Define and describe a strategy for Disney+ Hotstar Subscriptions growth in India.

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Define and describe a strategy for Disney+ Hotstar Subscriptions growth in India.

Asked at Hotstar over a year ago

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ZMCL Product · Answer 1 · 2020-04-14T12:12:24+0000

First I will give a brief about Dinsey+Hotstar, then we will try to define the user segment with their need and then will focus and prioritize the solution.

Disney+Hotstar: Disney+Hotstar is an online video streaming platform currently offers over 100,000 hours of TV content(Indian and Hollywood serials) and movies across 9 languages, and every major sport covered live. Highly evolved video streaming technology and high attention to the quality of experience across devices and platforms, make Disney+ Hotstar the most complete video destination for Over The Top (OTT) video consumers.

Currently, Desney+Hotstar have two subscription model

VIP: The Hotstar VIP subscription offers an ad-free experience similar to the Premium subscription. With the VIP subscription, consumers also get access to live broadcasts of cricket, Premier League and Formula 1. The VIP subscription also offers the latest episodes of Indian TV shows at 6 am every day. Members will also be able to watch new Indian movie premieres as well as have access to Hotstar Special content.

With the VIP subscription, Hotstar doesn't offer access to uncut Hollywood movies and American TV shows from HBO, HOOQ, FOXLife, National Geographic, and other English channels.

2. Premium: The Hotstar Premium subscription offers an ad-free experience of all Disney+Hotstar content.

Goal: Grow and increase subscription base and which directly impact revenue.

Disney+Hotstar Customers/Persona:

Typical Age Group: Between 16–40

Customer Segment 1: Customer subscribes (especially working-class female) who wants to watch daily shops without time limitation.

Customer Segment 2: Customers subscribes who are sports savvy.

Customer Segment 3: Customers subscribe who are obsessed with Marvel's superhero and other Hollywood movies and shows.

Customer Problems and Wants (Aligning to the business goals):

Want to watch the specific show: User(especially female) like only some (1 or 2) show and want subscription for only show that they want to watch (most of the people took Hotstar subscription only for watching GOT season 8, there would be lots of users who wanted to watch GOT only (some of them took subscription and some of them did not)).
Sports Savvy but want subscription only for some sports and series: Users want subscription for some specific sports or series and tournament so that they can watch their favorite sports and series without burning a hole in the pocket. (in my current organization lots of my co-workers including me talked and wanted to take Hotstar subscription only for watching ICC world cup).
Hollywood obsessed: user especially youth have an obsession to watch Hollywood movies and shows don’t want to watch daily shop and serials and wants subscriptions only for Hollywood content in the first place
Hollywood obsession with native language: user especially youth have an obsession to watch Hollywood movies and shows only and don’t want to watch daily shop and serials and wants subscriptions only for Hollywood content in the first place in their native language.

Ideas/Solutions:

Serial/Show/Series Specific Subscription:

Explanation: User who wants to watch specific shows/Sports series can take a subscription for specific shows/Sports series only. fixed a specific price for a single serial/series and if the user wants to add more serial/series the subscription price will be added accordingly.

Pros: Give the users more flexibility to choose the serial/series specific subscriptions will increase more loyalty towards the platform.

Disney+Hotstar will be able to convert those users who don’t take premium subscription just because they want to watch some specific serial or shows.

Disney+Hotstar will get the opportunity to understand their users based on collected user preference data and will be able to recommend serials and shows based on user choice and watching behavior.

Cons: There may or may not be a case that the user who has premium subscription would also likely to be switched to specific serial-based subscriptions.

2. Genre Specific Subscription:

Explanation: User who wants to watch a specific Genre (daily shops Hollywood movies, original shows) can take a subscription for specific Genre only. fixed a specific price for a single Genre and if the user wants to add more Genre the subscription price will be added accordingly.

Pros: Give the users more flexibility to choose the Genre specific subscriptions will increase more loyalty towards the platform.

Disney+Hotstar will be able to convert those users who don’t take premium subscription just because they want to watch some specific Genre or shows.

Disney+Hotstar will get the opportunity to understand their users based on collected user preference data and will be able to recommend serials and shows based on user choice and watching behavior.

Cons: There may or may not be a case the users who have premium subscriptions would also be switch to specific serial-based subscriptions.

3. Native Language-specific Hollywood Content:

Explanation: Indian language internet user has grown from 42 million in 2011 to 234 million in 2016.

Indian language internet users are expected to grow at a CAGR of 18% to reach 536 million in 2021. English users are expected to grow at a CAGR of 3%

9 out of 10 new internet users in India over the next 5 years are likely to be Indian language users.

Although Disney+Hotstar have shows and movies in the native language and have shows and sports series in a different language. And assumes Disney+Hotstar also has a clear strategy to penetrate the hyperlocal market. But Disney+Hotstar can increase its subscription base by listing Hollywood content in different Indian Languages to make their presence in the hyperlocal market more strongly.

Pros: Disney+Hotstar can penetrate the hyperlocal market more strongly.

Disney+Hotstar will get the opportunity to understand their users based on collected user preference data and will be able to recommend serials and shows based on user choice and watching behavior.

Cons: Not as much.

Apart from that, I would like to one more solution that is

4. Mobile device Specific Subscription:

Explanation: According to a report there will be approx. 176 million new smartphone users expected in the next 5 years.

On average a consumer is exposed to at least 4 hours of mobile consumption on any day largely due to increased time in commute time in metropolitan cities that contributes the largest share of OTT video traffic.

So Disney+Hotstar can introduce mobile-specific subscriptions with a lower subscription rate to give the flexibility to the user to choose the mobile-specific subscription to increase more reliability on Disney+Hotstar.

Pros: Lower subscription rates for mobile devices only will attract more users to subscribe and watch their favorite show/series and sports.

The mobile Device subscription model will also offer all the above 3 type user segments and give the flexibility to watch all the content available on Disney+Hotstar in the smaller subscription rate than a regular subscription rate.

Cons: Not as much.

I want to add the mobile-specific subscription feature along with VIP and Premium subscription model because

Truly add value for our customers to provide premium and VIP subscription on mobile.
Few competitors are doing it
Long term benefits in terms of the coming age are mobile age in India and overseas.

Success metrics

% daily weekly and monthly numbers of user subscribe to mobile device subscription
% daily weekly and monthly numbers of users subscribe to regular subscriptions.
The churn rate of regular subscriptions(if any).

North Stra Metrics

% daily weekly and monthly numbers of user subscribe to mobile device subscription