SVOD in India

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Kilaru Megha Bandhav | Sec-E | 240

 By the end of the year 2020, India will have the third most SVoD subscribers of any
country worldwide, after China and the USA, and is predicted to reach 95 million in
2023, according to the latest Video Insights report by Futuresource Consulting. The
report uncovers the rapid change across the Indian video landscape. Data shows that
affordable smartphones, cheaper mobile data and faster internet access had driven SVOD
growth.

Some of the top SVOD players in India-

Amazon Prime Video- Launched in India. It is currently priced at Rs.999 per year.
According to the Director of Content at Amazon Prime Video India, India accounts for
the highest number of Prime members in the debut year, growing fastest among the 16
countries that the platform is present on. Amazon has also committed $300 million for
original Indian content, roping in some big Bollywood names, besides internet content
space.

Viu- Is launched in India by a Hong Kong-based PCCW Media company called Vuclip.
It is a yet another video-on-demand service which is at a subscription fee of Rs.99 per
month (after a one month trial) for those who wish to consume ad-free content and
experience the premium version. Although it also has a free version with thousands of
hours of content. All of this is what Viu delivers as entertainment for all and not just for
the elite few.

Hotstar- Is a Star Network product that launched in February 2015. It has swiftly
become one of the largest video-on-demand platforms in the country. Hotstar is the only
platform where the best TV shows from around the world, movie premieres and live
sports and events, are available on a single platform. It is the only service with content
partnerships with the top three global studios – HBO, Fox, and Disney. It’s important to
note the grand success of this platform as in the first 40 days of its launch, Hotstar app
downloads reached 10 million.

Netflix- Is the biggest OTT player that ventured into India in 2015. It is a US-based
video streaming company which is now available in India at a starting subscription price
of Rs.500 per month and goes up to Rs.800 per month after a free month of trial. While
most of the OTT service platforms follow a mix of advertising-led and subscription fee-
based business models, Netflix, in keeping with its global strategy is free of advertising
In India. Netflix which is ad-free allows an up leveling of entertainment experience at
home. It is trying to stimulate this economy so that people invest in entertainment more.

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Challenges for foreign players in SVOD-
In emerging markets where English is not the primary language, streaming players need
to understand that localising content plays an important role in acquiring and retaining
users. When Netflix first launched in emerging markets, there was a lack of subtitles in
local languages. Subtitles are crucial for emerging markets, as most Hollywood content is
watched with them – this is a prerequisite when in cinemas. Localisation is equally
crucial for Indian markets. SVOD services need to understand the economics and cultural
relevance of their respective markets. Consumers in emerging Indian markets are far
more hesitant to adopt subscription services that block content visibility and sit behind a
paywall. Foreign entrants like Netflix can often have two opposing sets of perceptions in
the mind of consumers – the first aspirational, the second underwhelming.

The world is pivoting towards video streaming services, and India is leading the charge.
By 2023 there will over three quarters of a billion subscribers globally, and Asia will
comprise the majority of these subscribers, up from being a minority of global
subscribers in 2019. With well-funded international players like Disney+ and Apple TV+
poised to enter the market, it is vital for existing streaming players to adapt and reinforce
their regional unique selling points as the competition to monetise this rapidly growing
region intensifies.

Impact of SVOD on television industry-

TV, once the unassailable king of advertising, is at risk of being toppled from its throne.
Video streaming services such as Netflix, Hulu and Amazon Prime are fundamentally
changing the viewing habits of consumers, particularly – but by no means exclusively –
of younger users. Figures from April this year suggest that Netflix has 125 million
subscribers globally– an increase of 27% versus the first quarter of 2019. In the third
quarter of last year, the 56.4 million US subscribers missed about 35 commercials each
per day because of Netflix – adding up to two billion missed ad impressions a day,
according to ScreenMedia. Whether it’s on Netflix, Hulu, Amazon Prime or even
Spotify, for the first time in history a generation of viewers are prepared to pay for
content that is free from advertising. Consumers typically spend between $5 and $12 a
month for these ad-free options. So the question is – how can we reach these consumers?

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