Airtel vs JIO Airtel ne Jio ko kaise haraya? : Business Case study

Summary

The video discusses the evolution of the Indian telecom sector, highlighting Jio's impact on the competitive landscape. It delves into the segmentation of India's video consumption market, categorizing customers into five types: homes without TV access, free TV viewers, TV-first consumers, digital-first consumers, and premium digital users. Jio's business strategy focuses on converting 2G users to 4G, offering affordable data plans, and leveraging sports streaming to attract customers. The discussion also covers Jio's plans to increase revenue by targeting high-value customers, transforming India's digital ecosystem.

Takeaways

• 📱 The Indian telecom sector has experienced one of its most competitive business wars in the past seven years, primarily due to Jio's entry into the market.
• 💼 In 2021, Airtel launched airtel.in, and that year, the company made significant profits, marking the beginning of an intense business war in the Indian telecom industry.
• 🎥 The Indian video consumption market is divided into five main customer segments: households without TV or OTT access, free content consumers, TV-first subscribers, digital-first customers, and purely digital consumers.
• 📺 India has 45 crore free TV viewers who watch ads in exchange for content, making them a crucial part of the video consumption ecosystem.
• 🖥️ The most valuable customers are those who consume content exclusively on digital platforms, though they represent only 20 lakh people, indicating a small but highly lucrative market.
• 📶 Jio's business philosophy emphasizes speed and societal value creation, aiming to capture an invisible market that didn't previously exist.
• 📊 Despite the rise of smartphones, there are still 25 crore 2G feature phone users in India, a segment that Jio is targeting with affordable data and calling plans.
• 💰 Jio generates revenue through multiple channels, including free content supported by advertisements, affordable subscription models, and sports streaming, which have gained massive viewership.
• 🏏 Jio's IPL streaming on JioCinema shattered records, with 147 crore video views during the opening weekend, showcasing the platform's growing dominance in sports content.
• 💼 Jio's strategy includes cleaning up low-value customers, focusing instead on higher-revenue subscribers, as well as introducing low-cost laptops for broader market penetration.

Q & A

What was the major change in the Indian telecom sector starting in 2021?

In 2021, Airtel introduced significant changes, including launching airtel.in, and this marked a major turning point in the competitive business landscape of the Indian telecom sector, especially with Jio's entry reshaping the market.

What strategy is Jio using to phase out voice call payments?

Jio aims to end the era of paying for voice calls by offering affordable data plans and transitioning users to internet-based communication, ushering India into a new telecom era focused on data usage.

What are the five types of video content consumers in India?

The five types of consumers are: (1) 150 million dark TV homes with no access to TV or OTT, (2) free content consumers who watch ads for content, (3) TV-first customers who pay for TV but not OTT, (4) digital-first customers who pay for at least one OTT service in addition to TV, and (5) digital-only consumers who watch content only on digital platforms and have the highest purchasing power.

How is Jio targeting the 250 million 2G feature phone users in India?

Jio is offering affordable 4G smartphones and data plans to convert 2G feature phone users into 4G customers, with strategies like pre-installed apps and low-cost monthly data and call packages.

What is Jio's approach to attracting free TV customers?

Jio targets free TV customers, who primarily use entry-level smartphones, by bundling Jio services with smartphone recharges and offering free access to Jio Cinema for content consumption.

How did Jio Cinema perform during the Indian Premier League (IPL) streaming?

Jio Cinema reported exceptional performance during IPL streaming, breaking records with 147 crore video views during the opening weekend alone, indicating strong viewer engagement.

What are the differences between low-value and high-value customers in the telecom industry?

Low-value customers typically generate revenue through low-margin, high-volume business, while high-value customers provide higher margins even with lower volume, leading to more profitable business.

What role does Jio's pricing philosophy play in its success?

Jio focuses on providing affordable services at the 'bottom of the pyramid,' targeting large untapped markets with low-cost data and smartphones, which has been key to its rapid growth and market capture.

How does the average revenue per user (ARPU) increase as customers move up the value chain in the telecom industry?

As customers transition from feature phones to smartphones, prepaid to postpaid services, and from standalone services to converged home broadband solutions, their ARPU doubles at each step, contributing to higher overall revenue.

What is Jio's long-term strategy in creating a new market for telecom services?

Jio aims to create a new market by targeting invisible segments like 2G feature phone users and free TV consumers, offering affordable and innovative services to capture these untapped markets.