Over the-top media service in india

This presentation includes an in-depth study of an OTT service in the Indian market. The study further explains how demand surged in the country and how key player is bullish to deliver its content and service to the consumer.

1. Over-the-top streaming service in India Service Marketing  Kapil Mani Nirola         

2. What is OTT service? OTT is basically the tech version of OTC (over-the-counter) medication. It’s stand for “Over the top”, this term is used for delivery of video, songs and any TV related content through internet and bypass traditional distribution models. You can think about OTT application as anything that disrupts traditional tradition billing model of cable/satellite companies. Since, the OTT players do not require any business or technology affiliations with network operators for providing such services they are often known by the term "Over-The-Top" (OTT) applications.

3. OTT concept INTERNET COMPANY OTT PLAYERS

4. Core of ott PLAYER CONTENT CONNECT ENABLE INTERNET

5. Why  ott service?

6. Players of ott market in india There are currently about 40 providers of over the top media service (OTT) in India  which distribute streaming media over the Internet. In fiscal year 2018, the OTT market in India was worth ₹2,150 crore  (₹21.5 billion, US$303 million as of 2018), and its value grew to ₹35 billion in 2019. OTT subscribers in India 2020  According to a report by Ernst & Young, the number of  OTT users  in the country will reach 500 million by  2020 , making  India  the second–biggest market after the US. The  Government of India  in 2021 released a new set of rules that would bring OTT content in India under the standards of censorship that is applicable to other entertainment content platforms in India. This created a stir among the OTT content providers who were upset about not being consulted before the move was announced.

7. Language

8. rise of ott service in INDIA

9. What effect did lockdown have on OTT platforms, especially video-on-demand services? Lockdown  is an emergency protocol that prohibits people from leaving a specified area. The  Covid-19 pandem ic has gripped the world since 2020. So to stop the human-to-human spread, many countries went into lockdown. India also asked its citizen to stay at home. With nothing much to do at home, the usage of OTT started growing. Especially in metro cities, where the internet infrastructure was already in place. The speed and cost of internet plans gave a significant boost to usage. Airtel, Reliance Jio, BSNL, Vodafone, etc., made the internet and made the OTT platforms more accessible to the general public. Usage statistics for 2020: – The five metro cities account for 60% of OTT usage. – Indians under the age of 35 years account for 90% of usage. – Males account for 80% of usage. Due to lockdown, the movie theatres were also closed. Filming of movies and TV series had also stopped. All this made OTT platforms the only option available for watching the content of our choice. Also, the vast collection of movies and tv/web series makes it an irresistible opportunity.

10. Research and consulting firm, Redsheer Consulting, has revealed the Monthly Active User numbers for 15 content players in Indian industry. It includes news aggregators and shortform content, OTT video and music streaming players. Based on the findings, Hotstar has the largest MAU (300 million) followed by Daily hunt (190 million) and MX Player (176 million).

11. 1. Traffic by Geography, OTT Video Sector 2. No. of Subscriptions, OTT Video Sector (In million)

12. A performance review by Just Watch in the first quarter of 2021 states  that Netflix, prime video and Disney + Hotstar have made up for 58% of the market. These three platforms are fiercely competing for the top position as well.  However, Disney + Hotstar is the market leader, leaving Prime Video and Netflix behind by a 2% and 1% margin, Zee5 has attracted 9% of the market and ranked in the fourth position. Disney + Hot star Beats Netflix And Prime To Become Market Leader

13. A Boston Consulting Group report predicts that the OTT content market is at an inflection point in India and is like to reach $ 5 bn in size by 2023. An increase in disposable income, internet penetration to rural markets, and OTT video adoption across demographic segments have been the key drivers of OTT market growth in India. BOSTON CONSULTING GROUP

14. Business Model and Strategies The OTT market is segmented into advertising video on demand (AVOD), subscription video on demand (SVOD) and freemium & transactional video on demand (TVOD). The market remains highly focused on ad-based model (AVOD), where advertisements drive revenues; however, subscription-based market (SVOD) continues to grow significantly In 2019, Netflix announced a mobile and tablet-only plan for just INR199 per month to capture new subscribers; however, despite this new plan, Netflix is quite expensive for the price-sensitive users.  In May 2020, Amazon Prime Video announced the direct-to-digital release of a few Indian movies and ZEE5 also announced that it has lined up 15 direct-to-digital releases for FY21. These pricing and direct-to-digital releases strategies will help the OTT platforms to increase their customer base. Also, to get more paid subscribers, OTT players need to offer affordable plans, customized language packs, along with mainstream plans. Though streaming English content has been limited to popular international TV series and movies, most platforms are focusing on sharing original content in local/native languages. 

