Impending threat to Video Centric Mobile Applications - More player's than User base


Indian economic directions and subsequent entry by players are generally dominated by one successful use case. In India, most of the companies hesitate to take the first step whereas the case is just reversed when it comes to other developed companies. That is the reason that being one of the greatest mind aggregator, Indian companies always act as service providers instead of owner of product or services or applications or be it anything else.

With the ongoing revolution underway in Telecom sector and slow death of Telecom operator centric Mobile VAS segment due to very stringent regulatory guideline in India; many VAS companies moved into Applications or platform or service category to survive. Reliance Jio, helped the ecosystem with a hope that India will be the market of data user and data centric products or applications or games or anything else will get adopted like forest fire.

Indians are generally fond of music, movies and cricket. The fall of MVAS business at operator level prompted major players like Hungama and Saavn to quickly change their strategy and moved into Application based content delivery through Device manufacturing delivery. Hungama even went one step further an launched their movie based applications. The slight success of both the player brought in number of players like Sony, Zee, Star, VIU, Eros and many more. Ironically, most of them went with open wallet and acquired user through heavy promotional activities instead of organic growth. Indian Telecom sector with Data ARPU of less than $2.25 in best case scenario trumped most of them as their content adoption went high for free content or till the offer period whereas they failed to get the expected growth rate for the paid userbase. I do agree that Indian Smartphone segment is growing but at the same time the mindset of the end user is to access default Video application YouTube.

In my point of view, the video applications player should come out with disruptive engagement model with end user wherein user start paying for the content instead of relying on advertisement which is not long term option

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Visionary Leader with 22 years of multi-functional experience - combine astute tactical, strategic, business, technology and industry skills in ICT domain at domestic and international level (Wired/Wireless/ networks /platforms/ connected device) .... More

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