Youtube to make originals in India to boost ARPU (Average Revenue per User)

For youtube, India’s is the fifth largest market and it’s growing exponentially in terms of site’s traffic majorly due to declining internet data prices. In the US market, youtube has its subscription base product called YouTube Red which targets premium audiences on the subscription model. In order to replicate the same model in India, it will now start making original contents to lure Indian audience base.

The company is hiring and setting up the required infrastructure to create a niche and innovative shows for Indian audiences. It is interesting to note that currently, 80% of internet users in India have access to youtube, however, monetization is something which is not yet settled. The multi-channel networks and other web video content producers like Webchutney, AIB, TVF etc. have already reached to the maturity level and now the time has come to tap the subscription model which really make sense for youtube as well as other players in the market.

Further, the current revenue of youtube in India is very low as compared to other markets. Since most of the contents available on multiple mediums are free of cost, Indian doesn’t prefer to spend money on consuming premium content. Further, the ARPU is also very low in India. For youtube and other players, producing originals behind a paywall is the only new route to bring in fresh revenues, in addition to the growing user base, it is getting with falling data prices.

Revenue Model = Low Budget Series (Free) + Originals (Paid)

The low budget webseries are quite popular in India and has a considerable user base. It’s a well-tested and tried model and is working well in India. Even big players like Netflix has a few such shows apart from premium webseries like Sacred Games, Comicstaan etc. The combination of low budget webseries and premium one is the best formula to succeed in developing markets.

Industry sources states that youtube will probably replicate the same strategy in countries like Mexico, Germany, Japan etc.

Youtube has multiple product offerings in developed markets which don’t exist in India. For e.g. Youtube music, youtube red, youtube premium etc. The required infrastructure for distribution of these products are already in place and what is left for youtube to consider is: - pricing and subscription.

Comments

What is TRP & GRP in Television Advertising ...

Television holds the title of the largest mass medium for advertising for more than 60 years now and that designation has not been overtaken even after the entry and growth of internet medium. It is an imperative and consequential component of media planning because of its pervasiveness, impact, mass reach and targeting abilities. Albeit the world has come a long way in going digital, Television advertising still plays a paramount role when it comes to marketing products and services. Television has the properties of sight, sound, and motion that traditionally set it apart from other media such as radio or print. With its three-pronged assault on its viewers’ senses, TV is able to create broad awareness for a product or services. So before we move ahead, let’s address a common and recent misconception that internet is replacing TV viewing. The entry of Netflix, Amazon, ALT Balaji, Viu, youtube etc. it has become a hot topic to anticipate the inevitable decay and demise of televi

How Blockchain can change India’s entertainment industry

Digital technologies have played a big role in transforming the way content is produced and distributed in the entertainment industry over the past few years. Despite the many advancements, some challenges remain. The issues of revenue leakages, rights/ license management across locations, censorship and monopolistic distribution practices still exist and, in some cases, have grown. For instance, the Indian film industry, the world’s largest by a number of films produced, loses close to Rs 18,000 crore in piracy and less than half of the movies produced get a chance to reach the audience. The existing technology and infrastructure have robbed the music industry as well to the extent of about INR 6500 crore in revenue every year. In 2017, pirated music was downloaded nine billion times. The few of major hurdles that the Indian entertainment industry currently facing is the 1) Issue of funding and 2) The current distribution model. Many independent artists, actor

Basic Formulas : Digital / Internet Advertising

Mathematics is everywhere. Let it be a school life or our professional life. So, let’s try to understand the application of mathematics in internet world. What is CPM? The term CPM stands for Cost Per Mile which means cost per 1000. Its one of the most popular and used term in internet advertising space. This is the cost which advertiser pay to agency or publisher for publishing/serving 1000 impressions. Let’s take an example to understand it better. Example: Let’s assume that “Cadbury” wanted to run banner ad at CPM of INR 350 and wanted to serve 350000 impressions during the month time. What will be the total cost of client for this campaign? Total Cost to Cadbury = CPM X (Impressions)/1.000) So, Cost to advertiser will be = 350 X (3,50,000/1,000) Total cost to advertiser will be = INR 1,22,500 Let’s have a quiz here…what will you find out CPM if impression and cost is given: CPM = Cost to advertiser X 1000/Impressio

Fusion Inc

Search This Blog