SUMMARY
JioCinema has unveiled its new subscription offering, ‘JioCinema Premium’ at an INR 29 per month
Now, JioCinema will offer ad-free experience as well as offline viewing options
The OTT platform has also launched ‘Family’ plan at INR 89 per month which offers the additional benefit of four simultaneous screens access
Reliance-backed streaming platform JioCinema has unveiled new subscription offering, JioCinema Premium, to take on Netflix, Amazon Prime Video, apart from domestic rivals in the OTT space.
The new plan starts at INR 29 a month.
The platform has cut the prices of its premium content, including hollywood movies and tv shows.
To be sure, the platform has slashed the price by two-thirds, as the earlier subscription priced these offerings at INR 99 a month, or INR 999 a year, for streaming on up to four devices simultaneously. Now, the yearly plan cease to exit on the platform.
However, the premium plans were not ad-free earlier. Now, JioCinema will offer ad-free experience as well as offline viewing options.
Moreover, premium members can access exclusive series, movies, Hollywood, kids and TV entertainment, on any device, including Connected TVs, the company said.
With a focus on multi-segment consumption across Indian households, the OTT platform has also launched ‘Family’ plan at INR 89 a month, which offers additional benefit of four simultaneous screens access.
Furthermore, existing JioCinema premium members can enjoy all the additional benefits of the ‘Family’ plan at no extra cost. JioCinema rolled out paid subscription plans for premium content last year.
Sports content including the ongoing Indian Premier League (IPL) will continue to be available for Free as part of its ad-supported offering, the company said.
Kiran Mani, CEO of Viacom18 Digital said, “Creating and building an entertainment ecosystem with a product that is made for every Indian household, is not just a business strategy, but a vision to empower our country and users with an unmatched entertainment experience. JioCinema Premium aims to redefine the narrative of premium entertainment for every Indian while building a daily viewing habit.”
“The introduction of JioCinema Premium breaks the numerous cost and quality barriers that exist in accessing premium entertainment. With 4K streaming, best-in-class audio, offline viewing and no device restriction all at a customer-centric pricing is sure to democratise access to quality entertainment for all of India,” Mani added.
It comes soon after Reliance Industries Limited (RIL), Viacom 18 and The Walt Disney Company announced the signing of binding agreements to set up a joint venture (JV) that would combine the businesses of Viacom18 and Star India Private Limited.
The merged entity includes two leading OTT platforms – Disney+ Hotstar and JioCinema. JioCinema has made significant strides in the OTT industry by offering broadcasts of various tournaments, including the highly popular Indian Premier League (IPL), at no cost.
In addition to this, the platform has inked strategic content partnerships with renowned American studios such as HBO and NBCUniversal.
How Does It Fare For Rivals?
Disney+Hotstar began losing momentum in subscription growth following the entry of JioCinema; however, the latter is yet to substantially increase its subscription base. Therefore, a reduction in costs may greatly aid its growth. Moreover, it could create more challenges for international players such as Netflix and Prime Video, who have already been struggling to increase their prices in India.
“On an average, pricing for broadcaster-based OTT’s in India is INR 103 per month (Zee5, SonyLiv, Disney+Hotstar premium plan), whereas global giant OTT’s average pricing is INR 358 (Netflix premium plan, Amazon video), which implies that Jio Cinema Premium pricing is at a steep discount of 86% vs average price of peers; However, Jio Cinema’s depth of offerings in originals/global content remains much lower compared to global peers,” Karan Taurani, SVP of Elara Securities said.
JioCinema might have reduced the pricing of its premium offering for two reasons: Firstly, they may have observed limited uptake for exclusive Hollywood content alone, prompting them to introduce additional content for an ad-free experience. Secondly, the platform has a competitive edge over peers as it does not require partnerships due to its robust in-house distribution channels via Jio, mobile and fibre.
“This will potentially help them drive scale in their pay-based revenue, by tapping the premium customer who wants to watch content ad-free and is willing to pay for the same, and gain competitive advantage vs global OTT platforms,” Taurani said.
