iWorld
Freemium model in OTT is the future
Mumbai: US subscriber base of Netflix and Disney+ reported growth of 5.4 per cent YoY and 0.2 per cent YoY in Q3CY23, respectively; the international segment outperformed with subscriber growth of 10.5 per cent YoY and 17.0 per cent YoY for Netflix and Disney+, respectively. Netflix continues to lead as it has a paid subscriber base of 247.2mn vs 150.2mn of Disney+. Disney+Hotstar(India and other Asia nations) paid subscribers declined for the fourth consecutive quarter, as it fell 38.7 per cent YoY; Disney+ Hotstar has lost 37 per cent of its paid subscriber base (now at 37.6 mn paid subs) over the four quarters after 1) losing Indian Premier League (IPL) digital rights and 2) offering World Cup content free of cost, which also has led to a loss in paid subscriber base over the past two months. We believe Disney+Hotstar subscriber loss has bottomed and may see mid-single digit growth over the next few quarters based on new content offerings – movies and web series slate. Netflix (US) average revenue per user (ARPU) declined 0.5 per cent YoY whereas Disney+ (US) posted ARPU growth of 23 per cent YoY (on a low base) during the quarter. In India, Disney+Hotstar was the only platform that grew 20.7 per cent YoY to USD 0.7 or Rs 58 per month on low base.
Focus on cost optimisation driving increased monetisation
Netflix’s innovative move on paid sharing has reaped rich dividends, as it has led to better subscriber growth, which was 9.4 per cent YoY (average) over the past two quarters since the introduction of this feature in May’23 ; the ad tier model too has received a positive response and can become big, led by connected TV adoption globally, as Netflix also plans to make inroads in the gaming business too. Disney+ has also seen success in the ad supported plan, as 50 per cent of new subscriber addition is on ad-supported model. Disney+ plans to reduce losses in the streaming business and has cut annual content budget by 7 per cent YoY to USD 25bn. Disney continues to evaluate strategic options for its linear TV networks while maintaining focus on cost optimisation and high-quality content delivery.
Read through for Indian OTT
Zee5, India’s larger broadcaster peer, too has focused on efficiency in its digital business, as losses narrowed marginally by 8.3 per cent YoY to Rs 2.5bn. India’s OTT market has seen a big disruption post Jio Cinema’s free offering of IPL content, which, in turn, will negatively affect subscription video on-demand (SVOD) revenue growth, as platforms may be unable to raise prices; innovative measures, such as ad-supported streaming and password-sharing initiatives may be the only levers for better monetization. Disney+Hotstar continues to look for a strategic partner, and high probability of the Z-Sony merger, we still believe India’s OTT market will see early signs of consolidation in the near to medium term, which is the only way content cost would climb down and enable platforms to move closer to break-even & profitability.
The credit of this article goes to Elara Capital SVP Karan Taurani.
iWorld
OneOTT partners with UP govt for Project GANGA broadband rollout
Initiative to connect 2M plus households, empower 8,000–10,000 entrepreneurs in 2–3 years.
MUMBAI: Uttar Pradesh just got a digital Ganga flow because when broadband meets ambition, even villages start streaming faster than city traffic. OneOTT Intertainment Ltd. (OIL), the broadband arm of Hinduja Global Solutions (HGS) under the Hinduja Group, has signed a Memorandum of Understanding with the State Transformation Commission (STC), Government of Uttar Pradesh, for Project GANGA (Government Assisted Network for Growth & Advancement).
The MoU, signed on 7 March 2026 in the presence of Uttar Pradesh Finance & Parliamentary Affairs Minister Suresh Kumar Khanna, aims to empower 8,000–10,000 local entrepreneurs at the Nyaya Panchayat level as independent Digital Service Providers (DSPs). A significant number of these DSPs are expected to be women. The initiative will deliver high-speed broadband to over 2 million households in the next 2–3 years and create direct and indirect employment for more than 100,000 individuals.
Project GANGA will support government priorities in digital education, healthcare and public services while enabling MSMEs and enterprises with reliable connectivity. DSPs will receive structured training, financing assistance, network build-out support and technology enablement.
STC CEO Manoj Kumar Singh said, “Project GANGA is a significant step toward expanding inclusive digital infrastructure in Uttar Pradesh. By empowering local entrepreneurs, the program will strengthen service delivery and ensure affordable digital access for underserved communities.”
OIL, MD & CEO and HGS whole-time director Vynsley Fernandes added, “This initiative reflects our long-term commitment to enabling digital access and economic opportunity at scale. Project GANGA is structured as a multi-year program focused on entrepreneur onboarding, network deployment and workforce development.”
OIL brings execution strength backed by HGS and NXTDIGITAL’s national footprint, which already connects over 5 million homes across more than 4,500 pin codes in 1,500 cities and towns through 15,000 plus franchise partners and over 2 lakh kilometres of fibre infrastructure. The ecosystem will support broadband, IPTV, OTT, CCTV, satellite internet and cybersecurity solutions for households, businesses and public institutions.
In a state racing toward digital inclusion, Project GANGA isn’t just laying cables, it’s laying the foundation for millions to connect, learn, heal and earn, one Nyaya Panchayat at a time.
