How Does iflix Work? Iflix Business Model: Explore to know Everything about On-Demand Video Platform
iflix is one of the most famous subscription video-on-demand (VoD) services related to the emerging markets. Its headquarters is at Kuala Lumpur, Malaysia, and now operating successfully in more than 25 countries today with more than 150 content partnerships and numerous telco partnerships. Learn to know how does Iflix works? And also explore the Iflix business model to know how it raises revenue.
The platform self-funded through their own fund and also from the Catcha Group for $30 million. The platform subscription number reached around 200,000 subscribers during Nov 2015, this number increased continuously as more and more users prefer to use the platform on a regular basis.
Iflix is estimated to make around US$300 million with more than 5 million subscribers during April 2017 and claimed to have around 15 million subscribers, which marketed their growing service by 250% since January. Before exploring the Iflix business model and its working, learn how it started their journey and bagged massive success later on.
Initial Strategy of Iflix: Explore to Know How Iflix Works?
Iflix was successfully launched during 2015, they acquired customers using the usual way like billboards, advertisements, partnerships, and so on. Undoubtedly they do not work out very well, as most people have alternative services and other internet-based services. Some of the free video streaming is provided by internet providers, they mainly focus on providing local content with selected Hollywood as well as western content. They also provide various services at a lower cost, payable through phone calls directly.
iflix vs. Netflix: Which Streaming is Best to Choose!
Undoubtedly Netflix is one of the popular streaming platforms with 182 million paying streaming subscribers globally. It beats Iflix, especially when it comes to western content, while Iflix beats Netflix when it comes to regional content. In simple terms, Iflix lacks new western content at the moment.
Netflix is trying to improve its service continuously, in the same manner, Iflix is also trying to improve its service by providing excellent service to customers. It is opting for new strategies and business models, helping them to enhance their customer base and profit to a great extent in lesser time.
Explore to Know How Does Iflix Make Money?
Recently the CEO responded that Iflix’s business model was superficial. He also added that they must move towards advertising for making more revenues. Well, this is one of the lessons learned that Western models do not fit to the rest of the world!
While writing about the same, they stated that the free tier model is a perfect match for most of the businesses compared to the premium content model. Learn to know how Iflix makes money by considering opting for a new business model to cater to all the needs of its customers in the most effective way of ensuring their satisfaction.
Iflix Recent Strategy: Learn to Know How Iflix Work & Makes Money
B2B partnerships have gained huge popularity among businesses worldwide, and Iflix is not an exceptional case in adoption. The business giant has made partnerships with telcos to introduce and implement the subscriber base quickly. Now you might be thinking how much the subscriber base has grown since then?
The Iflix CEO concluded that their business model doesn’t compete with Netflix and further added that they are just focusing on replacing the DVD market in emerging markets and trying to build their presence over smartphones. Seriously, what a peculiar strategy!
However, it also raised another question: what percentage of the internet streaming population really aims to stream local content? For instance, if we go to Netflix Indonesia, then it is quite similar to Netflix Sri Lanka, but When you explore Iflix Indonesia and Iflix Sri Lanka, then you will find that both are different because they are local. Iflix Indonesia possesses more than 50% of Indonesian content, whereas Iflix Sri Lanka has quite a large percentage of regional and local content, while Netflix is predominantly and offers English content.
Pricing Model of Iflix
Iflix provides free content and also “VIP” content. When any of the people want to leverage Iflix VIP content, then they are requested to pay subscription monthly (RM10/mo) or have to pay yearly (RM8/mo), they also have to pay through the phone bills and credit cards.
Iflix keeps on changing its price according to the promotions, its subscription was around RM5/mo at one point or RM30 for 12 months. Their marketing team is very aggressive and has the flexibility to offer huge discounts, they even offer free access for a few months for newbies.
While Iflix claims to have more than 15 million subscribers, there are certain changes that people might be not subscribing to the channels at all. Thus are known to subscribe to customers on their behalf via their mobile carrier accounts where Iflix gives out free accounts.
Do you want to start iflix like mobile apps and websites? Get in touch with us to know more.
Iflix claimed that it has five million registered users during March but later didn’t have to update on the same. It instead hailed “tremendous growth” that includes around 3X increase in subscriber numbers whereas 2X rise in user engagement during the past years. Its revenue is expected to jump and reach around 230% year-on-year, but it is keeping quiet on raw figures. Having a 3X increase in subscribers and more than 2.3X revenue growth basically shows that there are very few customers that own a free account.
Popularity Indicators and Revenue Model of Iflix
If only 30% of the 5m subscribers pay for their services, then their revenues are estimated to reach around RM15m a year at full price, while it is expected to get doubled to 10m subscribers at full price, it is expected that the platform makes around RM100m. It’s probably safe to assume that they are currently at RM15 to 100m revenues (that is US$3-25m revenues), which is not great for companies that raised around $300M, but as they have a longer-term picture to deal out, time will tell us everything.
Alongside pre-roll ads, Iflix also offers product placement options, which are only for local and regional content, plus in-app ads. Moreover, Iflix now wants to diversify its risk of small revenues by running multiple types of ads. Let’s explore some clear calculation to understand this in and also to know Iflix is making money and how much they are earning!
- Youtube’s revenue per thousand impressions is expected to reach around $3 or RM12.
- It is assumed that people watch Iflix ads 365 times a year which is estimated to make around 3.65 trillion impressions for 10m subscribers.
- This works impressively out to about $11m or RM44m revenues.
Check the Iflix Valuation to Know Much Does it Earns
Previous investment of Iflix was valued at around $90m at $500M while it experienced an increase of $133m. It was found that around 33% of its equity was given away to match $400m valuation, hence it was estimated to reach around 16%, which would be very favorable to them at $800m.
Future of Iflix: How it Will Match the Present Demands!
Netflix’s huge spending on original content has helped them to accrue $20.54 billion. The company is spending around $6 billion on original content just this year, while an undetermined budget was planned and spent on licensing fees for programs from TV studios. It expected to measure a huge increase in the net cash outflow this year to $2.5 billion, which is quite huge from $1.7 billion, and the company expects “to be free-cash-flow negative for many years.”
When you compare Netflix with Iflix, you will definitely measure that there are some viable strategies that can be noted in its business model and working on the platform. Many models, as well as strategy, must be scrapped to leverage excellent outcomes.
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