Hotstar, the over-the-top (OTT) platform of Star India, has found to be incurring revenue gains amid great losses incurred by investments being made in the first year of operations.
It has been reported that the company running Hotstar, Novi Digital Entertainment, has incurred an EBITDA loss of 3.7 billion INR (53.7 million USD) in FY16. The companyâs net loss during its investment phase is 4.1 billion INR (60.1 million USD) in the first full-fiscal period.
Offering more than 50000 hours of TV content and movies across eight languages, Hotstar has collected an amount of 1.9 billion INR (27.3 million USD) INR in FY16 since its launched in 2015. Revenue for subscription amounted to 242 million INR (3.6 million USD) while content rightsâ licensing stood at 192 million INR (2.8 million USD) in FY16. Content cost was found to be 1.7 billion INR (24.4 million USD) in FY16.
Hotstar actually offers live coverage of important sporting events and has recently launched its first fiction web series âTanhaiyanâ, the OTT platformâs deal with Reliance Jio is a first time whereby Star has offered its content to another platform that offers OTT service. Starâs linear channels are not only part of Jio TV app, but also its VOD service Hotstar is also bundled with the app.
To recall, Hotstar also offers live coverage of major sporting events. Recently, it rolled out its first fiction web series âTanhaiyanâ. There are plans to launch more such series.
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