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Disney debuts its streaming service in India for $20 a year

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Disney+ has arrived in the land of Bollywood. The company on Friday (local time) rolled out its eponymous streaming service in India through Hotstar, a popular on-demand video streamer it picked up as part of the Fox deal.
To court users in India, the largest open entertainment market in Asia, Disney is charging users 1,499 Indian rupees (about $19.5) for a year, the most affordable plan in any of the more than a dozen markets where Disney+ is currently available.
Subscribers of the revamped streaming service, now called Disney+ Hotstar, will get access to Disney Originals in English as well as several local languages, live sporting events, dozens of TV channels, and thousands of movies and shows, including some sourced from HBO, Showtime, ABC and Fox that maintain syndication partnerships with the Indian streaming service. It also maintains partnership with Hooq — at least for now.
Unlike Disney+’s offering in the U.S. and other markets, in India, the service does not support 4K and streams content at nearly a tenth of their bitrate.
Disney+ Hotstar is also offering a cheaper yearly premium tier, priced at Rs 399 (about $5.3), that will offer subscribers access to movies, shows (but not those sourced from aforementioned U.S. networks and studios) and live sporting events; it won’t include Disney Originals.
Access to streaming of sporting events, especially of cricket matches, has helped five-year-old Hotstar become the most popular on-demand video streaming in India. During the cricket tournament Indian Premier League (IPL) last year, the service amassed more than 300 million monthly active users and more than 100 million daily active users.
It also holds the global record for most simultaneous views on a live stream, about 25 million — more than thrice its nearest competitor.
Prior to today’s launch, Hotstar offered its premium plans at 999 Indian rupees, and 365 Indian rupees. Existing subscribers won’t be affected by the price revision for the duration of their current subscription.

The service, run by Indian conglomerate Star India, offers access to about 80% of its catalog at no cost to users. The company monetizes these viewers through ads.
But in recent years, the company has begun to explore ways to turn its users into subscribers. Two years ago, Hotstar stopped offering cricket match streaming to non-paying users.
People familiar with the matter told TechCrunch that Hotstar has about 1.5 million paying subscribers, lower than what most industry firms estimate. But that figure is still higher than most of its competitors.
And there are many.
India’s on-demand video market
Disney+ will compete with more than three dozen international and local players in India, including Netflix, Amazon Prime Video, Times Internet’s MX Player (which has over 175 million monthly active users), Zee5, Apple TV+ and Alt Balaji, which has amassed over 27 million subscribers.
“The arrival of Disney+ in India is another case study in the globalization of entertainment in the digital era. For decades, the biggest companies in the world have expanded their reach into different markets. But it’s new, and actually quite profound, that everyone on earth receives the very same version of such a specific cultural product,” Matthew Ball, former head of strategic planning for Amazon Studios, told TechCrunch.
As in some other markets, including the U.S., streaming services have inked deals with telecom networks, TV vendors, cable TV operators and satellite TV players to extend their reach in India.
Most of these streaming services monetize their viewers by selling ads, and those who do charge have kept their premium plans below $3.
Why that figure? That’s the number most industry executives think — by spending years in the Indian market — that people in the country are willing to pay for viewing content. The average of how much an individual pays for cable TV, for instance, in India is also about $3.
“I think everyone is still trying to sort out the right pricing. It’s true the average Indian consumer is used to far lower prices and can’t afford more. However, we need to focus on the consumers likely to buy this, who have the requisite broadband access and income, etc,” said Ball.
Commuters drive along a road past a billboard in Mumbai advertising the Amazon Prime Video online series “The Forgotten Army”. (Photo by INDRANIL MUKHERJEE / AFP via Getty Images)
At stake is India’s booming on-demand video streaming market that, according to Boston Consulting Group, is estimated to grow to $5 billion from half a billion two years ago.
Hotstar’s hold on India could make it easier for Disney+, which has launched in more than a dozen markets and has amassed over 28 million subscribers.
As the country spends about two more weeks in lockdown that New Delhi ordered last month to curtail the spread of coronavirus, this could also compel many to give Disney+ a try.
On the flip side, if the lockdown is extended, the current season of IPL, which has been postponed until mid-April, might be further delayed or cancelled altogether. Either of those scenarios could hurt the reach of Hotstar, which sees a massive drop in its user base after the conclusion of each cricket tournament.
Disney initially planned to launch its streaming service in India on March 28, the day IPL was supposed to commence. But the company later postponed the launch by six days.
Industry executives told TechCrunch that if IPL is cancelled, it could severely hurt the financials of Hotstar, which clocks more than 50% of its revenue during the 50-odd days of the cricket season.
Some said Disney+’s premier catalog might not be relevant for most of Hotstar’s user base, who seem to care about this streaming service only during the cricket season or to catch up on Indian soap operas.
Hotstar has also received criticism for censoring more content on its platform than any other streaming service in India. Last month, Hotstar blocked from streaming on its platform an episode of “Last Week Tonight with John Oliver” that was critical of Indian Prime Minister Narendra Modi. YouTube made that segment available without any edits.
John Oliver slammed Hotstar for censoring the episode and noted that the streaming service had additionally edited out parts from his older episodes where he made fun of Disney. In 2017, Hotstar also edited out a segment from Oliver’s show in which he mocked Samsung for the Galaxy Note 7 fiasco. Hotstar and Samsung had a commercial partnership.
Hotstar did not respond to multiple requests for comment in 2017. Hotstar did not respond to multiple requests for comment on the recent controversy.

