OTT Platform vs DTH: How VOD Services Netflix, Amazon Prime, Hotstar Gaining TV Market






Video OTT vs. DTH players: how Netflix, Amazon Prime, Hotstar cornered the Indian market. With the entry of OTT video applications such as Netflix, Amazon Prime and Hotstar in the last two years, the growth of active subscribers of direct television to the home (DTH) has slowed considerably since the former, in addition to bringing more international content , it also packages it with the last domestic content faster than the latter. This, coupled with the fact that the consumer gets more data at a lower price, courtesy of the fierce competition among telecom operators since the arrival of Reliance Jio last year in September, has added to the growth of video OTTs. a-vis DTH.

As an outlook, according to data from the April-June 2017 quarter published by the Telecommunications Regulatory Authority of India (Trai), the active base of DTH subscribers at 65.31 million grew by 7.9% in relation to the last year. The same in April-June 2016 had grown by 52%. By contrast, the 16-player OTT video user base, which stood at 63 million in August 2016, increased to 164 million in August of this year, a phenomenal growth of more than 160%. Obviously, the strong growth of OTT video has a low base but points to a trend that as data becomes cheaper and the penetration of smartphones and smart TVs grows, video OTTs may start to be increasingly preferred by users. consumers who subscribe to DTH TV.

"In addition to bundling services, the combination of service with mobile phones is another reason behind the consumers that transmit content online, for example, many of these applications are now previously included in smartphones. The market cost of the data has greatly decreased, so people started to stream content online, "said Jehil Thakkar, a partner at Deloitte. For the telecommunications companies, the logic is simple if you cannot create content, you can surely package it under one roof.

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OTT Platform vs DTH

From Hotstar joining hands with Reliance Jio to Netflix that is exclusively related to Vodafone, and SonyLiv partnered with Airtel in the last year, telecom operators have signed multiple offers to boost the content offering. "The partnership with OTT applications has allowed us to provide a perfect viewing experience to consumers, who instead of downloading five different video streaming applications, can opt for a single application, on this Airtel TV, to see different content," he said. Kartik Sheth, CEO, Wynk.

On the other hand, telecommunications companies claim that these services are grouped in an affordable range since a viewer is not obliged to subscribe to each platform separately, which increases the cost of transmission. "While the idea is not to provide entertainment applications such as Netflix at discounted prices, it creates a sustainable package that users can easily take advantage of," said Dipankar Ghoshal, national director of VAS and content for Vodafone India. For example, the Jio prime membership with only 99 rupees allows Jio subscribers to take advantage of all its applications, including cloud installations, news and entertainment applications such as JioTV, JioCinema, JioMusic among other useful applications, totally free until on March 31, 2018. While the user of Airtel must pay a monthly rent of 499 rupees to have data of 20 GB, add to that access entertainment applications such as Wynk and Airtel TV, among others. For those subscribers who pay a monthly rent of Rs 999, they can take advantage of 50 GB data along with content applications.

Compared to this, a Vodafone subscriber for a monthly rent of 2,999 rupees, gets exclusive access to Netflix content worth 6,000 rupees for a period of 12 months in addition to seeing content on other platforms such as YuppTV, Alt Balaji, Eros Now, Hooq, Youtube. The DTH operators have already begun to feel the pressure. Earlier this year, Jawahar Goel, MD, Dish TV, after the company's Q1 FY18 earnings call, admitted that DTH operators are feeling a pressure defined by the OTT platforms forcing them to renegotiate the content of the transmitters while They try to reduce the cost.

In addition, after Airtel introduced a hybrid decoder (STB), which allows viewers to watch content from Netflix and other similar platforms through the STB in addition to normal television channels, Dish TV would also launch its own hybrid media adapters. "The cost of delivering content on television is even cheaper compared to an OTT platform, where the user not only has to pay the subscription, but also has to pay for the data." On average, viewers require between 1.5 -3 GB of data if she decides to transmit the content on her TV, while the HD channels are currently available at a minimum of `186 per month.So, for the massive content, a viewer will depend on the television, but for the content premium, it will change to this application, "added Goel.

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