Balaji Telefilms expects its over-the-top (OTT) business to consume an annual expenditure of Rs 120 crore for the next three years.
About 80% of this expenditure will be for content production. The company has already invested Rs 50 crore in content production for ALT Balaji, the subscription-based digital platform which is expected to launch next month.
The OTT business will be funded by Rs 150 crore that the company recently raised through preferential allotment, an internal cash flow of Rs 60 crore, as well as fresh capital to be raised at a later stage.
Early last year, Balaji Telefilms had raised Rs 150 crore by allotting 10.72 million equity shares, comprising 14.1% of the company’s equity share capital, to Atyant Capital India Fund – I, Vanderbilt University, GHI LTP Ltd, GHI HSP Ltd and GHI ERP Ltd. The funds would be used by ALT Digital Media to create its own differentiated, original digital content platform for the entire connected ecosystem spanning mobiles, computers, tablets, smart TVs and gaming stations.
Balaji is targeting to achieve one-million subscriber base in the first year of operations and four million by 2020. Eyeing an ARPU (average revenue per user) of Rs 60–90 per month, ALT Digital hopes to generate revenue of Rs 350 crore by 2020.
The company expects the business to break-even by 2020 with four million active subscribers.
As reported earlier by TelevisionPost.com, ALT Balaji is building capacity to have 250 hours of original programming and 32 series.
Though the complete content line-up has not been unveiled yet, bits and pieces have come out in the open. There is a biopic on Netaji Subhash Chandra Bose, which will showcase the untold story of the adventurous freedom fighter’s life. The digital series will seek to unravel a larger mystery surrounding Bose and his life that is still unknown. Rajkummar Rao will essay the role of Bose in the series.
ALT Balaji has also made public its first original web series that would centre around the Indian armed forces and have actress Nimrat Kaur in the lead with Nagesh Kukunoor wearing the director’s hat.
Targeted at upmarket and urban audiences, the OTT platform will initially offer English and Hindi content. Going forward, it will have regional content in Tamil, Bengali and Telugu to cater to a wider spectrum of viewers.
ALT Balaji, housed under Balaji Telefilms’ subsidiary Alt Digital Media Entertainment, will be a mix of subscription-based and premium ad-supported models.
Some of the key players in the Indian OTT space are Hotstar, Amazon Prime Video, Sony Liv, Voot, OZEE, dittoTV, YuppTV, Spuul, Netflix, HOOQ, Eros Now and Hungama Play.
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Balaji Telefilms’ OTT biz expected to consume Rs 120 cr a year | TelevisionPost.com
About 80% of this expenditure will be for content production. The company has already invested Rs 50 crore in content production for ALT Balaji, the subscription-based digital platform which is expected to launch next month.
The OTT business will be funded by Rs 150 crore that the company recently raised through preferential allotment, an internal cash flow of Rs 60 crore, as well as fresh capital to be raised at a later stage.
Early last year, Balaji Telefilms had raised Rs 150 crore by allotting 10.72 million equity shares, comprising 14.1% of the company’s equity share capital, to Atyant Capital India Fund – I, Vanderbilt University, GHI LTP Ltd, GHI HSP Ltd and GHI ERP Ltd. The funds would be used by ALT Digital Media to create its own differentiated, original digital content platform for the entire connected ecosystem spanning mobiles, computers, tablets, smart TVs and gaming stations.
Balaji is targeting to achieve one-million subscriber base in the first year of operations and four million by 2020. Eyeing an ARPU (average revenue per user) of Rs 60–90 per month, ALT Digital hopes to generate revenue of Rs 350 crore by 2020.
The company expects the business to break-even by 2020 with four million active subscribers.
As reported earlier by TelevisionPost.com, ALT Balaji is building capacity to have 250 hours of original programming and 32 series.
Though the complete content line-up has not been unveiled yet, bits and pieces have come out in the open. There is a biopic on Netaji Subhash Chandra Bose, which will showcase the untold story of the adventurous freedom fighter’s life. The digital series will seek to unravel a larger mystery surrounding Bose and his life that is still unknown. Rajkummar Rao will essay the role of Bose in the series.
ALT Balaji has also made public its first original web series that would centre around the Indian armed forces and have actress Nimrat Kaur in the lead with Nagesh Kukunoor wearing the director’s hat.
Targeted at upmarket and urban audiences, the OTT platform will initially offer English and Hindi content. Going forward, it will have regional content in Tamil, Bengali and Telugu to cater to a wider spectrum of viewers.
ALT Balaji, housed under Balaji Telefilms’ subsidiary Alt Digital Media Entertainment, will be a mix of subscription-based and premium ad-supported models.
Some of the key players in the Indian OTT space are Hotstar, Amazon Prime Video, Sony Liv, Voot, OZEE, dittoTV, YuppTV, Spuul, Netflix, HOOQ, Eros Now and Hungama Play.
.
Balaji Telefilms’ OTT biz expected to consume Rs 120 cr a year | TelevisionPost.com
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