iWorld
nexGTV launches kids only app; plans to produce original content
MUMBAI: The OTT space has been growing denser with the mushrooming of more and more players. Players are vying for eyeballs and advertisers are looking to differentiate their content, and shifting focus to unexplored areas. nexGTV has launched its new OTT app that targets kids between 2 to 10 years of age with specially tailored content, with an aim to expand business reach and grow subscriber base.
Explaining the demand for kids’ content in India, nexGTV COO Abhesh Verma says, “I have noticed that despite the fact that there is good kids’ content in the country, it is not easily accessible for them. Moreover we realised that kids content can’t be piled up with everything else. There is a need for a kids’ friendly app that will give proper showcase to the content, and parents can let their kids on it without worrying about insensitive content.”
nexGTV is also playing on the fact that parents and guardians of kids these days are concerned about the ‘freeness’ of the internet and worried about the objectionable content that their child may be exposed to. Therefore curating a library strictly for the little ones was of prime importance when strategizing for the kids’ only OTT app. “Our editorial team has been extremely careful while curating content for this app. Every single content is been screened by our team to keep it kids friendly with the age group in mind. Our content is a blend of learning and entertainment for kids. Whether its craft, art, nursery rhymes and moral science through fun content, parents can be rest assured that through fun and frolic their kids are learning something.” Between Akbar Birbal, Stories of Panchtantra, Vikram & Betal, Ducktales, Malgudi Days and Champak World, the app already has a vibrant library of shows for the tiny tots to enjoy this summer.
The app can downloaded from Google Play Store for Android devices or the Apple store for iPhones or other apple devices. Others can shoot a missed call to 0120-4848222 to get nexGTv Kids app.
As a matter of fact, going by international standards, there is only ‘E’ for ‘everyone’, and ‘G’ for ‘general audience’ rated programming in the content library for nexGTV Kids. “We haven’t kept shows that need parental guidance as we want the kids and parents to have a stress free streaming experience,” says Verma.
Currently available in a ‘freemium’ model with no advertisements to interrupt seamless viewing, the content beyond the subscription wall is priced at Rs 125 a month, which coincides with what it costs to subscribe to nexGTV. “As part of the promotion for this launch we are currently allowing any nexGTV subscriber to access nexGTV Kids content and vice versa. Depending on the nature of consumption, content strategy etc., we will take a call to separate the two apps for subscribers or offer it to them in a bundle for a viable price that works for both – the consumers and us,” said Verma as he explains the pricing.
As a business model, the revenue for the new app will depend highly on the subscription. Kids’ content also opens up a vista of monetising prospects for the OTT player.
For starters, nexgTV has gone the VOOT way and acquired kids content from existing content partners who are regular contributors to nexGTV’s library such as Shemaroo, Rajshri Productions etc. But the OTT player’s ambitious plans for their new kids app doesn’t stop there — from producing branded content for advertisers, to commissioning and featuring content from independent content creators, to licensing and merchandising rights sales — nexGTV is eyeing a big chunk of the kids content pie.
“Currently we are getting content from partners who are working with us for the last four – five years. At the same time we are looking to create original content going forward that will be made by our production team for our app. We are also welcoming everyone who can creating content for kids. We want to showcase their content to our user base provided it goes past our editorial guidelines for the kids’ app. There are many who may not have a platform, but have the right talent, whom we plan to feature through our app as long as the content is within our guidelines,” Abhesh reveals.
Keeping lts options open, nexgTV is ready to explore all kinds of partnerships, whether it allows it to own the content’s full IP or it is commissioning for production or co-owning the IP and sharing its IP rights with another content producer. Verma also hints that the OTT player is already in talks with some major production houses to produce exclusive kids’ content for nexgTV.
With a few deals under discussions already under way, be they for content creation with other production houses or with brands, currently the player is weighing its options carefully for the right content strategy.
“We want to make sure that we have the product out there first and some audience on it. And then based on the consumption pattern we want to invest in the programming. It will be like shooting in the dark if we produce a show which we don’t have an audience for,” Verma states frankly.
Given the fact that the target audience of the content isn’t the device owners who can facilitate the consumption, a smart marketing strategy is needed to reach the guardians first, Verma shares. While kids can be the key to reach the parents, the equation flows the other way round when it comes to marketing for kids.
“We have three key aspects to our marketing initiative for this new app. Firstly, on the digital front we are running targeted campaigns towards parents on Facebook to make the app more visible. Secondly, the current subscribers of nexGTV are getting the new app as part of their package. We have 14 million installs (1.4 crore) and within which we have close to a million (10 lakh) subscribers who will get this app with their regular nexGTV apps.”
Apart from this, the OTT player will promote through radio and few other traditional modes of communication as well. With more on the marketing platter that nexGTV plans to surprise audience with in due time, Verma shared that so far the company hasn’t set an upper ceiling to its marketing spends for the new app.
“Honestly this is our first big launch since the launch of our new app and we are heavily promoting it. We are not restricting it to 20 to 30 per cent of marketing spends but instead going by ‘returns on the hours’ basis. If a particular campaign is giving us the returns we want we are strengthening it,” Verma shares while refraining from commenting on the actual marketing spends on the new project.
iWorld
Snapchat parent Snap cuts 16 per cent of workforce in AI-driven restructuring
The Snapchat parent is axing around 1,000 jobs and closing 300 open roles to save $500m, as artificial intelligence makes smaller teams the new normal
CALIFORNIA: Snap is snapping. The Snapchat parent has confirmed plans to cut around 1,000 employees, roughly 16 per cent of its full-time workforce, as it bets that artificial intelligence can do what headcount once required. Shares jumped more than 10 per cent in premarket trading on the news, a brisk vote of confidence from a market that has watched the stock shed about 31 per cent this year.
The restructuring, which also closes more than 300 open roles, follows pressure from activist investor Irenic Capital Management, which holds an economic interest of about 2.5 per cent in the company and has been loudly pushing Snap to tighten its portfolio and lift performance. The firm got what it asked for, and then some.
Chief executive Evan Spiegel told employees the cuts would reduce annualised expenses by more than $500m by the second half of the year. The company expects to incur charges of between $95m and $130m related to the layoffs, mostly severance, with the bulk landing in the second quarter. Staff in Snap’s North America team were asked to work from home on the day of the announcement.
The financial backdrop is not without bright spots. Snap expects first-quarter revenue to rise around 12 per cent to approximately $1.53 billion, broadly in line with analyst estimates. Adjusted core profit for the January to March quarter is forecast at about $233m, comfortably ahead of Wall Street’s expectation of $186.8m.
The harder question surrounds Specs, Snap’s augmented reality smart glasses subsidiary, which Irenic has urged the company to spin off or shut down entirely. The unit has absorbed more than $3.5 billion in investment and burns through approximately $500m in cash annually. Snap is pressing ahead regardless, with a consumer product expected later this year, even as Meta leads the market in the segment.
Spiegel is betting that leaner teams, smarter machines and a consumer AR play can restore Snap’s credibility with investors who have run out of patience. The redundancy notices have gone out. The harder restructuring, the one that requires a hit product rather than a headcount reduction, is still very much pending.
