JioHotstar is making ambitious strides within the competitive streaming market, focusing on hyperlocal advertising strategies to strengthen its digital ecosystem. The platform aims to connect advertisers with specific regional audiences, enhancing relevance and returns for both brands and consumers.
Earlier, ads often interrupted content every ten minutes, but Kiran Mani, CEO of digital at JioStar, believes the new approach will change all of this. "Now, movies will have just two to three ad breaks, and ad relevance is of utmost importance," he said. This shift is expected to bring remarkable advancements as the platform introduces targeting capabilities at granular levels, including specific regions and even pin codes.
Sanjog Gupta, CEO of sports at JioStar, noted, "The client list for IPL has grown 10 to 15 times from 200-250 since 2019." This surge reflects the digital platform's ability to reach small audience cohorts, catering to advertisers with limited budgets. With JioHotstar's user base nearing one billion, this presents opportunities for diverse advertisers. Mani added, "Now we're getting to a billion audiences, it also gives us a similar opportunity to attract more advertisers."
Kevin Vaz, CEO of entertainment at JioStar, advocates for the importance of regional advertising, elaborated on how brands have shifted focus. “Over the last few years, the regional story has picked up significantly. Brands once only advertising in the north are now targeting Telugu, Tamil, and other regional markets,” he mentioned.
Highlighting the platform’s technology, Vaz explained how JioHotstar’s advancements allow advertisers to reach specific markets without needing to purchase entire language segments—a common practice on television. “With TV, you buy entire language markets—all of Hindi, all of Tamil. Digital changes this dynamic completely,” he remarked. JioHotstar's hyperlocal advertising capability empowers small and local brands, traditionally hesitant to invest due to unmet expectations for targeted outreach, paving the way for them to build consumer bases more efficiently.
“Earlier, I couldn’t promise them targeted reach. Today, I can confidently say I’ll deliver the right audience and the metrics they care about,” Mani asserted, marking significant progress for small businesses seeking effective advertising strategies.
Even as JioHotstar advances its hyperlocal approach, it remains anchored to its ad-led revenue model, which continues to dominate its profit structure. "Advertising is still by far the biggest revenue stream," Mani said. “Shifting to a subscription-first model would risk making the product unaffordable. Our principle is access first, then affordability.”
Gupta reinforced the platform's approach, emphasizing the importance of simplifying user experience and subscription structures to cater to consumer desires, whether through content access or advertisements.
With its distinctively digital-first strategy, JioHotstar aims to distinguish itself from traditional advertising methods dominated by giants like Facebook and Google. "Clicks are no longer the key metric for SMBs; what matters is actual foot traffic to stores, online or offline," Mani concluded, showcasing the real-life application of hyperlocal strategies.
While JioHotstar focuses on polishing its advertising capabilities, the merger between JioCinema and Disney+ Hotstar has sparked controversy over content censorship. Viewers noticed the newly edited versions of international shows being released, especially concerning The White Lotus, where dialogue directed at religious figures was cut.
Despite no official confirmation of this censorship from the platform, consumer discontent surfaced rapidly across social media platforms. Commenters expressed frustration over paying full subscription fees for edited content. Many began drawing unfavorable comparisons between India and countries like China, known for stringent content regulations. One anonymous user remarked, "Back to pirated content. I can’t subscribe to only watch censored programs,” illuminating the widespread dissatisfaction.
The reaction from social media users has led to debates over JioHotstar’s authority to function as content moderators. Many fearthat this trend could lead to regressive behaviors reminiscent of the piracy era of the 2010s, as people seem to prefer illegal alternatives over compromised viewing experiences.
Although initial versions of certain shows were uncensored, it appears these edits are now standard procedure. With the platform previously praised for its unblemished content curation, current changes have left many users questioning the integrity and future of the service.
Looking at the broader picture, the situation poses challenges for JioHotstar. The digital giant will need to navigate subscriber expectations carefully from both advertisement and content perspectives, balancing profitability amid rising user dissatisfaction before it can establish itself as the leading name for streaming services and advertising seamlessly.
With its sharpened focus on relevance and affordability, JioHotstar is not just creating potential shifts within the advertising paradigm but also aiming to empower regional brands to become champions within India's vibrant consumer market.