To take on Amazon Prime, Flipkart may venture into video-content
What's the story
Soon, you may see video content offerings from Flipkart, one of the leading e-commerce players in the country. The CEO of the company, Kalyan Krishnamurthy, has confirmed the plan of stepping into content, just as its main rival Amazon continues to bundle movies/TV shows with its 'Prime membership'. However, he has not given detailed insights into how this move would be executed. Here's more.
Reason
Why this redirection towards content
Flipkart has been selling products for years, but the idea of offering a streaming service appears to be a well-thought effort to attract more customers. Speaking to Bloomberg, Krishnamurthy projected this idea by noting that Flipkart's "customer segment today is heavily skewed towards 18-35 age group, and that audience watches a lot of video, both in terms of time spent, frequency".
Market growth
And, the content market is on the rise
There's no denying that the video-on-demand market is on the rise in India, especially because of popular streaming services and plummeting 4G costs. As of now, Netflix, Amazon Prime Video, and Hotstar lead the game of online content in India, followed by players like ALTBalaji and ZEE5. Their offerings range from high-budget original shows to movies and TV shows from major production houses.
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Also, Indian streaming market is projected to touch $5 billion
The growth of India's streaming market is expected to continue in the near future. In fact, according to the Boston Consulting Group, the market is projected to touch $5 billion by 2023 - a fact that further explains Flipkart's interest in the field.
Flipkart's move
So, how Flipkart will offer online video content?
In the interview, Krishnamurthy didn't really say how or when Flipkart will offer online video content. However, he did note that the company will not build its own streaming platform, like the one made by Amazon. "We are not a content company as a DNA," he said, noting that the company might partner with a leading player in the industry to offer video services.
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Could this be Hotstar?
While there's no saying who this partner would be, our best bet is on Hotstar, which recently launched a video advertisement platform with Flipkart. Not to mention, the e-commerce giant also offers a free subscription of their streaming service under their 'Flipkart Plus' loyalty program.