CONTENT CONQUEST

JIOCINEMA'S ULTRA-LOW PLAN SHAKES INDIA'S STREAMING SCENE, AIMING FOR AD REVENUE AND LEVERAGING STRENGTHS TO BECOME A BIG PLAYER

In a major shakeup for the Indian streaming market, JioCinema, owned by Reliance Industries’ Viacom18, unveiled a disruptive new subscription plan. At just ₹29 per month, users gain access to ad-free content in stunning 4K resolution. This price point represents an aggressive 85% to 86% discount compared to the average fee charged by JioCinema’s competitors.

With such a game-changing offer, a crucial question emerges: what’s the strategic motive behind JioCinema’s bold move? JioCinema’s strategic move has two key prongs. First, it’s a clear challenge to the existing business model of streaming platforms in India. Second, and equally important, is the question of the economic rationale behind this move. Let’s delve deeper into these aspects:

STREAMING GIANTS: A CONTENT CASH BURN

The streaming game demands deep pockets. Production costs are significantly higher compared to traditional television, with estimates suggesting a minimum three-fold increase for a single episode of a web series. This highlights the vast difference in scale between the two mediums.

Film production costs also pale in comparison for certain shows. Attaching renowned directors can further inflate budgets, potentially reaching the cost of a mid-budget Hindi film. Netflix’s recent series “Heeramandi,” with its staggering ₹200 crore price tag, exemplifies this trend. This hefty investment underscores the capital-intensive nature of the streaming platform business model.