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Tag: video streaming

  • Focus shifts to online streaming for Eros

    Focus shifts to online streaming for Eros

    Mumbai: Production and distribution company Eros International no longer wants to be a film studio but a digital content company.

    Listed on the BSE as well as the NYSE, Eros is reducing its dependence on box office and is focussing on its online video streaming platform Eros Now instead. “Over the last two and a half years, Eros Now has tripled in growth. About 25% of our overall revenue comes from digital platform and in three years, digital will be three quarters of our revenue. We are moving on from being a film studio to a digital company,” said Jyoti Deshpande, group chief executive officer at Eros, which aims $260-270 million revenue this financial year.

    Launched in 2014, Eros Now has 3.7 million paying subscribers, which the company expects to touch 6-8 million by March. Eros Now charges Rs 50 a month for streaming content and Rs 100 a month for downloading and watching the content offline. The company has commissioned six films which will be released directly on Eros Now.

    As part of its strategy, Eros, which produced movies such as comedy drama Shubh Mangal Saavdhan, Rajkumar Rao-starrer Newton and Amole Gupte-directed Sniff in 2017, is now only investing in films which are low cost, have a high return on investment and are suitable for digital platforms.

    Although the platform is film-heavy with Eros’s library, the company is working on launching one or two digital series every month. “We are doing a series on human trafficking starring Radhika Apte. We are also working on a comedy one,” said Deshpande.

    Revenue from domestic theatrical releases saw a 1.6% decline in 2016 to Rs9,980 crore, down from Rs10,140 crore in 2015, according to the Indian Media and Entertainment Report 2017 released by lobby group Ficci and consulting firm KPMG, in March. The number of movies that were able to record a positive return on investment also declined from 27 in 2014 to 18 in 2016.

    “On an industry level, the charm of big budget films with star cast appeal is going away as no such project is making money. Even the films which have been declared hit, there is nothing in the profit and loss accounts, when you actually look there. We were one of the first companies to call the trend,” added Deshpande.

    Earlier this year, Eros suffered a brief liquidity crisis ahead of the maturing of its $85 million revolving credit facility (RCF) on 31 March. Standard and Poor’s (S&P) had lowered its long-term corporate credit rating on Eros International to “B-” from “B+” and placed it on credit watch with negative implications. The company, however, won a last-minute reprieve from creditors by executing documentation to extend the maturity of the RCF by six months.

  • Video streaming fastest growing service on mobile data in India: Ericsson

    Video streaming fastest growing service on mobile data in India: Ericsson

    MUMBAI: Video streaming accounts for the fastest growing service on mobile data, followed by social networking.

     

    According to a report titled ‘The Changing Mobile Broadband Landscape’ released by Ericsson ConsumerLab, 70 per cent of mobile broadband smartphone users regularly stream videos on their smartphones, and 61 per cent use social networking. Indian smartphone users are also seeing greater potential in mobile broadband when it comes to facilitating the way they handle their money and personal finances. The convenience and improved experience makes m-commerce services attractive to Indian smartphone users.

     

    Of those users not using e-commerce services currently, 58 per cent stated that they would begin to do so in the next six months, while 52 per cent will use the Internet to pay bill online. Services like location navigation while travelling and cloud storage are also seeing an upswing in usage.

     

    The report highlights the evolving mobile broadband adoption and usage in urban India. The report reveals diverse behavior and needs of different mobile broadband users and the need for service providers to offer personalization. Users’ needs are evolving as usage of services and applications on smartphones is becoming a way of life.

     

    With the decrease in smartphone prices, the adoption of mobile internet within the lower socio-economic segment has increased over the last two years: from 38 per cent in 2013 to 45 per cent in 2015. Three in five smartphone users use mobile broadband in urban India. Mid-size and small cities are showing higher smartphone penetration levels at 33 per cent, as opposed to the smartphone penetration levels of 27 per cent in big non metros and large cities.

