The OTT platform or Over the Top platform refers to a platform or an online video library where anyone can access various audio-visual content via internet without using satellite broadcasting.
A recent report titled “Global Entertainment and Media Outlook 2020-2024” by PricewaterhouseCoopers (PcW) a multinational professional services network of firms in 155 countries delivering assurance, advisory and tax services states: “India holds the most potential of any market in the world and its breakneck rate of growth will see total OTT video revenue overtake South Korea, Germany and Australia to jump to be the sixth-largest market in 2024”.
“Our research shows that India will be the fastest-growing entertainment and media market globally in terms of pure consumer revenue. Over the next five years, the outlook remains highly positive for digital led segments such as OTT, Internet Advertising, Online Gaming, and Music & Podcasts that were perfectly positioned to meet consumers where they are in 2020 – predominantly at home and online. However, E&M companies simultaneously have to prepare to meet them where they will be two years from now. They will need to build and maintain direct-to-consumer relationships, offer enough differentiation or scale to compete, and unlock greater value using the right technologies.”
Subscription VOD among OTT. Image Source: PwC
Reasons for OTT growth:
There are many reasons for the rapid growth of OTT platforms in India in recent times. The closure of the cinemas due to the pandemic caused by COVID-19 since March 2020 has popularized the OTT among people of all strata. The availability of cheap mobile data and affordable smartphones, buttressed with boredom due to the lockdown, changed the game for the OTT industry. Amazon Prime better known for web series like “Mirzapur” and “Family Man” has seen an increase of 80% in ‘Prime members’ in the 3rd quarter of 2020. Netflix, a platform popular for international programs reached 16 million subscribers during the three months of the lockdown. MX Player another upcoming platform registered 141 million unique visitors during the period.
So, when the cinema halls were closed and the shooting of films, TV Serials was arrested, the only way for producers to survive was to launch their content online through the OTT Platforms. Some high budget A-list movies were also released on the OTT directly like Salman Khan starrer Radhe, Varun Dhawan starrer Coolie No. 1, Jahnvi Kapoor’s Gunjan Saxena, Sushant Singh Rajput’s last movie Dil Bechara, Amitabh Bachchan starrer Gulabo Sitabo and many more.
Films on OTT. Image source: The Tribune
“While some films like Radhe or Gulabo Sitabo did get good money, recovering their cost and making some profit, they actually flopped,” says film critic Ajit Rai. “Though films on OTT is still a developing model, some platforms like MX Player are currently working on a revenue-sharing basis, but one wonders if they can ever replicate something like a Baahubali’s success in cinemas,” adds Rai.
“Now I can watch my shows on my laptop or mobile phone after my study hours and don’t have to watch according to the TV broadcasting time and that too without any advertisement” states college student Sumit Mukherjee.
The choice and the convenience that OTT platforms gives separates it from standard TV programs and broadcasting. The OTT platforms are not broadcasted like television programs on a specific time schedule, rather they are streamed via internet. The user can pause, rewind, fast forward and can watch their shows at their own pace. Anybody can watch anywhere, anytime, even on the go while traveling. Another advantage of the OTT platform is that you can view any program without commercial advertising. This gives the user a different experience to watch any video content in a limited time, than viewing any program on TV and spending more time watching advertisements than the content itself.
Film director Kookie Gulati’s ‘The Big Bull‘ was released in April 2021 on Disney-Hotstar. An informal assessment reveals that the film was watched by 40 million people, a figure that makes Gulati happy. “If my film has made it to as many as four-crore people, as a director I am happy. I guess producers are happy at the response too.”
Challenges to the OTT sector:
OTT platforms requires an internet connection. The biggest concerns of OTT platforms are security and privacy just like any website or app. As it is driven by the internet, there are concerns like misuse of user data.
OTT services often face technological challenges such as trans-coding or streaming glitches and device incompatibility.
As the OTT platforms operate independently they have no regulatory body to control or censor the content streamed. There are no age limitations for viewership either and hence children might get exposed to unsuitable content. The need for an unbiased regulatory body is the need of the hour.
Sustaining the OTT Revolution with Technology. Image Source: Nasscom
“While many films have gone the OTT route like Shakuntala Devi, Gulabo Sitabo, Coolie No 1 and Sherni, there is no yardstick on what can fetch how much. The producers who cannot hold films are taking that route given the uncertainty around the opening of cinemas. However, any rumours like that around Liger are bad for the film,” says film critic Taran Adarsh.
The future of the OTT platforms in India and in the whole world is very bright. With the advancement of technologies like artificial intelligence and big data analytics users can be served customized content. The 5G technology shall boost data speed and present a new experience to the users with higher video quality. China, South Korea and Japan are already experiencing the 5G network and India may be the fourth country to join the list in Asia.
India has already emerged as the fastest growing market for OTT platforms in the world and according to the PwC report, it is well on it’s way to become one of the largest market for OTT content by 2024.
Subscription VOD among OTT. Image Source: PwC
