Mumbai: The recent announcement by Disney+ Hotstar that smartphone users in India can watch this year’s Asia Cup and ICC Men’s Cricket World Cup for free on the OTT mobile platform, came as a pleasant surprise by both cricket and non-cricket fans. The Asia Cup 2023 will be held in September in India, and the Asian country will also host the ICC Men's Cricket World Cup, which will last nearly two months, from 5 October to 19 November.
This strategic decision comes after this year’s IPL, which set record viewership numbers for both linear TV and digital platforms. The media rights for the games were split for the first time with Disney Star getting the TV rights and JioCinema nabbing the digital rights. Interestingly, JioCinema streamed it for free on their platform.
Disney+ Hotstar’s decision to make cricket free-to-view will reportedly benefit the 540 million smartphone users across the country. Interestingly, Disney Star has secured the broadcasting rights for all ICC tournaments till 2027.
A famous quote by French poet Anatole France which says, "The greatest virtue of a person is curiosity", stays true till date. Many people are generated with curiosity to know whether this decision will affect linear TVs, SVOD revenue and also the reaction of various brands to this, will they be ready to invest more, medium or less etc.
To answer all this questions, Indiantelevision.com caught up with Havas Media India, president- investment & Havas Play, MD, R Venkatsubramanian to give some interesting insights on this decision…
Edited excerpts
On Hotstar maximising its revenues via free streaming of the World Cup on the mobile device
Hotstar, the leading sports platform in India, has been charging consumers to access sports content until now. They used to provide a free 5-minute trial for sports content, and around 380-400 million viewers took advantage of this offer during the IPL each year, while approximately 50-60 million viewers paid for IPL access. However, in 2023, JIO offered free access to watch the entire IPL match on Hotstar, resulting in over 400 million viewers.
With Hotstar offering free access to watch the ICC World Cup, they are expected to attract a larger audience from 2-tier and smaller cities. This expanded reach presents an opportunity to attract more brands, both big and small, for advertising on Hotstar. As a result, Hotstar can maximise its revenue.
On linear TV being consumed more widely than mobile phones and the strategy affecting linear TV
Hotstar's decision to offer free streaming of the World Cup on mobile devices is expected to impact linear TV. Although linear TV still holds a wider consumer base, the popularity of streaming services, increasing smartphone ownership, and the trend of on-the-go content consumption are narrowing the gap between the two mediums. By providing free streaming on mobile devices, Hotstar is likely to accelerate the shift towards mobile viewing habits.
However, it's worth noting that linear TV remains the primary medium for consuming sports and offers a cinematic experience. There are still individuals who prefer traditional TV viewing and will continue to do so. Broadcasters should continue producing content for the large screen, and live events will continue to attract a significant audience on linear TV. The key to success for linear TV lies in adapting to the evolving landscape, making their content accessible to mobile viewers, and finding ways to differentiate themselves from streaming services. Linear TV still holds significance, especially for impactful product launches by brands.
On SVOD revenue declining gradually by streaming free on mobiles as many will move towards free content rather than the paid subscription
It is true that streaming free content on mobile devices could lead to a decline in SVOD revenue. When high-quality free content is readily available, some individuals may be less inclined to pay for a subscription. However, it is important to consider that not all free content is equal in terms of quality.
SVOD providers can offer features that are not available with free content. For example, SVOD platforms can offer exclusive content, ad-free viewing, and the ability to download content for offline viewing. These features could make SVOD subscriptions more attractive to consumers, even if there is free content available. As the market for streaming services continues to grow and more people adopt SVOD platforms, there is still room for increased demand and the potential for differentiated content to make a significant impact. This could offset any decline in revenue caused by free content.
Overall, it is too early to say whether streaming free content on mobile devices will lead to a decline in SVOD revenue. SVOD providers can leverage unique features and the growing market demand to maintain their revenue streams and adapt to the evolving streaming landscape.
On brand’s reaction to this move whether they will invest here heavily as compared to IPL
The scenario of Dhoni lifting the IPL trophy compared to Rohit Sharma lifting the ICC World Cup trophy would indeed create a significant difference. ICC Trophy is very prestigious as compared to IPL and India will play against Pakistan and other strong teams. So yes, brands will definitely consider investing money in ICC WC and especially if it is happening in India.
Brands will have a positive reaction to Hotstar's move to stream the World Cup for free on mobile devices. The world cup falls right in the middle of the festive, and it’s in the interest of the brand to make that investment and connect with key TG. Digital offers a great platform to reach the key TG allowing geo-targeting and demographic TG segregation, targeting both, youth and families. It is most likely that some brands will invest heavily in the World Cup, as classically cricket offers a good return on their investment.
On the strategy of OTT platforms attempting to create free tiers in their services
Offering a free tier is a great way to attract new users to an OTT platform. This is especially true for platforms that are still relatively new or that are trying to expand into new markets.
Even if users only use the free tier, they are still more likely to become paying subscribers in the future. This is because they will be exposed to the platform's content, and they will be more likely to want to access more of it.
Free tier does not generate direct revenue, it can still generate revenue indirectly. For example, platforms can show ads to users on the free tier, and they can also collect data about users that can be used to target them with advertising.
Free tiers should offer a limited selection of content. This will help to keep costs down and it will also help to ensure that users are more likely to upgrade to a paid subscription if they want to access more content.
Free tiers can also offer exclusive content. This will give users a reason to sign up for the free tier and it will also help to differentiate the platform from its competitors.
The process of upgrading from the free tier to a paid subscription should be easy and seamless. This will help to ensure that users who are interested in upgrading do so quickly and easily.
YouTube offers a free tier that allows users to watch a limited selection of videos with ads. Netflix and Amazon Prime Video also offer free trials, granting users temporary access to a limited range of content without charge for a limited period of time.
On the free streaming by Jio during IPL giving a boost to small & medium enterprises
The free streaming of IPL by Jio during IPL did give a boost to small and medium enterprises (SMEs) to be seen on IPL. This is because the free streaming allowed a wider audience to watch the IPL, which in turn gave SMEs a larger audience to reach with their advertising and able to target their respective local markets.
By streaming the IPL for free, SMEs could tailor their advertisements to the specific audience watching the IPL on Jio. This ensured that their ads reached viewers who were more likely to have an interest in their products or services, increasing the effectiveness of their advertising campaigns.
