Breaking Warner Bros. HBO content to be available on Jio Cinema soon

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Sports is what brings the subscribers Hollywood movies and webseries are watched by 5% of the subscribers as per the Hotstar user database the rest mainly pay for watching live Sports events in India mainly Cricket followed by Football.

If you sell a Premium plan with only English Movies and Webseries you wont have many takers however if you have quality Cricket and Football live but not any Hollywood series or movies people will still subscribe your OTT. That was the reason why Hotstar had more number of users than APV or Netflix
Sports is why Hotstar is in a dire situation right now.

The reason Hotstar had more number of users were because of its distribution. Cut the mobile/broadband bundle and ask the subscribers to pay directly from the Hotstar site. Let's see how huge the numbers are.

Netflix India makes profit with it's <5M subs while Hotstar lose 350Cr+ every year even with it's 50M+ subs.

Sony LIV has 24M subs with sub-continent cricket rights and random sports. Their Originals like Gullak, Scam attracted a huge swathe of users.
 
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Netflix targets the California users with their premium programming. That's what everyone should target. If you play like Hotstar, then you will end up get bitten by the snake.
 
If Ambani thinks Sports > Content then they will have a similar situation.

Viacom18 should develop a robust regional slate of premium series to attract the affluent consumer base like Sony LIV or Amazon Prime Video.

If they follow Hotstar then it's doomed.
 
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Don't let the huge subscriber nos fool you into thinking sports attracts users. This is why Netflix stayed away from buying digital rights of any sport even though they had the cash and 70M+ subscribers in the US itself.
 
Sports is why Hotstar is in a dire situation right now.

The reason Hotstar had more number of users were because of its distribution. Cut the mobile/broadband bundle and ask the subscribers to pay directly from the Hotstar site. Let's see how huge the numbers are.

Netflix India makes profit with it's <5M subs while Hotstar lose 350Cr+ every year even with it's 50M+ subs.

Sony LIV has 24M subs with sub-continent cricket rights and random sports. Their Originals like Gullak, Scam attracted a huge swathe of users.
Hotstar is ready to lose the 5% who subscribe for HBO rather than the 90% who subscribe for Sports that is why still they are buying the ICC Digital rights and Disney franchise and all. At the end of the day what matters is who you consider as your user.

Suppose there are 100 people 30 will be ready to buy your subscription whatever high the price/content and 30 will not buy the subscription how much low the price along with all the content and the rest 40 will buy depending on the price and good content

For Netflix they are ready to target only the first set of 30 by setting a high price so they can make profit and also by minimising password sharing and account sharing. Whereas Hotstar wants to target the 30 and the 40 by adjusting the price point and number of concurrent users.

Here the problem is like Netflix if you charge amount only for Web series and Movies the fact is we can find n number of websites where we can watch them all for free in high quality so not many will be interested whereas live sports is not like that that is why Hotstar had lot many users main reason they were not in profit was they bought IPL at ridiculously high rate which meant they will not recover the amount invested. I am sure with the amount JioCinema bought FIFA WC they would have also telecasted it at a loss and probably will be telecasting this IPL at loss too. The IPL they will recover the cost from next year maybe they wont point is you have to decide who your user base is and target them for Hotstar it was entire OTT users. Now Hotstar is modifying their library to have a combination of enough sports along with their soaps, movies and web series compared to Netflix who are still concentrating on their niche web series and movie users
 
Hotstar is ready to lose the 5% who subscribe for HBO rather than the 90% who subscribe for Sports that is why still they are buying the ICC Digital rights and Disney franchise and all. At the end of the day what matters is who you consider as your user.

Suppose there are 100 people 30 will be ready to buy your subscription whatever high the price/content and 30 will not buy the subscription how much low the price along with all the content and the rest 40 will buy depending on the price and good content

For Netflix they are ready to target only the first set of 30 by setting a high price so they can make profit and also by minimising password sharing and account sharing. Whereas Hotstar wants to target the 30 and the 40 by adjusting the price point and number of concurrent users.

Here the problem is like Netflix if you charge amount only for Web series and Movies the fact is we can find n number of websites where we can watch them all for free in high quality so not many will be interested whereas live sports is not like that that is why Hotstar had lot many users main reason they were not in profit was they bought IPL at ridiculously high rate which meant they will not recover the amount invested. I am sure with the amount JioCinema bought FIFA WC they would have also telecasted it at a loss and probably will be telecasting this IPL at loss too. The IPL they will recover the cost from next year maybe they wont point is you have to decide who your user base is and target them for Hotstar it was entire OTT users. Now Hotstar is modifying their library to have a combination of enough sports along with their soaps, movies and web series compared to Netflix who are still concentrating on their niche web series and movie users
Hotstar will lose not just 5% who subscribe for HBO but rather they'll lose 40-50% of the subscribers because of their weak library.

Sports is not going to save the streaming race but a good content will have stickiness.
 
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