Online Streaming services have seen a major surge in India in the past few years owing to the inception of Reliance Jio. Apparently, India is one of the primary consumers of Online Video content in the world as of now and the average viewing time of online content by Indians has even surpassed their average TV viewing time. This explains the situation of OTT services in India. In a segment which is largely dominated by behemoths like Amazon and Netflix, Flipkart is trying to set its foot.
Flipkart’s Online Streaming Service
According to an interview given by Flipkart to BloombergQuint, the company is aiming to generate a revenue of around $5 billion by 2023 using this upcoming OTT platform. It further added that this service might be included as an add-on to the already existing Flipkart Plus service. We can see that Flipkart is also taking the Amazon-route to provide its elite users with multiple services just like what Amazon did with Prime video and Prime Music.
Flipkart’s CEO Krishnamurthy said that: “Our customer segment today is heavily skewed towards 18-35 age group, and that audience watches a lot of videos, both in terms of time spent, frequency, and it is disproportionately high,” Hence Flipkart wants to tap into this huge potential market and benefit from it.
However, Flipkart is apparently not looking at venturing into full-scale video production like Netflix or Amazon. Instead, Flipkart will concentrate on collaborating with production companies from around the globe to get the content for their platform. This should make things easier for Flipkart to commence the platform as soon as possible.
Amazon has significantly benefited from its Prime membership both in terms of sales and user base. This is one of the strongest factors for people to chose Amazon over Flipkart in recent times. By bringing these add-on services, Flipkart wants to secure its position as the market leader in the Indian e-commerce market.
When asked about the timeframe within which this service will be launched, Flipkart was affirmative of bringing it in the coming year or so.