Indians willing to pay for great content: Vishnu Mohta

On September 20 this year, eastern India’s biggest Media & Entertainment company, SVF, launched what is being described as the biggest digital content platform with exclusively Bengali content – Hoichoi – providing 360-degree entertainment for the 250 million-plus Bengalis in India, Bangladesh and the rest of the world. 

We caught up with Vishnu Mohta, Co-founder of Hoichoi and Executive Director of SVF, who, along with a 25-member dedicated team plus another 250-plus SVG employees, has been behind Hoichoi, from concept to launch. 

Mohta spoke to us about various things, including the space for yet another entrant in the OTT space in India, on its competitive pricing, why he disagrees with the suggestion that Indians would be reluctant to pay for world class content, why original content in regional language will be the next great driver in content consumption, and more. Excerpts: 

Congratulations on the launch of Hoichoi. Do you think it’s yet another OTT platform in an already crowded space that is not doing too well as a sub sector of the M&E industry?


Thanks. I would actually say that Hoichoi is a powerful addition to an industry sub sector that is seeing enormous growth, and which has provided more than enough evidence that Indians respond to quality content, particularly if they can consume it at their convenience and on the go, and that they do not think twice about paying a reasonable amount provided they can consume that great content with a top class user experience and interface. We launched only a week back, but already, our data from its very early days tells us that is true of Hoichoi. 

I would also disagree with your assessment that the OTT space is not doing too well. Today, the category of OTT is well and truly known amongst most Indian consumers who, I believe, have sampled more than one OTT platform. 

A very recent report – I think it’s the App Annie report on video streaming apps in Asia, which released only early this week – said that the top 5 OTT players in India have seen the highest growth in average monthly users (MAU) of more than 100% in H1 2017. That’s not only the highest growth in the past two years, it is also more than double the growth rate in MAU of other APAC countries. What’s even more heartening is that of the top 5 OTT platforms in India, four are completely homegrown entities. (Editor’s note: Google’s YouTube, Hotstar, Jio TV, Jio Cinema and Voot, in that order)

The OTT space has a long breakeven, however…
Yes, being an extremely tech-intensive space needing big investments in enterprise level tech platforms and backends, along with high content costs, the OTT space is one that could demands, on average, a 5-year break-even window. But the space itself is growing, make no mistake about it. While yes, there are numerous platforms, that number is likely to get whittled down -- only the most financially, creatively and technologically robust ones offering great content for a large existing audience, will remain standing. 

So what potential do you see for Hoichoi in the current digital scenario?
Of India’s 1.3 billion people, a third now have internet access. In January this year (2017), there were 462 million internet users in India. Thanks to affordable smart phone sales in India, mobile traffic accounts for 79% of all web traffic. That is way above the global average of 50%. And the opportunity is only set to grow exponentially. Thanks to factors like the expansion of the digital infrastructure with 4G rollout, the government’s Digital India campaign, and multiple private initiatives around broadband and public WiFi, now, the 4G market is getting to be highly competitive and is likely to result in lowering of data costs. 

When you couple that with the ever increasing proliferation of smartphones, we believe consumers will become even more used to watching entertainment content on mobile, beyond their television screens. That augurs well for digital-focused content and the further growth of the OTT space. 

What are Hoichoi’s strengths, then?
The SVF lineage is Hoichoi’s biggest strength, because it comes with nearly two decades of proven and acknowledged experience of producing the best of Bengali entertainment content for the big and small screens. Over the years, we have produced over 10,000 hours of TV content, and more than 110 movies, including 5 National Award winners. We have had our pulse on the Bengali audiences as far as Media & Entertainment is concerned. As storytellers, creators and distributors of Bengali entertainment content, we have continued to grow over the past 21 years to become eastern India’s biggest media & entertainment company with business interests in Film Production, Film Distribution, Television content Production, Digital Cinema, Music, New Media, Cinemas and Equipment Rental. 

Hoichoi, as India’s biggest Bengali entertainment app, is a natural and logical extension of our all-round media & entertainment excellence. It offers Bengali movies, original web series, shorts, documentaries (and music streaming coming soon) as a holistic on-demand Entertainment Destination. It is available across the iOS and Android platforms, is Chromecast-enabled, and with Apple TV, Roku TV and Amazon Fire TV Coming Soon. 

