successful channel as: “To sustain in the category with more than two channels, you should be able to provide fresh content to your target audience. Until and unless you have a distinct identity to the channel it will never succeed.”

  • DC Entertainment unveils details of upcoming streaming service

    DC Entertainment unveils details of upcoming streaming service

    MUMBAI: More superhero action is set to come your way as DC Entertainment has revealed details of its upcoming SVoD service DC Universe. Along with the previously announced original shows, the giant is also promising offer a back-catalogue of classic TV series and movies, including the full slate of original Superman films starring Christopher Reeves.

    Back in April 2017, DC Entertainment announced the plan to launch new streaming service in association with Warner Bros. The name was officially confirmed as DC Universe a month later. It vowed “immersive digital experience designed just for DC fans”.

    The platform will offer Titan which will be available at the launch itself, Swamp Thing and Doom Patrol which are set to debut in 2019, and an animated series Harley Quinn which is also scheduled for 2019. The superhero team of Young Justice is also awaiting a new season.

    However, the library won’t be limited to these shows only. The four Christopher Reeve-starring Superman films, a selection of DC animated movies and older TV series like the classic Wonder Woman and the first two seasons of Batman: The Animated Series will all be available for subscribers.

    “Developing new ways for consumers to access some of our most popular and iconic brands and franchises as well as exclusive new content whenever they want, on the devices they choose, is one of our studio’s top priorities,” said Warner Bros Digital Networks president Craig Hunegs said. He promised DC Universe will give the chance to all fans to build a more intense relation with DC, better than ever before.

    DC Universe is not limiting itself to the shows, films only. A huge library of digital comic books, a storefront for exclusive merchandise, access to competitions, and an all-new DC-centric encyclopedia will be there to delight fans.

    DC’s publisher and chief creative officer said the goal is for DC Universe to be “so much more than a streaming service.”

    Though it has not announced pricing yet, the beta launch will be in August on iOS, Android, Roku, Apple TV, Amazon Fire TV, and Android TV, as well as the web. Initially, people from the US will only get the access. The plans for global rollout has not been shared yet.

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  • Traditional pay TV under pressure from OTT services: Horowitz report

    MUMBAI: A recent report from Horowitz Research’s State of Pay TV, OTT and SVOD reveals that three-quarters (76 per cent) of TV content viewers report subscribing to a traditional pay-TV—cable, satellite, or telco—service, down from 86 per cent in 2014.

    According to the study, just 71 per cent of 18-34 year-olds subscribe to a traditional pay-TV service, compared to 75 per cent of 35-49 year-olds and 81 per cent of TV viewers 50+. Although TV viewers are watching more TV content than ever before—the study reveals that TV content viewers report watching an average of 6.5 hours of TV a day—the fact that there are many lower cost services competing for consumers’ video budgets is impacting the perceived cost-benefit ratio of traditional pay-TV.

    74 per cent of cable TV subscribers, 78 per cent of satellite TV subscribers, and 80 per cent of fibre TV subscribers say that they are satisfied with their TV service overall. However, when asked how “worth it” the TV services they subscribe to are cable, satellite, and fibre TV subscribers are less likely to say that their TV service is worth it compared to most over-the-top services, reveals the study.

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    Seventy percent of satellite and fibre subscribers and 62 per cent of cable subscribers say that their service is worth it; between 8-13 per cent say their pay-TV is not worth it. On the other hand, 91 per cent of Netflix subscribers say that Netflix is worth the money, and 83 per cent say that Hulu is worth it. Digital pay-TV providers Sling TV and Hulu with Live TV also fare better than traditional pay-TV, with 79 per cent of Sling TV subscribers and 77 per cent of Hulu with Live TV subscribers saying their service is worth it.

    In addition to exploring the value of TV and video services, the study also asked how interested TV viewers would be in either switching to a service such as this from their cable/satellite/fibre service (if they currently had pay-TV service) or subscribing to one (if they did not currently have pay-TV service). Nearly half (48 per cent) of pay-TV subscribers express interest in a dMVPD (digital MVPD); this rises to 58 per cent among 18-34 year-olds.

