Pay for Video

Video content is available in the US as streaming services such as Netflix. Customers routinely buy movies and shows on iTunes-and Amazon.com. In India, the norm is free video. YouTube is free, and the content providers earn a bit of money when YouTube shares the advertising revenue. Ad rates are low — from about $ 1 to $ 4 per 1000 viewers reached, or roughly one-tenth the rate in the US.

Local and foreign companies expect to persuade Indians to pay for online video. In India full-length movies and TV episodes are legally available free. Cable and satellite subscriptions cost so less — $ 2 or $ 3 a month. It means a payment of 50 cents just for a movie is asking too much. Even when people are ready to buy, the payment for digital purchases become cumbersome. In India, the data plans of telecom operators add extra cost of video viewing.

Rajshree has an inventory of 1 lac online videos, and it relies on ads. Eros now offers free videos  supported by ads, but is tinkering with premium options for paying audience — Rs. 50 to Rs.100 a month or about 75 cents to $ 1.50. The content will be ad free. Overseas, customers pay $ 8 for a premium version. 21st Centuary Fox through its app Hotstar offers free video.

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