Netflix and Hotstar are changing the way we watch TV shows at home
Here people have the choice to not just select their shows or films but also when they want to watch them. The service is not restricted to televisions. It goes beyond that, into mobile phones and computers as well.
- Sep 18, 2016,
- Updated Sep 18, 2016 10:42 AM IST
Unless the universe feels especially generous, the shows and films we want to watch on television often evade us. It's our professional and personal lives that dictate what we watch at home. If we are lucky, we catch something that piques our interest. If not, it becomes just another source of noise around us. Here is where the third option, called over-the-top (OTT) content, comes into the picture.
Here people have the choice to not just select their shows or films but also when they want to watch them. The service is not restricted to televisions. It goes beyond that, into mobile phones and computers as well. Anyone with a strong (and uninterrupted) Internet connection can avail this option.
The year 2016 has seen a lot of activity on this front with the emergence of Netflix India, Hotstar, Voot and its likes on Indian shores. Even Ekta Kapoor, the "soap queen", is foraying into this world of video on demand. "The urban audience has little time to watch television these days. They are increasingly opting for video on demand. So, why should TV producers cater to the taste of big cities?" Kapoor tells Mail Today. The OTT service, ALT Balaji, will offer original content through subscriptions.
US-based company Netflix, which has been the source of several widely-acclaimed original shows lately, is in the process of upping its game. "In 2016 we plan to spend about $5 billion on programming rights and that include more than 30 new Netflix original series. That's more than one full new season of a series every other week. We're expanding our original film initiative, launching over 10 films exclusively on Netflix in 2016. We've also announced Sacred Games, our first Netflix India Original," says a Netflix official.
While Netflix has reported of 83 million members in the second quarter of 2016 worldwide, Voot (an OTT service of Viacom18) has managed to garner 14 million monthly active users within only four months of being active in the Indian consumer space. Point to note here though is that, unlike Netflix and others, Voot is an ad-supported service and is therefore entirely free. It offers original content as well as both Indian and international shows.
Gaurav Gandhi, chief operating officer of Viacom18 Digital Ventures, points out the edge OTT services have over network television. "The way network television functions is that shows come at a particular time; if you catch it, good but if you don't, you miss the show. The only place to catch up content is online. Also, TV caters to a particular kind of audience. There are certain topics you can do or can't do on television. Digital brings in the option of viewing topics you will never be able to catch on television," he says.
For millenials - who make up the core audience - these services are now also the best option for them to watch international shows and films in the wake of several torrent sites being shut down. Also, adds the Netflix team, "People are willing to pay a fair price for great content, delivered without hassle whenever they want it as opposed to resorting to illegal methods."
Anu Gupta, a schoolteacher who spends `650 on Netflix per month, agrees. "With Netflix, I need not search and open various infected sites. Also, I don't want to waste time in downloading series or movies. The only problem is the limited catalogue. There should be more Bollywood presence, and even more shows on Netflix India."
On the other hand, Rishi Seth, who is the founder of a PR con sulting firm, uses a DNS server to watch the US version of Netflix on his Apple TV. While the subscription cost comes around Rs 600-650 per month, the cost of the DNS server adds an extra Rs 330 into the mix. Seth, nevertheless, is willing to shed a few extra bucks to view a larger catalogue of shows and films.
"I watch network TV once in a while, when I feel like watching the news or a cricket match," he says. "About 90-95 per cent of the shows I watch are through Netflix."
Although Netflix might appear to monopolise the segment, the ocean is big enough for other players as well. The biggest challenge to these OTT service providers is the medium of Internet itself.
"On the consumer experience front," says the Netflix team, "we've spent several years figuring out how to optimise bandwidth usage while delivering the same or better picture quality. This means our videos use less bandwidth, particularly important in countries with connectivity challenges and on mobile networks."
Gandhi adds that for India, specifically, there are three deterrents to the growth of digital media. "The first is data speed, which is often very clogged. But with the introduction of 4G, that is bound to improve. Second is data cost; it's costing too much to consume video on data other than WiFi. It will come down more as competition increases. The third problem is how to consume, and here solution arises in the form of smarphone growth. In the next few years, as smartphone growth happens, data cost decreases and data speed increases, we'll see huge growth in digital media consumption," he says.
