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It’s the prefix of the season—super. Add it to any word you can think of. And Nitesh Kripalani<\/a>, country head of Amazon Prime Video<\/a>, applies it with the felicity of any youthful startup<\/a> chief executive out there: the customer segment for online video is ‘super-small’ in India. But Amazon’s local customers are ‘super-interested’ in video. Data charges are ‘super-important’ for them. So Amazon, he says, is making sure data consumption for video is ‘superlow’ while ensuring visual quality is ‘super-high’.\n
It’s hard to miss when Kripalani, in his late 30s, can go super six times in a five-minute span. But what’s behind etailer Amazon’s interest in online video—that too, a paid-subscription service— when its old nemesis Google<\/a>’s YouTube<\/a> pretty much built the advertising-supported market in India click by click?
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\nThe answer calls for a perspective of over-the-top (OTT) video on connected devices (laptop, smartphones, tablets, and smart televisions) in the past 15 months, against the incumbent cable and satellite television (TV) market in India.
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The latter was a formidable Rs 47,500-crore market in fiscal year 2015, according to the Telecom Regulatory Authority of India (Trai). In contrast, OTT video<\/a> is less than 20% of the Rs 7,300-crore digital advertising spends in 2016 (an estimate by advertising media company GroupM). Yet, this segment with few revenue shoots is seen as the next big thing in a market ruled by prepaid mobile customers.
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\nThe Indian Viewer<\/strong>
Internet-video services like Hotstar<\/a>, Netflix<\/a> or Amazon Prime are called ‘over-thetop’ because they don’t ride on traditional broadcasting or single-telecom networks. Thanks to net neutrality, OTT video doesn’t require any affiliation with any operator.
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\nIn 2011, the Cable Television Networks (Regulation) Amendment Act pushed local cable operators to digitise networks—basically organise the market (see ‘TV Market Gets Organised’). Call this traditional TV, where a single cable or satellite TV subscription is consumed by a household whose industry average is five viewers. Even with a conservative estimate of four persons per household, this is more than 700 million viewers.
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\nIn comparison, OTT video growth has been tangential to traditional TV market, thanks to price competition among smartphone brands, as well as between telecom operators after Reliance Jio’s largesse to unveil 4G networks. In 15 months, the online segment for video rose from 66 million unique users in 2015 to more than 80 million in end 2016.
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It’s not the 21% growth that is exciting broadcasting networks (Star Networks, Tata Sky), content owners (Yash Raj Films, Balaji Telefilms) and telcos (Vodafone, Airtel<\/a>) to push for OTT. It is the behavioural or habit shift that caught their eye.
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“When distribution becomes free because of the internet<\/a> to directly access consumers, then competition keeps the market honest,” says a digital media entrepreneur. “The distribution (cable) guy is not king—consumer is actually king.” “In absolute terms, the 80-million number is significant,” says Vidya S Nath, director, digital media, Frost & Sullivan, adding that it is the population of European nations like France or Germany, where traditional cable networks are under threat. “We have got to this scale without adequate broadband infrastructure support,” she adds. The icing on the cake: “These are unique viewers, each of whom is present on one or more platforms.” Services led by data analytics of unique viewer habits make for more sharply-targeted advertisements – the raison d’etre of Google or even Hotstar, the OTT brand of Star Networks which has more than 70 million mobile-device installations.
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\nOf the 80 million online viewers in India, the paid-subscriber base was at a minuscule 2 million last year. There is a 40% drop expected after promotional offers expire on services like Netflix and Amazon Prime. Currently, Frost & Sullivan pegs industry revenue from paid subscriptions at $8.5 million. That’s why it raises the intriguing question: What’s Amazon Prime thinking by bringing video as a paid-service when everybody else is fighting for the ad rupee?
