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Wednesday, 20 November 2019 13:50

ALTBalaji to ape Netflix’s sachet pricing model

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To boost its ARPU, ALTBalaji, the digital venture of Ekta Kapoor-led Balaji Telefilms, is planning to launch sachet pricing model just like Netflix. 

Balaji Telefilms said:  “We are focused on our breakeven targets, which we will achieve and therefore we are right-sizing our business to this. We are not a bottomless hole where you have to keep showing widening losses and keep acquiring consumers. We do not believe in this philosophy at this stage. We first want to have the proof of the pudding, we want to break even and then use our rich analytics data to launch phase two of our strategy possibly two years from now.”

ALTBalaji is planning at producing enough hit content to be able to ‘sachetize’ its pricing two years from now. The company thinks if it can sell content at Rs 2 per day, its ARPU can rise up to Rs 730 a year, which currently stands at Rs 300 a year.

The platform thinks it has to be able to cater to two major target groups - the under-served male viewing audience, which lacks good quality TV shows, and individual female audience of the age group 20 to 40. Hence, it will look at developing a significant library there.

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