Reliance Jio has launched JioCinema Premium, its new subscription service designed to elevate the streaming experience for users all over India. For an affordable monthly fee of Rs 29, JioCinema Premium guarantees an ad-free viewing experience and high-quality content up to 4K resolution. Additionally, viewers can enjoy the option of downloading content for offline viewing. Over the past year and a half, JioCinema has significantly expanded its offerings with popular content catering to all age groups, including children and adults. With competition from giants like Netflix, Amazon, and Disney Hotstar, JioCinema has risen to the challenge by continually improving its content roster. Furthermore, it was one of the first platforms to introduce a freemium model- offering all shows and movies for free with advertisements. This model was eventually adopted by other OTT players such as Disney Hotstar (which will soon become part of Reliance pending regulatory approvals), which streamed the World Cup at no cost on mobile devices.
Ambani’s recent decision to reduce the subscription cost for premium content is expected to shake up the video-on-demand market once again. This move, which offers incredibly low prices on a platform that streams popular shows like IPL and Game of Thrones, as well as beloved cartoons for kids, is seen as a major disruption. By providing affordable access to high-quality entertainment, JioCinema hopes to attract a wider audience and solidify its position as a top player in the streaming world. The strategic pricing change also serves as a response to the changing demands of consumers and the intensifying competition within the industry. According to analysts at Elara Securities, JioCinema’s move to lower prices for their premium content demonstrates careful consideration of various strategic factors.
Elara stated that the company’s primary goal is to expand its subscriber base by offering a more diverse content library, going beyond exclusive Hollywood content which may not have been popular. Additionally, with the advantage of its strong in-house distribution network through Jio (mobile and fibre), JioCinema can bypass the need for partner tie-ups, giving it an edge over other platforms. In addition, JioCinema aims to target premium users who prefer ad-free content to increase revenue and grow in its pay-based revenue model. This strategic move positions JioCinema ahead of global OTT platforms competing in the Indian market. To democratize access to premium entertainment for every Indian household, JioCinema has implemented an aggressive pricing strategy. The decision to provide live sports and catch-up broadcast content for free also showcases the platform’s commitment to offering a wide range of content for its users.
Karan Taurani, an analyst at Elara, predicts that JioCinema will continue to provide free sports content, relying on advertising revenue to support this programming. While this may have a small negative effect on sports advertising spending on TV, there is potential for growth in the future. If the merger of RIL and Disney goes through, with necessary regulatory approvals, there could be an opportunity to bundle sports content on both TV and digital platforms, resulting in increased overall advertising revenue. Due to its current availability for free, sports content has the potential to capture a larger share of India’s digital ad spends (which currently stands at only 6-8%). Furthermore, JioCinema will also offer catch-up TV content for free, funded by advertisements. According to Taurani, this type of content makes up a significant portion of JioCinema’s non-sports viewership. Kiran Mani, CEO of Viacom18 Digital, expressed their aim to remove barriers for consumers wanting to access premium content through features like 4K streaming, top-quality audio, offline viewing options and no device restrictions. This customer-centric approach showcases JioCinema’s dedication towards providing all users across the nation with an unparalleled entertainment experience.
With an extensive range of top-tier titles from Hollywood studios like Peacock, HBO, Paramount, and Warner Bros. Discovery, JioCinema Premium offers a diverse selection of entertainment options in multiple languages. This strategic move not only strengthens JioCinema’s competitive position but also sets a higher standard for streaming services in India. With the rapidly growing streaming market in India, JioCinema’s disruptive pricing strategy has the potential to reshape the industry landscape and lead to further consolidation among players. By providing premium entertainment at unparalleled rates, JioCinema is well-positioned to capture a significant share of the market and establish itself as a dominant player in the streaming space. Moreover, India is known for its price-conscious market and this has previously led Netflix to lower its prices in order to gain traction. Additionally, there are several regional OTTs that have a loyal subscriber base due to their popularity among local cinema-goers. On average, broadcaster-based OTT platforms charge approximately Rs 103 per month (such as Zee5, Sony Liv, and Disney Plus premium plans), while the global OTT giants charge around Rs 358 (like Netflix premium plan and Amazon Video).
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