Perhaps the video streaming industry can draw a leaf from this exercise and create a similar strategy to drive such impulse purchases.
First, it has not only allowed consumers to pay as per need, thereby fueling sales, but the purchase experience is pocket-friendly. This strategy is understood to have benefitted the FMCG industry in many ways. This is also a reason why many years back large Fast Moving Consumer Goods (FMCG) companies launched products in sachets.
To be sure, India is a diverse market, where every customer uses or purchases her own product in different stock-keeping units (SKUs) or pack sizes. However in the long term, due to revenue pressures, all this will get paid and eventually will start eating shares from TV, which is a while away,” Ashish Golwalkar, a media consultant, highlighted.Īditya Birla Group to launch its paints business under the brand name ‘Birla Opus’ Also, a lot of films and premium content on Jio cinema are being offered for free.
#READY OR NOT PRICE FOR FREE#
Industry experts opine that currently one of the big reasons for a drop in paid subscribers is the availability of live sports too cricket, for free “Overall while there has been significant growth in OTT viewership, the same hasn’t been reflected to that extent on subscription numbers, thanks to the Indian Premier League (IPL) this year moving from SVoD to AVoD. The revenue is projected to grow at a compound annual growth rate of 11.78% to reach Rs 46,730 billion by 2027. Revenue in the OTT video market is expected to reach Rs 29,930 crore in 2023, according to market intelligence platform, Statista. On one hand, the industry continues to grow, while on the other, it is going through the process of consolidation. Price hikes or premium pricing will be detrimental to achieving large subscription numbers,” Sanjay Chhabria, founder, Everest Entertainment, an independent media and entertainment studio, told BrandWagon Online.Ĭurrently, there are two kinds of narratives which the over-the-top (OTT) industry has managed to build.
#READY OR NOT PRICE PASSWORD#
In a country where AV0D (Advertising video-on-demand) rules and is plagued with password sharing, value pricing is the only viable model in SVoD. This was later reduced to to Rs 649, Rs 499 and as low as Rs 199 mainly to woo users from tier-2 and 3 towns. The platform initially had price a fee of Rs 799 (premium plan), 649 (standard Plan) and 499. It is believed that in India price hike may not work as this is an extremely price-sensitive market. The ad-free subscription plan for Disney+ would cost approximately $13.99 (Rs 1160.53) per month as compared to its previous pricing of $10.99 (Rs 911.67). Moreover, Disney+ also introduced a second hike in a single year on August 9. The cheapest ad-free plan for the USA market is $15.49 per month (Rs 1284.96- current exchange rate). For instance, Netflix, post its password crackdown in the USA, has axed its basic plan on July 20, 2023. There is a wind of change with subscription-based video-on-demand (SVoD) platforms upping its monthly or annual charges across international markets except India.
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