JioCinema's HBO deal: Why Reliance's OTT platform is ready to take on global giants

Did you hear? HBO content just moved from Disney+ Hotstar to JioCinema. But you’ll have to shell out Rs 999 to access JioCinema Premium—annually, of course. What this means is that Jio—that saw millions of users flocking to its platform after it started free live streaming of sports tournaments like FIFA World Cup Qatar 2022 and Indian Premier League 2023—wants its finger in every pie; it is offering free content through advertising-based video-on-demand (AVOD) for its live streaming content, as well as attracting new viewers for its premium content. It recently announced a slate of 100 original series and movie titles, and a paid subscription for premium content that has HBO shows like Succession, The Last of Us, etc.

Experts say this is a smart move as on the one hand, pure-play AVOD isn’t sustainable for OTT players. On the other, there are premium subscribers who want an ad-free experience and are willing to pay for it. Now, as the platform goes paid, it offers viewers the ability to watch on up to four devices simultaneously, a library of Hollywood movies and TV shows, including high-quality video and audio, all ad-free. While the free streaming of sports tournaments brought audiences to the platform, the premium plan will help build loyalty. “The free live streaming of IPL has ensured that JioCinema consumption grew substantially in April 2023, while its average daily engagement reached 50 minutes,” says Mihir Shah, VP at Media Partners Asia (MPA), a market research firm. “But sustained viewership levels will remain critical in the absence of IPL... especially as it has increased investments in local and premium international content.”

Consumers watching global content definitely don’t want to watch ads, and hence most premium streaming platforms have an ad-free offering that JioCinema is now targeting. Meanwhile IPL, currently being offered for free, has helped Jio gain traction among viewers who may find it difficult to pay for a subscription, and who are used to free services like YouTube. But an ad-free SVOD model with HBO content and Jio’s own original content will help them target the premium households. In short, JioCinema wants to be everything, everywhere, all at once.

Per MPA, to make sure it maintains its growth and scale in the absence of IPL, the platform is all set to scale up in terms of content. “The next 6-12 months will remain critical as platforms strive to balance monetisation and profitability against content investments,” says Shah. Experts also point out that JioCinema’s annual pricing is at the lower end. While Disney+ Hotstar, Amazon Prime Video and Netflix are all priced in the range of Rs 1,000-2,000 annually, Jio has stuck to the less-than-Rs 1,000 mark. Despite that, a report from Elara Capital states there will not be any large-scale paid subscriber base coming to Jio anytime soon as Indian audiences are value-driven and may not pay only for HBO/Warner Bros. content. Jio, the report adds, will have to offer more bundled content to achieve scale.

Jio will also be able to leverage its telecom and broadband subscriber base. “It may bundle the HBO/Warner Bros. content free for its premium JioFiber or postpaid mobile subscribers,” says Karan Taurani, Senior VP at Elara Capital.

He adds that SVOD will grow in India by offering bundled SVOD, with factors like password sharing, quality of content, number of devices per account, ad-free content, transcational video-on-demand and mobile-only plans taken into account. Only then will platforms be able to make a significant headway into India’s large market.

@PLidhoo