Entertainment has become a staple in a consumer’s life. While content is King, the Internet is the vizier, facilitating content on the go to be consumed and enjoyed by users. The recent 5G technology rollout has hinted towards India’s intent to become a global player in the space of 5G interconnectivity and technology, However, Internet penetration continues to be low in India, standing at 48.7%. Fixed broadband subscriptions per 100 inhabitants in India in 2022 stood at a lowly 2.4, as per market intelligence platform, Statista. Moreover, the company claims to have raised three rounds of investment over the tenure of seven years, thereby cumulatively raising approximately $15 million (Rs 120 crore).Excitel claims to be a Rs 600 crore revenue company. In a conversation with BrandWagon Online, Varun Pascricha, chief operating officer, Excitel, talks about how the company is profitable and earnings before interest, taxation, depreciation, and amotisation (EBITDA) positive, besides its strategy of customer acquisition and the marketing plan strategies, among others. (Edited Excerpts)
BrandWagon Online could not verify these numbers at the time of publishing the story.
Over-the-top (OTT) bundling has become popular with telcos as an added incentive for consumers to buy services. How is the bundling of OTT apps going to accelerate the growth of the ecosystem? How has it contributed to the growth of the company?
The evolution of mobile technology has reached a point where individuals can accomplish basic productivity tasks, engage in social media scrolling, send emails, and indulge in entertainment activities. It was evident to us that entertainment would be the primary driver of internet consumption at home, particularly fueling the usage of household TVs. Moreover, entertainment wouldn’t be confined to traditional TV screens but would extend to other devices like tablets and mobile phones.
We made it a priority to position our offerings in the market accordingly and ensure effective communication of the same. Our roadmap focused on providing users with access to essential content from prominent broadcasters such as Sony, Zee, and Colors, among others.
Our aim was to offer users the broadest possible choice in OTT content. We recognised the importance of catering to diverse preferences within households, including those of women, children, and young adults. Excitel’s bundle includes a wide array of offerings, including a cable cutter plan featuring around 500 live channels and 18 OTT apps like Hotstar, Zee5, and Sony, meeting various general entertainment needs.
How is the company differentiating itself from its competitors namely Jio and Airtel?
The Telecom Regulatory Authority of India (TRAI) has adopted a digital-first and internet protocol-based approach towards the industry. Previously, access to entertainment required a set-top box, but a recent TRAI regulation introduced soft authentication, allowing smart TV apps to authenticate certain channels without the need for a physical box. Excitel competes effectively against established players like Jio and Airtel because our network has always been tailored for entertainment and optimised for in-home TV consumption.
Our network infrastructure is on par with the best globally, thanks to the technology brought in by European investors and co-founders. As the third largest player in the sector, we have attracted interest from broadcasters who prefer to collaborate directly with us. Leveraging our partnerships with various OTT aggregators and content broadcasters, we offer consumers highly competitive commercial packages in the market.
While bundling is one part of the business, the company also provides TVs and projectors for customers. As a company how do plan to maintain the momentum?
I understand the potential risks involved in focusing solely on giveaways, but our company’s intention is to assist customers in transitioning to new devices, especially in areas where digital adoption is still evolving. Our strategy revolves around simplifying the ownership experience by bundling services, such as Smart TVs and projectors, into subscription plans. While we offer incentives like freebies, our primary goal is to elevate the viewing experience and promote digital-first entertainment.
We firmly believe that our brand should be synonymous with quality rather than just promotional offers. Our freebies are strategically designed bundles aimed at initiating conversations and empowering users to have control over their content consumption. We continuously take initiatives to support this overarching vision.
From the very beginning, our network was meticulously crafted to support high-quality video consumption, with a focus on leveraging the internet to power entertainment. Our aim is for households to seamlessly stream video services on multiple screens concurrently, driving significant data consumption.
What strategies are being adopted by Excitel to strengthen and expand its OTT partnerships?
Our long-term strategy is centered around becoming the ultimate destination for all entertainment needs. We aim to offer a comprehensive range of content, including linear TV programming available through an app, as well as specialised applications catering to specific interests.
Our vision is straightforward, we intend to expand our partnerships with all major OTT players in the country, as well as niche providers offering unique content such as eSports-based OTT apps. To achieve this, we plan to collaborate with third-party aggregators who will consolidate these offerings into a single platform.
Our strategy comprises three key elements. Firstly, we aim to collaborate with broadcasters to deliver paid TV linear broadcast content over the Internet. Additionally, we seek partnerships with major branded OTT players, including Hotstar, Amazon Prime, Netflix, Zee5, Sony, and others, which collectively hold a significant share of the viewership market. Lastly, we will engage with tech-oriented aggregators to streamline the process for users by consolidating all content into a single app, eliminating the need for users to download multiple apps.
What are the core metrics that Excitel uses to measure the success of its plans beyond initial subscriber acquisition?
I think the primary thing we look at is the net promoter score. The biggest metric is customer satisfaction as measured through net promoter score(NPS) and customer reference. Other than that, technical key performance index (KPIs) are something that we monitor closely. There are engineers to ensure that our service has no downtime, and there is no latency or no lag. We got inspired by Domino’s ‘30 Minutes or Free’ campaign on providing a service guarantee. This is an industry-first. In case there is downtime, we are the only company to commit to a four-hour service level agreement (SLA). We will fix the customer’s connection, within four hours and if the company does not fix it in four hours, we will compensate the customer by giving them an additional day on their validity.
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https://www.financialexpress.com/business/brandwagon-excitels-varun-pasricha-on-the-companys-tryst-with-entertainment-and-its-marketing-strategies-3395659/
