Desi OTT Avatar 2018

Consumption patterns as more and more players enter the OTT Arena

Disruption in the market led by the revolution spearheaded by Jio, followed by other telecom service providers has magnificently increased the penetration of Internet, improved distribution and increased content consumption. Wide range of smart-phones, esp. the low budget high feature have fuelled smartphone ownership and an exponential increase in digital media consumption. Today mobile phones are personal entertainment devices for most users; leading to OTT players chasing these consumers and in the bargain partnering with telecom operators to improvise their video streaming offerings. These factors have led to strategic partnership between telecom operators, OTT streaming services and device manufacturers to offer discounted subscriptions and other bundled offerings.

The next wave of growth is to be led by the smaller markets beyond the metros & tier-1 towns. Consumption of regional language content has outpaced Hindi language content. Regional language comprises of 35-40% of overall online consumption in India, but is witnessing a growth of 65-70%. Short-form content and web-series are the driving forces catapulting regional language content amongst its audiences. Consumption of snacky content is no longer an urban phenomenon, regional audiences have picked on the trend and is a rage across vernacular languages.

While we are at the dawn of OTT industry evolution, the growth is sporadic as a result of new players both domestic & international. The content choices are expanding and newer genres are getting created each passing day.

Although the traction for OTT video streaming and downloading is only just building, a thriving ecosystem of content suppliers is being created as a result of multiple new players launching their digital streaming platforms. Furthermore, the entry of OTT players, both domestic and international, has expanded the choices available to consumers for consuming content and brought a significant shift in the user’s attitude, leading to an increasing demand for easy access to a vast library at any time and place. Thus, to provide a seamless and secure delivery of online videos, streaming platforms are strengthening their content delivery networks (CDNs) to entirely bypass the need for continuous internet connectivity by enabling offline streaming.

Growth of OTT viewership over the years

With 176 million India OTT viewers almost 3x growth over the pervious year is riding on revenues worth more than $500 million. Smartphone users are expected to cross 700 million by 2020, with this the OTT consumer base is set to hit 100 million unique viewers a month with a CAGR of 40-45%. Beyond adding new consumers segments, the OTT platforms offer targeted advertising, more immersive engagement, interactive capability and data analytical capabilities which vastly overshadow the traditional TV led advertising. This is turning out to be a very lucrative space for the advertising for the digital marketeers.

Early trends in 2018 for OTT

What we saw last year, will continue to be see this year as well; strategic alliances between OTT platforms and telecom industry will continue to co-own the video streaming offerings to the consumers. There would be a surge in alliances between handset/hardware manufacturers to integrate OTT applications on their devices thereby pushing a certain content offering to the consumer; this in any ways is a fast paced sector with new consumers of smartphones continuously adding to the user base. The growth of smart TVs and high quality displays on the handset would also lead in a new growth lever in the form of video output quality. Most prominent OTT players have multiple video viewing options with HD / 4K video offerings. This will be the new segmentation offerings being pulled out by the OTT players with time.

Regional language programming is another factor to fuel OTT viewership. Regional content offering to grow at approx. 30-40% and gain a share of ~25% of the overall consumption. 

-Sachin Kamble

OTT / Linear TV: Decoding the next big content disruption

Last few years have witnessed, OTT platforms creating a ripple in Media & Entertainment industry worldwide. OTT platforms have altered audience content consumption, payment habits & prevalent content creation. It will be interesting to know the next wave of OTT and its impact on prevalent linear TV model.

My experience in the dominant TV industry and new kid in the block – OTT can be summarized as:

OTT industry is set to evolve

There is no second thought on the fact that OTT business is set to swell worldwide, but there is a definite consideration on who will be the dominant players and their respective market shares. This business is set to consumer heavy investments in its foray to create a wide audience pool.

The nature of this business would compel dominant players to explore ‘Hybrid’ models (SVoD + AVoD audience base) as there is certain cap on SVoD consumers. Hybrid models are advantageous for both audience as well as advertisers, since it will always be perplexing for the business justifying their VAS offerings.

The future has two striking possibilities:

- Consolidation of services / offerings, favouring the audiences

- Rise of theme specific offerings, targeting niche audiences

Consumer is the King, plentiful choices

OTT growth is fuelled by attractive content to lure more audiences. This race has put the consumer in the centre-stage making him the King. Both TV & OTT would get in a tug-of-war to outbid the other, thereby empowering the audiences; in-turn increasing the pressure on content creators.

Audience demands would keep evolving and demand for exclusive and niche content will be at its pinnacle. This would be the only driving force for SVoD business.

Best times for content driven by OTT players

Audience demands have been met by broadcasters, OTT players, studios and production houses with the influx of superior-quality shows/movies. OTT audiences have witnessed shows dwelling into Historical, Thrillers, Super-hero franchises and a peek into various dystopian worlds. TV channels have at the same time stuck to the usual daily soaps. International content from Korea, Turkey and Telenovas have wide acceptance across the globe. As can be seen there is a wide range of content available for the audience. Finally what matters is the right content mix to target a certain diaspora of audiences.

