JioCinema Success Story – How it Eliminated the Competetion
A Flashback: How JioCinema Started?
Who doesn’t love watching content online? Everyone in today’s world loves watching various content on various digital platforms. JioCinema is one of those online digital applications that is become quite the name in the online digital application industry. After getting the Tata IPL rights this streaming service or platform has become the talk of the country and around the world. But, everything has its roots and so does JioCinema.
JioCinema is an Indian subscription video-on-demand over-the-top streaming service. This streaming platform was officially launched for viewers back on September 5, 2016. It is one of the applications that serve exclusively for Jio users. Initially, JioCinema was made available on both Apple IOS and Google Play Store. But, JioCinema also launched a website version a year after the official application was launched.
The launch of this amazing platform interested other such companies. In April 2022, Viacom 18 (a Mumbi-based media company) announced a Joint Venture between Paramount Global and Reliance Industries. On the other hand, in October 2022 just ahead of the 2022 FIFA World Cup, it was revealed that Viacom 18 would move from their existing streaming platform Voot to JioCinema.
All the matches of the FIFA World Cup are streamed for free on the JioCinema platform and website together for all the football fans out there. While streaming the FIFA World Cup matches, the official application of JioCinema received lots of criticism for technical issues such as buffering, slowing down content, and many more. Later, the officials from JioCinema revealed that they would be working to fix all of the above issues which they did later on.
Now, this is how JioCinema started out in the digital world market and gained huge appreciation from viewers across the country. On the other hand, winning the streaming rights for 2023 Tata IPL made the platform even more famous and received great appreciation from viewers from different social media platforms.
An Overview of JioCinema
| Comapny Name | VaiCom 18 |
| Parent Company | Reliance Industries |
| Key People | Mukesh Ambani, Akash Ambani |
| Valuation | - |
| Versions | Web Version, Android App, IOS App |
| Subscribers | 10 Million+ |
Current Position of JioCinema in India
Streaming platforms like JioTV and JioCinema were present previously but, very few people used to use them. JioCinema single-handedly is making lots of headlines after streaming all the Tata IPL matches for free.
We do have to agree that, JioCinema is giving good competition to other digital applications like Disney+ Hotstar. Tata IPL has always been a phenomenal sports activity in India. Over the years, due to its high popularity and demand, the league has become one of the biggest cricketing events in the world. This helped JioCinema to shape itself perfectly in the digital streaming world.
All of the credit that JioCinema has received and is receiving goes to its winning rights of Tata IPL. It drove JioCinema’s app installations by 72%, all the market share went up from just 10.73% to 40.26%. This is a significant growth considering its previous mere 3%.
The Market Intelligence unit of Bobble AI reported that JioCinema penetrated all Indian users at a 4X growth. There was a 4X increase during the IPL, the penetration of JioCinema was under 3% last year but, it got a good boost after streaming FIFA World Cup.
Now, with the rise of JioCinema penetration and new installations, the application fetched a better open rate as compared to Disney+ Hotstar. Interestingly, the free subscription model offered by JioCinema played and is playing a crucial role in where JioCinema is today. It has reaped rich dividends for the platform by increasing the engagement of the platform manifolds.
Moreover, the global rank of JioCinema is 219, the country rank is 19, and its category rank is 2. On the other hand, it has total visits of 213.5 million, a bounce rate is 32.39%, and pages per visit is 3.03.
Read More: Crickpe Business Model, How it Started
Early Days Streaming and Viewership When JioCinema was Launched
We all now know that JioCinema was launched in the Indian market back in 2016. Initially, this digital streaming application only featured basic movies and shows which did not gain much attraction and viewership in the country. Before grabbing big deals like today, JioCinema broadcasted various football league matches for free. This is followed to date by the official digital streaming platform.
Applications like Jio TV and JioCinema were present in the market but, they did not have many subscriptions or viewers. The top competitor at that point of view was Disney+ Hotstar. The sole reason for Disney+ Hotstar to capture the market was only that they had the IPL streaming rights for both app and television. But, this soon ended for JioCinema after they streamed FIFA World Cup for free along with the famous Tata IPL 2023.
According to recent data, JioCinema has crossed many benchmarks and broken many records after streaming Tata IPL for free. Interestingly, on May 23 the first qualifier match between Chennai Super Kings and Gujrat Titans saw the highest-ever viewership in Tata IPL 2023.
The viewership in this amazing and exciting match reached 2.5 crores in the last few overs of the second innings of the match. As for the coming Tata IPL matches, many researchers and sources are expecting this figure to make new records.
JioCinema Business Model and Revenue Model
JioCinema’s business model is quite similar to any other digital streaming platform but, slightly different. Now, Disney+ Hotstar’s business model works by offering a wide range of content including television shows, movies, web series, and sporting events. Advertisements, subscription models, and personalized advertisements are some methods from which JioCinema earns revenue.
