13 Mar JioStar likely to remove entertainment content from YouTube from May 1
The company may implement this from May 1 but it has not yet taken a final decision, they added.
This will be the second significant decision by the company, which was formed through the merger of Disney’s Star India with Reliance Industries’ Viacom18.
The move follows the company’s decision to place content behind a paywall on JioHotstar after offering premium content, including sports, for free for two years prior to the merger—a strategy that had impacted both pay-TV and subscription video-on-demand (SVOD) services.
Pay-TV distribution platforms such as Tata Play, Airtel Digital TV and GTPL Hathway have been urging pay-channel broadcasters like JioStar, Zee Entertainment and Sony Pictures Networks India to remove their content from advertising-supported video-on-demand (AVOD) platforms, including YouTube, which are drawing subscribers away from pay-TV.
With pay-TV subscriptions declining to 84 million paying homes, the broadcasting industry has been exploring ways to reduce churn and grow its paid subscriber base. The TV subscription market is estimated at Rs 40,000 crore, according to a Ficci-EY report.”We have been actively pushing for the removal of pay content from AVOD platforms. Broadcasters have now recognised that supplying premium content to these platforms ultimately harms the pay-TV industry,” said a senior executive from a leading TV distribution platform, adding that other broadcasters may follow suit.However, a top executive from a rival network said the company has yet to make a decision on removing content from AVOD platforms. “Putting pay content on YouTube, which is a free platform, is a big mistake on the part of pay-TV channels,” he added.
JioStar’s free-to-air (FTA) Hindi GECs, Colors Rishtey and Star Utsav, which are set to launch on DD Free Dish in April, will also implement a one-year content windowing policy. This means that fresh content from Star Plus or Colors will only become available to Star Utsav and Colors Rishtey audiences a year after its premiere.
Additionally, the company will launch a campaign on its FTA channels to encourage DD Free Dish users to switch to pay-TV. With 40-50 million households relying on DD Free Dish, the platform has significantly impacted the pay-TV subscriber base.
In an interview with ET last year, JioStar vice-chairman Uday Shankar stated that when an industry leader takes bold steps that resonate with consumers, others tend to follow—highlighting JioStar’s influential position.
“With 90 million pay-TV homes and 125-135 million families watching TV daily, it’s clear that TV is far from dead. On the other side, the streaming business offers immense growth potential, with 700-750 million people using mobile phones and consuming data in some form,” he had said.
JioStar recently organised a closed-door event attended by top CEOs of pay-TV platforms, along with the company’s senior management. The primary focus of the discussion was revitalising the pay-TV industry and expanding the subscription base to ensure benefits for all stakeholders in the value chain.