This is only the beginning, coming times would only be as enriching as can ever be expected. Increase in competition and a competition to grab the maximum audience eye-balls would fuel creation of some high-quality content.

It is a Wait-n-watch times, as the next big chapter in the Media & Entertainment industry unfolds.

- by Sachin Kamble

Lessons for 'Start-ups' from 'The Shawshank Redemption'

One of the most gripping movies of all time, with 7 Oscar nominations and befitting performances by Tim Robbins & Morgan Freeman.

Its a fantastic journey which has three characteristics:

1. It would take a really long time to complete. He has a feel for how long it would take - but he doesn't know that exactly. And that feel changes every day as well.

2. He can get caught at any point - in the beginning, in the middle, or at the end - literally on any given day until he is done - and if he is caught, all his efforts up to that point add up to nothing. The net effect of getting caught would be negative, in the form of additional punishment, added with absolutely no scope of receiving a parole thereafter

3. The end result is binary: If he gets caught, twenty years' effort adds up to nothing. On the other hand, if he succeeds, he can be a free man and live the rest of his life happily.

If you think about it, the exact same characteristics are shared by anyone working on a Startup (in addition to the fact that only fools would embark on a journey with these characteristics):

1. It would take a really long time to complete. You have a feel for how long it would take - but you don't know that exactly. Besides, this feel changes everyday.

2. You can fail at any point- in the beginning, in the middle, or at the end - literally on any given day until you are done - and if you fail, all your efforts up to that point add up to nothing. The net effect of a failure would be negative, in the form of lost investment, opportunity costs, and a bunch of significant 'could have beens'

3. The end result is binary: If you fail, you will feel that your efforts added up to nothing. If you succeed, well.....

It might be a strange observation to make from a movie about people serving life-terms in prison - but if you observe closely, the simple and most powerful message from 'The Shawshank Redemption' is this: 'Enjoy The Journey'.

Life lessons from Star Wars

'In a galaxy far far away.....'

As the world anticipates the return of Han Solo, let’s reflect on the wisdom of the Jedi, The Force, and the Sith Lord himself, in order to glean nine lessons Star Wars teaches us about life.

1. Commit to the life you want to live – and live it!

'Do or do not… there is no try.' – Yoda in The Empire Strikes Back

We can spend our entire lives debating this and that, frozen in fear, fighting uncertainty. However, in life, nothing is certain. We can either waste precious time in limbo or make a decision and stick with it!

2. Surround yourself with people who are supportive and believe in you.

'I find your lack of faith disturbing.' – Darth Vader in A New Hope

There is absolutely no reason to waste your time and energy on people who bring you down. Rather, fill your life with the believers and doers, people who inspire you and bring positive energy to your life. Otherwise, you may resort to the dark side…

3. Don’t lie to yourself. We usually already know what the right thing to do is.

'Already know you, that which you need.' – Yoda

Listen to your heart, The Force, and your conscience. Listen to that Yoda voice you hear as you fall asleep or the nagging thoughts that simply won’t go away. Though the road ahead seems perilous, the solution is within.

4. Don’t let impossible odds hold you back.

'Sir, the possibility of successfully navigating an asteroid field is approximately 3,720 to 1.' - C-3PO in Rogue One

'Never tell me the odds.' – Han Solo in The Empire Strikes Back

Even if an asteroid field is hurling towards you and your odds of success are 3,720 to 1, don’t let this daunting ratio prevent you from following your heart.

5. Often success stems from overcoming failures.

'Strike me down and I will become more powerful than you can possibly imagine.' – Obi- Wan Kenobi in A New Hope

Success cannot flourish without hard work. It is found only through trial and error, profound dedication, and the ability to see setbacks as stepping stones towards later victory.

6. Don’t let fear guide your life.

'Fear leads to anger. Anger leads to hate. Hate leads to suffering.' – Yoda in The Phantom Menace

Fear cripples us from doing what needs to be done. It prevents us from becoming the people we’re meant to be. It isolates us from others and makes us scared of those we do not understand. Historically speaking, fear has fueled many wars, genocides, persecutions, and riots. Clearly, Yoda was onto something.

7. Humor goes a long way.

'One thing’s for sure, we’re all gonna be a lot thinner.' – Han Solo in A New Hope

When things get tough, it’s natural to freak out. However, freaking out isn’t the most productive or efficient way to solve a problem. Humor lightens the mood and allows everyone time to regroup and reassess the situation. It also keeps spirits high, enabling people to do what needs to be done. Plus, girls dig a guy who can crack a joke every now and again.

8. Our thoughts and actions impact our future.

'Always remember, your focus determines your reality.' – Qui-Gon Jinn in The Phantom Menace.

What we spend our days thinking about, and actively pursuing, directly affects our future (for better or worse). Considering this, we should invest our time and energy into the things and people we’re passionate about, and the dreams we have, rather than focusing on the negative or filling our lives with empty distractions.

9. Sometimes we just need to let it go.

'Let go of your hate.' – Luke Skywalker in Return of the Jedi

There is no room for hate, fear, and regret in our lives. Often, we just need to let it go so that we may finally be free.