Zee 5 says it will 'learn from competition' before deciding restrictions on password sharing

Even as Netflix’s plan to end password-sharing continues making headlines, the streaming platform’s Indian rival, Zee 5, has said it wants to “learn from competition” before it takes a call on possible password-sharing restrictions of its own.

In an exclusive chat with CNBC-TV18, Zee 5 India’s Chief Business Officer, Manish Kalra, admitted that all OTT platforms want some form of password sharing restrictions.

“As businesses, all of us want it (password sharing restrictions) and there’s no denying that,” said Kalra, “It will be all about finding a healthy balance without annoying our customers, while also taking care of our business needs,” he said.

When asked whether Zee 5 would introduce some form of restriction on password sharing, Kalra said: “As of now, we have not planned it, but one of our international competitors is leading the foray. So, we will learn from them — how it impacts the consumer and what are the results it gives.”

Since the beginning of 2023, Netflix, battling lukewarm subscriber count in markets including India, announced the start of restrictions on password sharing in Canada, New Zealand, Portugal and Spain. While it has not rolled out these restrictions in India yet, experts are of the opinion that the introduction of such regulations in India would greatly impact the platform’s affordability.

Kalra agrees. “From a consumer perspective, the convenience and leverage that online subscriptions give — sharing them with friends and families — is a privilege,” he said, adding: “We (Zee 5) are highly customer-focused and we won’t do something that will be derogatory to their experience.”

The last year has seen Zee 5 grow in the South Indian market, especially in Tamil Nadu. With successful titles like ‘Vilangu’, ‘Ayali’ and ‘Paper Rocket’, the platform has seen a 54 percent increase in viewer base and a 63 percent increase in active users in Tamil Nadu in the last 12 months.

The OTT platform’s average watch time per day for Tamil content increased by 23 percent. Zee 5 now now wants to become the most-watched OTT platform in Tamil Nadu by the end of the year.

“We are trending towards a place where 50 percent of our revenues come from South India,” Kalra said, “The audience here is also heavy on consumption versus the regular Hindi viewer, which encourages us to create more content.”

In creating more content, Zee 5 is also committed to creating “iconic shows”, in the words of its Chief Cluster Officer (South), Siju Prabhakaran.

“The sense we have is that because every weekend sees a new movie in the theatre, we should be able to give new content for our viewers on Zee 5 every two weeks,” said Prabhakaran.

He added, “If one of these pieces of content becomes an iconic show, and we have new seasons coming, that means the start successful franchise, with audiences looking forward to new seasons, which then results in iconic shows.”

While experts have been pointing to the sheer number of OTT platforms with predictions of incoming consolidation, the market remains fragmented as multiple players continue to battle for market share. However, Kalra believes this could change in the next three years.

“Consolidation will happen once there are expectations of profitability, and funding dries up, and this could happen in the next two to three years,” he said, “The market won’t stay fragmented for long, and good quality content will be the key driver.”

Of late, platforms like Disney + Hotstar have found themselves under the spotlight of late after having lost out on rights to stream IPL matches and Formula One races. The platform also announced that it will not stream HBO content starting March 31, as it decided to not renew its partnership with the studio.

Kalra believes OTTs must reduce dependence on third-party content to run a good show. “At Zee 5, we are keen on building a solid content creation pipeline across regions,” he said, “Depending on third-party content could result in arm-twisting of OTTs.”