Balaji Telefilms’ video on demand platform
ALTBalaji plans
to invest up
to Rs 150 crore a
year for
the
next two-three
years, while looking
to achieve
break
even
in
the
next three
years.

The digital platform was launched
in April last
year and ended
the
year with over 1.2 million paid subscriptions with 800 million minutes of content watched, with an average watch time of 120 minutes per user, it said.

Besides India,
the digital platform has acquired customers
in over 90 countries and has over 13 million users.

“We expect
to maintain our cash spends on
ALTBalaji at Rs 100 crore
to Rs 150 crore a
year for
the
next two-three
years while revenue scales up, expecting
to
break
even within
the
next three
years,”
the company said
in
the 2017-18 annual report.

It expects
to be
in an investment phase for
the over
the top (OTT) platform for
the
next two
to three
years.


ALTBalaji will help position ourselves for further success
in
the coming
years and ride on
the growth of digital content consumption for individual audiences worldwide,” it added.

Reliance Industries had acquired 24.9 per cent stake
in
the company
in July last
year at an investment of Rs 413 crore and
the content production company had then announced that
theinvestment would be utilised
to speed up content development initiatives, especially for
ALTBalaji,
to help it compete with other global and Indian OTTservice providers.

“We believe
ALTBalaji is
the future of
the company and we will make sizable investments
in this segment. We will make continuous but controlled investments
in
the digital platform and are well funded
to make these investments,”
the company said
in
the report.

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The company is debt free and has over Rs 442 crore
in mutual fund investments, which will allow it
to pursue growth without raising fresh capital, according
to
the annual report.

ALTBalaji has a distribution tie up with telecom and internet service providers and its content is available on Reliance Jio, Airtel TV and Vodafone Play platforms.

According
to industry estimates,
the video viewing audience
in India is expected
to grow significantly
in
the near future at a CAGR of over 13 per cent. By 2020, India is expected
to become
thesecond largest video-audience globally.

The online video audience
in
the country are expected
to reach about 500 million by 2020 from 250 million
in 2017, a two-fold growth driven by increasing mobile penetration, internet speeds,
the advent of 4G and falling data charges, as per
the industry estimates.





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