Entertainment has shifted from movie theaters & television boxes to smart phones with increasing access to the internet over the last few years. This transition has gathered pace and the Cable TV users have declined with increasing OTT Subscribers.
As per TRAI report, Direct to Home (DTH) services had an average active subscriber base of 720 Lakhs subscriber base reported in January – March quarter. This has gone down to 540 Lakhs, in the quarter that ended 30th June 2019. 80% of smartphone users use at least on one OTT platform.
The Fall Of Cable TV: Regulations & More
TRAI had notified the ‘New Regulatory Framework’ for Broadcasting and Cable services, which came into effect on December 29, 2018. Under this notification, the Subscribers / TV Viewers had the freedom to select the television channels of their choice and let the broadcasting company know the same.
But these Subscribers / TV Viewers have been complaining about difficulties in different domains to select from this available choice of channels which led to a 25% fall in subscribers in the April – June quarter. Most consumers reported on average, about 25% increase in their monthly TV bills.
Recently, several Stakeholders sent their responses / comments to TRAI accusing broadcasters of misusing the TRAI’s New Tariff Order.
Shifting Entertainment To On Demand
A RedSeer report said that the overall OTT market in India is estimated to grow 80% from 1700 Lakhs in 2019 to 3000 Lakhs by 2022. This growth can be attributed to the adoption of local content and languages on these platforms making it much more relatable for the Indian audience. These platforms, which work on self-censorship, provide an alternate from the shows and movies available on Television.
The techARC-Unomer report emphasised that OTT entertainment apps have become the most penetrated app category among smartphone users in India after social networking, chatting and ecommerce apps.
However, it has emerged that 74% of the OTT entertainment app users have more than one app installed on their Smartphones. The report noted that this is challenging for the industry as their advertising revenue potential goes down by not owning a higher number of unique users. This is because of the similar apps available across all major platforms, including in VoD category.