iWorld
ALTBalaji direct subscriptions up by 60-70% over last quarter
MUMBAI: Balaji Telefims’ digital venture ALTBalaji has been quickly growing its subscriber base and subscription revenue, further reinforcing the OTT sector’s belief that Indian consumers are more than ready to pay for engaging content. After three consecutive strong quarters on the digital front, the company is now set to shift gears when it comes to its content strategy. Going forward, the video streamer will lay greater emphasis on strategically acquiring direct consumers.
“We are now at a process where we are confident that we will do about 24 to 30 shows in a year plus three categories of shows, so that is either male focus shows or female focus dramas. We are reinforcing that content strategy and our focus on international, which will be even more as we go ahead as our library builds up,” Balaji Telefilms group CEO Sunil Lulla said in an earnings call after the company announced its Q3 results.
The Ekta Kapoor-led production house’s OTT arm boasts of 13.1 million paid subscriptions as of February, with a 2x growth in monthly active users that now stand at 4.6 million. 70 per cent of the platform's consumers have opted for a quarterly subscription.
In addition to that, ALTBalaji has witnessed nearly 60-70 per cent growth in direct subscription numbers over the last quarter. On the back these consumers’ willingness to pay Rs 300 monthly, the OTT platform has made investments and upped marketing spends to further boost these subscriptions.
Lulla pointed out the subscriber addition is happening at two levels – new subscribers and those returning post the churn. Notably, Lulla had said in an earnings call after the Q1 result that about 70-80 per cent of traffic comes from telcos while the ARPU from the sector stands at around Rs 15 per month.
The veteran media executive stated that not only have the new shows aided subscriber addition, but the old ones too make up for a good share. The overall growth in library has played a key role too, he highlighted. The management hopes to hit a tipping point in the next 12 to 18 months.
While the group had undertaken an equity infusion of around Rs 450 crore in ALTBalaji, it has already invested Rs 350 crore of that.
“It will be sufficient while we said that we put in Rs 350 crore. You must understand that a lot of cash that is there in production is in production contract that has been executed and they will also get accrued when they are actually put on air, if you see the two content cost across the two years that is not equal to Rs 350 crore yet,” Lulla argued when asked if the balance Rs 100 crore would be enough for the next two years.
While the group had projected Rs 60 crore in revenue from ALTBalaji for the financial year, it has so far been able to garner Rs 28 crore. However, the number does not contain revenues from international market, which is yet to be reported. Lulla, however, admitted that the strategy for international market probably hasn’t played out the way he had expected it to.
While TV business continues to be the highest revenue generator of Balaji Telefilms group, it hasn’t shown exponential growth. The group launched new shows in the first quarter, with TV shows already on air having hit maturity. The management now hopes to further improve the performance from this quarter to about five to ten per cent in the next and keep consolidating thereafter.
iWorld
Anirudh Ravichander and Universal Music India join forces to take South India’s sound to the world
The composer behind 13 billion streams launches Albuquerque Records with UMI as its exclusive global partner
MUMBAI: Universal Music India has struck an exclusive partnership with Albuquerque Records, the freshly minted independent label of singer-composer Anirudh Ravichander, in a deal that bets big on South India’s booming pop and hip-hop scene going global.
The arrangement, announced on 17 March, will see Universal Music India handle future pop and hip-hop releases by Anirudh himself, as well as artists signed to the new label. A first release is already in the pipeline for April, featuring Anirudh.
The numbers behind the man are hard to ignore. Debuting in 2012 with the viral sensation “Why This Kolaveri Di”, Anirudh has since clocked over 13 billion audio streams across more than 770 tracks, cementing his position as the No.1 South Indian artist on Spotify by total streams. His fingerprints are all over some of the Tamil film industry’s biggest musical moments, from Hukum and Vaathi Coming to Arabic Kuthu and the A23 Theme.
But Albuquerque Records is a different beast. Built for the non-film space, it is designed to nurture independent talent and champion the next wave of Indian pop voices. “Universal Music India’s leadership in pop and hip-hop made them the natural partner,” said Anirudh. “I’m excited to take independent voices to audiences around the world.”
Universal Music India’s chairman and CEO Devraj Sanyal was equally effusive. “Anirudh represents the future of Indian music, bold, original, and with enormous potential,” he said. “Identifying transformative talent is our superpower, and this partnership reflects that belief.”
Sanujeet Bhujabal, managing director of Universal Music India, framed the deal as more than a distribution play. “Albuquerque Records represents Anirudh’s bold artistic vision in the world of pop and hip-hop,” he said. “True to his legacy of innovation, this partnership is set to establish yet another landmark creative space, this time for the emerging world of iPop and beyond.”
For Universal Music India, the deal deepens a long-running push into South India’s four key language markets: Tamil, Malayalam, Kannada and Telugu. The label already has regional imprints, film partnerships with Maddock Films and Excel Entertainment, and a growing non-film roster. Landing Anirudh, arguably the south’s most bankable music brand, is a statement of intent. South Indian music has the streams. Now it is coming for the world.