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\nA digital-media industry source, who has worked with content owners and telecom operators for more than a decade, notes this has to do with Amazon’s global strategy of high engagement on its platform. Just like in the US, Amazon is giving a lot more value for Prime than just providing video. “Video is clubbed with instant e-commerce delivery (for Rs 499 per year). You don’t pay extra for faster deliveries,” he says. Further, video helps Amazon because consumers keep returning to the platform, even when they are not shopping online for products. “For Amazon, investing in Prime Video is like investing in customer retention.”
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\nAmazon founder Jeff Bezos no less spelt it out in the 2015 shareholder letter, justifying large spends on creating original video content a la Netflix. “(Video) shows are great for customers and they feed the Prime flywheel – members who watch Prime Video are more likely to convert from free trial to a paid membership and to renew annual subscriptions. … Prime has become an all-you-caneat, physical-digital hybrid that members love.” Amazon’s video play, which is less than four months old, cannot be seen in isolation of its overall digital ambitions, even in India.
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\nHunger Games<\/strong>
\nThe first users of internet in the US were for paid-utilities like shopping (eBay, Amazon) and internet-enabled home services, apart from email. But in India’s next wave of growth, online users will consume video before buying products online. That’s the bet. “The top three app growth categories in India are music, media and entertainment,” says Pratik Poddar, vice-president at Nexus Venture Partners, a venture-capital (VC) firm in Mumbai. “People are hungry for content and we are seeing significant behaviour change where many users are spending more than 15 minutes a day on new content destination companies.”
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\nIf Amazon can ensure customer stickiness after getting new users from its OTT service, it can enhance their ecommerce business in the next wave of growth. For this, Prime Video has tied up with mobile operator Vodafone (and is exploring other such partnerships) to tap into new prepaid mobile customers. Until then, Amazon is focusing on increasing customer engagement on Prime, and converting Amazon.in in users to Prime subscribers.
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Google and Facebook<\/a> have done this naturally beyond core search and social network businesses, respectively. Until 2015-end, a lion’s share of the OTT market belonged to YouTube, part of the Google arsenal. And WhatsApp, a Facebook company, is emerging as a dominant channel for videos to go viral apart from the parent company’s video ambitions.
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\n“Customers here are watching digital content for free, either via an advertising-supported video service, or because pirated video services are still high,” Kripalani explains. “But Amazon customers are super-interested in video. They are engaging with the service, our content selection, which is making Prime a high-growth product. It is reflecting in our consumption and sign-up figures.”
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\nIn the US, the $136-billion online retail giant has added Reading (Kindle-based), Twitch (gaming), Audible Channels (audio content), and Photo Family Vault as new Primeexclusive digital benefits last year. Stratecherry, a subscription-based newsletter featuring analysis of tech and media news, quoted a Consumer Intelligent Research Partners estimate in March 2016 that Amazon has 54 million Prime members, “which at $99\/member would generate $5.3 billion in revenue” globally. Like in India, Prime Video is available at no extra cost to Amazon Prime members in Belgium, Canada, France, Italy and Spain.
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\nThe OTT fight between YouTube, Netflix and Amazon has been more than a wake-up call for broadcasters, telecom operators and content creators who are rejigging plans for the OTT consumer.
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“They have to move,” says Brian Morris, general manager of global media and entertainment services at Tata Communications<\/a>. “If they want to stay competitive, and provide reach to mobile consumers, OTT is not an option. It is a requirement.”
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\nLaunched in February 2015, Hotstar has stood out for its timing and heavy investment in marketing the brand whose live sports events usher in masses of users. “The biggest gain in OTT is from Indian Premier League T20 Cricket, which is why Hotstar is what it is,” Nath says. A sports series guarantees mobile-video platforms of 5-10 million users depending on the targeted geography.
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\nContent Wins<\/strong>
\nOTT video means customers increase their data consumption, and mobile operators will see average revenue per user go up. Content owners too can choose from a range of platforms. They are in the spotlight. Only Much Louder (OML), which manages shows for comedy and live events for brands like All India Bakchod (AIB), are working with two OTT companies, Hotstar and Amazon Prime.
