The Online Streaming Wars, E01: The Beginning
Can’t stop binging away the lockdown? Or, forced to watch that one web series because of peer pressure or the online buzz? We feel you.
Over the years the entertainment and media industry has been revolutionized with the emergence of OTT platforms. OTT (short for Over The Top) refers to content relayed to users over the internet. Basically, it is the collective word used for Netflix, Amazon’s Prime Video, Hotstar, YouTube, etc.
In this three-part series, we will take you through the evolution of OTT, the brewing War amongst the players, and finally, the showdown - the ultimate champion that emerges from this War.
Binge on.
E01: The Beginning
For India, 2018-19 was an exciting year (as far as online streaming is concerned).
The year saw an influx of content with various offerings across platforms. For the first time, Indian OTT market looked promising and ever booming. So much so, that the Indian market has grown faster than other much-developed markets.
The competition in India is heating up.
There are 40+ players competing in the cluttered OTT market, vying for your attention. How did we reach this point where India now counts as one of the most attractive markets in the world for OTT?
Jio flooding the Indian market with dirt-cheap data has significantly altered consumer behaviour. More people now have access to a smartphone and about a GB of data to spare a day, and they are hungry for content. What was a bottleneck four years ago has become an enabler today.
All hail, Ambani!
In a survey conducted by Vidooly, a few interesting consumer behaviour trends were reported:
1. (Freeloaders) There’s a largely untapped market gaining access to the content without a paid subscription. The survey reveals that 65% of the respondents who did not opt for paid subscriptions had access to these platforms (yes, they know you watched Sacred Games without having a Netflix subscription).
2. (Tie-ups with telcos) Audiences are gaining access to OTT content through various sources of subscription. The players are devising different ways to lure consumers – tie-ups with telecom companies, provision of multiple screens to encourage pooled-in subscriptions, giving limited free content access, etc.
~68% of respondents were found to have gained subscription through telco services, while ~16% confessed to having opted for pooled-in subscriptions (sharing with friends).
3. (Old ones) With the rise in income and age (34+ years) it was observed that people prefer to watch OTT content more on TV rather than on mobile and laptop. With the increase in age, preference towards watching sports content on OTT increases (seriously, somebody get my Dad off Hotstar. Or buy him a separate subscription. Huh!).
Also, smartphones have become cheaper.
Content made available via smartphones offers a great deal of flexibility. We can now watch shows at our convenience, uninterrupted by ads on the device of our choice. This is a stark contrast to the way the viewing experience was in the television era (where we had to wait for commercials to end, or schedule our day around our favourite TV shows).
Plus, there’s this whole new trend of binging an entire series at a go. Who wants to sit and wait for 7PM every Friday for the next episode of Suits? Our generation needs instant gratification. We like everything super fast.
Today, quality of content occupies the central position for creating a buzz. We millennials are extremely choosy and flirtatious with different platforms. A single series or movie can be a breakthrough. And one disappointment can make us uninstall the app and incessantly tweet about how bad it is.
Not to mention the fact that adult content is freely allowed on these platforms, there’s no hanging disclaimer disrupting your experience every time a person drinks or smokes, and there’s no one dying of gutka or pan masala at the beginning of every show.
However, the concept of a paid subscription is still quite nascent in the market.
Most people are still restricting themselves to either free content or the limited free period that the brand/platform offers. This is the reason why YouTube (which monetises its platform using ads but provides free content) is able to occupy the top position in terms of most hours consumed by the Indian audience.
OTT platforms are hence using penetration strategies by reducing prices to insane levels to lure new customers.
As always, to win Indian hearts, you not only have to deliver great content but deliver it at the cheapest cost possible.
With low stickiness and a rising number of freeloaders, who will be able to hook us?
Who will be able to sustain making binge-worthy content and still make money?
The OTT War has begun. Who will sit on the OTT Throne?
Remember, when you play the game of thrones, you either win, or you die. (Can you hear that awe-inspiring GOT opening music in the background?)
The battle lines have been drawn.
Head on to E02!
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