MUMBAI: The OTT players in India seem to have found telecom partnerships fruitful. Recently, ZEE Entertainment Enterprises Ltd (ZEEL) struck a three year deal with Airtel. Under the deal, the partners will do a co-branded promotion while the revenue model will be based on cost per subscriber and duration viewed.
“There is select premium content from ZEE5 library that will be available for Airtel consumers exclusively in addition to being available on the ZEE5 platform,” ZEE5 India CEO Tarun Katial says. Though this deal is unique, ZEE5 is open to striking deals with other telecom operators also.
“Revenue model is based on cost per subscriber and duration viewed for both in the three buckets. In the first bucket, it’s for cost per subscriber and there’s a minimum guarantee, in the second bucket it’s about volume deal for a subscription for a high-end Airtel consumer and the third model is about upscaling ZEE5 subscription packages,” he adds.
Katial thinks this co-branding promotion across platforms will enable to create an understanding of content among consumers of ZEE5 as well Airtel. “It’s also a really good opportunity to be able to do both consumer insight as well as big data and create a recommendation for Airtel TV consumers of ZEE5 premium content,” he says. The partners will leverage each other’s social media assets also.
Under the partnership, other than ZEE5 premium content, video content produced by ZEEL, including TV shows and movies will be available exclusively on Airtel’s digital properties like Airtel TV. Since ZEE5 already streams content produced by ZEEL along with its originals some of the selected curated content may be available on ZEE5 first while some will be concurrently available on both platforms but “deeper premium library” will be available only on its own OTT platform.
Recently ZEEL snipped its deal with Reliance Jio pulling off all its available content on Jio TV. Though this kind of incident happens due to the failure of negotiation of cost, both the companies remained tight-lipped about the problem.
However, the deal can boost Airtel also which has had its dominance in the telecom industry threatened after Jio’s entry. Reliance is already in a better position as it holds stakes in production companies like Eros International, Balaji Telefilms and Roy Kapur Films.
As ZEE5 is a late entrant in the market, it is still far behind other domestic players like Hotstar, Voot and Eros Now. Moreover, international rivals like Netflix and Amazon are also eying the same OTT market. Hence, the deal is very critical for ZEE5 to reach more consumers across the country as well as to increase the visibility of existing shows on the platform. The industry being in a nascent stage does not have any clear winner till now, hence, leaving enough scope for each of the players.
