iWorld

Are OTT players finding a sweet spot for pricing?

Major players have launched new packs and are revised the pricing of existing ones

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2020/08/07/tv.jpg?itok=6N1uNDLE

KOLKATA: A recent report from Kantar spoke about the massive surge in SVoD growth in urban India. Hence, it is clear that Indians have started loosening the purse strings for premium online content. As there is no single right pricing for a diverse audience, OTT players are adopting innovative pricing strategies. Experimentation in subscription packages seems to be the latest trend among both international and homegrown streaming services. However, they might have found a sweet spot below Rs 500 to woo the users, at least for now.

Streaming giant Netflix has become more aggressive about international markets since its growth in the home market started saturating. Realising the nature of the local market, it ignited the experimentation with pricing last year while announcing the Rs 199 per month mobile-only package. The platform recently started testing a low-cost HD plan at Rs 349 per month which allows accessing the service on a mobile, tablet, laptop and desktop but not on TV. If Netflix rolls out the subscription plan, the platform will have plans ranging from Rs 199 to Rs 799. Nevertheless, it remains most expensive among all players. 

On the other hand, ZEE5 has also taken a creative stance to lure in and hold on to subscribers. It has launched ZEE5 Club at Rs 365/year. It offers exclusive access to most popular shows before telecast on TV, ZEE5 originals apart from select ZEE5 and ALTBalaji shows, blockbuster movies, ZEE Zindagi shows and several live TV channels. Significantly, it comes at almost one-third price of its premium pack.

“This is a fabulous time for consumer acquisition both from getting people on OTT platforms as well as to convert from free to subscription. Typically, water is being tested around different pricing. If you ask Hollywood or western content, you are being priced at a certain level. The OTT platforms are offering premium Indian content at Rs 300-400 range. Most players are staying in that range because that range seems suitable for acquisition,” Deloitte India media and entertainment partner and leader Jehil Thakkar said. He also added that it creates a psychological barrier beyond Rs 500 while below the range of Rs 300-400 it would be possibly considered too low.

The leader in the pack had slightly altered its pricing during the rebranding of the service. While Disney+ started its journey in India, it also launched Disney+ Hotstar VIP plan at Rs 399 per month which does not give the user access to the platform’s entire library but to movies like The Lion King, Frozen II, Aladdin, Toy Story 4, and several others along with Bollywood movies and Indian content. Initially, Hotstar VIP was priced at Rs 365 annually.

However, SonyLIV has significantly increased its pricing. The platform which refined its service recently with a new logo and premium originals took up its monthly plan to Rs 299 from Rs 99. It also increased the value of its other packs. 

PwC India Entertainment partner media and sports advisory leader Raman Kalra says that some OTT players had packages below the bracket of Rs 300-400 and some with a much higher package, but now the middle range is becoming the sweet spot. He also mentions that it is the beginning of a series of price experimentation. Thakkar also says that as the major players are now in customer acquisition spree, competitive pricing will continue.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/25/sonyliv.jpg?itok=9epIQ_bf
SonyLIV’s KBC Play Along heightens consumer delight with KBC 12

KOLKATA: SonyLIV makes staying-at-home rewarding with an unprecedented offering of ‘Har Din 10 Lakhpati’ under ‘KBC Play Along’. As the most awaited reality show makes a grand comeback, SonyLIV takes audience engagement notches higher with this innovative extension. This season KBC Play Along’ is...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/25/mirzapur.jpg?itok=OMAFSB-n
Amazon Prime Video makes Mirzapur Season 1 available for free

KOLKATA: As the release date for the most-anticipated season two of Mirzapur fast approaches, the excitement for the show is increasing every single day. So much so that the team of Amazon Prime Video is all set to give die-hard fans like us the full first season at no cost! With Season 1 of the...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/25/mx.jpg?itok=Lb3mYGsd
Aashram was viewed by users from 2500+ cities: MX Player’s Gautam Talwar

KOLKATA: How do you spend time when a virus has taken away all the usual options of outside home entertainment? The answer lies in screens. For most of the country, the television sets and the six-inch screens have served as source of entertainment since the onset of the pandemic. But at the...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/25/jip.jpg?itok=XiO4Kvnf
Jio overtakes Hathway wired broadband subscriber base in Jun-20

BENGALURU: Mukesh Ambani’s Reliance Jio Infocomm (Jio) has been the largest broadband internet services provider in the country – a major portion of its subscriber base is wireless internet – through the mobile phone. However, the player is also making strides in terms of customer acquisition for...

iWorld Telecom
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/25/ott.jpg?itok=rnExhqHG
Why OTT platforms focus on user feedback

As the over-the-top ecosystem turns more cluttered and competitive, the platforms are gearing up to retain users. Along with building a robust content slate, all the streaming services are also ensuring seamless viewing experience for the users.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/24/voot.jpg?itok=k4EvO8Qu
Voot Select premiers The Comey Rule

KOLKATA: The US Presidential Election 2020 is the most anticipated political event unfolding in a matter of weeks. But before the dynamics of world politics get ruffled again, we must witness a recreation of the tumultuous relationship between a decorated former FBI Director and current US...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/24/mk.jpg?itok=zjoQs_eN
KKR to invest Rs 5,500 crore in Reliance Retail Ventures

Reliance Industries Limited (“Reliance Industries”) and Reliance Retail Ventures Limited (“RRVL”) announced that global investment firm KKR will invest Rs 5,550 crore into RRVL, a subsidiary of Reliance Industries.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/24/he.jpg?itok=UuQgCNGB
How Netflix is scripting India story?

This is an age of binge-watchers and Netflix is yet the undisputed king of the new era. Taking off with House of Cards to luring the audience to their screens with La Casa De Papel (Money Heist), the streaming giant has re-written the script of media and entertainment industry across the world.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/23/manjit.jpg?itok=zkSjYCDH
AltBalaji's Manjit Sachdev joins Viacom18 to lead content for Voot & Voot Select

KOLKATA: Strengthening its creative team and focus on building an immersive and inclusive content strategy, Viacom18 has appointed Manjit Sachdev as content head for its leading video on demand brands Voot and Voot Select.  Sachdev, in her new role, will lead the content team at Voot and will be...

iWorld Over The Top Services

Sign up for our Newsletter

subscribe for latest stories

* indicates required