Hoichoi is all about Bengali entertainment content for 250-million-plus Bengalis in India and across the world. And while Bengalis are an aware and evolved audience that enjoys content like movies and television programmes, unfortunately, before Hoichoi, their needs for a good OTT platform offering only Bengali content were under-served; in fact, I’d say unserved. 

The other OTTs do offer Bengali content too…


Yes, but the audiences will never find a large and comprehensive enough offering of quality Bengali content on current OOT platforms that try to be a little of everything to everyone across several languages. See, there is no one-stop online entertainment platform for Bengali, which is the 6th most-spoken language in the world. 

Also, kids and youth, who comprise 65% of the population, are an underserved market with limited appeal from current films or TV content. A vast majority of Indians too want to see content in their vernacular or regional language. And this massive audience is spread not just in India, but also in the completely unserved markets like Bangladesh and the Bengali Diaspora worldwide, for whom, at so far, piracy has been the only way to watch Bengali movies that have had a theatrical release internationally. Hoichoi’s content has been intuitively curated on the lines of search and discovery for 258 million Bengalis in India and the world over. 

How big an opportunity do the smaller, rural markets represent for a Bengali OTT platform like Hoichoi?
They are definitely going to be the high growth markets. Look at the data:75% of the new internet users from now will come from Rural India, of which 75% want to consume content in their local language. Also look at the trends: The telecom wars are pushing data costs down and consumption up. Sixty five per cent of mobile phones being sold today are 4G smartphones with a 4+ inch screen and costing below Rs 4,000. So, mobile phone and data costs are going down, and data consumption and the people’s aspirations are going up. 

That does make for a potent combination. What kind of pricing have you thrown into the mix?
Our launch stage catalogue of 500 movies, 10 Original Shows and 1,000+ songs that will be added shortly, with newer shows, movies and music being added each month, and much more, will be available in three affordable pricing plans of Rs 149 for 3 months, Rs 249 for 6 months and Rs 399 for 12 months. We have kept the prices very affordable to reach the largest audience base possible – entertainment, after all, should be for everyone. 

Aren’t Indian audiences notorious for their reluctance to pay, though?
I think that people are now more than willing to pay for the opportunity to enjoy great original content in excellent viewing quality, with a great user experience, on the go and at their own convenience. Also, consider the price we are asking for works to Rs 33 a month, or just a shade over Re 1 a day (@Rs399 per year) to enjoy India’s and perhaps the world’s biggest and best Bengali content offering. 

Moreover, the media & entertainment industry is becoming ever more increasingly intolerant of piracy, and both, Indian and International film and television production studios and trade and industry bodies are working to end online piracy. We often see internet access blocked to websites suspected or guilty of online piracy. 

We also believe that with the growth of the internet and general awareness has come a greater willingness to pay for legitimate content consumption. There is also a generally greater awareness and drive amongst the youth to stand up for and to do what is right. 

All these factors augur well for legitimate content consumption in a quality and with a convenience that heightens viewing pleasure to a level than pirated content could never hope to match. To say nothing of the threats of viruses, hacking, malware and other cyber threats that come with downloading pirated content. 

What is your pricing for the international markets?
International rates range from $8.99 monthly to $79.99 annually. 

It’s very early days yet, but what does your initial data tell you? What’s the split like between Android and iOS users, and downloads and subscriptions?
Well, I can tell you that we’re with the industry norm of a higher Android than iOS number of users, but at a healthier-than-industry-average on the percentage of downloads converting into subscriptions. However, as you said, it’s very early days yet. 

And while you mentioned a good OTT player should take around 5 years to break even, how long do you reckon it will take Hoichoi to break even?
See, all I’d like to say at this point is – we are optimistic we should beat that guesstimated average. What helps us is our ability to produce top quality content with the kind of economies that come only of experience, relationships and lineage, and our ability to work not just with the biggest stars but also to spot and nurture a large amount of fresh talent. And the fact that there is such a large and still untapped audience for exclusively Bengali world class content. 

