JioCinema, as a relatively latecomer to the competitive OTT market, is strategically adjusting its pricing to attract more subscribers and expand its reach. The new pricing of Rs 29 per month for single device access and Rs 89 per month for family plans with four devices represents a significant drop from the previous rates, aimed at offering ad-free streaming up to 4k resolution and content from HBO, Paramount+, and Peacock. This move is reminiscent of Reliance's disruptive tactics in the telecommunication sector back in 2016.
Industry experts like Uday Sodhi note that convincing consumers to subscribe to yet another OTT platform can be challenging, considering most people already subscribe to at least two services. By lowering the entry-level price to Rs 29 per month, JioCinema hopes to attract more users and increase market penetration since the cost for subscribers is relatively low. With an estimated total base of 120 million OTT subscribers in India, including both paid and free users across various platforms like Amazon Prime, Netflix, Disney+, and others, JioCinema's focus on affordability and accessibility signals a strategic move to tap into a larger audience.
The decision to offer a budget-friendly plan for single device access aligns with market trends, as a significant portion of OTT users falls within this segment. Additionally, leveraging the existing Jio telecom user base provides JioCinema with a ready market to target. With a specific emphasis on English content from HBO and Paramount, JioCinema aims to attract more viewers and potentially increase its subscriber base, which currently stands at a limited 1-2 million users. Moving forward, the platform's challenge lies in consistently providing compelling content to retain users and build a loyal following as the user base grows.