15. OTT platforms such as Disney and AT&T are focusing on OTT content delivery to provide customers with exclusive services, while key national players such as Zee, ALT Balaji and Reliance Bigflix are taking efforts to move from conventional media to OTT-based services. This has facilitated cut-throat competition among OTT providers, who are offering subscription fees at all-time low costs and striving to provide more, high-quality content to increase their share in the market. Key SVOD players are introducing pack durations and sachet pricing as part of their strategic initiatives to boost subscription rates and ensure that consumers can access the preference shows at a reasonable cost. This move can help OTT platforms gain acceptance among the price-sensitive Indian consumers. Also, these SVOD platforms are emphasizing on creating a repository of regional content, including movies and web series, as a strategic move to target niche regional audience across the country. Traditional broadcasters, such as ZEE5, Voot and Disney+ Hotstar , and other independent streaming platforms, such as ALTBalaji and Eros Now, are heavily investing in creating original regional content to engage their subscribers. In order to create engaging experiences for viewers, OTT players are experimenting with various forms of in-app interactive activities such as contests or games that can be parallelly played while watching live video content. For example, Disney+ Hotstar introduced the ‘Watch N Play’ social feed during the 2019 IPL season, wherein a viewer could predict scores and win prizes during a live match.

16. Service Marketing mix Place ; Apps and Portals Product; Movies, Music & Documentary. Price; Low Subscriptions price Monthly/Annually. Promotion; print & digital media, celebrity endorsement. Physical design; page design People; viewers Process: design, standardization

17. Products Netflix offers its customers an extensive list of programmes e.g. features films, TV shows, documentaries, Netflix originals and many more.  It has three major categories of contents i.e. licensed non-first-window content, licensed original first-window content, and owned original first-window content.  There are four plans available for anyone wishing to take Netflix membership i.e. mobile, basic plan, standard plan, and premium plan. Netflix adds new TV programmes and movies every week to meet the growing demands of the subscribers.

18. Price  Netflix subscribers can watch TV shows, movies, and other services without having to download them as long as they have an Internet connection. Customers pay a monthly subscription and plans range from ₹199 to ₹799 a month in India with no extra costs or contracts.  Some analysts argue that Netflix has a value-based pricing strategy. Others argue that it pursues a competitor pricing strategy. However, it is worth mentioning that Netflix is not the cheapest one out there but can be stated as pocket friendly.

19. PLACE Netflix is available virtually anywhere and anytime as it is an online streaming business. It is available in over 190 countries and only a few countries and territories such as Crimea, North Korea, and Syria where the service is not available due to U.S. government restrictions on American companies   People can watch it on their smartphones, laptops, tablets, smart TVs, streaming devices, and game consoles.

20. Promotion Netflix has adopted a number of promotional strategies to attract and retain its subscribers. For instance, it marketing spending amounted to $2.65 billion in 2019 (Stoll, 2021). Netflix one of the biggest advertising buyers in the entertainment industry in the world. It is not surprising that Netflix uses almost all media channels to take its message to its target audience. Celebrity endorsement, advertising on billboards and print media, word of mouth, and extensive use of social networking sites are some of the ways Netflix promotes itself.  Netflix’s first month free trial policy is also a promotional activity to persuade potential customers to subscribe and use its services. Digital Marketing Model of Netflix:  Personalised Content Marketing, Website Development, Email Marketing, Search Engine Optimization, Social Media Optimization.

21. PROCESS The ease with which consumer can access the website is pretty high. The titles are sorted on the basis of title of the movie or TV show you wish to see or by genre or favorite actors and actresses. Intuitive UI and simplified viewing experience. The users can always contact customer call centres for any further assistance. Payment of subscription can be done through debit or credit cards or alternatively via PayPal or iTunes. Signing up with Netflix is a straight forward process. Netflix is free for 30 days for new members. If new members enjoy the service and would like to continue, they need to do nothing as their membership will automatically continue. However, membership can be cancelled online anytime.

