Loco: Leveling Up Indian E-Sports and Gaming
Democratization of Streaming all set to disrupt OTT
Hey Streamers 👋,
A warm welcome to the 39th edition of the “Streaming in India” newsletter, your weekly news digest about streaming players, OTT trends and more in one of the fastest growing video markets! If you are not already a subscriber, please sign up and join 2,900+ others who receive it directly in their inbox every Wednesday.
I believe silence is a sign of weakness and would like to use this medium to once again shed light on what we all know is going on! It is definitely not an endorsement of any side, however a recognition that the fighting must stop immediately.
As Israeli troops advance their ground offensive in the densely populated city of Rafah in the Gaza Strip, the “All Eyes on Rafa” campaign, which started months ago, has gained significant momentum. This campaign, driven by activists and humanitarian groups, is especially resonating in Western Europe, Australia, and India, raising awareness about the ongoing conflict.
As this Forbes article says and I quote:
“The slogan seems to have stemmed from a comment by Rick Peeperkorn, director of the World Health Organization’s Office of the Occupied Palestinian Territories, who earlier this year said “All eyes are on Rafah” days after Israeli Prime Minister Benjamin Netanyahu ordered an evacuation plan be created for the city ahead of planned attacks to eliminate what Netanyahu claims are the last remaining strongholds of the militant group Hamas.
“The phrase is meant as a request for bystanders to not look away from what’s happening in the city of Rafah — where as many as 1.4 million people are sheltering after fleeing from violent fighting elsewhere in Gaza—as Israel continues its offensive despite the large civilian population.”
And by the time this newsletter is sent out, the T20 Cricket World Cup would have started with the first game being United States v/s Canada (yes you read that right) on June 2nd ‘24.
Disney+ Hotstar is showing the cricket world cup for free on mobile phones and also advertising a “data saver” mode for the cost conscious Indian viewer - that is what disruption and competition can do, as Reliance Jio showed the way with showcasing the IPL for free! Let the games begin.
Today’s program:
Democratizing Gaming Entertainment & Streaming: The Rise of Loco
Loco Introduces VIP Program to Enhance Monetization
My Views
And….Action!
Democratizing Gaming Entertainment & Streaming: The Rise of Loco
Introduction
Loco is transforming the gaming landscape by giving every gamer a chance to become a superstar. As a platform dedicated to enhancing fan experiences and fostering gaming communities, Loco is the go-to destination for gaming enthusiasts in India. Here’s a closer look at how Loco is reshaping gaming entertainment.
The Transformation of Indian Gaming
The Shift in 2019
India's gaming scene was once dominated by hyper-casual games due to limitations in technology and internet speed. However, 2019 marked a turning point. With the advent of more powerful smartphones and affordable, fast mobile internet, hardcore games like PUBG Mobile and Free Fire became widely accessible and incredibly popular.
The Birth of Loco
Filling the Community Void
The Indian gaming community longed for a dedicated platform where they could connect, belong, and thrive. Loco was created to meet this demand, emerging as the go to digital destination for Indian gamers. In 2020, as live streaming gained mainstream traction (partly due to COVID), Loco became THE stage for gamers to share their experiences and connect with audiences worldwide, especially during the lockdown period.
Rapid Growth and Engagement
Impressive User Base
Since its inception in June 2020, Loco has achieved remarkable growth:
60 Million Registered Users: A testament to its widespread appeal.
9x Year-on-Year DAU Growth: Reflecting increasing daily active users.
100K+ Creators: A thriving community of streamers with a 4x year-on-year growth in creator sign-ups.
17 Million Live Watch Hours Monthly: Indicative of the platform’s high engagement levels.
User Engagement
Highly active users spend over 60 minutes daily on Loco, watching live content. This level of engagement underscores Loco’s role as the preferred platform for Indian gamers.
The Future of Gaming Entertainment
Building a New Category
Despite its rapid growth, Loco believes it is just scratching the surface. The platform aims to define the entertainment experience for the next decade, building a future where gaming, watching, streaming, and playing converge into a seamless virtual experience.
A Virtual World of Possibilities
Loco envisions a virtual world where gamers can be anything and anyone they want to be. It is not just a platform but a vibrant community space for gamers to explore, connect, and grow.
Loco Introduces VIP Program to Enhance Monetization
Loco recently launched a VIP subscription program designed to boost monetization opportunities and enhance user engagement. This strategic move aims to solidify Loco's financial model and support its growing community of creators.
