Aha Uses Netflix To Connect With Viewers From Tiny Communities

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Aha Uses Netflix To Connect With Viewers From Tiny Communities
17 Aug 2022
6 min read

News Synopsis

In India, there are roughly 60 OTT platforms, but most of them haven't been able to make a profit because subscription money isn't giving them the cash flow they so desperately need. Finally giving up, Netflix announced that it was now thinking about running ads on its website.

Aha, a regional player that provides Tamil and Telugu content, is the most recent to transition to a mixed business model. This combines subscription-based video on demand (VOD) with VOD with ads (SVOD).

All OTT platforms are currently investing a significant amount of money in both content creation and subscriber acquisition. The maximum number of paying users you can add to the platform in India is limited. So eventually everyone has to move in the direction of profitability. According to Vaasudev Koppineni, vice president of content and strategy at Aha, the apparent solution in this situation is AVOD, where the subscriber base is 10x or higher.

Customers will have three options when utilising Aha before the end of October. There will be free content with adverts, gold subscription content, and premium content with high-definition content. AHA is also confident that it will achieve profitability after converting to a mixed business strategy.

With the help of Koppineni's team, who have expanded non-subscription revenue into brand solutions, AVOD, and other new endeavours, "I believe we are on our road to profitability," Koppineni added. AVOD business models are profitable for OTT firms. According to a report this year, the AVOD market in India is predicted to increase by twofold, from $1.1 billion in 2021 to $2.4 billion in 2026.

One of the reasons for the change in business methods was Aha's desire to expand and enter more areas of the nation now that it has a substantial presence in the cities of Telangana and Andhra Pradesh. "In AP, Telangana, where we sought to engage the rural communities, we were able to reduce the entry-level pack. Nitin Burman, who oversees Aha's non-subscription sector, claims that "We decided it was time to add inventory to our platform and drop the back price for our entry-level customers so they could afford to watch our premium content with commercials at that moment. The rural Indian market, according to him, is price-sensitive.

Currently, the annual premium subscription plan for Aha costs 699. The monthly bundle costs 199 dollars, compared to 399 dollars for the usual annual package. Prices will change during the Christmas season.

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