Speaking of producing content, you have begun Year One of Hoichoi with the intent to produce around 75 hours of Original content. Where do you see that number going by Year Five?
It should cross 1,000 hours of original content. 

After 20 years of producing so much of Bengali entertainment content, could you share anything special that the digital pipeline of content delivery taught you about producing content?
I think that’s best answered by what Shrikant Mohta, who co-founded SVF some 20 years ago, said recently. He leads SVF on content, particularly, and he said that inspite of having produced films and TV content for over 20 years, he is fascinated by the immense creative freedom that the internet offers as a story-telling medium. If you look at the Hoichoi Originals, the web series we have created for it, well, trust me, some of those stories and concepts we couldn’t have told through conventional movies or television till even a few years ago. 

The internet has opened up exposure and thinking like never before, and people continually want content creators to push the envelope. That’s why we have an entertaining mix of thought provoking, even edgy content across genres. What’s been energizing is the ability to work with so much new talent that was until now undiscovered, and making content based on the real-time feedback we get from the audience. 

So originals are a big magnet in the Hoichoi bouquet?


Originals, definitely. We launch with a bouquet of 10 original shows from genres like Thriller, Drama, Horror, Romance, Comedy, Hello, Cartoon, Holy Faak, Dupur Thakurpo, Byomkesh and Bouma Detective are some original web series. 

Plus, our movie library of over 500 titles. We also plan to soon have music streaming – around 1,000-plus songs – shorts and documentaries soon. And as we go along, there will be entertainment news, live tv and more. 

How have you formatted each original web series on Hoichoi? Are they all half-hour formats?
The formatting differs from show to show per the concept and content. 

From the OTT platforms available in India, which one or ones do you perceive to be your biggest competitor(s)?
None of them, as we are unique and India’s only and largest 360-degree entertainment platform for the 258 million Bengalis in India and worldwide. 

How many brands/ advertisers have already committed to advertising on Hoichoi? How many advertisers /partners do you have from Day One?
We are not having an AVOD model in Year 1. We want to provide the best experience to our audience, and showing advertisements will not be a desirable step in that direction. We want them to enjoy uninterrupted entertainment anytime, anywhere.

What format are you shooting the Hoichoi Originals?
We have set out to create the best content for Bengali entertainment – be it in terms of the actors, costumes, make up, the team and definitely, the technology. The cameras being used are 2K and above. 

What will the main objectives of the marketing plan be, in the first three months?
To position the brand as the one-stop Entertainment Destination for Bengalis and creating a habit among Bengali users to consume web content on the go. 

What will your overall strategy be?
Our overall Strategy will be branding through outdoors, YT, banners and Facebook video promotions. Engagement through radio and on-ground activations. Acquisition through paid Search, BTL activations, etc. For us, every Bengali, internationally or living in India, is the target audience. 

What is the kind of media buying, including mix, duration, and reach/frequency-orientation, plans for digital media, etc?
Launch campaign - 45 days. Media mix: Radio, Innovative Outdoors, Durga Puja Banners and on-ground Activations, BTL Associations, YT, Facebook, Search and GDN, Kiosks, etc. 

We shall also use the SVF Group properties and presence to cross-promote Hoichoi. These include Qube, Social Media platforms of SVF, SVF Cinemas, SVF Music, Promotions at SVF Cinemas and other avenues per our understanding of the market space and what the audiences want. 

How do you plan to use the SVF website to complement and reverberate the offerings of Hoichoi?
The SVF website gives a user access to SVF’s trailers, videos, apart from News and all that’s happening across businesses. Any user who goes to the Movies page on SVF, will be able to watch that particular film on Hoichoi with just a click, and a subscription. The current/ brand new/ upcoming originals on Hoichoi will be amply promoted on the SVF website. 

Vishnu Mohta joined SVF in 2007 as head of the Digital Cinema business. After making it the largest player in West Bengal and the fourth largest network in India within a year of operations, Mohta now heads the New Media division of SVF Entertainment. He just launched its first venture, Hoichoi, the one-stop destination for Bengali entertainment targeting 250-plus million Bengalis globally.

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