Vuclip offers premium video-on-demand services for emerging markets. They use a freenium model — both free and paid users. In India, they have close to 20 million free users, who are completely mobile users. They use the service when they come across the app and the browser. They have 6 million paid users every quarter. There is a constant churn here — both voluntary  and involuntary. Voluntary churn is when the user is unwilling to pay.  Involuntary churn is when the user wants to continue using the service, but does not have enough money on the prepaid card, for example. They churn out, but they return to the service once they have the money.

They source the content from 270 content providers — international, regional and local content.They make the content providers understand that the higher the monetisation for Vuclip, the higher will be the monetisation for them too.  To begin with, content providers want all their content on subscription basis. But this does not have enough scale. They have a sitting with the content provider, and decide which content they are ready to part with free, and which they require to be behind the subscription pay wall. News is loved, but no one is ready to pay for it.

Currently, their 90 per cent revenue comes from subscriptions and the balance 10 per cent through advertising.

HotStar, Eros Now and Spool are leaky buckets. They get a lot of downloads, but majority of them get uninstalled.

Facebook is doing lot of videos but that is advertising-driven. Facebook also puts Its software development kits ( SDKs) into other people’s apps. Whatever value was provided by Fb, the same value can be provided on third party sites such as Vuclip. In fact, they are partnering with Fb.

On mobiles, consumers  do not have long session times, as the device does not lend itself to such long sessions. Most sessions ( 90 percent ) are of 10-15 minutes. In such a short short span, people can watch humour, stand up comedy or sports highlights. It is no different in the US. It is not true that all that is watched on TV will be watched on the mobile.

They can think of having revenue sharing agreements with telecom operators. They can bundle data and video as a part of the package. This can be priced innovatively.