Netflix to use Airtel, Vodafone platforms to offer direct-to-home services

Two of the key video streaming companies, Hotstar and Netflix, on Monday made strategic announcements to widen reach and improve revenue.

Netflix said it would offer its services via the direct-to-home platforms of Airtel and Videocon. Netflix also partnered Vodafone to enable carrier billing, so customers can pay for their Netflix subscriptions as part of their monthly bill or prepaid balance. 

Hotstar, promoted by the country’s leading broadcaster Star, said it had tied up with Bengaluru-based media technology firm Zapr to provide personalised advertisements. Star said it had taken a minority stake in Zapr but did not specify how much. “It made sense to take the next big step in terms of data and technology,” said Ajit Mohan, chief executive officer, Hotstar. “The tie-up with Zapr will allow brands to talk to individuals. The idea is to not be intrusive but immersive and engaging,” he said.

Industry estimates peg India’s video-on-demand market at nearly Rs 1,400 crore, but subscription services are barely two per cent. Hotstar has a subscription-led service for premium users, but the bulk of its 200 million downloads have been on its subscription-free service.

Netflix and Amazon Prime Video are trying to charge content fees. Amazon Prime is the cheapest of the three players with an annual introductory subscription of Rs 499. Netflix’s monthly subscription is Rs 500-800 across plans, while Hotstar is available for Rs 199 a month.

Netflix Co-founder and Chief Executive Officer Reed Hastings, who is visiting India, said his company was focusing on the top 10-20 per cent of the market. “We need to add more content and we are working on it. We will also offer video streaming without any buffering,” he said.

Netflix is trying to increase local content through tie-ups and in-house productions. India will be the sixth country to house a Netflix office, currently under construction in Mumbai.