Can TV be replaced completely by OTT platforms?

Gone are those golden days when television was considered the only source of entertainment. Everything from news, documentaries, commercials, cartoons etc. affected different age groups differently. Every family member had a favourite serial and a time slot to enjoy watching TV. But usually, it was a family activity done together for discussions and making memories. Now the major question is does television have the same importance as before? Or can TV be replaced completely by OTT platforms?

What do the statistics say about this

Before we discuss this in detail, let us first understand and know a few data points as stated in an article recently published by Mr Manoj Bansal: –

·     In 2020, India had nearly 700 million internet users across the country.

·     Internet penetration rate in India went up to nearly around 50 per cent in 2020, from just about four per cent in 2007.

·     The metropolitan city of Mumbai had the highest number of internet users across India in 2019 with over 11.7 million users. 

·     The national capital territory of Delhi had the highest internet penetration rate that year at 69 per cent.

·     As of 2020, the country with the largest offline population was India with over 685 million people who were without an internet connection. China ranked second with 582 million.

·     India now has more rural internet users than urban ones. It happened for the first time in 2019.

·     Still close to 70% of the Rural population does not have access or does not use the internet.

·     Top 3 internet activities where people spend their time in India- Social Media, Entertainment and News.

Does this comply that usage of the internet and TV is competitive?

In today’s world, TV has already lost its importance to an extent but not completely. In the future, we will see Indian audiences turning away from Television due to the growing popularity of online entertainment content.

In India, video OTT subscriptions will increase to 60 million in 2024 from 40 million in 2021. OTT is now perceived as a burgeoning multi-crore industry in India, almost threatening the very existence of Televisions as well as cinema halls or multiplexes.

Today, people in every corner of the country, whether in cities or villages, have smartphones. Using these smartphones, they are now able to access over-the-top OTT platforms such as Netflix, Amazon Prime, Hotstar, Zee 5, etc through which they can watch all kinds of content, including films, sports, news, music and more. And the desire to watch ever more content is increasing all the time. What’s also growing is the desire to watch content related to the culture and language of the country.

According to findings in “OTT (Over-the-top) Market in India 2022-2027”, a report by Research And Markets, in FY 2021, the total investment in OTT platforms in India was estimated to be INR 55.21 billion (US$672.59 million), with Netflix, Amazon Prime Video, and Disney+ Hotstar being the top spenders, with a combined expenditure of INR 31.55 billion (US$384.35 million).

Why OTT is becoming so popular?

According to the report it was found that online platforms are providing the best and meeting all the entertainment needs of both huge and small towns equally. In cities, nearly one-third of the participants say that they are to pull out the tv plugs and switch on to the online shows.

From the last few years, we can see tremendous growth in the OTT platforms. Because the video content can be accessed at any time and according to the will of the viewer anywhere. Unlike traditional viewing channels, Online media has better quality content at a reasonable price.

It was also found that digital video is no longer the preference of the young audience. People of all age groups are watching online content since there is growing popularity of smartphones and the internet.

The viewership of cable television has declined over the last few years. But still there exist some challenges for the OTT platforms. Television has been there for decades now, and it is unlikely that it will completely disappear. Despite the growing popularity of over-the-top platforms in India, to answer the question can TV be replaced, OTT platforms still have a long way to go until they come to be treated on par with TV.