22. PEOPLE  Netflix has grown in both size and scope over the years to become the major player in the entertainment industry in the world. It employs approximately 8,600 full-time workers. It focuses on hiring talented people with diverse backgrounds, cultures, and perspectives. In 2020, it became the top company in the world where people wanted to work according to the tech jobs marketplace Hired (Liu, 2020).  As long as the membership is concerned,  Netflix has around 200 million subscribers globally. A huge number of its subscribers are from the United States.

23. Physical Evidence As Netflix is a streaming service, its website and app are its primary physical evidence. It serves members in over 190 countries. Its offices and data centers' are also part of the physical evidence. No doubt that Netflix has a very user friendly website and a mobile app. It also has offices and data centres in many countries e.g. the USA, the Netherlands, Brazil, India, Japan, and South Korea. Social Media presence. Twitter, Facebook, Instagram.

24. Segmentation Target & positioning Netflix Segmentation People looking for digital entertainment Netflix Target Market 18-40; Upper Middle Class Netflix Positioning Digital Streaming which can be accessed anywhere and anytime

25. Strengths of Netflix The Netflix subscribers can watch TV shows and movies instantly with a streaming-only plan. It serves members in over 190 countries. It has over 195 million paid memberships worldwide (Netflix, 2021). This strength offers it a competitive advantage over its competitors. There are three major categories of contents provided by Netflix i.e. licensed non-first-window content, licensed original first-window content, and owned original first-window content. Netflix has recently focused heavily on original contents as it has now its own TV and film studios. This focus helps the company reduce over reliance on outside studios and take control over its original contents. The global focus is also an area of strength. Netflix offers original contents in some of the major countries in the world. For instance, Sacred Games in India and La Casa de las Flores in Mexico are original contents and have become big hits. Netflix has won a number of prestigious nominations and awards over the years. For instance, it received 31 Emmy nominations in 2014. Likewise, it received 112 nominations overall in original programming in 2018 alone. It also managed to secure its first ever Academy Award with a Best Documentary win for Icarus in 2018 ( Mccreesh , 2018). Netflix’s movies won two Oscars in 2020, though 24 nominations were received. Likewise, its original programmes received 160 different nominations in 2020, however; won 21 awards. It won 23 awards in 2018, including the best drama series award for ‘Game of Thrones” (Stoll, 2021). Weaknesses of Netflix Though Netflix offers its original contents, it is still heavily dependent on partners. According to the Chief of Netflix Content, the licensed contents consumed the vast majority of the budget ($8 billion) of 2018. Similarly, producing original contents is also extremely expensive. The subscribers need to have high speed Internet connection to watch Netflix services. Netflix’s minimum recommended broadband connection speed is 1.5 Megabits per second, while 25 Megabits per second for Ultra HD quality. It is worth noting that high speed Internet is not available to everyone and across all countries and regions.

26. Opportunities for Netflix Increasing the number of subscribers is a big opportunity. Likewise, increasing monthly subscription fees is an opportunity as well. However, Netflix must exercise extra caution before increasing the monthly subscription fees as it may make some subscribers unhappy. Expansion into mainland China is also a great opportunity. Likewise, producing hit shows like House of Cards and Stranger Things will certainly boost the company’s image and market position. Diversification into other markets is also worth exploring. Threats to Netflix Threat is the last element to address in the SWOT analysis of Netflix. No doubt that an increasing number of competitors are challenging Netflix on a great scale. Traditional networks like CBS and Disney have launched or announced plans for their own streaming services. The challenge from Hulu (a joint venture between several of the major broadcast networks) is also very substantial. Other major competitors of Netflix are Amazon, YouTube, and HBO. Numerous television Channels around the world are also considered indirect competitors of Netflix. Netflix has been sued a number of times over the years. For example, it was caught up in a copyright lawsuit in 2015 involving the 1948 Italian film Bicycle Thief (Gardner, 2015). In October 2020, it was indicted in Texas, the USA over a ‘lewd’ depiction of children in the film Cuties. In addition to lawsuits, Netflix also faces big threats from digital piracy

27. Netflix’s Customer Relationships Self-Setup:  Netflix platform was originally designed to ensure that it is simple and easy to use. Developers of the website ensured to associate elements and themes that serve, promotes friendliness and provides self-setup. Unbelievable Customer Experience:  Customers can solve their queries by reaching the Netflix team through website portal, emailing enquiries and directly reaching the representative on call or live chat. Social Media Channels:  Netflix also engages its audience through social media platforms such as Facebook, Instagram, LinkedIn. It advertises, offers deals to gain the high attraction customers and enhance customer base. Netflix Gift Cards:  Netflix offers its customers special promotional discounts and other gift cards as a part of their subscription plan.

