SonyLIV places bets on linked TV and online originals for ad growth

 SonyLIV places bets on linked TV and online originals for ad growth

New Delhi: In order to stay financially sustainable, SonyLIV, the video streaming service owned by Sony Pictures Networks India, is considering a mix of subscription and advertising income. The service said that by including fiction programming alongside sports, music, and cooking programs, it gives advertisers a variety of possibilities to become sponsors or be incorporated into the content. While many companies collaborate on both their television and digital inventory, certain modern players have a particular interest in OTT partnerships.

There has been no "either" or "between" advertising and subscriptions since the COVID-19 outbreak since platforms like ours witnessed a significant increase in consumption. but rather a 'and' reality, as is the situation for media businesses internationally,' Ranjana Mangla, head of ad revenue at SonyLIV, said in an interview. She claims that the business's approach is quite clear: although certain material is intended for premium watching, catch-up television programming and some reality programs aid companies that often struggle to stand out in a crowded market.

Since June 2020, or what Mangla refers to as SonyLIV's "2.0 phase," when the company launched a new logo, user interface, and brand identity in addition to premium content, its reality programs have attracted advertisers that not only consider the size of OTT but also the reach of linear television, she added. For instance, the digital insurance firm Acko and Vimal is a co-presenting sponsor of the current season of Kaun Banega Crorepati, together with IDFC First Bank and electronics shop Croma, who is a co-powered sponsor. The platform worked with companies including Eatfit, JSW, Maruti Suzuki, Acko, and Limca Sportz during the 19th Asian Games.

According to Mangla, the OTT's sizable audience is particularly attractive to modern banking and car businesses. Along with sponsors, the site also enables free streaming of the first episode of online original series, and it is looking at incorporating brands into stories.

To be sure, video streaming services are increasingly embracing ad-supported models to appeal to the budget-conscious Indian audience as they realize that subscription alone may not be adequate for continued commercial success.

In contrast to Amazon, which offers a separate ad-supported service called miniTV and has plans to include commercials on Prime Video shortly, other services like aha Video provide both ad-supported and subscription-based access to the same content. Free streaming of a few programs and short films is also available on ZEE5. In a market like India, where the average revenue per user (ARPU) cannot afford to continue to decline, advertising is excellent news. However, in addition to e-commerce firms, companies like Google and Facebook control close to 65-70% of the digital advertising industry.

Mangla emphasized the importance of linked TVs, which are now in 20–30 million homes in India and are anticipated to reach 40 million over the next 18 months. "Though this audience is the very crème de la crème, most marketers would swarm for that mindshare. Additionally, the time spent is almost three times as much on mobile, making it a promising potential for us, she said.