Pocket Packs, Big Payoffs: How South India’s OTTs Are Buying Loyalty at ₹67 a Month

The Telugu–Tamil price war where aha, Sun NXT and Telcos trade margins for massive engagement

Jul 02, 2025

Hey Streamers 👋,

A warm welcome to the 92nd edition of the “Streaming in India” newsletter, your weekly news digest about streaming players, OTT trends, and analyses. If you are not already a subscriber, please sign up and join thousands of others who receive it directly in their inbox every Wednesday.

Agenda

South India’s Race to the Bottom (Price) & Top (Engagement)
aha’s ₹67 “Pocket Pack” – Low Cost, High Engagement
Sun NXT’s Ad-Supported Pivot
Content & Distribution Chessboard: Split Rights and Bundles
Conclusion: Navigating the New Regional OTT Economy

And….Action!

South India’s Race to the Bottom (Price) & Top (Engagement)

South India’s OTT market is witnessing an aggressive push towards ultra-affordable pricing, with platforms vying to capture massive audiences through rock-bottom subscription rates and hybrid ad-supported models. In the Telugu and Tamil streaming space, players like aha and Sun NXT are experimenting with “race to the bottom” pricing even as they strive for “top of the charts” user engagement.

Recent developments illustrate how regional streamers are blurring the lines between ad-supported (AVOD) and subscription (SVOD) services to grow their base:

aha’s ₹67 Pocket Pack: A premium Telugu/Tamil content plan at just ₹67 per month, signaling an industry-low price point. This move aims to democratize regional OTT content and boost engagement by bringing in price-sensitive users.

Sun NXT’s Ad-Supported Push: Sun TV’s Sun NXT platform now offers a basic annual plan (~₹48 per month) with ads, and even a free tier supported by ads – a clear bet on advertising to broaden viewership.
Content Rights Innovation: Big-ticket South Indian titles like Kalki 2898 AD are adopting split-rights OTT releases – for instance, Hindi on Netflix while Tamil/Telugu versions stream on Prime Video – highlighting creative distribution strategies.
Telco Mega-Bundles: Telecom giants are bundling regional OTTs into all-in-one packages. Bharti Airtel’s new prepaid “mega bundle” packs include 25+ OTT subscriptions (from Netflix to Sun NXT and aha) for as low as ₹279/month [airtel.in], reshaping how Tamil–Telugu content reaches users.

These trends underscore a fierce competition in South India’s streaming arena, where the price wars are intensifying even as platforms seek deeper user engagement through regional content, advertising, and strategic partnerships.

aha’s ₹67 “Pocket Pack” – Low Cost, High Engagement

aha’s promotional banner for its “Pocket Pack” highlights an affordable ₹67/month plan for Telugu and Tamil content, underscoring the platform’s push for wider reach.

Regional OTT platform aha has set a new benchmark for affordability with its “Pocket Pack” priced at just ₹67 per month. Launched around the Ugadi festival in spring 2025, the pack’s Telugu tagline “Karchu Thakkuva, Kickku Ekkuva” translates to “Less Expense, More Fun,” encapsulating aha’s mission to bring premium Telugu and Tamil entertainment to a broader audience at a bargain price.

According to aha’s CEO Ravikant Sabnavis, this move is part of a commitment to make high-quality regional content accessible to all: “We are excited to introduce the ‘aha Pocket Pack’ as part of our effort to provide affordable and engaging Telugu and Tamil content for everyone… [It] demonstrates our commitment to making premium content more accessible to all… for just ₹67 per month.” [indianbroadcastingworld.com]. Indeed, the Pocket Pack opens up aha’s full library of movies, web series, and originals without a hefty fee, effectively removing price as a barrier for consumers in Tier-2 and Tier-3 cities.

Crucially, aha isn’t just dropping prices – it’s simultaneously upping the engagement game with fresh content and innovative formats. Alongside the Pocket Pack launch, aha rolled out new titles like the nostalgic drama Hometown, a high-energy game show Sarkaar Season 5, the rom-com 3 Roses (Season 2), and even a vertical-format series Apsara. By pairing an ultra-cheap plan with a slate of buzzworthy content, aha is racing to the top in viewer engagement metrics – hoping that once subscribers come in for the price, they’ll stay for the shows.

This strategy also reflects an AVOD/SVOD blur in aha’s approach. Historically a purely subscription-based service, aha began exploring advertising-supported models in recent years. As one senior executive noted back in 2022, “We have a subscriber base of 2 million… the next phase of growth… was through advertising on the platform,” targeting users “who want to pay less… and are okay with watching content with ads.” [moneycontrol.com]. The Pocket Pack, while nominally a paid plan, sits at a price point that’s almost impulsive – blurring the line between a paid subscription and a free service. At ₹67 (~$0.80) a month, it rivals the cost of some ad-supported streaming experiences, suggesting aha would rather onboard millions of users at a low price (and potentially serve them some ads or upsell later) than leave those viewers to YouTube or piracy. Notably, aha’s user base has grown rapidly – from ~1.5 million paid subscribers in mid-2021 to about 2.5 million paid users by March 2024 – and the Pocket Pack could boost those numbers further by converting free viewers into paying (albeit low-ARPU) subscribers.

