Not entirely unexpected, JioCinema has unleashed its new pricing. The OTT platform has been among the last entrants to the space and in a market with established players – both in terms of content and subscriber base – this does remind one of what parent, Reliance had done with the telecommunications sector in 2016.
In the case of JioCinema the premium subscription to Rs 29 per month – or Rs 1 a day – for a single device and Rs 89 per month for a family plan that gives one access to four devices. This is a sharp drop from the original pricing of Rs 59 and Rs 149 respectively. Both the plans will offer ad-free streaming (resolution will be up to 4k) and covers content from HBO, Paramount+ and Peacock.
Uday Sodhi, former head of SonyLIV and Founding Partner of Kurate Digital Consulting, says most people today subscribe to at least two OTT platform and convincing to go for another one is difficult. “JioCinema’s move to slash the entry level to Rs 29 per month will expand the market since the outgo for a subscriber is small,” he explains. Let’s break down the numbers for some clarity. The total base of OTT subscribers in India is around 120 million of which 50-60 million are paid. That is spread across the likes of Amazon Prime, Disney+, Netflix, SonyLIV, JioCinemas and Sun NXT to name a few. “In the case of JioCinema, it has English content (largely driven by HBO and Paramount) but that is a limited subscriber base at 1-2 million. Obviously, they want to increase that number and the decision to make tariffs affordable is with that in mind.”
From a strategic point of view, the focus on Rs 29 or access to one device is in line with how the market is structured. It is estimated that upwards of 60% of the OTT base comes from this segment. “Plus, the existing Jio telecom user base is already there to be tapped,” says an industry tracker. Jio is among the last OTTs to enter the fray and to that extent, an aggressive pricing is only to be expected. Sodhi says the expectation is that JioCinema will increase the flow of content across languages. “That is necessary if they wish to increase the subscriber base sharply.” Now, the challenge is in upping it on content and retain the stickiness assuming the user base takes off.
