Bengaluru based Walmart's Indian e-commerce unit Flipkart is all set to take on its rival Amazon by starting free video streaming service in its app.
Flipkart focused on three aspects like free of cost, curated and personalised content in this new video streaming service. Considering the number of paid subscriptions to video streaming apps like Netflix, Amazon Prime, and Hotstar, experts are saying that the content market is still evolving.
“We believe that great content, if made available to a wider base of consumers, especially the ones who are new to e-commerce but not internet, can bring them on board on an everyday basis and help take away any anxiety that they may have towards online shopping," Flipkart chief executive Kalyan Krishnamurthy said on Monday during launch of video streaming services. He also added that consumer doesn't need to pay any extra cost for premium content.
“It’s still a small number. The pricing is too high for a customer base that is accustomed to free or cheap content," said Devangshu Dutta, chief executive of retail consultancy Third Eyesight.
Amazon has created a strong fan base with popular shows like Made in Heaven and Mirzapur. But the question is whether those content consumers had successfully converted into product buyers? Because there is a difference in the mindset as far as shopping and watching a movie or a web series is concerned.
“We want to ensure that a user keeps coming to the platform every day. Over time, we will figure out how this ties into the e-commerce ecosystem, but today that’s not the objective. It's just to ensure that the consumer is hooked to Flipkart," Krishnamurthy said in an interview
“It may be less expensive or more profitable to service existing customers by expanding the share of wallet than to acquire new customers. Hence, companies try to add as many products or services to the customer relationship as possible," said Devangshu Dutta,
India's video streaming business is expected to reach Rs. 11,977 crore by 2023 as per reports by global accounting firm PwC. Presently, the content market in India has 34 companies, and now Flipkart has also joined in this market, targeting tier-2 cities and smaller town consumers. Initially, it has introduced this service in Hindi but soon will try to introduce a user-preferred language in its app.