In battle for marketshare, phone makers bet on video
Atul Jain opens an app on his LeEco smartphone and clicks on a television channel app. It buffers, the 4G connection is patchy, but it works. “It works perfectly fine on 3G as well... You don’t have to be in front of your television anymore to see your favourite serial, or a live cricket match,” said Jain, head of LeEco India.
LeEco, known as the Netflix of China, has struck two partnerships, one with Yupp TV for soaps, serials and sports, and one with Eros International for movies. The reason: “Profits from devices, due to competition, are becoming zero,” said Jain.
That will happen in the next six to nine months. In June, LeEco will launch its televisions in India. It is also spending $10 million (`66 crore) to buy server space to make the experience better. LeEco will also evaluate buying rights to broadcast IPL over its screens.
Other companies also want to jump on the content bandwagon. After all, 60% of data consumption in India happens on video.
Recently, Xiaomi, another Chinese phonemaker, announced a $25-million (around ` 165 crore) investment in Hungama, a provider of digital entertainment. Xiaomi, like LeEco, will eventually bring in its range of television to India.
Indian mobile phonemakers, such as Micromax, Karbonn, Lava and Intex, are yet to do a similar tie-up. A Micromax spokesperson refrained to comment on its video strategy.
At 220 million, India has more smartphones than the US and has more than 400 million internet users. No wonder the world’s largest video streaming company Netflix is eying the India market. Indian companies such as Spuul, NexGTV, Hoot, Arey (by Ronnie Screwvala) and Hotstar, are also betting on video.
What will matter in the longer run is the catalogue. “Companies such as Netflix can pay a lot more, but not one company will have all the content,” said Rajiv Vaidya, CEO of Spuul.
Some content aggregators have started making exclusive content to lure viewers. “We are working with Priyanka Chopra to make 10-15 minute episodes. There is another exclusive show with Imtiaz Ali,” said Abhesh Verma, CEO of NexGTV.