Eros Now had 19 million premium paid subscribers in March 2021
The streaming platform has 39.9 million total paid subscribers and 224 registered users worldwide
Video streaming platform Eros Now has said that it had 39.9 million total paid subscribers and 224 million registered users worldwide, as of March 31, 2021. This represents 10.6 million net new paid subscriber additions since March 31, 2020, an annual growth rate of 36.2%.
Eros Now further stated that it had 19 million Premium Paid subscribers. The other 20.9 million paid subscribers, who purchase content a la carte or with sachet pricing (including single downloads or subscriptions lasting a day or a week), are defined as Base Paid subscribers.
Going forward, the company will concentrate its reporting and guidance on Premium Paid subscribers as Eros Now believes it is a more meaningful indicator of the platform’s performance and economic vitality. A Premium Paid subscriber is defined as a consumer who subscribes to the Eros Now product for at least one month (30 days), either directly or indirectly through a bundled package with a distribution partner.
Eros Now's average revenue per user (ARPU) (net to Eros Now after deducting commissions, partnership fees, etc.) for All Premium Paid Subscribers was $0.52 globally. In terms of the break-up, the ARPU from Premium Paid Subscribers in India and International was $0.30 and $10.01 respectively.
By December 31, 2022, Eros Now is targeting an annual Premium Paid subscriber ARPU globally in the range of $1.20 to $1.30. The company expects the ARPU growth will be driven by the pivot in strategy to focus more on direct-to-consumer relationships and by leveraging the bundling opportunities with distribution partners.
Eros Now believes these factors will help grow ARPU and reduce churn. Importantly, the ARPU figures reported above do not include other Eros Now revenue streams from the current incumbent deals on transactional video on demand (TVOD), advertising, YouTube, and other forms of monetisation of Eros Now.
Eros Now said it uses a “geo-sensitive” pricing model for its product in each market. Pricing is guided by the expectation that Eros Now is meant to be a high-quality and affordable mass-market entertainment service that allows people to consume content how and when they choose. Many users start their journey on Eros Now with short-form content or a la carte transactions for specific content, and then move on to more traditional subscription plans.
"As consumer engagement and consumption increases, Eros Now expects to focus on migrating these subscribers into higher ARPU plans of longer duration. Consistent with Eros Now’s strategy to concentrate on direct-to-consumer relationships, the ARPU metric for Premium Paid subscribers will be an important indicator of the company’s progress," the platform said in a statement.
Eros Now noted that a recent research report from Omdia, a UK-based research firm, about the Indian online media market indicated that Eros Now is currently the second-largest streaming platform in India in terms of subscribers, with an estimated market share of 24% behind market leader Disney+ Hotstar.
The platform also highlighted that the total watch hours for Eros Now in fiscal 2021 was 28.1 million hours. Watch hours relating to the top 25 titles on Eros Now was 10.3 million hours. "This means that 63% of total watch hours were generated by catalogue or non-tentpole films, including regional language movie titles, which is a testament to the salience and affinity of catalogue content with Eros Now subscribers."
In terms of consumer profile, Eros Now is skewed towards Male audiences who comprise 75% of the subscribers on the platform. Two-thirds of Eros Now viewers are from India and the rest are from outside of India (the United States is the 2nd largest market with 10% contribution). The 18-34 age-group constitutes 80% of the viewer base while the 25-34 age group demonstrated the largest growth during fiscal 2021. Further, Tier 2 and Tier 3 cities in India (medium-to-small sized cities) now represent 50% of overall Indian viewers.
In terms of content strategy, Eros Now will focus on new original Hindi language series, as well as augmenting the portfolio of regional language series to maintain and grow its leadership position in Tier 2 and Tier 3 regions of India. As previously announced in December 2020, Eros Now is planning to release a total of 46 original series and movie premieres across 8 Indian languages in 2021. To date, Eros Now has released 25 titles with the rest to follow during the year.
Instagram, LinkedIn, Twitter, Facebook & Youtube