Jio’s content push may stir an OTT turf war

Moreover, JioCinema’s recent acquisition of Warner Bros Discovery content, which includes popular HBO Originals, and the addition of Universal Studios content poses a threat not only to Disney+ Hotstar, which has also lost the IPL rights but also positions the Viacom18-owned service alongside established players like Netflix and Amazon Prime, known for premium international programming.

Industry experts anticipate that the move could have implications on content production and talent acquisition that could become more expensive with the entry of a Reliance-backed deep-pocketed player, putting pressure on rivals to re-evaluate pricing and strategies.

Netflix, Amazon Prime, Disney+ Hotstar and JioCinema did not respond to Mint’s queries on Jio’s emergence as a new player. SonyLIV and ZEE5 did not respond either.

“The biggest perception over the past few months is that JioCinema is now competing seriously in the premium English content space that was once occupied by Disney+ Hotstar, Netflix and Amazon Prime. They’re also in talks with other studios in the US to bring more non-Netflix or Prime catalogue to the country," said a senior executive at a rival streaming platform calling Jio’s acquisition of the HBO and Peacock catalogue a clear threat to Disney that now has programming that primarily caters only to kids.

By introducing largely free programming, Jio has shown an understanding of the Indian market where people aren’t exactly willing to pay for content, said Balkrishna Hari Singh, founder and CEO of Frenzi, a single-window search and recommendation app for streaming content. “They’re obviously looking to earn through advertising and increase in data consumption so they can target an aggressive 5G rollout," Singh said. As far as rivals go, the combined Zee and Sony entity will command an impressive regional library, which explains why Jio is targeting languages like Bhojpuri and Marathi. Having seen Jio disrupt the telecom market, they’re expected to aim to disrupt OTT in India by overwhelming the consumer with volume and quality of content set at below-market pricing, said Sunder Aaron, co-founder and managing partner, Locomotive Global Inc, a production house, pointed out. In fact, their foray into IPL set the tone for their approach, Aaron said.

“Creating quality programming is expensive, and advertising revenue is the key to JioCinema’s strategy. There is a large rural crowd, entertainment-starved pockets, and a substantial cost-sensitive market that will buy into JioCinema’s offerings, even in its current avatar. And, Jio will work hard to ensure that there is a steady stream of advertising opportunities in these sectors," Vinod Kunj, founder and chief creative officer, Thought Blurb Communications, an advertising and design agency, pointed out.

That said, a senior media analyst emphasized the current Jio strategy of bombarding users with content leaves shows and movies with little recall. Over the past few weeks, the platform has launched titles like Bloody Daddy, Sergeant and Mumbaikar and announced several others, such as Ishq-E-Nadaan, Blind and Taali, in quick succession. “They are putting out so much that it’s a case of too many things done too fast," the person said.

To be sure, Jio’s aggressive push on free programming is likely to impact India’s fast-growing paid subscriber base, which saw a huge surge during the covid-19 pandemic and has stabilized since then. “The paid subscriber base will definitely see some correction and may grow at 5-10% annually instead of projected rates of 30-35%. Price hikes are anyway not possible now, but the content will also increasingly become expensive with the entry of a new player," said Karan Taurani, senior vice president at Elara Capital Ltd.