OTT streaming service JioHotstar unveiled its newly launched creator-led offering Sparks to take on platforms such as Instagram, YouTube and Snapchat. JioHotstar has roped in popular digital creators such as Uorfi Javed, Tanmay Bhat, Elvish Yadav, and Ranveer Brar and has announced a content slate of 20 exclusive originals across 10 genres.
Last week, JioHotstar announced that it had crossed 100 million paid subscribers, placing it well ahead of Amazon Prime Video at 20 million and Netflix at 12 million. The platform is looking to replicate its OTT success with Sparks by taking on offerings like Instagram Reels and YouTube Shorts. That is a tall order considering Instagram has a user base of 363 million in India, while YouTube has its largest audience in India at 491 million. Snapchat is decidedly less popular at 202 million.
That said, given Jio’s penchant for disruption, experts say few other players in the country can give these tech giants a run for their money.
According to a Redseer report, India’s short-form video platforms generated revenues of $95-100 million in FY24. With influencer marketing projected to reach $3-4 billion by FY29, the potential for growth and monetisation in this space is huge.
Rajesh Patalia, chief strategy officer at AGENCY09, and dean at ACADEMY09, says with free access and strict content guidelines, JioHotstar has an edge over YouTube and Instagram. “Sparks offers exclusive, premium content that is edgy, socially provocative and highly engaging. It strategically positions the platform to tap into the booming creator economy while leveraging the reach of an OTT powerhouse,” says Patalia. He anticipates Sparks will not only boost JioHotstar’s content discovery but also become a compelling option in the digital entertainment ecosystem.
The JioHotstar offering could be a possible game changer in the country’s $30-billion creator economy. Not only will popular creators like Tanmay Bhat or Ranveer Brar benefit, but as Nikhil Rangnekar, CEO at Interspace Media observes, Sparks could be the boost that small-town emerging creators like Elvish Yadav need in order to make it big.
“Sparks is offering creators the means to raise the quality of their content, possibly through better shooting infrastructure, scriptwriters and directors, subtly crafted brand integrations, etc. With this initiative, Jio will be able to divert advertising money from the social media platforms to Sparks,” states Rangnekar.
However, Harikrishnan Pillai, CEO & co-founder, TheSmallBigIdea, stresses the need for some standout shows to draw big advertiser monies. “Typically, of all the shows launched, just around 10% end up becoming really big in scale. These will be the ones drawing in large numbers and serve as compelling use cases for advertisers to believe that Sparks works as a content offering,” says Pillai.
Then there is the targeting. To capture the elusive GenZ consumer that usually spends their time on social media, Pillai adds that Sparks will need to establish a few flagship successes.
Another big challenge that Sparks will have to address is consumer habits. Raghav Bagai, co-founder of SW Network points out that often, consumers just instinctively head to their Instagram or YouTube app whenever they are bored. “Sparks needs to create a reason for users to come back, whether through better discovery, unique content formats, or exclusive creator experiences. Breaking the habits of an audience already loyal to YouTube and Instagram will be challenging,” says Bagai.
While it may not immediately challenge the established social media giants, he expects that Sparks could carve out a niche for itself in the digital entertainment space if it successfully attracts the creator economy and GenZ audiences.