Reliance Jio could charge users for JioTV and JioCinema apps

Ever since it debuted in 2016, Reliance Jio has been providing free access to its content services including JioMusic, JioCinemas, JioTV, etc. Now, it looks like the service provider will start charging its subscribers for using these apps.

As of now, any Jio user enjoys free subscription to the Jio suite of apps and content irrespective of the tariff plan they opt for. Going forward, this situation is said to change as Jio is reportedly developing a freemium model of its content services, which will charge users to continue enjoying the services.

Targets digital content leadership

A Strategy Analytics report titled 'Reliance Jio Targets Digital Content Leadership' says that the telco is trying to implement the freemium model for its apps. The firm adds that as users are enjoying these services for free for quite a long time, there could be some level of resistance and the company might face challenges in introducing the freemium model. Notably, this model will grant access to the functionalities of all the apps but if users need to access the complete set of features, then they will have to pay a specific subscription fee.

Furthermore, the report goes on stating that Jio has accumulated a loyal subscriber base by providing free services. Eventually, it might not charge users upfront as it might affect its business model.

Content platforms throw competition

An analyst at Strategy Analytics said that Jio started a stream of companies wherein telcos are focusing heavily on the content strategy as well. This is something that did not exist a couple of years ago. Due to the competition from Jio, other rival operators have also started their content services in order to beef up their content strategy.

The company took the content services to the next level by teaming up with Eros International and integrating its digital platform with OTT apps. Also, Reliance Jio partnered with Roy Kapur Films to develop content for its apps. It also bought stakes in news channels and production houses.

Given that Jio has invested in the content strategy, it is obvious that the company will expect the same to deliver revenue in the future. But the willingness of its subscribers to pay for the content services that were free earlier is an important factor.

Via