ZEE5 Q1 operating revenue up 18% to Rs 111.7 crore
ZEE5's global monthly active users increased to 80.2 million in June, compared to 72.6 million global MAUs in March
ZEEL-owned video streaming platform ZEE5 has reported 18% jump in operating revenue at Rs 111.7 crore for the first quarter ended 30th June, compared to Rs 94.9 crore in the same quarter last year. On a QoQ basis, ZEE5's revenue saw a marginal 3.9% increase from Rs. 107.5 crore a quarter ago.
The streaming platform's operating loss for Q1 has widened 40% to Rs 203.3 crore from Rs 145.1 crore. On a QoQ basis, the company's operating loss increased 25.1% from Rs. 162.5 crore in Q4 FY21. The platform incurred a higher marketing cost during the quarter on account of 'Radhe' release, besides continued investments in the platform.
Zee Studios, the film production arm of ZEEL, had devised a simultaneous multi-platform release strategy for Salman Khan's 'Radhe: Your Most Wanted Bhai'. The film had released in theatres worldwide besides ZEE5 and ZEEPlex, the pay-per-view service which rests on ZEE5 and leading DTH operators like Dish TV, D2H, Tata Sky and Airtel Digital TV.
During the quarter under review, the platform launched 11 original shows and movies. In Q4, ZEE5 had released 14 original shows and movies. In FY21, the platform had released 75+ original shows and movies.
ZEE5's global monthly active users (MAUs) increased to 80.2 million in June, compared to 72.6 million global MAUs in March. The global daily active users (DAUs) rose to 7.1 million from 6.1 million. Watch time per viewer per month increased to 190 minutes from 156 minutes.
ZEEL's quarterly Advertising & Promotional expenses jumped 60% to Rs 178.1 crore from Rs 111.1 crore. The company said that the increase in marketing cost on a YoY basis is on account of release of Radhe and continued investments in ZEE5. The marketing costs in Q1FY21 was lower on account of much lower original content production.
For FY21, the revenue and operating loss stood at Rs 419.1 crore and Rs 672.6 respectively.
During the Q4 earnings conference call, ZEEL MD & CEO Punit Goenka had said that the company has reworked its business strategy for ZEE5 by focussing on improving the content offering, product development, competitive pricing, and improved user experience.
“ZEE5, which is the youngest OTT platform in India, has been scaling up well, but we see significant scope for improvement and our team is working around the clock on the same. Over the past few months, we have reworked the digital strategy and product offering,” Goenka had told analysts.
“Our primary focus will be maintained on two aspects — first increasing the value proposition of ZEE5, which will be achieved through a combination of compelling content and competitive pricing, while the process of creating a strong line-up of movies and originals.”
As part of its new strategy, ZEE5 had released its first film 'Radhe' besides reworking the subscription price. The company had launched the Rs 499 subscription to reduce churn and increase paid subscriber base.
“ZEE5 will premiere several good movies and original content across languages in FY22. Additionally, you may have noticed that we have reduced the price point of our annual pack to Rs 499. This approach will help us in reducing the customer churn and is in line with our long-term strategy of increasing our share of B2C subscribers,” Goenka had said.
The ZEEL chief had also said that ZEE5 has drawn up a technology and product roadmap to upgrade the platform to the next level.
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