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\n“The marketing heavy-lifting by these guys like what Hotstar is doing for On Air With AIB and what Amazon has been doing with comedy specials (14 stand-up comedy episodes of an hour each) has definitely got us new fans,” says Ajay Nair, director of OML. “With Amazon Prime or Hotstar, I know the subscriber is going to spend time there.”
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\nThe battle is on for content, as Netflix alone added 600 hours of original programming – apart from licensed TV shows and movies – to its year-old service here. In absolute numbers, online video advertising dominates subscription figures, but that is not sustainable as Vice Media, a digital media company headquartered in New York discovered in North America. (Times Group which publishes The Economic Times has a partnership with Vice.)
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\nCEO Shane Smith says advertising cannot be a long-term solution with Google and Facebook having four-fifths of that pie. “We have an entire generation which has not seen advertisement because of ad-blocking, iTunes and Netflix,” he noted. Morris of Tata Communications says the revenue model has not been discovered yet anywhere around the world. On that front, Amazon Prime knows there is no such thing as a free lunch. It is a risky gambit for OTT in India, but smart for its consolidated plans.\n\n<\/body>","next_sibling":[{"msid":58001479,"title":"With 83 million customers, Reliance Jio set to break even on EBITDA","entity_type":"ARTICLE","link":"\/news\/with-83mn-customers-jio-set-to-break-even-on-ebitda\/58001479","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"seoschemas":false,"msid":58001537,"entity_type":"ARTICLE","title":"As video consumption shoots up, why is Amazon Prime focusing on paid subscriptions","synopsis":"It\u2019s not the 21% growth that is exciting broadcasting networks, content owners and telcos to push for OTT. It is the behavioural shift that has caught their eye.","titleseo":"telecomnews\/as-video-consumption-shoots-up-why-is-amazon-prime-focusing-on-paid-subscriptions","status":"ACTIVE","authors":[{"author_name":"Kunal Talgeri","author_link":"\/author\/479247238\/kunal-talgeri","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479247238.cms?width=250&height=250","author_additional":{"thumbsize":false,"msid":479247238,"author_name":"Kunal Talgeri","author_seo_name":"kunal-talgeri","designation":"Journalist","agency":false}},{"author_name":"Shashwati Shankar","author_link":"\/author\/479242471\/shashwati-shankar","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479242471.cms?width=250&height=250","author_additional":{"thumbsize":false,"msid":479242471,"author_name":"Shashwati Shankar","author_seo_name":"shashwati-shankar","designation":"Correspondent","agency":false}}],"Alttitle":{"minfo":""},"artag":"ET Bureau","artdate":"2017-04-04 09:04:27","lastupd":"2017-04-04 09:07:43","breadcrumbTags":["Amazon Prime Video","Internet","YouTube","Google","Facebook","Airtel","Tata Communications","Netflix","startup","Nitesh Kripalani","Hotstar","OTT video"],"secinfo":{"seolocation":"telecomnews\/as-video-consumption-shoots-up-why-is-amazon-prime-focusing-on-paid-subscriptions"}}" data-authors="[" kunal talgeri","shashwati shankar"]" data-category-name="" data-category_id="" data-date="2017-04-04" data-index="article_1">
season-super的前缀。将其添加到任何你能想到的词。和Nitesh Kripalani国家主管Amazon Prime的视频,适用于任何年轻的幸福启动首席执行官:在线视频的客户细分是在印度的超小。但亚马逊的当地客户“super-interested”视频。数据的指控是“非常重要的”。所以亚马逊,他说,是确保数据消耗视频“超低”同时确保视觉质量是“超高”。很难当Kripalani小姐,在他30年代后期,可以去六次超级在5分钟内。但背后的网络零售商亚马逊在线视频的兴趣,付费订阅服务——当它的老对手谷歌的YouTube基本上建立了广告支持的市场在印度点击,点击?
