The Indian Digital Media Industry Foundation (IDMIF), representing notable platforms such as Disney+ Hotstar, Zee5, and Voot, has taken a significant step by filing a complaint with the Competition Commission of India (CCI) against Google’s App Store billing policy. While the move has been focused on larger streaming services, it inadvertently highlights the grave risks smaller and niche regional platforms could face due to their limited financial resources and lack of leverage in challenging the system.
The concern voiced by regional homegrown service providers goes beyond just the Android user base. It extends to individuals who may not be tech-savvy, expressing worries about potential scams that could arise if in-app purchases were to be discontinued. These platforms offer services to a diverse audience, including those who might not be comfortable with various payment options.
Previously, under Google’s Billing and Payments System, streaming platforms were required to pay fees ranging from 15% to 30%. However, the new policy has lowered these fees from 11% to 26%. While this may seem like a step towards addressing the issue, it doesn’t eliminate the concerns of smaller platforms struggling to cope with the financial implications. Because a few months ago, it was merely 4%.
The predicament isn’t unique to India. Global players, like Audible, owned by Amazon, have refrained from allowing in-app content purchases on Android or iOS platforms in the country due to similar commission-related worries. The challenges faced by smaller platforms stand in stark contrast to larger giants like Netflix and Amazon Prime Video, whose massive audience bases are more accustomed to making payments on external websites.
Users in India prefer wallets, UPI, or Internet banking. But Google prefers cards.
In the end, the debate surrounding Google’s billing policy and its impact on small OTT players in India underscores the need for a comprehensive approach that considers both financial sustainability and user experience.