Why HBO Max, Apple TV+ are treading with care in India
Subscribe to enjoy similar stories. New Delhi: Foreign streaming apps new to India's crowded market are taking baby steps, as low returns in a price-conscious market deter them from making big bets with local originals. While Warner Bros has indefinitely delayed the launch of its streaming app HBO Max, and instead licensed content to JioCinema, Apple has tied up with Bharti Airtel for Airtel XStream customers to offer Apple TV+, which won't have any local originals.
Others like Crunchyroll, a global anime brand, operate in India, but do not make any local content. Industry experts attributed the platforms' caution to poor advertising and subscription revenues, as well as the limited audience of their niche content that may not require big investments. “For global OTT players aiming to succeed in India, understanding the complex audience dynamics is crucial," Chandrasekhar Mantha, partner, media and entertainment leader, Deloitte India said.
"Given the market's price sensitivity, recognizing viewer segmentation and offering tailored subscription plans, along with AVoD (ad-supported video-on-demand) models, are key strategies for success. While original content production is costly, leading platforms will have to effectively balance their content slate with a mix of originals and marquee licensed acquisitions. Getting the content strategy right may be challenging for new players," Mantha said.
New entrants also face significant challenges in competing with established OTT giants, given the substantial investments required in technology, content and marketing. Subscriber acquisition costs are high for OTTs in the early stages. Usually, initial years may have a negative or low return on investment, Mantha added.
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