The long queues for Reliance Jio SIM cards in every corner of almost all the major cities in India foretell the rapid changing scenario of video content consumption while on the go by Indians, similar to the success of Netflix in the US and the West.
Reliance Jio assures its users peak download speeds of up to 70 MBPS, which is not even possible on landline by BSNL nor Airtel to cite just few. If Jio can provide even half that speed, it is going to change the online video consumption by billion Indians every day and every night.
On voice calls front, Jio is complaining that other service providers are dropping the calls made from Jio and has gone to the regulator with a complaining note. While the brewing rivalry may offset Reliance Jio initially, the writing is on the wall and it is clear: "Change your tactics or pack up soon".
Airtel has promised 5GB free on its 4G services for a month but now is unable to keep up its promise. Gone are the days when Airtel and a host other telecom service providers looted the public with cheating tactics like charging for ring tones not asked for and misleading the gullible public into opting for unwanted services. Despite TRAI’s rules, these telecom giants have found it easier to defy and apy fine rather than complying with rules and lose out on huge chunks of money.
It was not TRAI nor the government but the country’s richest man who has decided to take on headlong with the telecom majors and minors in the country and change the game for the $50 billion industry, with enromous scope to triple the size in one year’s time, if the services provided to the middle class are prompt, cheaper and fair. Now Reliance Jio stands apart among the pack of wolves.
Jio is not only offering free voice calls till the end of this year, which is bound the shift the customer base away from the ancient dinosaurs resisting change, but also offering super high speeds to download the content on mobiles, which will change the contours of competition for online video content consumption. Now global giants like Netflix and Amazon Prime can eye Indian market with VOD and OTT subscriptions.
Since TV ad revenue has been projected to be static in the next three years, all eyes hvae been set on OTT-based advertisements that too online and instant. With projections at $100 million online ad-spending per year by 2018, OTT platform is the next best field where players should be putting their price.
Let us see who are the top players right now in online content segment. The biggest YouTube channel in India is T-Series but it has been uploading video content that has been aired already on TV channels. So, is the case with HotStar and Voot. With Reliance Jio changing the 4G limits, investors can pour thier money into this segment.
Already Jio has roped in entertainment industry’s giants like Sony Pictures, Balaji Telefilms, Eros International and Zee Entertainment to provide video content on its platform, assuring them high speed internet. With more video film producers making films first for online broadcast instead of waiting for release in theatres, the film industry will also change its game now.
Sporadic incidents for every film producer at the time of release of his new film will soon become a thing of the past. Tamil films banned in Bangalore may no longer matter. Threats from Marathi sentiments to Hindi film releases in Mumbai will not work now. All that producers should do is to cater the mobile downloads for their films on the day one of its release. Instead of collections in theatres, now producers can see in their own analytics pages to see whether their film project is success or not.