Disney debuts its streaming service in India for $20 a year

Tilting Point acquires mobile game Star Trek Timelines

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Tilting Point announced this morning that it has acquired Star Trek Timelines, a free-to-play character collection game, from the game’s developer Disruptor Beam. It has also hired Disruptor Beam team members to create a new studio, Wicked Realm Games.
This follows Disruptor Beam‘s shuttering of its other titles, Game of Thrones Ascent and The Walking Dead: March to War. Moving forward, the company says it will be focused on its Disruptor Engine tools for mobile game development and operations.
Tilting Point, meanwhile, had previously acquired the game Languinis and the monetization startup Gondola, but President Samir El Agili told me that this is the first time the company has acquired both a game and the development team behind it. CEO Kevin Segalla described this as an extension of Tilting Point’s “progressive publishing” model, where the company first works with developers on user acquisition, then develops a deeper business relationship over time.
In fact, Timelines — which Tilting Point says has been downloaded 8 million times and earned over $100 million — was one of the first games supported by the company’s user acquisition fund. And through those efforts, the Tilting Point team came to believe that there’s still plenty of opportunity for growth.
“We spent a good amount of time over the past year-and-a-half to two years helping the team scale the game to success, helping them bring a user to the game using our ability to do user acquisition, as well as improving the game itself in terms of our operations,” El Agili said. “What we have seen over this time is that Star Trek Timelines is a very impressive game, its users are very sticky.”
He noted that Tilting Point is increasing the size of the team working on Timelines from nine at Disruptor Beam to 19 at Wicked Realm Games, which will be led by Disruptor Beam’s former CTO David Cham.
The studio, El Agili said, will be “100% integrated from a financial standpoint, but they’re still going to be very independent in the way they operate.” And while Wicked Realm will be focused on Timelines for the near future, there are “more ideas that we can build with them.”
Segalla also said that as a result of the deal, Tilting Point is essentially becoming the first Disruptor Engine customer.
“Tilting Point has been a great partner to us and have proven that they care about the game and its community and there’s no one better to take Star Trek Timelines to the next level,” said Disruptor Beam CEO Jon Radoff in a statement. “We are also excited that Tilting Point will be one of our first live customers for our live-ops technology and that we will be continuing our working relationship.”

Tilting Point acquires game monetization startup Gondola

Tilting Point acquires mobile game Star Trek Timelines

Daily Crunch: HQ Trivia is dead

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The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.
1. HQ Trivia shuts down after acquisition falls through
HQ Trivia is dead. On Valentine’s Day, the company laid off its full team of 25. The company had a deal in the works to be acquired, but the buyer pulled out and the investors aren’t willing to fund it any longer, according to a statement from CEO and co-founder Rus Yusupov.
At least the game went out with a bonkers finale, where the hosts cursed, sprayed champagne, threatened to defecate on the homes of trolls in the chat window and begged for new jobs.
2. Living with the Samsung Galaxy Z Flip
Brian Heater says he enjoyed his (admittedly brief) time with the Galaxy Z Flip. In fact, in many ways, it’s exactly the device that Samsung’s original foldable should have been.
3. Google ends its free Wi-Fi program Station
Google is winding down Google Station, a program where it worked with partners to bring free Wi-Fi to more than 400 railway stations in India and “thousands” of other public places in several additional pockets of the world.
4. Facebook pushes EU for dilute and fuzzy internet content rules
“I do think that there should be regulation on harmful content,” said CEO Mark Zuckerberg during a Q&A session at the Munich Security Conference. He then suggested that Facebook should fall “somewhere in between” media and telco regulation.
5. Is tech socialism really on the rise?
In the second part of our interview with writer/ethicist Ben Tarnoff, he goes in-depth on the relationship between socialism and technology. (Extra Crunch membership required.)
6. Oyo’s revenue surged in FY19, but loss widened, too
Budget-lodging startup Oyo on Monday reported a loss of $335 million on $951 million revenue globally for the financial year ending March 31, 2019, and pledged to cut down on its spending as the India-headquartered firm grows cautious about its aggressive expansion. (Yes, it seems a bit late to be talking about earnings from 2018-19, but that’s how Indian finance law works.)
7. This week’s TechCrunch podcasts
The latest full episode of Equity discusses a big funding round for meditation app Headspace, while its Monday news roundup looks at global growth concerns due to coronavirus. And over at Original Content, we’ve got a review of “Mythic Quest,” the video game-focused comedy on Apple TV+.

