As more people substitute the TV remote for the mobile screen to watch live sports, events such as the Indian Premier League (IPL) provide an opportunity for telcos to push data top-up packs and drive consumption, say industry executives and experts.
Jio, for example, is banking on 4K IPL telecast on digital to drive up data consumption, in addition to introducing multi-camera angle views, and other experience-enhancing features for live sports. Jio is a unit of Reliance Industries, which owns a majority stake in Viacom18 which has the rights to the IPL for 5 years.
Vodafone Idea, on its part, is working on 4K/8K content which would typically consume more data, while Airtel has increased focus on podcasts on its audio streaming platform Wynk. All three telcos saw less than 1% growth in data consumption per user per month for the fiscal third quarter, indicating dwindling appetite.
Data Appetite Important to Monetise 5G
Overall revenue growth also sequentially slowed to 1.8% in the quarter, compared with 3.2% in the fiscal second quarter.
Operating costs climbed, with higher selling, general and administrative (SG&A) expenses rising 40-50% on-year due to the spike in customer churn, underlining the need for telcos to act to retain subscribers.”We have reached peak 4G data consumption levels now. So, the top-tier users, about a fourth of the total, consume around 2GB data a day. To expand this further is the challenge,” said an industry executive at one of India’s top telcos.
One of the ways to do so is through increased engagement with content, led by video, and aided by audio and gaming. Considering the ongoing 5G rollouts, a compelling content offering is a must to whet data appetite, which can then be used to monetise 5G, said experts.
All three telcos have content offerings under their umbrella. These include a library of movies, TV shows, web series and music download options through tie-ups with various studios and labels. The challenge is to create a differentiated content proposition, clubbed with a lucrative value proposition, industry executives said.
The former is a challenge since none of the telcos actually create any content, and hence are drawing from a pool available to their competitors. Price sensitivity, meanwhile, makes the second a challenge as well.
Airtel, through its Xstream product, has tried to address this by having multiple OTT services on a single platform.
OTT Aggregator
“We have partnered with India’s 18+ premium OTTs, bringing their entire catalogue on a single app, through a single sign-on capability, at a single price point. By adopting this approach, Airtel solved three critical consumer pain points – content discovery, user experience, and pricing,” Adarsh Nair, chief executive, Airtel Digital, told ET.
Given the 5G rollouts, Airtel plans to double down on providing this content while also bringing shows that allow for a multi-camera viewing experience in the future, he added.
On a like-to-like basis, data consumption over 5G is 60-70% higher than on 4G, analysts estimate, which means compelling video streaming use cases could lead to higher adoption of 5G. That, in turn, would result in higher data consumption.
Analysts also believe that for quicker 5G adoption, telcos will need to give larger data quota at a lower cost/GB.
For Vi, the strategy has been to provide relevant content to consumers in theme and/or format.
“We introduced short format content on Vi Movies & TV as more users now want ‘snackable’ content to watch on the go,” said Avneesh Khosla, chief marketing officer, Vi. “Similarly, we are now working on 4K/8K content, focusing more on the type of content the audience wants to watch on larger screens and not just on mobiles.”
Live Sporting Action
All three telcos are focusing on providing on-the-go content in genres such as news and live sporting action.
While Jio did not respond to queries sent by ET, those in the know said the telco is also working closely with JioCinema (now under Viacom18) to push a variety of content throughout the year. Of course, live sport will be at the vanguard of that data-engagement initiative.
Apart from the IPL, JioCinema streamed the 2022 FIFA World Cup, and has the rights to multiple international leagues across sports such as football and basketball.
“What is important is that they (telcos) provide a source of relevant and affordable content at a time when the consumer is becoming very savvy on where he/she spends his/her money,” said Mahesh Uppal, director, ComFirst, a communications consultancy.
In addition to video content, telcos are also focused on audio content – be it music, or podcasts. Vi offers a catalogue of podcasts on its platform and is evaluating introducing audiobooks as a category.
“Wynk has launched ‘Wynk Studio for Podcasters’ wherein we have invited podcasters from across India to publish their content on Wynk and instantly reach Wynk’s 75Mn+ users,” Airtel’s Nair added.
