Chapter 2044 Still Have to Find Allies

"America's Indulging Life New ()" Find the latest chapter!

In fact, just five years ago, India was generally regarded as a backwater of global streaming video, and it was still a generation away from having the infrastructure and market environment that could support a strong streaming business. At that time, Netflix, etc. Streaming services are seen as a luxury.

But low-cost smartphones from country Z have changed all that. Thanks to the influx of low-cost mobile phones from country Z, the penetration rate of smartphones in India has risen sharply.

The tariff war of Indian telecom companies has accelerated the popularization of broadband.

Last year, a tycoon in India invested 22.5 billion US dollars to launch a telecom giant. By providing the lowest price data marketing plan, mobile broadband was popularized to the families of ordinary people.

Currently, 25% of India's 1.3 billion population is connected to high-speed Internet through mobile phones, and it is expected that by 2023, this proportion will climb to 60%.

Given Indian audiences' frenzy for Bollywood movies, many of these millions of newly connected consumers became online video users almost overnight.

The number of online video users in India will approach 200 million this year. In the next five years, this number will surely double to 550 million, which is larger than the total population of the United States. Everyone is not stupid to watch such a big piece of cake. less than?

So Indians calling out to become the center of world streaming media is not bragging without confidence.

Therefore, for Disney, Netflix and Amazon, as well as New Era Media, it is particularly important to seize the Indian market, especially when they cannot enter the only larger market, country Z, of course, New Era Media has already completed the beach grab in country Z Log in, there is no way, the advantage of skin color is not possessed by other giants, Yang Cheng has never been proud of this!

But while the Indian market looks friendlier in some respects — no licenses are required and content is less subject to regulatory interference — the competition for the pay-video giants has become more chaotic and intense than it appears.

In terms of the market landscape, in India where the average salary is still just a few dollars, the services with the greatest reach and overall dominance are still ad-supported platforms that are offered free to viewers.

YouTube is by far the most profitable video platform in India, accounting for about 40% of total online video revenue.

Offers massive profits to YouTube because it's free, accessible to new users, and ad spending is skyrocketing as India's overall economy and consumer class expands rapidly.

As the disposable income of India's middle class grows,

Consumption of fast-moving consumer goods is soaring, driving up overall ad spending -- a boon for ad-supported video services, terrestrial and pay TV.

With the support of advertising, can YouTube not make money?

In terms of subscription streaming media to which Netflix belongs, the progress is slightly unsatisfactory.

In the field of subscription streaming media, the real leader is Hotstar under StarIndia, which is controlled by 21st Century Fox. However, in the next one to two years, it will change its surname to Disney. up.

At present, Hotstar has become the second largest video service in India by revenue, with a market share of 23%, second only to Youtube, but definitely surpassing Netflix and Amazon. Because of the advantages of the Toutiao app, New Times Media barely surpasses Amazon and is slightly weaker than Netflix. 14%, and the current share is 10%.

The most commonly cited bottleneck for Netflix subscriptions is its pricing. Hotstar’s premium service charges around $3 per month, while Amazon Prime’s pricing is even more aggressive at $1.90 per month, including delivery, at $14.50 a year. It's cheap, compared to $119 in the US, and Netflix's is the most expensive at $6.90 a month.

Netflix has also thought about lowering prices to accelerate growth, but low pricing will not only lead to a reduction in unit user revenue, if the subscription fee is lowered to 2-3 US dollars per month, even if it can reach 10 million users, it will also bring 30% -40% churn rate, which would negatively impact Netflix's stock price.

In the capital market, the rise and fall of stock prices is far more important than the inflow and outflow of millions of users.

The issue of pricing is not just about absolute prices. In terms of customer competition, the Indian market is also very different from the United States where Netflix started.

In the U.S., Netflix's phenomenal growth is widely seen as coming at the expense of traditional TV, especially expensive cable pay TV, and movies.

Compared with the monthly cable subscription fee of US$100 in the US market, Netflix’s pricing as low as US$6 is hugely lethal.

In India, streaming and traditional TV movies are not a simple zero-sum game.

India has TV penetration in just over half of households, compared with the APEC average of 85%. India adds about 25 million to 30 million TV viewers every year.

This means that traditional TV still occupies a vast market in India. If the Internet wants to completely replace it, it will take five years to start.

Furthermore, India is a very special market. There are as many as 23 commonly used languages ​​in India, and the taste and education level of audiences are also very different. This makes the local language a key condition for the success of video providers. Taking the leader Hotstar as an example, its More than 60 channels in operation provide services in Hindi and various regional languages.

And India's enthusiasm for sports, especially cricket, is a new problem for subscription streaming media including Netflix, which has repeatedly claimed that it will not enter the field of live sports.

In this regard, New Era Media has no scruples. Under Yang Cheng's layout, sports has always been an important part of New Era Media, and providing live sports broadcasts has never been a hassle.

As one of India's three major "religions" - traditional religion, Bollywood, and cricket, cricket's impact on ratings is decisive.

The streaming media giants have long been aware of the influence of cricket. Facebook tried to bid 600 million US dollars to acquire the digital broadcasting rights of IPL (Indian Cricket Premier League) for the next 5 years.

But its intention to buy was thwarted, and Hotstar parent company StarIndia bought IPL's broadcasting and digital TV broadcasting rights for the next five years at a price of US$2.6 billion.

It is said that the current record is that more than 10.3 million viewers watched the last match of the IPL at the same time, which is why Hotstar dominates in India.

Of course, cricket is not the only sport that can promote streaming media. Football games also have a good influence in India, which is the advantage of New Era Media.

Generally speaking, the current streaming media market in India is in a state of separatism. If New Era Media wants to enter successfully, it must find a local ally. !

Tonight, Yang Cheng had dinner with Shah Rukh Khan, who is known as the King of Bollywood. Khan has his own production company in Bollywood, so he is a good partner!

For the convenience of reading next time, you can click "Favorite" below to record this (Chapter 1991: I still have to find an ally (ask for a monthly pass)) reading record, and you can see it next time you open the bookshelf!

If you like "Enjoying Life in America", please recommend this book to your friends (QQ, blog, WeChat, etc.), thank you for your support! ! ()