Early signals show aha’s gamble is resonating. By slashing entry costs and maintaining content quality, aha is positioning itself as “the go-to platform for affordable, high-quality regional entertainment,” solidifying loyalty among Telugu and Tamil audiences. In the long run, the company hopes this wide funnel will yield returns via scale – whether through upselling some users to higher plans, attracting more advertising deals, or simply outlasting competitors in the attention economy.

Sun NXT’s Ad-Supported Pivot

If aha is sprinting towards affordability, Sun NXT – the streaming arm of Sun TV Network – is following a similar path by leveraging the power of advertising. Sun NXT has introduced a Basic subscription tier that costs ₹579 per year (approximately ₹48 per month) and includes ads, targeted at mobile-only viewers. This plan, alongside a premium ad-free ₹899/year option, marks a strategic pivot: Sun NXT is deliberately lowering the paywall in exchange for ad revenue and reach. In fact, Sun NXT now supports multiple business models, including a free, ad-supported tier for certain content. This effectively allows anyone to sample Sun NXT’s vast library of South Indian movies and TV shows without paying, expanding the funnel for potential upgrades.

Today, Sun NXT’s hybrid model is evident. The platform reportedly offers over 4,000 movies plus live TV channels across Tamil, Telugu, Malayalam, and Kannada, catering to a diverse South Indian audience. A user can watch many shows for free with advertisements, or choose the inexpensive Basic plan for full access with some ad interruptions. Only those who want a fully unrestricted, big-screen experience need to opt for the higher-priced premium tier. By embracing AVOD alongside SVOD, Sun NXT is converting many traditional TV viewers into OTT users without asking them to pull out a credit card at all. This strategy also complements Sun TV’s core business – higher engagement on Sun NXT can reinforce the popularity of Sun’s serials and films, creating a virtuous cycle between broadcast and digital.

Moreover, Sun NXT is riding on distribution partnerships to remain ubiquitous. The service has been bundled with various telco and DTH offerings (from Jio’s apps to cable set-top boxes), ensuring that Tamil and Telugu households encounter Sun NXT as easily as flipping a channel. The result: while exact active subscriber figures today aren’t public, Sun NXT’s user base (including bundled access users) likely runs in the tens of millions, maintaining its reputation as “an OTT fortress in South India” with deep penetration. The ad-supported pivot thus appears to be a win-win: viewers get heaps of free regional content, and Sun NXT gets to massively grow engagement hours, backed by advertising bucks and parent Sun TV’s content pipeline.

Content & Distribution Chessboard: Split Rights and Bundles

Beyond slashing prices, South Indian streaming platforms are also innovating in content rights and distribution to maximize their reach. A striking recent example (August ‘24 however worth talking about from a South Indian OTT perspective as well) is the OTT release strategy for “Kalki 2898 AD,” a big-budget Telugu-Hindi bilingual film. In a rare dual-platform arrangement, the movie’s Hindi version landed on Netflix while the Tamil, Telugu, Kannada, and Malayalam versions premiered on Amazon Prime Video. This split-rights approach, almost unheard of in the streaming world, was designed to “maximize viewership and cater to diverse linguistic preferences”. Essentially, the producers leveraged two platforms to target different language markets – recognizing that the Hindi audience and the South Indian audience have distinct streaming platform preferences. For regional OTT economics, this move is telling: content owners are ready to break the norms (splitting rights by language or region) if it means reaching the widest possible audience in each market. It hints at a future where content distribution in India becomes a chessboard of intricate deals, with regional dominance and engagement as the ultimate goals.

Another powerful piece on this chessboard is the role of telecom aggregators bundling OTT subscriptions. The aforementioned Airtel “mega bundle” is a case in point. Bharti Airtel’s new all-in-one OTT pack for prepaid mobile users offers a buffet of 25+ streaming apps – including global giants and regional players like aha and Sun NXT – for a single fee. Starting at ₹279 per month, these packs give users Netflix (Basic), Disney+ Hotstar (branded as “JioHotstar” in Airtel’s promo), Zee5, SonyLIV, Lionsgate Play, and also regional specialists Aha, Sun NXT, Hoichoi (Bengali), Eros Now, and more. In other words, a Tamil or Telugu viewer can get their local favorites and Bollywood/Hollywood content all bundled with their mobile plan – a huge value proposition for consumers and a distribution boon for smaller OTTs. For platforms like aha and Sun NXT, hitching a ride on a telco bundle guarantees visibility to millions of potential users who might not otherwise consider a separate subscription. The trade-off is a heavily discounted revenue share, but again, the bet is that eyeballs and engagement today will translate to loyalty and monetization tomorrow (echoing the Sun NXT CFO’s logic).

