JioCinema, the Reliance Industries-backed video streaming platform, has boldly introduced new subscription plans that significantly undercut the prices of its rivals, including Netflix, Disney+Hotstar, and Amazon Prime Video, in an effort to compete with established players in the Indian OTT market.

The new JioCinema Premium plan, priced at just ₹29 per month, offers ad-free content across multiple languages, including original series, movies, children’s shows, and TV entertainment. Users can access the content on any device, including connected TV sets. Additionally, JioCinema has introduced a family plan for ₹89 per month, allowing simultaneous streaming on up to four devices.

Hybrid Models Gaining Traction

The introduction of these new plans comes at a time when streaming platforms are increasingly adopting hybrid models, combining ad-supported and subscription-based offerings to boost revenues. Last year, JioCinema launched a ₹999 annual plan that provided ad-free Hollywood content and ad-supported local-language programming and sports.

Sports content, such as the ongoing Indian Premier League (IPL), and some entertainment programming will remain available for free with ads, but the new ad-free plans will cover a wide range of content, including:

• Original series and movies like Ranneeti: Balakot & Beyond and Murder in Mahim
• Children’s and family entertainment, including titles like Motu Patlu, Shiva, and Rudra
• Content from local-language TV channels owned by Viacom18, such as Colors and Nickelodeon, with serials available to JioCinema members before their TV broadcast.
• International content from partnerships with Peacock, HBO, Paramount, and Warner Bros. Discovery, including popular titles like Game of Thrones, House of the Dragon, Oppenheimer, and Barbie, is available in Hindi, Tamil, Telugu, Bengali, and Marathi without ads.

Pricing Comparison

JioCinema’s Premium plan is significantly cheaper than its competitors’ offerings.

• Netflix’s premium plan, which allows 4K streaming on up to four devices simultaneously, costs ₹649 per month.
• Disney+Hotstar’s premium plan is priced at ₹1,499 per year or ₹299 per month.
• Amazon Prime Video, bundled with Amazon Prime, costs ₹1,499 per year or ₹299 per month, with a more affordable Prime Lite option at ₹799 per year, which includes free shipping and ad-supported Prime Video content.

The Rise of Ad-Supported Plans

The Indian video streaming market is witnessing a growing trend of ad-supported plans as platforms recognize the effectiveness of the hybrid model for price-sensitive consumers. A Deloitte report predicts a 19% CAGR in revenue growth from ad-free subscription plans in India, from $1.2 billion in 2022 to $2.9 billion in 2027, and a 16% CAGR in revenue from ad-supported plans, from $1.15 billion to $2.42 billion over the same period.

Jehil Thakkar, partner and media and entertainment sector leader at Deloitte India, noted that the developed world is following in India’s footsteps by pairing portfolios with OTT platforms and revisiting their content breadth and budgets.

A media behemoth in the making

In February, Reliance Industries and The Walt Disney Company joined forces to create a media giant by combining the businesses of Reliance’s Viacom18 Media Pvt. Ltd. and Disney’s Star India. RIL will also invest ₹11,500 crore in the joint venture, valuing the combined entity at ₹70,352 crore post-money, excluding synergies.

With the introduction of its new budget-friendly subscription plans, JioCinema is well-positioned to disrupt the Indian OTT market and attract a larger share of the country’s streaming audience. We remain to see how established players like Netflix, Disney+Hotstar, and Amazon Prime Video will respond to JioCinema’s aggressive pricing strategy as the competition intensifies.

The Information is Collected from Hindustan Times and Live Mint