Jio Keen On Developing Original Video Content; Will Tie-Up With Multiple Content Creators!
This will help the company to differentiate its product offerings and have a major potential to raise their earnings.
Video downloads and online streaming make up a major part of consumption on Jio’s network. Recently Jio Play has beaten Netflix, Hotstar and Amazon Prime by providing video content and live TV streaming for free. Now they are in talks with some of the big web content creators in the country to create content specially for Jio users.
This will help the company to differentiate its product offerings and have a major potential to raise their earnings. Presently, Reliance Jio has a free video on demand app in the form of Jio Cinema and a live TV streaming app Jio TV.
Potential Platform For Content Creators
As per some reports, some independent producers and writers have pitched their scripts to Jio for web series and other formats as things are in initial phase.
At the same time, this will be a potential platform for content developers, who will get a mass exposure with the fastest growing group of video consumers with the Reliance Jio network.
As of now Jio has Star India’s online entertainment and streaming platform Hotstar on board with UTV’s Roy Kapur Films. Recently, the company has also bought a 24.9% stake in ALTBalaji, a wholly owned subsidiary of Balaji Telefilms, for Rs. 413 crore, which is a subscription based video streaming platform, just like Netflix.
Following The Global Trends
Jio’s strategy is similar to what the other telecom companies practise globally, creating good content for their users. A decade back, most of the online streaming and video downloads were done on fixed-line broadband.
With the advancements in technology and cheaper mobile data, video consumption on mobiles has dramatically increased. With the 4th generation (4G) and upcoming 5th generation (5G) telecom technology, the video consumption has shifted towards mobile phones and other portable gadgets.
With the addition of quality content, this could add around Rs. 100 to Rs. 150 per user, as an incremental increase in average revenue per user for Reliance Jio. At the end of second quarter for this 2017-18, Reliance Jio has reported an average revenue per user of around Rs. 156.40 per month.
Back in July, during a press meet RIL had said that a investment in content production is in line and added that their commitment to invest and grow in telecom, digital and media businesses will continue. They presently offer their online streaming app Jio Cinema and live TV streaming app Jio TV for free to its users.
Fourth Largest Telecom Operator
The recent CLSA report stated that Reliance Jio stands at 139 million subscribers, which is for 12% of the total subscriber market share in India. Jio is currently the fourth largest operator in India after Bharti Airtel (24%), Vodafone (18%) and Idea Cellular (16%).
The company also garnered around 9% revenue market share, which makes them the fourth largest telecom operator in India by revenue as well.
Content creation will be a major key for Jio in the future, as the KPMG’s report Media for Masses, published back in January 2017, accounted that over 85% of the mobile data used by the telecom users in India was spent watching online videos.
At present, YouTube is the highest watched video on demand platform in India, followed by Jio Play (Jio Cinema and Jio TV), Star’s Hotstar and Voot TV, a joint venture between Viacom Inc and Reliance itself.