All about Regulation of OTT Platforms in India

Introduction OTT stands for “over-the-top” and refers to any streaming service that provides audio or video content to the end user via internet. So starting from the movies you watch on Netflix to the video posts you watch on Facebook or even the gif you receive in Whatsapp is all the use of OTT services. OTT platforms are of three different types: First is the audio OTT platform, such as platforms like spotify, saavn, wynk, gaana, etc. Second is the video OTT platform, such as platforms like YoutTube, Netflix, Amazom Prime, Hotstar, etc. And the Third is the voice over internet protocol (VOIP)/ text OTT platform, which enables us to call or text someone over the internet, such as WeChat, WhatsApp, Facebook, Skype, etc. An OTT platform is one such platform where you will find lots of OTT content at one place. It bypasses any typical distributor or controller platform such as satellite television, cable, etc. and requires only internet to deliver the content. The mechanism of OTT service is simple, content is only delivered upon request and each connected service has a unique connection to the source of the content via the internet (unique IP address), making it ‘unicast’- delivering one stream to one device. (for example, upon click you can watch different movies in different devices at the same time that are logged in to the same Netflix account). OTT platforms regulate the streaming layout and quality in accordance with the device’s features and internet bandwidth so as to ensure minimal buffering and they also take charge of the ad regulations to the non-subscribers. Mainly, there are 40 OTT platforms being operated in India as of 2020. Among which Netflix, hotstar, ErosNow, Amazon Prime, Zee05, SonyLiv, Voot and Mx Player are the most popular ones. The business model of OTT platforms remain highly focused on is ad-based models (AVOD- advertising no on demand), however, subscription based model (SVOD- subscription video on demand) is growing rapidly. Also there is a third model called the TVOD- transactional video on demand and it works on pay-per-view basis. This model is not that much preferred by the consumers. History of OTT platforms in India Bigflix was the first OTT platform launched in India, by Reliance Entertainment, in 2008. NexGTv was the first OTT app launched in India, in 2010. ErosNow, that is still running successfully, was launched in the year 2012 by Eros International. In the year 2013, DittoTv was launched by Zee Entertainment, and later, in 2018 it was integrated with Zee05. In 2013, SonyLiv was launched as well. OTT industry got its first boost in India when hotstar was launched in 2015. International platforms such as Netflix and Amazon Prime were launched in the years 2016 and 2017 respectively. Netflix’s first Indian original series was Sacred Games that was even nominated for the Emmy awards, whereas, Amazon Prime’s first Indian original series was Inside Edge that was produced by Amazon Prime Video and Excel Media and Entertainment services.

Significance of OTT development in India Indians are consuming OTT content more than ever before. A survey has found that 55% of respondents prefer to consume content from OTT and only 41%prefer Direct to House (DTH) cable network. Before the pandemic, the OTT platforms were just on the verge of gaining their popularity in the country and have been doing very well in the past 2 years especially, but it is the pandemic that has changed the fate of such platforms. The over the top platforms in India have reached o whole new level of statistics during the lockdown. It is found, that before the lockdown, most of the rural areas did not even know about it and now, around 45% of OTT users are from tier-2 and tier-3 cities. 55% of the viewers come from the top 5 metropolitan cities among which 36% of the viewers are from tier-1. With theatres and restaurants all closed and people being confined to the four walls, devoid of any human interaction from outside, it becomes immensely necessary for them to find a platform for entertainment and refreshment, while sitting alone at home. In such condition, an OTT platform is a perfect rescue. Taking this into account and considering the facts about the uncertainty of the future and that the production houses are under financial pressures, their decisions of releasing their movies on such platforms are made. However, these come with their own pros and cons, the question that arises is, can OTT media really replace theatres? I will come to the detailed explanation later, but for now, the answer is no. Even the Inox group of companies along with many other theatre companies and owners have expressed their dissatisfactions with the production decisions and this platform. In general, a movie is supposed to first get a proper theatrical release and then, after few months, they are allowed to be streamed on the OTT platforms, but this lockdown has proved to be a boon on the OTT platforms and a curse on the theatres, as easily understood!

