The over-the-top (OTT) platform will come pre-loaded in JioBharat phones giving it crucial access to a new market, namely 250 million 2G subscribers, say experts. Reliance Jio is looking to migrate 2G users to its 4G-enabled feature phone with the launch of JioBharat at Rs 999, almost 20% lower than the average selling price of most feature phones in India.
JioBharat will also come pre-loaded with audio app JioSavnn and JioPay. While grocery and shopping apps such as JioMart are not part of the list, for now, but could be added later, said sources.
But the focus remains on JioCinema for now. The entertainment app’s monthly active users are estimated to have touched 150-155 million post the Indian Premier League (IPL), from 110 million earlier.
“After the free streaming of the IPL, the launch of JioBharat is definitely key for JioCinema,” says Sajal Gupta, chief executive officer of Gurugram-based Kiaos Marketing. “Access to a new market opens up a plethora of opportunities for the OTT player,” he says.
This will include pushing more regional content, including movies and shows, as well as making available more language feeds for key properties such as IPL and other sporting events, Gupta says.
According to a joint report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and consultancy EY, the share of regional languages in the overall OTT content will touch 54% in 2024 from 27% in 2020. It is around 30-35% now and remains among the fastest-growing segments for OTT players in the country.
Also, JioCinema’s free streaming strategy may come handy to tap subscribers at the bottom-of-pyramid, though some experts warn that free streaming will have to be balanced with paid content for premium users.
“I see the move by Reliance Jio as an effort to bridge the digital divide. Like an FMCG company, JioCinema could tier its user base. At the bottom-of-pyramid, you have users whose ability to pay is limited, so much of the content could be free. As you move up the ladder, JioCinema may put content behind a paywall selectively. In other words, subscription plans could vary for different cohorts,” Faisal Kawoosa, founder and chief analyst, TechArc, a Gurugram-based consultancy, says.
JioCinema has made a start in this direction, announcing recently that it was going pay for its premium English content. It launched an annual plan for Rs 999, the lowest in the Rs 1,000-2,000 price band of premium annual plans by rivals such as Netflix, Amazon Prime and Disney+ Hotstar.
JioCinema has also beefed up its English premium content, typing up not only with Warner Bros. Discovery, but also signing a deal with NBCUniversal. More such tie-ups in English as well as other languages is expected in the future to keep its content pipeline going across different audiences.