In our view, this move will negatively impact subscription revenue growth for global/broadcaster led OTT platforms which are SVOD/freemium based respectively. Offering premium content free does not augur well, as Indian OTTs already deal with challenges like lower ARPU, high content cost, a fragmented market and dominance of social, search and commerce in the ad market,” Taurani stated.
As per our note free-for-view IPL may doom OTT market released on 10 January 2023, offering the most expensive content, free of cost has caused disruption in the fragmented and price-sensitive Indian OTT market,
as JioCinema has been unable to recover more than 35% of its content cost by going pure advertising-based video on demand (AVOD), in line with our expectations.
No large OTT platform has been able to undertake price hikes in the past six months, due to the disruption caused by JioCinema which offers movies, originals, and cricket content free, Taurani stated
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