    Horowitz SVP of insights and strategy Adriana Waterston says, “The majority of subscribers to over-the-top services like Netflix, Hulu, and Amazon Prime are also multichannel subscribers; a smaller percent of them are cord-cutters and cord-nevers. Those services are essentially VoD ‘on steroids,’ and they have tended to supplement, rather than cannibalise, the services offered by traditional providers.”

    While these data are based on a broad, general description of dMVPDs and may not translate into actual cord-cutting, they do indicate a willingness among consumers to explore these services, and cost plays a major role. Nearly all of those interested in dMVPDs cite the lower cost as a key factor why they are interested in a dMVPD. Beyond cost, the viewing and technology experience that consumers have come to expect from over-the-top services is highly valued and, in many cases, more user-friendly than many traditional MVPDs’ set-top box guides.

    Waterson concludes, “The new dMVPDs do compete directly with traditional providers by offering linear television, including sports and local channels in many markets, DVR service, and other elements of traditional multichannel, but for a lower price and with the app-driven, consumer-friendly OTT experience that has transformed consumers’ expectations about how and where they can access their content. It is incumbent on traditional players to continue to assert their value proposition at the same time as they pivot their businesses to serve consumers’ evolving expectations.”

     

  • India to enter top 10 OTT video markets in 2022: PwC

    India to enter top 10 OTT video markets in 2022: PwC

    MUMBAI: With a steadily increasing demand for online video consumption, India is set to occupy a spot in the top ten (over-the-top) video markets in the world in four years, reported the Times of India quoting a study from global accounting firm PricewaterhouseCoopers (PwC).

    The report titled Global Entertainment & Media Outlook 2018-2022 (Outlook) adds that the OTT video market in India is growing at a compound annual growth rate (CAGR) of around 23 per cent.

    According to the report, OTT video revenue in India reached Rs 2,019 crore in 2017 and is likely to hit Rs 5,595 crore by 2022.

    The report also notes that Indian entertainment and media industry is likely to reach Rs3.5 trillion (Rs353,609 crore) by 2022.

    ” India is expected to post an impressive growth in the entertainment and media Sector at a CAGR of around 11 percent, over the next five years. This is not only on the back of traditional media, such as TV subscription and advertising, cinema and advertising, expected to post robust growth, but also non-linear media such as OTT, gaming and  Internet advertising expected to  significantly high growth rates,” PwC India, partner & leader — entertainment & media, Frank D’Souza told Indiantelevision.com

    The findings of the PwC study do not come as a surprise given the flurry of activity in the Indian OTT space in the last two years. Global giants Netflix and Amazon Prime Video, local brands like ALTBalaji, and those owned by broadcasters like Star India’s Hotstar, Sony Entertainment Television’s SonyLIV and Zee Entertainment Enterprises Limited’s ZEE5 are all locked in a fierce battle for India’s OTT pie.

    Viu India country head Vishal Maheshwari said, “This report shines a great light on the OTT market. Original content will play a major role in the growth of the SVOD segment which projected to reach 81.6% of the total in 2022. If OTT players in India produce high quality content, consumers will likely end up with a handful of different subscriptions. Also, with one of the largest populations of millennials who are looking for quality and relatable alternative entertainment avenues, we believe India will surpass other nations to become the largest contributor to the growth of digital entertainment.”

    This intense competition among the Video on Demand(SVoD) platforms was the primary reason behind subscription services generating over 70 per cent of the revenue in 2017. This trend, according to the report, is bound to grow further with SvoD contributing to 79.4% of the total market revenue by 2022.

    India, however, did not find place in the top 10 global SVOD countries by revenue last year. However, for countries with the highest SVOD CAGR in 2017, India was on the number three spot after Indonesia and Philippines.

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