Daily Crunch: HQ Trivia is dead

FTC votes to review influencer marketing rules & penalties

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Undisclosed influencer marketing posts on social media should trigger financial penalties, according to a statement released today by the Federal Trade Commission’s Rohit Chopra. The FTC has voted 5-0 to approve a Federal Register notice calling for public comments on questions related to whether The Endorsement Guides for advertising need to be updated.
“When companies launder advertising by paying an influencer to pretend that their endorsement or review is untainted by a financial relationship, this is illegal payola,” Chopra writes. “The FTC will need to determine whether to create new requirements for social media platforms and advertisers and whether to activate civil penalty liability.”
Currently the non-binding Endorsement Guides stipulate that “when there is a connection between an endorser and a seller of an advertised product that could affect the weight or credibility of the endorsement, the connection must be clearly and conspicuously disclosed.” In the case of social media, that means creators need to note their post is part of an “ad,” “sponsored” content or “paid partnership.”
But Chopra wants the FTC to consider making those rules official by “Codifying elements of the existing endorsement guides into formal rules so that violators can be liable for civil penalties under Section 5(m)(1)(A) and liable for damages under Section 19.” He cites weak enforcement to date, noting that in the case of department store Lord & Taylor not insisting 50 paid influencers specify their posts were sponsored, “the Commission settled the matter for no customer refunds, no forfeiture of ill-gotten gains, no notice to consumers, no deletion of wrongfully obtained personal data, and no findings or admission of liability.”

Strangely, Chopra fixates on Instagram’s Branded Content Ads that let marketers pay to turn posts by influencers tagging brands into ads. However, these ads include a clear “Sponsored. Paid partnership with [brand]” and seem to meet all necessary disclosure requirements. He also mentions concerns about sponcon on YouTube and TikTok.
Additional targets of the FTC’s review will be use of fake or incentivized reviews. It’s seeking public comment on whether free or discounted products influence reviews and should require disclosure, how to handle affiliate links and whether warnings should be posted by advertisers or review sites about incentivized reviews. It also wants to know about how influencer marketing affects and is understood by children.
Chopra wisely suggests the FTC focus on the platforms and advertisers that are earning tons of money from potentially undisclosed influencer marketing, rather than the smaller influencers themselves who might not be as well versed in the law and are just trying to hustle. “When individual influencers are able to post about their interests to earn extra money on the side, this is not a cause for major concern,” he writes, but “when we do not hold lawbreaking companies accountable, this harms every honest business looking to compete fairly.”

While many of the social media platforms have moved to self-police with rules about revealing paid partnerships, there remain gray areas around incentives like free clothes or discount rates. Codifying what constitutes incentivized endorsement, formally demanding social media platforms to implement policies and features for disclosure and making influencer marketing contracts state that participation must be disclosed would all be sensible updates.
Society has enough trouble with misinformation on the internet, from trolls to election meddlers. They should at least be able to trust that if someone says they love their new jacket, they didn’t secretly get paid for it.

FTC votes to review influencer marketing rules & penalties

Netflix begins streaming in AV1 on Android

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Netflix announced this week that it has started to stream titles in AV1 on Android in what could significantly help the two-year-old media codec gain wider adoption.
The world’s biggest streaming giant said on Wednesday that by switching from Google’s VP9 — which it previously used on Android — to AV1, its compression efficiency has gone up by 20%.
At the moment, only “select titles” are available to stream in AV1 for subscribers “who wish to reduce their cellular data usage by enabling the ‘Save Data’ feature,” the American firm said.
Netflix hasn’t shared much about the benefit AV1 will provide to customers, but the new media codec’s acceptance nonetheless sends a message by itself.
Tech giants, including Google, have spent years developing and improving media codecs as consumption of data skyrocketed and low-cost devices began to sell like hotcakes. But they just can’t seem to settle on one media codec and universally support it.
Think of Safari and YouTube, for instance. You can’t stream YouTube videos in 4K resolution on Safari, because Apple’s browser does not support Google’s VP9. And Google does not support HEVC for 4K videos on YouTube.
AV1 is supposed to be the savior media codec that gets universal support. It’s royalty-free and it works atop of open-source dav1d decoder that has been built by VideoLAN, best known for its widely popular media player VLC and FFmpeg communities. It is sponsored by the Alliance for Open Media.
Who are the members of Alliance for Open Media? Nearly all the big guys: Apple, Google, Amazon, Netflix, Nvidia, ARM, Facebook, Microsoft, Mozilla, Samsung and Tencent, among others.
But that’s not to say there aren’t roadblocks in the adoption of AV1. Compared to HEVC — the format that AV1 is supposed to replace in popularity — encoding in AV1 was noticeably slower a year ago, as per some benchmark tests.
Adoption of AV1 by various browsers, according to analytics firm StatCounter. Safari is yet to support it.
Netflix’s announcement suggests that things have improved. The streaming giant said its goal is to support AV1 on all of its platforms. “In the spirit of making AV1 widely available, we are sponsoring an open-source effort to optimize 10-bit performance further and make these gains available to all,” it said in a blog post.

Netflix begins streaming in AV1 on Android