The recent talk by Mukesh Ambani during launch of Reliance JIO stated that he will be providing 1GB 4G data @ 50Rs/- and free video, voice calls and free messages without roaming all over the country…
|Figure: prepaid Plans||Figure: postpaid Plans|
Doesn’t this sound shocking? Yes indeed!!
This left the Indian telecom industry as well as media & entertainment industry in quaked, awestruck mesmerized what not no words left to describe this shock!!!
Wondering why media and entertainment would be shocked? The answer for this unfolds the actual game plan behind Reliance JIO.
The answer is:
FISHING IS THE ANSWER!! YOU HEARD IT RIGHT….
ARE YOU PERPLEXED? DON’T WORRY
NOW BEGINS THE STORY….
India’s quest to become digitally super power is making it leave no stone unturned. It is making some sincere effort to tap the huge digital empowered markets created due to its huge population base. India has been in full swing to catch the digital era spree. It is recorded that smart phone users is estimated to be 204.1 million by 2016 and is expected to grow to 317 million users, it is estimated that the percentage of internet traffic of mobile users is close to 33% in a year and recent Vuclip Survey states that video consumption through smart phones is close to 55% and is expected to increase to 85%. This scenario has triggered the telecom player’s shift their focus much on to this.
“With over 125 million 4G devices already expected to have penetrated in the Indian telecom market by the year end, one major success factors is taken care of,” Faisal Kawoosa, Principal Analyst Telecoms at CMR
With TV industry estimating to be INR 975 Billion by 2019 with TV advertising revenue to be INR. 299 Billion, leaves us with the statement that the video consumption craze is unparalleled. The video industry impact on India is such that, even the introduction of new era of subscription based services has also been
accommodated, where revenues are heading to be INR. 201 Billion. The growth of Internet users catalyzed by the smartphone users raise, the video on demand services gained greater momentum wherein 66 million unique Paytv users are observed in the year 2016 and its market is estimated to be $8.3 Billion by the end of 2016. But, this was limited by the internet speeds.
This fad for VOD, online video services and Omni content consumption at just at finger tips grew beyond leaps and bound and resulted in OTT market. This, though, had a humble start but over the years observed a massive growth. OTT platform has the capacity to facilitate and deliver video, text, audio, and any type of content under single platform in a simpler manner. The worldwide OTT market is estimated to be USD 62.03 Billion by 2020 and India being second largest internet user’s base has provided a lot of OTT market scope to explore. Though demand for OTT has been considerably high, the data speeds have been the major stumbling block for the players to explore. Moreover for me it appears that, telecom operators purposefully haven’t reduced the prices of higher data speeds to stop OTT. If OTT come in full swing, all sorts of content production, publishing and distribution becomes pretty easy that telecom operaters will be left with no option to charge for voice calls, video calls, text message and many more features separately and make money out of it.
Evidencing all these hardships, OTT players were waiting and praying hard for some miracle to happen in telecom industry in terms of data speeds, which inturn will provide them huge revenues. NO PRAYERS GO IN VAIN is what Indian philosophy says. This has come true…
Surprisingly their prayers have come so drastically in to reality, in the form of Reliance JIO, that it left all associate industries to go awestruck. Reliance being high on entertainment industry understood the significance of OTT platform and revenues associated with. The result of this we can see today internet speeds and smart phones at very cheaper rate will result in impulse raise in smart phone and internet users, which in turn will make the users get to the reliance OTT services. For most it may appear providing data speeds at cheaper rates is a service done by reliance, but in terms of economy if we view, it appears to be a big joke.
Don’t get confused, let me keep it simple!!
This is just fishing game.. To catch a big fish, we tie small fish as a prey to the string and dip in water. The big fish comes in haste and becomes prey to the fisher man.
The answer is:
FISHING IS THE ANSWER!! Now I think you thought it is right!!!!
Hope you are not PERPLEXED?
Lets come back!!!
OTT is big fish and small fish is reduced internet speeds.
Got it right???
Say Hip Hip Hurray!!!
Then enjoy data speeds leaving behind this game plan!!!!!!!!!