Reliance Jio does not need captive content

Thakur

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Ever since the 4G telecom auctions, the focus
has been on the biggest winner, Reliance Jio
Infocomm Ltd, which bagged the pan-India
unified license. Last month Reliance
Industries Ltd chairman Mukesh Ambani
reiterated his company’s push in the area
with a commitment to invest Rs.70,000 crore
in the business. The rush for 4G services is
understandable, given the scorching growth
of smartphone usage in India. What has been
less obvious is why Reliance Jio’s 4G services
are being linked to a parallel content
strategy, almost as if the two go hand in
hand. Even when Reliance Industries bought
out promoter Raghav Bahl and took over
media conglomerate Network18 Media and
Investments Ltd, speculation had been rife
about how this would fit into its business
plans because Network18’s various properties
would provide content for the telecom
business.
In his speech at the company’s annual
general meeting, Ambani did refer to the
acquisition but did not call it a content play,
merely dubbing it “one aspect of the digital
services play” aimed at differentiating and
strengthening its “4G business at the unique
intersects of telecom, Web and digital
commerce, and the media through a suite of
premier digital properties.”
Just why would Reliance Jio need Network18’s
content? The media company’s content would
be important for Reliance only if it were then
made available to customers exclusively
through Reliance Jio. Which means
Network18 would not allow its channels to be
accessed through other cable and DTH
providers, and would not allow its websites to
be accessible through other ISPs. http://www.livemint.com/Opinion/zQebC8pRDpn5sNT8qFH0FK/Reliance-Jio-needs-no-content-strategy.html
 
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