28. Netflix’s Value Proposition Netflix aims to provide the best customer experience by deploying valuable propositions. Here is how the online streaming brand strives to do so: With 24*7 streaming service, users can enjoy shows and movies in high-definition quality from anywhere whether they are at home or are traveling. Users get access to thousands of movies and tv shows and Netflix Original movies or shows. New signups can avail a 30-day free trial and have the option of cancelling your subscriptions anytime. Receive algorithmic recommendation for new items to watch. At Netflix, users have the flexibility to either turn on notifications and suggestions or keep them switched off. Netflix “user profiles” gives leverage for users to personalize their user account and preferences. The User profiles allow the “admin-user” to modify, allow or ever restrict certain users. Sharing accounts options is one of the rarest features a movie platform can provide. Sharing accounts feature on Netflix allows spouses, friends or even groups to share an account with specific filters and preferences already set.

29. Growth and Facts: In the coming years, as the internet penetration and digital maturity will rise, a major proportion of the OTT subscribers will be from Tier II+ cities. The OTT landscape is expected to get hyper competitive in next 4–5 years and the OTT service providers will strive to emerge as the preferred platform among consumers. It will be interesting to observe the different business strategies that will be adopted by the OTT service providers to attract more customers. These platforms will also need to ensure diversity in the content as consumers in Tier II+ markets prefer TV soaps, reality shows, local language movies and mainstream Bollywood movies

30. Content trends & headlines  Pantvaidya said that 2020 saw the launch of some great web shows and platforms experimenting with new genres. He further stated that the audience mindset has drastically changed, with the desire to pay for quality content, as they invest their time in that content. “This change is bound to create large audience pools whether originals, movies, music, news, games, or sports across the entertainment industry,” he averred. For ALTBalaji, the best performing genres are crime and thrillers, young romance, and urban drama. On ZEE5, crime & thriller shows proved to be the most-watched content. Further, the viewership of Hindi and vernacular content increased even more. Comedy was a runaway success for Amazon Prime Video. The platform expanded its comedy offerings with Comicstaan S2, Jestination Unknown, One Mic Stand, and the recently launched Comicstaan Semma Comedy Pa - the first Tamil Amazon Original Series offering. The platform forayed into the sports docu -series genre with the launch of ‘Sons of the Soil: Jaipur Pink Panthers’ and into live-sports with the acquisition of the rights for all New Zealand cricket for six seasons till 2025-2026. However, the most disruptive move of 2020 on OTT was the direct digital premiere of movies. With this single move, the OTT platforms threatened to upend the business model of cinema exhibitors. “We acquired 19 films across 5 languages to release directly on Amazon Prime Video as Direct to Streaming films,” the Prime Video spokesperson noted. Streaming giant Netflix stated that India has the highest viewing of films on the platform globally and over the last year, 80% of its members in India chose to watch a film every week. In 2020, Netflix also explored with non-fiction series and documentaries. Further, the viewing of kids’ titles increased more than 100% in India in 2020 over 2019. “As we bring in the new year, we want to continue to cater to our audience by building a robust slate of differentiated stories that are suited to the different moods of our members. At Netflix, we love to invest in original and licensed content, across genres and formats and have a very exciting line-up coming up in 2021,” a Netflix spokesperson said. “From our upcoming kids special, Mighty Little Bheem: Kite Festival that will take kids on an adventure to the film, Tribhanga : Tedhi Medhi Crazy, which will engage audiences in a multigenerational story of three incredible women. We are continuously working to create content that reflects more lives from all corners of our country, and develop a talent pipeline to give new voices a chance to be heard on screen.” Aha CEO Ajit Thakur said that thrillers and comedy continue to dominate the large share of the content offering. “Another trend that emerged in 2020 is that big star films came on to OTT Platforms across languages. Add to that, many theatrical films made their way to OTT.”

31. FUTURE OF OTT IN INDIA As cinema halls take a back seat, there is an unprecedented boom in the OTT Market across the globe due to the pandemic situation. Just like it is with the rest of the world, OTT viewership in India is at an all-time high now. While OTT platforms were making a mark for themselves in the Indian market, the COVID crisis accelerated the process. From just two OTT platform provider in 2012 to about 40 players now, the OTT revolution has come a long way in India.

32. Thank you