Hotstar raises Rs 516cr, cut-throat competition in India's OTT space has just begun
Hotstar owner Novi Digital media has secured $73.8 Mn (INR 516 Cr) from Star US at a valuation of $265 Mn, say reports. Novi is a wholly-owned subsidiary of Star India. The funds will be used to combat stiff competition from Amazon Prime and Netflix to name a few. The financial documents were revealed on Paper.vc.
In the three months ended June 2018, Hotstar reported Rs 5.69 billion in revenue, compared to Rs 5.71 billion it posted in the 12 months ended March 2018. The 2018 edition of the Indian Premiere League was one of the biggest drivers of the companyâs recent revenue surge. Hotstar being keen on partnerships with leading brands such as Flipkart and Airtel TV are also driving its growth.
Hotstar currently has about 7 lakh paid subscribers as of July. In India, Amazon Prime Video has 11 Mn subscribers, Voot has 22 Mn subscribers, while Netflix stands at 5 Mn only, say reports.
According to Frost & Sullivan, Indiaâs OTT video services market earned over $37 Bn in 2017 and the OTT video services market is expected to grow at a CAGR of 17.3% over the next five years.
That vernacular is one of the hottest battlegrounds in Indiaâs video space is no secret. Reportedly, Amazon Prime Video is now looking to expand its film catalogue to Tamil and Telugu. As for Netflix, it has announced three Indian original productions-Ghoul, Leila and Crocodile, in addition to the four productions Sacred Games, Selection Day, Again, and Bard of Blood, already in the pipeline.
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