答案要求过多的角度(OTT)视频连接设备(笔记本电脑、智能手机、平板电脑和智能电视)在过去的15个月,反对现任有线电视和卫星电视(电视)在印度市场。
后者是一个强大的市场价值47500卢比在2015财政年度,据印度电信管理局(火车)。相比之下,奥特视频小于20%的价值7300卢比的数字广告花费在2016年由广告媒体公司群邑(估计)。然而,这段几乎没有收入被视为下一个大事件在市场受预付费手机用户。
印度观众
视频等服务Hotstar,网飞公司或Amazon Prime称为“over-thetop”因为他们不骑在传统广播或single-telecom网络。由于网络中立,奥特视频不需要任何与任何运营商联系。
2011年,有线电视网络(监管)修正案推动当地有线电视运营商数字化networks-basically组织市场(见“电视市场得到组织”)。称之为传统电视,一个有线或卫星电视订阅在一个家庭消费的行业平均水平五观众。即使有四个人/家庭的保守估计,这是超过7亿观众。
相比之下,奥特视频增长一直切向传统电视市场,由于价格的智能手机品牌之间的竞争,以及电信运营商之间在信实Jio慷慨推出4 g网络。在15个月,在线视频段上升从2015年的6600万用户超过8000万在2016年结束。
这不是令人兴奋的广播网络的增长21%(星网络,天空塔塔),内容所有者(亚许拉吉电影、电视片巴拉吉)和电信公司(沃达丰附近的旅馆)推动奥特。行为或习惯的转变,引起了他们的注意。
“当分布变得自由,因为互联网直接访问的消费者,那么竞争使得市场诚实,“数字媒体企业家说。“(电缆)分布的家伙不是king-consumer实际上是国王。”“按绝对价值计算,8000万年的数字是重要的,”维迪雅年代纳说,数字媒体,Frost & Sullivan,还说这是欧洲国家,比如法国或德国的人口,在传统有线电视网络面临威胁。“我们必须如此规模的没有足够的宽带基础设施的支持,”她补充道。锦上添花:“这些是唯一的观众,每个人都存在一个或多个平台上。”服务由数据分析独特的观众习惯让更多sharply-targeted广告——谷歌的存在理由甚至Hotstar明星网络的奥特品牌7000万多个移动设备安装。
在印度的8000万在线观众,支付用户基础是去年的200万。有一个预期下降40%优惠到期后服务,如Netflix和亚马逊总理。目前,Frost & Sullivan钉子行业付费订阅收入为850万美元。这就是为什么它提出了有趣的问题:什么是Amazon Prime思考通过把视频有偿服务当其他人争取广告卢比吗?