With many proclaiming Reliance Jio to be a gamechanger in India's 4G domain, who knows we are already at the precipice of this digital revolution.
Unless the universe feels especially generous, the shows and films we want to watch on television often evade us. It's our professional and personal lives that dictate what we watch at home. If we are lucky, we catch something that piques our interest. If not, it becomes just another source of noise around us. Here is where the third option, called over-the-top (OTT) content, comes into the picture.
Here people have the choice to not just select their shows or films but also when they want to watch them. The service is not restricted to televisions. It goes beyond that, into mobile phones and computers as well. Anyone with a strong (and uninterrupted) Internet connection can avail this option.
The year 2016 has seen a lot of activity on this front with the emergence of Netflix India, Hotstar, Voot and its likes on Indian shores. Even Ekta Kapoor, the "soap queen", is foraying into this world of video on demand. "The urban audience has little time to watch television these days. They are increasingly opting for video on demand. So, why should TV producers cater to the taste of big cities?" Kapoor tells Mail Today. The OTT service, ALT Balaji, will offer original content through subscriptions.
US-based company Netflix, which has been the source of several widely-acclaimed original shows lately, is in the process of upping its game. "In 2016 we plan to spend about $5 billion on programming rights and that include more than 30 new Netflix original series. That's more than one full new season of a series every other week. We're expanding our original film initiative, launching over 10 films exclusively on Netflix in 2016. We've also announced Sacred Games, our first Netflix India Original," says a Netflix official.
While Netflix has reported of 83 million members in the second quarter of 2016 worldwide, Voot (an OTT service of Viacom18) has managed to garner 14 million monthly active users within only four months of being active in the Indian consumer space. Point to note here though is that, unlike Netflix and others, Voot is an ad-supported service and is therefore entirely free. It offers original content as well as both Indian and international shows.
Gaurav Gandhi, chief operating officer of Viacom18 Digital Ventures, points out the edge OTT services have over network television. "The way network television functions is that shows come at a particular time; if you catch it, good but if you don't, you miss the show. The only place to catch up content is online. Also, TV caters to a particular kind of audience. There are certain topics you can do or can't do on television. Digital brings in the option of viewing topics you will never be able to catch on television," he says.
For millenials - who make up the core audience - these services are now also the best option for them to watch international shows and films in the wake of several torrent sites being shut down. Also, adds the Netflix team, "People are willing to pay a fair price for great content, delivered without hassle whenever they want it as opposed to resorting to illegal methods."
Anu Gupta, a schoolteacher who spends `650 on Netflix per month, agrees. "With Netflix, I need not search and open various infected sites. Also, I don't want to waste time in downloading series or movies. The only problem is the limited catalogue. There should be more Bollywood presence, and even more shows on Netflix India."
On the other hand, Rishi Seth, who is the founder of a PR con sulting firm, uses a DNS server to watch the US version of Netflix on his Apple TV. While the subscription cost comes around Rs 600-650 per month, the cost of the DNS server adds an extra Rs 330 into the mix. Seth, nevertheless, is willing to shed a few extra bucks to view a larger catalogue of shows and films.
"I watch network TV once in a while, when I feel like watching the news or a cricket match," he says. "About 90-95 per cent of the shows I watch are through Netflix."
Although Netflix might appear to monopolise the segment, the ocean is big enough for other players as well. The biggest challenge to these OTT service providers is the medium of Internet itself.
"On the consumer experience front," says the Netflix team, "we've spent several years figuring out how to optimise bandwidth usage while delivering the same or better picture quality. This means our videos use less bandwidth, particularly important in countries with connectivity challenges and on mobile networks."
Gandhi adds that for India, specifically, there are three deterrents to the growth of digital media. "The first is data speed, which is often very clogged. But with the introduction of 4G, that is bound to improve. Second is data cost; it's costing too much to consume video on data other than WiFi. It will come down more as competition increases. The third problem is how to consume, and here solution arises in the form of smarphone growth. In the next few years, as smartphone growth happens, data cost decreases and data speed increases, we'll see huge growth in digital media consumption," he says.
With many proclaiming Reliance Jio to be a gamechanger in India's 4G domain, who knows we are already at the precipice of this digital revolution.