Hoichoi's Journey to Profitability and Global Expansion
And we thought streamers cannot be profitable - "The Times They Are A'Changin"
Hey Streamers 👋,
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As per a recent Mint article, OTT platforms such as SonyLIV are now focusing on shows that offer more wholesome, family focused entertainment with shows such as Gullak, Scam and Rocket Boys and an upcoming Sooraj Barjatya project which is in the works - focus on all demographics versus the bold & edgy entertainment that some of the OTT shows are known for.
Today’s program:
West Bengal: Where Tradition Meets Modernity in India's Cultural Heartland
Hoichoi: Expanding Horizons with Originals and Global Reach
My Views
And….Action!
West Bengal: Where Tradition Meets Modernity in India's Cultural Heartland
West Bengal (2023 population estimated at 102 million), located in eastern India, is one of the country's most culturally rich and historically significant states. Here are some key aspects of the state:
Capital and Major Cities: The capital of West Bengal is Kolkata, which is not only the largest city in the state but also one of the major urban centers in India. Other significant cities include Howrah, Durgapur, Asansol, Siliguri, and Darjeeling.
Culture: West Bengal is renowned for its vibrant cultural heritage, which encompasses literature, music, dance, art, and festivals. The state has produced some of India's most celebrated poets, writers, and artists, including Rabindranath Tagore, Bankim Chandra Chattopadhyay, and Satyajit Ray. The annual Durga Puja festival is a major cultural event in West Bengal, attracting millions of devotees and tourists from around the world.
Language: Bengali (Bangla) is the official language of West Bengal and is widely spoken by the majority of the population. It is also one of the 22 scheduled languages of India.
Economy: West Bengal has a diverse economy, with agriculture, manufacturing, trade, and services sectors contributing to its growth. The state is known for its agricultural products such as rice, jute, tea, and potatoes. Kolkata serves as a major commercial and financial hub, with industries ranging from textiles and jute to information technology and manufacturing.
Education: West Bengal has a strong emphasis on education, with several prestigious educational institutions located in the state, including the University of Calcutta, Jadavpur University, and the Indian Institute of Technology (IIT) Kharagpur. Kolkata, in particular, has a rich legacy of intellectualism and has produced many renowned scholars and thinkers.
Tourism: West Bengal is a popular tourist destination, offering a diverse range of attractions. The Sundarbans, a UNESCO World Heritage Site, is the world's largest mangrove forest and is home to the Royal Bengal Tiger. Darjeeling, located in the foothills of the Himalayas, is famous for its tea gardens and stunning views of Mount Kanchenjunga. Other notable tourist destinations include the historic city of Murshidabad, the hill station of Kalimpong, and the cultural hub of Shantiniketan.
The Bengali media and entertainment industry, deeply rooted in the cultural heritage of West Bengal, India, is a vibrant and dynamic landscape that encompasses various forms of artistic expression. Bengali cinema, popularly known as Tollywood, has a rich history dating back to the early 20th century, with iconic filmmakers like Satyajit Ray, Ritwik Ghatak, and Mrinal Sen leaving an indelible mark on world cinema. Today, Tollywood continues to produce a diverse range of films, spanning genres from poignant art-house dramas to commercial blockbusters, and boasts a loyal fan base both within and outside West Bengal.
Over the past quarter-century, Shree Venkatesh Films (SVF) has been pivotal in shaping the landscape of Bengali Cinema. From its humble beginnings as a two-person endeavor, it has burgeoned into a robust organization with over 250 dedicated individuals. As a frontrunner in film production, SVF boasts an extensive catalog of over 145 films and has made significant strides in television, having produced 30 successful shows. Alongside its cinematic endeavors, SVF has diversified into various sectors such as film distribution, music, digital cinema, and exhibition, showcasing its commitment to innovation and expansion.
Notably, SVF has not only excelled in producing commercial hits but has also championed experimental cinema, collaborating with esteemed directors to enrich the Bengali film industry's diversity. Moreover, SVF's establishment of Hoichoi, a pioneering digital platform offering a plethora of original shows and an extensive movie library, stands as a testament to its forward-thinking approach to entertainment.
With a rich legacy and an unwavering focus on the future, SVF continues to push boundaries, consistently delivering top-notch entertainment while anticipating and adapting to the evolving preferences of its audience.
The potential for platforms like Hoichoi is immense with approximately 240 million native Bengali speakers (India + globally combined) and another 41 million as second language speakers as of 2021!
Hoichoi: Expanding Horizons with Originals and Global Reach
hoichoi is an on-demand video streaming platform for Bengalis worldwide, offering an extensive collection of 600+ Bengali movies, 135+ original web series, shorts and documentaries.
It plans to launch its own studio, 'hoichoi studios,' to produce exclusive films for theatrical release, followed by streaming on the OTT platform.
Vishnu Mohta, co-founder of hoichoi, emphasizes a balanced perspective on theatrical and digital formats, contrary to the prevailing digital-only trend.
Despite the higher cost and risk associated with in-house film production, hoichoi aims to diversify its content creation strategy by venturing into movie production.
The first film under 'hoichoi studios,' titled "Shri Swapankumarer Badami Heynar Kobole," released early this year, with plans for more films later in ‘24 and beyond.
The platform targets cash flow break-even this year while focusing on content and technology investments.
It has witnessed significant growth in direct subscriptions, with a surge in Monthly Active Users (MAUs) and individual watch-time per subscriber.
International subscriber revenue has increased by nearly 40%, with a significant portion of direct subscription revenue coming from outside India.
Hoichoi is strategically focusing on the Middle East market, aiming to introduce budget-friendly plans and carrier partnerships to expand its reach.
Syndication partnerships with platforms like Jio Cinema aim to broaden hoichoi's reach, with plans to offer content in languages like Tamil, Telugu, and Malayalam.
The platform ensures accessibility by being available on various devices, with plans for further expansion.
Subscription prices have been raised to support investments in content and maintain a cash-neutral or positive business.
In West Bengal, hoichoi targets tier 2 and 3 cities through direct marketing and collaborations with Telco partners.
The platform has announced a content slate featuring 24 new shows for the next year, intensifying its content production efforts.
My Views
Hoichoi is a great example of a “regional” language OTT platform which is laser focused on “profitability” and is on track for becoming cash flow positive this year. There is a lot to learn from their direct to consumer and direct to third party platform strategies which hedge the costs associated with customer acquisition.
It helps that they have the backing of a large media & entertainment conglomerate such as SVF and sharp focus on primarily Bengali content which is their strength, however other factors for their success include geographical expansion with subscription price parity as per market ($10 per month in the US versus Rs. 899 ($11 per year in India)), intelligent marketing tactics and a strong original content slate, all of which have really helped Hoichoi create a fortress in the Bengali OTT space - difficult for a third party to penetrate.
hoichoi has a lot of content that is available for users to “sample” for free, however as their content library grows, they have significant eyeballs to warrant an ad supported strategy as part of a hybrid business model for additional revenues - this can be sizable given their international audience (10X CPMs for video ads in the USA as compared with India for example).
That’s all for today folks. If you enjoyed this breakdown, please consider sharing it with your friends and colleagues.
Opulent sets, Sanjay Leela Bhansali’s streaming debut, a stellar star cast and a riveting story and screenplay set in a brothel in British India - what more can one ask for?! Solid entertainment and a must watch.
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