数位媒体业内人士,他曾与内容所有者和电信运营商了超过十年,指出这与亚马逊的全球战略的高接触的平台。就像在美国,亚马逊是提供更多的价值'不仅仅是提供视频。“视频是棒状的即时交付的电子商务(每年499卢比)。你不支付额外的更快的交付,”他说。此外,视频帮助亚马逊因为消费者继续回到平台,即使他们不是产品的网上购物。“亚马逊,投资黄金视频就像投资客户保留。”
亚马逊的创始人杰夫·贝佐斯不拼写出来在2015年股东信,证明大花在创建原始视频内容Netflix。”(视频)显示了客户,他们都是伟大的饲料看'视频'飞轮——成员更有可能将从免费试用会员付费和更新年度订阅。…'已成为all-you-caneat physical-digital混合,成员的爱。“亚马逊的视频玩,不到四个月大的时候,不能出现在隔离的总体数字野心,即使在印度。
饥饿游戏
美国第一个用户的互联网等paid-utilities购物(易趣,亚马逊)和互联网服务,除了电子邮件。但是在印度的下一波增长,在线用户会使用视频在网上购买产品。这就是选择。“三大应用增长类别在印度音乐,媒体和娱乐,“Poddar Pratik说,副总裁Nexus合资公司合作伙伴,在孟买一家风险投资(VC)。“人们渴望的内容和我们看到明显的行为改变,许多用户每天花超过15分钟在新内容目的地公司。”
如果亚马逊可以确保客户粘性从奥特服务获得新用户后,它能增强其电子商务业务的下一波增长。为此,'视频与移动运营商沃达丰(Vodafone)(和其他正在探索这种合作关系)去挖掘新预付费移动客户。在那之前,亚马逊主要专注于增加客户接触,并将亚马逊。在用户'用户。
谷歌和脸谱网这样做自然超越核心搜索和社交网络业务,分别。直到2015年结束,大部份的奥特市场属于YouTube,谷歌阿森纳的一部分。WhatsApp, Facebook公司成为一个占主导地位的渠道去病毒视频除了母公司的视频的野心。
“客户这里有免费看数字内容,要么通过广告支持的视频服务,或者因为盗版视频服务仍然很高,“Kripalani解释道。“但亚马逊客户super-interested视频。他们与服务,我们的内容选择,这是'一个高增长的产品。它是反映在我们的消费和注册数据。”
在美国,1360亿美元的在线零售巨头增加了阅读(Kindle-based),抽搐(游戏),声音通道(音频内容),和家庭照片库去年新Primeexclusive数字的好处。Stratecherry,一个基于订阅通讯科技和媒体新闻的分析,引用一乐动扑克个消费者智能研究伙伴估计在2016年3月,亚马逊有5400万成员,“99美元/成员将产生53亿美元的收入”。像在印度,'视频可在没有额外成本Amazon Prime成员在比利时、加拿大、法国、意大利和西班牙。
YouTube之间的奥特战斗,Netflix和亚马逊已经超过为广播公司敲响了警钟,电信运营商和内容创建者调整计划奥特消费者。
莫里斯说:“他们将布莱恩,总经理的全球媒体和娱乐服务塔塔通信。“如果他们想要保持竞争力,并提供达到移动消费者,奥特不是一个选择。这是一个要求。”
成立于2015年2月,Hotstar已经站在了时间和巨额投资在市场营销的品牌生活体育赛事迎来大量的用户。“奥特的最大涨幅来自印度板球超级联赛T20,这就是为什么Hotstar是它是什么,”纳说。运动系列保证移动视频平台5 - 10的百万用户根据目标地理位置。
内容赢得
奥特视频意味着客户消费,增加他们的数据和移动运营商将看到每用户平均收入上升。内容所有者也可以选择一系列的平台。他们是在聚光灯下。只有更响亮(OML)管理显示喜剧和生活事件等品牌全印度Bakchod (AIB)正在与两家奥特公司Hotstar和Amazon Prime。
“营销类运载这些家伙喜欢和爱尔兰联合银行Hotstar在做什么在空气和亚马逊已经做什么喜剧特价(14单口喜剧情节的每一个小时)无疑是我们新的粉丝,“Ajay Nair说OML主任。“与Amazon Prime或Hotstar,我知道用户会花时间。”
战斗在为内容,Netflix仅增加了600个小时的原创节目——除了许可的电视节目和电影-岁的服务。在绝对数字,在线视频广告主导订阅数据,但这是不可持续的副媒体,数字媒体公司发现在北美总部设在纽约。(时报集团出版《经济时报》与副合作。)
首席执行官肖恩·史密斯说广告不能长期解决方案与谷歌和Facebook的4/5派。“我们有整整一代没有看到广告因为进行,iTunes和Netflix,”他指出。塔塔通信的莫里斯说,收入模式尚未发现世界各地的任何地方。在这方面,Amazon Prime知道天下没有免费的午餐。这是一个冒险的策略,奥特在印度,但聪明的合并计划。
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