Reliance Industries Ltd (RIL) recently released its financial results for the quarter ended June 30, 2023, reporting that its OTT app, JioCinema, generated higher revenue from the digital streaming of the Indian Premier League (IPL) compared to its rival, Disney Star, which held the TV rights for the prestigious cricket tournament.
Increased Advertiser Attraction Boosts JioCinema Revenue
RIL attributed the higher revenue from JioCinema to the platform’s large number of advertisers. The company stated, “JioCinema’s advertising revenue was higher than TV as the platform attracted more than 13 times the number of advertisers on TV.”
Soaring Revenue for RIL’s Media Business
Despite an overall decline of 25.6% year-on-year (YoY) in the net profit of RIL’s media business to INR 29 Cr in Q1 FY24, the revenue saw an impressive growth of 141.7% YoY, reaching INR 3,239 Cr during the same quarter.
JioCinema Success During IPL Streaming
The success of streaming the IPL highlighted the spectacular performance of JioCinema. The company said, “Revenue growth of 141.7% was driven by Viacom18, as IPL on JioCinema delivered record advertising revenues.” The advantages offered to advertisers on the platform, such as scale, targeting ability, cost flexibility, measurement, and integration options, played a pivotal role in JioCinema’s accomplishment.
JioCinema Dominance in the OTT Space
RIL is actively positioning JioCinema as a leading player in the OTT space. The platform’s decision to stream IPL for free garnered significant attention, attracting 449 million viewers for the tournament and 120 million for the final match. These numbers translated to a total of 17 billion video views and an average watch time of over 60 minutes per viewer per match.
With a focus on expansion, JioCinema has entered into a multi-year partnership with NBCUniversal and HBO to offer enhanced options for premium viewers. While RIL’s telecom business, Reliance Jio, also performed well, achieving a 12.5% rise in consolidated net profit in Q1 FY24, the company saw a 5.9% YoY decline in its consolidated profit after tax to INR 18,258 Cr during the same period.
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