These mega-bundles also reflect the blurred lines between competitors and collaborators in India’s streaming ecosystem. Airtel’s pack, for instance, puts erstwhile rivals under one roof – effectively acknowledging that many users don’t want to juggle multiple subscriptions and would prefer a one-stop solution.

For regional OTTs, being part of such a bundle can dramatically broaden their geographic reach (even to markets outside their core region or among diaspora overseas) without huge marketing spends. In the long term, however, it raises questions about brand differentiation: will users recognize the aha or Sun NXT brand if they access it via an aggregator app? Platforms will need to ensure they still offer enough unique content and experience to stand out within the bundle, to avoid being commoditized.

Conclusion: Navigating the New Regional OTT Economy

The Tamil and Telugu streaming sector is entering a new phase defined by aggressive affordability and innovative engagement tactics. The “race to the bottom” in pricing – exemplified by aha’s ₹67/month Pocket Pack and Sun NXT’s cheap annual plans – is not merely a discount war; it’s a strategic effort to on-board the next hundreds of millions of viewers who are price-sensitive but content-hungry. By lowering the cost hurdle to almost nil (even free in Sun NXT’s ad-tier case), these platforms hope to exponentially increase their user bases, especially in regional markets where OTT penetration is still growing. And as they do so, they’re carefully threading the needle to keep users engaged (and eventually paying more) through local-first content and new features.

At the same time, the lines between subscription and ad-supported models are fading. Aha’s journey from purely SVOD to a hybrid AVOD+SVOD model is telling – as its executives observed, the AVOD market is potentially 10x the size of SVOD in markets like Andhra Pradesh and Telangana. South Indian streamers are thus not shying away from advertising; instead, they are embracing it as an integral part of their growth strategy. This convergence means the old dichotomy of “free with ads” vs “paid without ads” is giving way to a spectrum of low-cost options with varying degrees of ads and perks. For viewers, that translates to more choice: pay very little (or nothing) and still enjoy a huge catalog of regional content, or pay a bit more for an enhanced experience.

Finally, the developments around content rights splits and telco bundles indicate that collaboration is becoming as important as competition. Regional platforms are leveraging bigger platforms and partners to distribute content farther than they could alone – whether through a clever split OTT release to grab both Netflix’s and Prime Video’s audiences, or through telecom partnerships that put their app on the home screen of tens of millions of phones.

Even major national players are adopting accessibility moves (for example, ZEE5’s recent Free Blockbuster Fridays initiative streams select premium films free for a limited time) to hook new users. All these tactics underline a key theme: in the streaming game, especially in India’s regional markets, growth comes from meeting audiences where they are – on price, on platform, and on preferences.

For readers of The Streaming Lab, the takeaway is clear. The South Indian OTT scene is a microcosm of India’s streaming future – a future where success will belong to those who can win the price-sensitive masses without sacrificing engagement. As aha and Sun NXT sprint ahead with their low-cost, high-engagement formulas, it will be fascinating to watch how this race unfolds. Will ultra-low prices and hybrid monetization secure the loyalty of millions and translate into sustainable revenues?

Or will the strategy need recalibration once the user acquisition phase peaks? One thing is certain: in the race to the bottom of pricing, the platforms are banking on one outcome – that it propels them to the top of audience hearts and minds, creating a foundation for long-term dominance in the regional streaming landscape.

An Abhishek Bachchan film that I am looking forward to - releasing on Zee5 this Friday. Trailer looks great. Here is the storyline - “An elderly man flees upon learning his family plans to abandon him. His life changes after meeting Ballu, an orphaned eight-year-old boy whose zest for life reawakens his spirit.”

Streaming in India is a weekly newsletter exploring the trends that matter to streaming professionals in India. If you are not already a subscriber, sign up and join several others who receive it directly in their inbox every Wednesday.

Please sign up for my other newsletter focused on “eyeball economy” focused startups (Media, Entertainment, Gaming, Ad Tech & Sports), the Indian / Middle East startup and venture capital ecosystem; in your inbox every Monday: Mehtta Ventures Dubai.

I represent the Adsolut Media business in the Middle East and am a “board observer” for their growth. We have amongst the largest supply of Connected Television premium inventory in the Middle East - Sub-continental corridor along with one of the largest mobile / web inventories as well. Please get in touch for your monetization requirements.