Hotstar beats Netflix

Netflix has grown significantly in the Indian OTT video streaming market; however, it is far behind other OTT players. At present, it is the fifth largest player in India, behind players such as HotstarVootAmazon, etc.
  • On one hand, Netflix has stuck to its global strategy of a subscription-based revenue model and on the other hand, Hotstar in India has hybrid revenue or ‘freemium’ model, that is, free plus premium.
  • Hotstar India earns through subscription as well as advertisements, with a majority of its revenue coming from advertisements. It monetizes its new and exclusive content such as Game of Thrones and new Bollywood/Hollywood movies.
  • The majority of Indian audiences prefer free or ad-supported model as of now. In the case of Hotstar, only 2-3% of the total subscriber base actually pays for the services, with the rest sticking with the freely available content.
  • In the case of Netflix around 6% of subscribers paying for the service and the rest taking advantage of ‘free first-month’ trials. A higher percentage of subscribers paying for the service also reflect that Netflix is more targeted towards the premium category consumers.
  • Hotstar offers a variety of local as well as global content at a much lower price. Its monthly subscription plan gives access to TV Shows, Movies, Sports, and News.
  • Hotstar was also quick to grab the broadcasting rights for ‘Game of Thrones’ earlier this year when the globally acclaimed TV show made headlines among the young audience of India.
As the industry moves forward, global OTT players will face many challenges in capturing significant mindshare among Indian consumers.

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