Netflix has entered into a first of its kind partnership with direct-to-home (DTH) player Videocon d2h in India that will allow the global over-the-top (OTT) player to offer its service via latter’s soon-to-be-launched integrated set-top-boxes (STBs).
Videocon d2h is currently testing its next generation connected STBs, which it plans to launch in the market in two months. The connected box will have pre-installed OTT and utility applications a user can access with existing broadband or Wi-Fi-connection on their TV sets.
“Netflix is the first player to sign the agreement with Videocon d2h for these connected STBs. This box will be similar to an Apple TV, but with both – linear and non-linear content with specially curated apps,” a highly placed source in the company told ET.
Videocon d2h has already started the integration, and as part of the deal, the new remotes will have a special Netflix button.
Unlike in the West, where consumption of Netflix is predominantly on connected television sets, low penetration of broadband and connected devices has restricted OTT consumption to small screens in India, especially mobile devices.
Todd Yellin, VP of Product at Netflix had recently told ET that while globally about two-thirds of all hours of streaming are on a TV; India is one of the only three places where Netflix’ consumption is more on the phones and tablets than TV.
Industry experts feel that the move is pretty much in sync with what all DTH players have been trying to do – to offer services in addition to the traditional TV. “This will differentiate Videocon d2h from existing cable TV and also other DTH players,” said Girish Menon, director – media & entertainment at consulting firm KPMG India.
It is a good fit for both the brands as for DTH player it will mean a new revenue stream and greater engagement with his subscriber. For OTT player, it will mean reduction in customer acquisition cost and more ways to push content, said Menon. “For OTT players, the biggest challenges are discovery of content and reaching out to customer.”
“It is good for OTT companies, which can grow their subscriber base faster and DTH players, who can grow their average revenue per user (ARPUs),” said Ashish Pherwani, head - advisory, media and entertainment, at consulting firm EY.
People with direct knowledge of the development told ET that Videocon d2h will offer the new box at Rs 2,490 for existing customers, while new customers will have to shell out Rs 3,490. The new STBs will also have Hotstar and Sony Liv, while talks are on with Viacom18 to get its service Voot on the platform. Videocon d2h has also partnered with BookMyShow and Zomato for the ticket booking and food delivery services, via DTH.
When contacted, a Hotstar spokesperson said “We are actively sought by local and international players to make Hotstar available on their connected devices... We will continue to be open to partnerships that expand choices for consumers and expand the reach of our service.”
Videocon d2h is currently testing its next generation connected STBs, which it plans to launch in the market in two months. The connected box will have pre-installed OTT and utility applications a user can access with existing broadband or Wi-Fi-connection on their TV sets.
“Netflix is the first player to sign the agreement with Videocon d2h for these connected STBs. This box will be similar to an Apple TV, but with both – linear and non-linear content with specially curated apps,” a highly placed source in the company told ET.
Videocon d2h has already started the integration, and as part of the deal, the new remotes will have a special Netflix button.
Unlike in the West, where consumption of Netflix is predominantly on connected television sets, low penetration of broadband and connected devices has restricted OTT consumption to small screens in India, especially mobile devices.
Todd Yellin, VP of Product at Netflix had recently told ET that while globally about two-thirds of all hours of streaming are on a TV; India is one of the only three places where Netflix’ consumption is more on the phones and tablets than TV.
Industry experts feel that the move is pretty much in sync with what all DTH players have been trying to do – to offer services in addition to the traditional TV. “This will differentiate Videocon d2h from existing cable TV and also other DTH players,” said Girish Menon, director – media & entertainment at consulting firm KPMG India.
It is a good fit for both the brands as for DTH player it will mean a new revenue stream and greater engagement with his subscriber. For OTT player, it will mean reduction in customer acquisition cost and more ways to push content, said Menon. “For OTT players, the biggest challenges are discovery of content and reaching out to customer.”
“It is good for OTT companies, which can grow their subscriber base faster and DTH players, who can grow their average revenue per user (ARPUs),” said Ashish Pherwani, head - advisory, media and entertainment, at consulting firm EY.
People with direct knowledge of the development told ET that Videocon d2h will offer the new box at Rs 2,490 for existing customers, while new customers will have to shell out Rs 3,490. The new STBs will also have Hotstar and Sony Liv, while talks are on with Viacom18 to get its service Voot on the platform. Videocon d2h has also partnered with BookMyShow and Zomato for the ticket booking and food delivery services, via DTH.
When contacted, a Hotstar spokesperson said “We are actively sought by local and international players to make Hotstar available on their connected devices... We will continue to be open to partnerships that expand choices for consumers and expand the reach of our service.”
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