News Update

JioCinema’s INR 2,000 Cr War Chest to Challenge Hotstar and Netflix

• ByStartupStory     |    April 15, 2023

Reliance Jio, a formidable player in the Indian streaming industry, is gearing up to challenge leading OTT platforms like Disney+Hotstar, Netflix, SonyLIV, and Zee5 with its ambitious plan to release a whopping 100 movies and TV shows on its JioCinema platform over the next 18-24 months. With a production budget exceeding INR 2,000 Cr, these movies and series will cater to diverse languages and genres, solidifying Reliance Jio’s position as a major contender in the Indian streaming space.

Reliance Jio’s JioCinema platform is set to make a significant impact on the Indian entertainment industry with its plan to release a staggering 70 movies and numerous vernacular web series, catering to regional audiences in languages such as Hindi, Gujarati, and Marathi. Jyoti Deshpande, the President of Reliance Industries Limited’s media business, stated to The Economic Times that this level of investment in content production is unprecedented in the Indian entertainment landscape. However, it remains unclear whether these offerings will be available for free to viewers. This move follows JioCinema’s recent foray into the OTT space by offering free streaming of the Indian Premier League (IPL), directly challenging Disney+Hotstar, which had previously relied on IPL for growth.

JioCinema’s decision to offer free streaming of the Indian Premier League (IPL) on its platform proved to be a resounding success, with the app witnessing a staggering 5 Cr new downloads during the opening weekend of the tournament. The platform garnered over 147 Cr views during the first weekend, attracting 10 Cr new viewers. Notably, the average time spent per viewer per match surged by 60% to 57 minutes, compared to the previous season’s first weekend. This follows JioCinema’s previous successful experiment with the FIFA World Cup 2022, which resulted in over 40 Bn minutes of watch time on its sports channel, Sports18, and JioCinema.

Despite facing initial technical glitches, JioCinema’s streaming of the FIFA World Cup final attracted a massive 32 Mn viewers on the Reliance-backed platform. With its renewed focus on the OTT space, JioCinema could potentially pose significant challenges to established players such as Netflix, Disney+Hotstar, Amazon Prime Video, Zee5, and SonyLIV, given its deep pockets and extensive content library. Leveraging its partnerships and experience in the broadcast space, JioCinema has the potential to emerge as a formidable competitor in the content-hungry Indian market, even competing with local and regional platforms like AHA and HoiChoi to expand its vernacular user base.

On the same day, Viacom18 completed the integration of JioCinema into its fold, making significant developments in the OTT space. This development comes shortly after Apurva Chandra, the I&B Secretary, raised concerns about the lax self-regulatory approach of streaming players leading to the production of undesirable content. He hinted at the possibility of bringing the OTT space under the ambit of a new National Broadcasting Policy that is in the offing. Additionally, the government has increased budgetary allocations for its media and entertainment arms, with INR 64.75 Cr allocated to the Film and Television Institute of India (FTII) and INR 95.13 Cr allocated to the Satyajit Ray Film and Television Institute (SRFTI) in Budget 2023.

This development comes at a time when the OTT space, particularly vernacular content, is experiencing robust growth. According to a report, Indians spend 80% of their time on media and entertainment apps, with the industry projected to reach 70 Bn by 2030.

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