     

    At the same time, the proportion of smartphone users above the age of 50 has quadrupled, from one per cent in 2013 to four per cent in 2015. The primary motivation for this increase is the desire to be connected with loved ones in different parts of the country and the world, particularly through emails, chat applications and instant messaging.

     

    Ericsson India vice president and head of strategy and marketing Ajay Gupta says, “The Internet is finally coming of age and is empowering cross sections of Indian society. Though the most used smartphone services in India are for social networking and instant messaging, the usage of banking, e-commerce, navigation and cloud storage apps and services is increasing. It is for this reason we are seeing uptake and digital transformation of many industries like retail, transportation, and banking.”

     

    Users face differing mobile data issues depending upon location. Connection quality and reliability problems have a higher tendency to occur indoors, while session failures and poor app accessibility are problems faced by outdoor smartphone users. Sixty-three per cent of users report that they face quality and reliability issues, such as lost connections and inconsistent network speeds, when using mobile networks indoors. App-related issues while outdoors or commuting, such lengthy lag times, apps taking a long time to refresh, maps failing to load, and session failures affect 68 per cent of consumers. Such problems are more common in mid-size and small towns compared to large cities.

     

    For those consumers in India who do not use mobile broadband, affordability and digital literacy are the prime obstacles to adoption. While 88 per cent of Indian consumers on 2G feel that mobile broadband is too expensive, 53 per cent feel that mobile broadband adds no value and as many as 48 per cent believe there is no difference between 2G and 3G speeds.

     

    Mobile Internet usage is expected to grow with the consumers’ better understanding of the data plans on offer. As per the study, only 10 per cent of mobile Internet users feel they understand their plan perfectly, and are able to make an accurate judgment when deciding on a plan.

     

    Gupta says, “When consumers are confident in their understanding of what is offered, they tend to perceive better value from it. In fact, they consume twice as much data compared to users who find it difficult to understand their plan.”

     

    “Understanding the main aspects that are valued by customers can help service providers differentiate their offerings and improve consumer experience which would help increase consumer loyalty. Personalization is being positively viewed and increasingly demanded by consumers,” he adds.

  • IPTV to drive growth of global pay-TV market

    IPTV to drive growth of global pay-TV market

    MUMBAI: The worldwide pay-TV market is expected to have grown five per cent in 2014, surpassing 924.4 million subscribers. “IPTV is expected to grow a market leading 14 per cent in 2014, followed by satellite TV platform at seven per cent. The growth rates of cable and terrestrial TV platforms are expected to slow to around three per cent,” said ABI Research VP and practice director of core forecasting Jake Saunders.

     

    Global cable TV market growth is driven by the Asian-Pacific and Latin American markets. A combination of the two regions is likely to add over 13 million subscribers in 2014 while the cable TV market in North America is expected to decline approximately one per cent in 2014. In 3Q 2014, major cable TV operators in North America lost over 400,000 TV customers, although cable companies are doing well in broadband.

     

    Video streaming services such as Netflix and TiVo, which cost less than $10 in monthly fees are attractive alternatives for pay-TV customers. Traditional pay-TV operators are now trying to compete with these services by developing their own video-streaming products or by integrating these services in their existing services. Online video service Netflix has agreed to deals with some of the pay-TV operators in Europe to offer its streaming service to European broadband customers. Canadian companies such as Cogeco, Rogers Communications, and Shaw Communications also recently announced deals to offer Netflix’s video streaming service to their own broadband customers.

     

    Bundled packages help pay-TV operators try to reduce churn. In addition, HD channels, advanced PVR services and premium content such as sport content contribute to increased ARPU. “The worldwide HD subscriber base is growing on all pay-TV platforms. Approximately 57 per cent of total pay-TV subscribers will be HD subscribers by 2019. ABI Research forecasts the global pay-TV market will generate $324 billion in service revenues by 2019,” added industry analyst Khin Sandi Lynn.