Telecom Operators in India Boost Content Spending in FY25, Jio Leads the Way

Indian telecom operators Jio Platforms, Airtel, and Vodafone Idea collectively spent ₹1,676 crore on content in FY25, a rise from ₹1,335 crore in FY24. Jio Platforms' content costs surged 153% to ₹915 crore, while Airtel's standalone content costs fell to ₹529 crore, and Vodafone Idea cut its spend to ₹232 crore. Experts attribute the variation in spending to a two-track approach in the sector, with Jio focusing on premium sports and entertainment, and Airtel and Vodafone Idea prioritizing cost management through performance-linked agreements.

Indian telecom operators Jio Platforms, Bharti Airtel, and Vodafone Idea collectively spent ₹1,676 crore on content in FY25, marking a significant increase from the ₹1,335 crore spent in FY24. This surge in content expenditure highlights the competitive landscape and strategic priorities within the sector.

Jio Platforms, the largest player, saw its content costs surge by 153% to ₹915 crore. This significant increase can be attributed to Jio's focus on premium sports and entertainment content, which has been a key driver of its growth. In contrast, Bharti Airtel's standalone content costs fell to ₹529 crore, while Vodafone Idea reduced its spend to ₹232 crore. Experts attribute this variation to a two-track approach within the sector, where Jio is prioritizing premium content to enhance its subscriber base and market share, while Airtel and Vodafone Idea are focusing on cost management through performance-linked agreements.

The rising content expenditure reflects the intense competition in the Indian telecom market, where operators are continually seeking to differentiate their offerings and attract and retain customers. As of September 2024, India's total number of internet subscribers grew marginally to 971.50 million, indicating a robust market for content services.

The Government of India's National Digital Communications Policy aims to invest US$ 100 billion in the telecommunications sector by 2022, providing a supportive environment for growth and innovation. This policy, along with the 100% foreign direct investment cap in the telecom sector, is expected to drive further investment and development in the sector.

References:
[1] https://www.ibef.org/industry/indian-telecommunications-industry-analysis-presentation
[2] https://www.business-standard.com/companies/news/airtel-discussions-with-govt-on-agr-dues-to-equity-conversion-125080601487_1.html