Watching movies and web series has become an integral part of our lives since the commencement of Jio in the year 2016 data costs became cheaper and paved a new way for Entertainment many people started consuming data more than water. Either to watch a movie/web series for the entire duration or to watch a comedy scene or an action sequence people run towards OTT platforms to have a watch.
Diving deep into the topic, OTT stands for "over-the-top", and to access it all we need to have is a device (Mobile/Laptop/Desktop) with a proper network and a subscription to the particular OTT Platform. Some of the major OTT platforms in India are Disney+Hotstar (2015-present), Sonyliv (2013-present), Amazon Prime Video (2016-Present), Netflix (2016-present) and the first OTT platform in India was BIGFlix by Reliance. Recently Shah Rukh Khan announced his entry to the OTT platform with SRK+.
Revenue models of OTT platforms:
1. SVOD: Subscription Video on Demand model demands customers to pay money to watch a video on the OTT platform,
Ex: Prime Video, Netflix.
2. AVOD: Advertising Video on Demand model demands no money from the viewers to watch a movie or web series, instead they play the advertisement videos of many brands thus funding their OTT platforms,
Ex: MX player.
3. Hybrid Model: Combination of both SVOD and AVOD models where the OTT platform provides paid content and free content for the viewers and also generates income through advertisements and paid content.
Ex: Hotstar and ZEE5.
4. TVOD: Transaction video on demand has two options Electronic sell-through model(EST) where the user gets access to content and the Download to rent model (DTR) where the user can rent the content on a rental basis (Temporary) by paying rent.
Impact of Covid 19 on OTT platforms:
The whole world has stopped with the carnage of Covid 19, and many countries including India have gone under lockdown where people are stuck together in their homes and spent their time on OTTs as it became a one-stop destination for all the entertainment needs and through this, OTT platforms became a reliable source of entertainment throughout the Covid 19 pandemic. Several reports stated the amount of time spent on OTTs has increased by 2-3 hours and the total subscriptions of overall OTTs put together have increased from 32 million (2019) to 62 million (2020) as covid-19 has played a significant role in the mass adoption of OTT platforms.
Talking about the consumer perspective the attitude of Indian youth has changed as they found regional content (Mirzapur, paatal lok, special ops) are also good on OTT platforms and this made OTT platforms produce regional content too which is a very good and promising sign for content creators as they got a platform to showcase their talent on worldwide accepted platforms.
Generation of Content on OTTs:
For Entertainment all we need is good content to watch, before the commencement of OTTs people had only one option that is watching new movies in Theaters and old ones on Television and the scenario has changed with the arrival of OTTs.
Self Generation: OTT platforms on their own produce movies and web series and later on they stream the content (movies and web series) on their own OTT platforms.
Ex: Netflix produces content under the name of Netflix originals like Money heist, All of us are dead, squid game, and much more same with other OTT platforms too.
Purchasing Broadcasting Rights: OTT platforms buy streaming rights from production houses and telecast them on their platforms
Ex: Whenever a movie's theatrical run is completed OTT platforms release the movie on their platform movies like the Baahubali series on Hotstar, Dangal on Netflix, and KGF on prime are examples of this kind of approach.
OTT platforms a boon for Production houses:
For example, a movie was made with a budget of 50 crore and the production house on its own released it in theatres due to some reasons the movie failed to impress the audience and made a loss of 10 crores, now the production house sells the streaming rights to any of the major OTT platforms for a reasonable price such that loss can be covered up to some extent. In this way, OTT platforms help the production houses.
During the Covid-19 pandemic, many movies skipped the theatrical release and sold the streaming rights to OTT platforms thus bringing advantage to the production houses as people were denied to come out of their homes to watch movies in theatres.
Role of JIO as a Catalyst:
With the entrance of Jio in the Telecom sector data costs have become affordable and this revolution made people consume more and more data without the price tag headache, with low internet speeds people didn't show much interest to subscribe OTT platforms, thanks to Jio for bringing 4G network services with affordable prices.
Impact of Jio Fiber on the OTT Industry:
Having a Jio fiber in your home paves the way to all the major OTT platforms not only OTTs' it also provides wifi facility to the household having a Jio fiber connection. So Jio fiber acts as a distribution channel for all the major OTT platforms across the country this is another revolution that Jio has bought in the entertainment sector.
Rivalry beyond lights, Camera and Action:
The majority of the people think about Movies and Web series when the term OTT is stuck in their mind, but OTTs are not limited to movies and web series OTT platforms are extending their competitiveness in the field of sports too. Talking about the Indian perspective the most admired sport in India is Cricket and to watch live cricket we have only three options i.e., going to the stadium, watching it on Television, and on Hotstar. According to research work done by London-based Omdia's Hotstar is having a major market share of 41% followed by Eros Now with 24% and at third place stands prime video with 9% market share followed by Netflix with 7% market share. The main reason Disney plus Hotstar has a major market share is because of the Indian Premier League (IPL), it is the only OTT platform that has got rights to telecast IPL and International cricket matches played by the Indian Cricket team (Including ICC Events). In response to this Amazon prime video has bought the streaming rights of all the international matches (ODI, T20, and Test) played in Newzeland, whereas sony liv has got the rights to telecast Big Bash League(BBL), Pakistan super league(PSL).
Road A Head:
Author Details:
Name: Sai Krishna
Batch: 2021-23
LinkedIn: www.linkedin.com/in/saikrishnak1998
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