A similar business model to Hotstar is followed by JioCinema. Here are some of the methods from which JioCinema earns revenue:-
- Advertisements - One of the primary sources of generating revenue is through advertisements. For a 10-second advertisement, the average asking charge is Rs 15-20 lakhs. This price could go up on important matches or events. Other than that, the price is quite higher when a formal contract is taken from that particular company. After the Tata IPL 2023 has ended JioCinema raked in Rs 2300 crore from advertisements.
- Subscription model - Yes, JioCinema did stream IPL for free but, that does not mean they will continue for the next four years. There are some rumours and news that, IPL will not be free and users will need to take a subscription to watch cricket matches. But, as of now, users willing to watch fresh HBO content and other exclusive web series then they are required to take a subscription for Rs 999 which will be valid for one year.
- Personalized advertisements- Personalized advertisements are also known as JioCinema Advertising. Such kind of advertisement promotes business, products, and other services to generate brand visibility, sales, and many more among a large number of people. It also helps companies to increase their marketing performance and target different audiences based on their taste and preferences and earn money from the companies.
Despite of Free Streaming How JioCinema Makes a Profit?
Every cricket-lovers were shocked the moment they heard that Tata IPL 2023 can be watched for free. But, we all know that at some point this thing will not last for long. The first thing Reliance Industries did was to gain customers by offering them free streaming service for IPL which was not free earlier.
Now, the main question that arises is how JioCinema is making a profit despite giving out free content and live streams. Here are some reasons why JioCinema is making a profit and will make it in the future:-
- Advertisement- Reliance Industries simply increased the advertisement. The average rate for a 10-second advertisement was Rs 13-14 lakhs but, that has increased to Rs 18-20 lakhs. If you are willing to book a slot then you are required to book for one minute. Moreover, for a one-minute advertisement, a company will need to pay Rs 1.25 crore. Bulk deals are made where the minimum cost would not be less than Rs 10. Instead of providing 10-second ads, JioCinema started offering 15-second advertisements. This is how this app gained more than 500 advertisers.
- Internet packages- As per resolutions, the internet packages are recharged. People wanted great picture quality which Reliance Industries gave as 720p and 4k as well. But, switching to these modes required lots of internet data. Many people bought various recharge packages to watch Tata IPL matches in good resolution but, buying them every day was becoming a hectic option for users. This is where Reliance Industries promoted their previously-launched Jio Fibre. JioCinema earned revenue from offering both internet packages and Jio Fibre as well.
- Jio Fibre subscription cost- Reliance saw huge growth in their broadband connection and decided to increase the monthly internet packages.
- Jio Glass- This is a new product launched by Jio. This is where people can wear their glasses and experience the match in VR. Jio Glass has a price tag of Rs 5k from which Jio earned quite a lot during free streaming.
- Jio Phone- India has 40-45% of users who uses button phones. So, what Reliance Industries did was to offer them a new experience to watch IPL on their button phones as well. This is helping the company to penetrate into all sorts of targeted audiences in the country.
- Jio Media Cable- Interestingly, Jio also launched its media cable. One can easily put their media cable in their smart television and you can experience a bigger experience.
- Subscription- Some contents are free as of today but, the company did not mention if it will be in the future or not. We are quite sure for the next sports events one would be required to pay a subscription fee to watch all content and sports activities on this application.
JioCinema & Tata IPL 2023: The Reason Behind Success of JioCinema
The primary reason behind JioCinema’s success is offering free streaming of IPL matches to viewers. Because of this reason, JioCinema has become a successful app in the market, they have over 10 million subscribers who joined in the first quarter of 2023. Here are some of the reasons behind the success of JioCinema in today’s market:-
- Free streaming - JioCinema gained a huge viewer base by offering free Tata IPL matches for users. This gave JioCinema an edge over its competitor Disney+ Hotstar, which is a paid service.
- HBO’s exodus from Disney+ Hotstar and collaborating with JioCinema- HBO’s collaboration with JioCinema gave the public a good impact. Reliance JIo signed an agreement with Warner Bros to bring up Hollywood content on its streaming platform. It will include all popular shows and movies for all HBO lovers.
- Different watching views - JioCinema introduced different viewing angles for all of its viewers. This was quite new and something very amazing for people who wanted a different angle.
- Different languages - Tata IPL 2023 could be watched in multiple languages as per the taste and preference of the viewers.
These are some of the main reasons why JioCinema has become so successful in today’s digital market.
Latest Collab of JioCinema and NBC
Some of the famous movies like Oppenheimer, Fast X, and The Super Mario Bros is heading to stream exclusively on JioCinema soon. Recently, Viacom 18 and NBC Universal have signed a multi-year partnership to bring fresh NBC movies and television shows.
Now, this partnership will only expand the portfolio of JioCinema and will premier amazing movies and series. The JioCinema Premium subscription service will include the Peacock service owned by NBC Universal. Some of the famous shows like The Office, Downtown Abbey, Suits, and many more will be available for all JioCinema subscribers in India. Interestingly, there will be several Dreamworks movies that will be coming up on the streaming platform.