OTT 2020: Will it; Won’t it?
Deepak Kumar, Executive Vice President, Ambient OOH, talks about the increasing competition in the OTT arena. He also shares his thoughts on the fact that with the content being streamed on cable/DTH which is now also accessible on handheld devices, will advertising on cable /DTH lose its relevance or not, Have a read!
In the digital world there is no dearth of content and there is no dearth of content providers either. Just when we thought that the competition in the OTT arena cannot get anymore fierce, Reliance Jio dropped the announcement of premiering new Bollywood releases parallelly on their platforms. With this new development, will 2020 redefine where, when and what the consumers watch?
Very recently I installed a landline at home courtesy a new broadband connection. With curiosity in her eyes and apprehension on her face, my seven-year-old daughter questioned on how did we get a connection whilst travelling? Why would we purchase a device that ties you down to one place and does not even offer a video call or message? Coming from a generation that has survived fixed lines, PCO, Pager, Keypad mobiles to Smart Phones, I understand the child’s scepticism but for me personally it’s been a fascinating experience to witness this evolution.
Fast-forwarding to the present, smartphones have introduced new age behaviour and applications that help us display dual lives. Additionally, it also transformed the meaning of entertainment and redefined viewing patterns. I distinctly remember when TV channels introduced their apps, most people predicted that it wouldn’t sustain in the long run considering the discomfort of watching content on a small screen, the data pricing and the connectivity issues. However, the opinions changed with the launch of 4G while the price war ensured data access to all consumers.
Soon came the streaming services like Prime and Netflix. Their strategy of launching web series/shows with Indian faces made these platforms more likeable by the consumers in the country. The pricing plans coupled with free subscription offers by mobile companies further amplified the trend. India’s favourite sport, Cricket changed the fortune of Hotstar by bringing a new segment of TG that’s on the move and still connected. Advertisers saw the opportunities and lapped it up.
With over ten OTT platforms to choose from consumers are truly the proverbial ‘King’. With the impending launch of Apple TV and Disney, we will witness a further alteration within the OTT landscape. Without a doubt price will play a critical role, but the content will define the loyalties.
With content being streamed on cable/DTH which is now also accessible on handheld devices, will advertising on cable /DTH lose its relevance? As a media professional, I have observed the industry over the years and I can certainly say that this will create a new segment of TG. This approach will compel brands and their agencies to slice and prioritise the ever-reducing budget to constantly evolving consumer segments, the focus will move to relevance.
Jio’s announcement to release the latest movies on its platforms created uneasiness among the cinema chain owners. Will this see a reduction in footfalls at the cinemas, will the ticket price change to retain the consumer base, these are some of the concerns around the announcement. While people have already expressed their opinions, the first few releases will give us an idea on how the market will shape up. In my view, I still believe that the impact a movie like Bahubali and Infinity War created on a silver screen cannot be compared to a TV or a hand-held device. But consumers will finally make the basis of their choice their preference and the market will have to adapt once again.
With the expansion and improvement of OTT content, we often hear people saying, “I have not switched on my TV or I haven’t visited a cinema hall in ages”, but as brand managers, we continue to invest in these mediums. From a consumer perspective, in India entertainment is a synonym to family time and going out to the movies is a popular family activity. Another great comparison would be of the days where digital was an emerging concept and we heard people saying, “The newspaper will die.” However, today the newspaper and digital are not only active in their own space but both mediums have integrated to form a 360-degree campaign for brands.
This means that there are more than enough consumers to fit into all categories of media consumption. Consumers crave for a variety in the consumption experience. Hence all formats will coexist and even integrate with an objective of evolving entertainment to a new level.