REASON OF OTT BEING ACCEPTED SO EASILY (BENIFITS/IMPORTANCE): Now, is it just the pandemic causing people to invest themselves into the platforms? A part of it, yes! But not the whole of it. We must not ignore the fact that OTT platforms have been in existence even before the lockdown and were doing immensely well, but why is it so? What are the general factors that contribute to the popularity of OTT platforms? I shall list down few main points: First is the convenience! Well, none of us can deny the fact that it takes a lot more energy to decide a time slot, get dressed, go out, book the tickets and watch the movie in theatres in any weather. Sure the theatre experience for many of them is worth it, but for the most, nay! People would much prefer to have an option where they can watch their favourite or new movies or shows or as a matter of fact, documentaries on any time they want to no matter where they are! Or even, to watch a movie for the second or third time even if they had the theatre experience in the first place. OTT platforms are convenient and thus, preferred. Secondly, well, the cost-effectiveness! On average, one spends Rs. 200 for one movie in theatre (including the ticket and transport fare), and when you go with your family, just multiply that. Around 1000 rupees for just one movie? Well, on OTT platforms, on average, you just need to spend Rs. 999 for one year and get access to unlimited available movies and watch them together with your whole tribe! Now calculate your savings. Third comes content! OTT platforms provide you with diversity in contents (in different languages, dubbed or original, and subtitles) in terms of genres and show types, for example movies, series, documentaries or even sports and thus, give you various options. It challenges and gives confidence to makers to experiment various content because they now know that their work will not go useless and will get a fair share of screening, and this brings me to my fourth point, Impartiality towards content! All kind of movies with all kind of budgets get a fair slot on the OTT platforms unlike that on theatres where small budget releases need to struggle to get decent screening slots. No talent gets wasted here, and people get genuine entertainment in purest forms and not in just commercialised ones. Thus, we may say that OTT platforms contribute a lot in keeping the essence of the art of cinema alive. Social media platforms are great places to promote various businesses and start-ups among the masses and connect different religions, regions, cultures, food and people from across the country and globe. DEMOGRAPHIES: The consumption of smart phones has actually contributed a lot in the trend of adoption of OTT platforms in India among the masses. According to most platforms, around 75% of the viewing happens on smart phones. 89% of the users belong to the age group of 16-35 years, among which age groups of 16-24 years and 25-35 years contribute equal shares (44.5% each). 79% are male users. Most of the users are salaried employees, followed by students and business owners. Hindi is the most viewed content (more than 50% of the content watched is Hindi). 90% viewed content is regional and 7% is English. Rest are other foreign languages. Hotstar has the highest number of subscribers and it also leads the content viewed market followed by AmazonPrime and SonyLiv. Netflix has the highest earnings. Voot has the highest number of female subscribers. Most preferred cellular network is Jio, followed by Airtel and Vodafone-Idea. Among audio OTT platform, Spotify has the highest number of subscribers. There are currently 326.1 million social media users in India where facebook alone has 269 million accounts from India. OTT OR THEATRES? Well, in this grand era of Digital market, is the survival of our traditional theatre culture in threat? Well, I don’t think so. Both can peacefully coexist! Sure, OTT shall challenge the demand for theatres but will never be able to replace it. Healthy competition is necessary for development and this is what witness here. In Akshaye Rathi’s words, OTT will only tell a tale, theatres will make you experience it! Even when there are numerous advantages of the digital platforms, no one can ever deny the following advantages of the theatres: The effects! Watching a action movie like fast and furious or a mesmerising tale like Bahubali will be no fun in small screens. Or in such case, even 3d movies! The involvement! Seeing a horror film on a massive screen in the dark and cold environment of a movie theatre grabs a whole different level of focus. The experience live reaction of audience! Watching your favourite character have a great comeback in no matter how big screen, but alone might make you just happy, but the same along with the excitement and screams of a live audience of 100 people will give you goose bumps! The Profits. Well, the most important reason why no production company will let go of a theatrical release is that no OTT platform can earn them as much profit as theatres can! Also, when Theatres could survive technologies like television and piracy, it will survive this as well. According to Ajay Bijli’s words’ “It is a lifestyle need gap to get out and get entertained, a choice people want to make.” Box office collection grows 12% every year, reaching 1.6 billion dollars in 2020. SHOULD OTT BE REGULATED BY THE GOVERNMENT? Earlier, I have put forth arguments from both sides and analysing both of them, my answer would be no! When the platforms themselves put forward reasonable regulatory schemes and also had been running harmlessly even before that for years, why was it so necessary for the government to interfere and take control? The government always tend control the media and by this, it will make sure that the democracy and content diversity gets restricted and thus, OTT platforms will be little or no different from the television content.

References Websites: Wikipedia, Indian Express Article, khuranaandkhurana.com, ipleaders, LiveLaw Videos: Study IQ Education, The Imapct of OTT on Indian Cinema by Akshaye Rathi at Tedx Talks, The Danger of OTT Regulation by Dhruv Rathee, Gravitas- ott platforms under the government’s controls, Ajay Bijli at Rider’s in the Storm.