Key Features of the VIP Program
Starting at an accessible price of Rs 20, the VIP program offers several exclusive benefits, including ad-free content and special invites to on-ground events. These perks are designed to provide a premium experience for users, encouraging them to invest in the platform.
Expected Impact on Monetization
Loco anticipates that the VIP loyalty program will significantly increase the number of paying users. "We believe that the VIP program will be a key catalyst for transactions on the platform and create a sustainable financial model for creators in the country," stated Anirudh Pandita, Founder of Loco. The platform projects that the VIP program will attract between 100,000 to 500,000 paying users in the short term, with expectations of reaching one million paying users by next year.
Performance Metrics and User Engagement
Since the launch of the VIP program, Loco has reported a 50 percent increase in watch hours and a tenfold growth in on-platform transactions. The platform now boasts an average daily revenue per user (ARPU) of Rs 150 and a user retention rate of 50 percent. Loco’s user base has grown to over 60 million registered users, with more than 10 million monthly active users (MAUs) and 2-3 million daily active users (DAUs).
Addressing Monetization Challenges
"There are content streams which cannot always be monetized through advertising. While the big creators benefit from ads, small and mid-sized creators miss that opportunity. Here, the transaction model comes into play," explained Pandita. The VIP program addresses this gap by providing a direct revenue stream for creators, fostering a more equitable ecosystem.
Strategic Bets on Gaming Titles
To further boost revenue, Loco is betting on the return of popular games Free Fire and Battlegrounds Mobile India (BGMI). The fanbases of these games are substantial, and their return is expected to significantly enhance user engagement and advertising opportunities. "Just before the games were banned in India, we had plans to launch advertising products. Their comeback is a big bonus for us," noted Pandita.
My Views
The Integral Role of Gaming and Esports in the OTT Landscape
In today's rapidly evolving entertainment ecosystem, gaming and esports have emerged as crucial elements that OTT platforms can no longer afford to overlook. As the dynamics of content consumption shift, it is becoming increasingly clear that these interactive forms of entertainment are essential cogs in the wheel of the attention economy, particularly for younger audiences.
The Attention Economy and Changing Preferences
The attention economy revolves around capturing and retaining the interest of users in a landscape saturated with content options. Traditional binge-watching of web series and movies has been the mainstay of OTT platforms. However, the emergence of gaming and esports introduces a new dimension to this model, catering to an audience that seeks engagement, interaction, and community.
Gaming and Esports: Beyond Passive Consumption
Unlike passive content consumption, gaming and esports offer an active and immersive experience. Platforms like Loco provide users with the ability to not only watch but also participate in live streaming, interact with streamers, and join vibrant gaming communities. This level of engagement is unparalleled in traditional media formats and is particularly appealing to younger demographics who are digital natives, accustomed to interactive and participatory media.
Expanding the Entertainment Horizon
The integration of gaming and esports into the OTT world broadens the scope of entertainment. It allows OTT platforms to diversify their content offerings, attracting a wider audience base. For instance, during the 2020 lockdowns, platforms that embraced live streaming and gaming saw significant spikes in user engagement and retention. This trend underscores the demand for varied content experiences that go beyond traditional video formats.
Building Sustainable Business Models
From a business perspective, the inclusion of gaming and esports presents new monetization opportunities. Programs like Loco's VIP initiative illustrate how platforms can develop sustainable financial models that support creators and drive revenue through direct transactions, subscriptions, and exclusive content. This is particularly important in a market where ad revenues alone are insufficient to support the diverse range of content available.
Future-Proofing the OTT Industry
As we look ahead, the OTT industry must evolve to stay relevant. Embracing gaming and esports is a strategic move that not only meets the current demands of the audience but also future-proofs the industry against the changing tides of content consumption. The younger audience, which is increasingly looking for interactive and community-driven experiences, will continue to drive this transformation.
Conclusion
Incorporating gaming and esports into the OTT landscape is not just an option but a necessity. These forms of entertainment are key to engaging younger audiences, diversifying content offerings, and building robust, sustainable business models. As platforms like Loco continue to innovate and integrate these elements, they set the stage for a more interactive, engaging, and future-ready entertainment ecosystem.
That’s all for today folks. If you enjoyed this breakdown, please consider sharing it with your friends and colleagues.
What an amazing storyline! Set in a world where AI has advanced to a level where not only do AI bots look and talk like humans, but also can “feel” and fly across galaxies. This movie is worth a watch because of Jennifer Lopez and a gripping story that unfolds showcases the power of “believing” and “feeling”, even if you are AI.
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