With original content, Jio plans to battle Netflix and Amazon
What's the story
Telecom giant Reliance Jio is now entering the content creation market. It is poised to open its production house to create original short films and web series for subscribers. This will put Jio at loggerheads with Netflix and Amazon Prime Video, both established streaming and content creating sites. However, Reliance is counting on its existing 215 million Jio subscribers base to help them expand.
Business Plan
First off, why did Reliance take this direction?
The oil-to-telecom giant disrupted the telecom sector with its competitive pricing. The affordable data tariffs led to an increase in video consumption, and they must have realized that the content market isn't properly tapped yet. Since Jio Cinema already offers video content and Reliance has partnerships with ALT Balaji and Eros, for original content, they are now looking to aggressively expand in over-the-top content.
Content Creation
Let's understand how Amazon ticks
With its huge war-chest, Amazon has aggressively expanded into the national and regional markets in India. It also create original content like 'The Ministry' with AIB and OML. Besides, it offers premium content which allows subscribers to see Bollywood and regional movies within weeks of theatrical releases. Prime recently signed 14 comedians managed by OML and the new show 'Comicstaan' is grabbing eyeballs.
Netflix & Chill
And, what makes Netflix the go-to entertainment buddy
The amount of content Netflix provides is staggering- the Indian library of the streaming giant is the 6th largest in the world, with films dominating it. The premium service has also tied up with Red Chillies Entertainment, Phantom Films and allocated up to Rs. 600 crore to develop original content. After 'Lust Stories' and 'Sacred Games', viewers are now waiting for 'Selection Day'.
Details
Now, what does Reliance's venture mean for content space then?
Reliance has its work cut out when it goes up against Netflix, Amazon Prime and a slew of streaming sites. However, while unlikely to gain immediate traction against the well-established behemoths, their model of commerce-content-carriage might pay off since their telecom base is well established. Their advent in original content creation is a boon for artists and something to look forward to.
Competition
But can Reliance unseat Amazon Prime Video and Neflix?
Amazon Prime Video has the biggest subscriber base in India which is reportedly around 1 crore. With each subscription costing Rs. 999 annually, they generate decent revenue. Netflix, on the other hand, is categorized as a 'premium' streaming service in India. Its subscription rates are Rs. 500-800 per month. At this point in time, it is hard to predict if Reliance can emerge a winner, but the spot is definitely open.