The Over-The-Top (OTT) market, particularly in India, is currently at a crossroads between expansion and profitability in an environment that is sensitive to pricing. The past year, 2023, proved to be full of challenges and disruptions for the industry which influenced its future direction. OTT refers to the practice of delivering content such as films, TV programs, music and other forms of media directly over the internet to viewers, thus avoiding traditional cable or satellite TV platforms. Well-known examples include Netflix, Disney+, Hulu, Amazon Prime Video, Peacock, CuriosityStream, and Pluto TV.
The Advantages and Limitations of OTT Platforms
OTT platforms offer flexibility, convenience, and a diverse array of content to cater to a variety of tastes and interests. Algorithms are used to suggest content based on viewing habits, enhancing user experience. Services tend to be more affordable than traditional cable or satellite TV subscriptions and can be freely accessed worldwide. However, OTT streaming is reliant on reliable high-speed internet – users in areas with weak connectivity may find access frustrating. Content fragmentation and data privacy concerns also pose challenges, as does navigation due to the sheer volume of available content.
The State of the OTT Market in 2023 and Predictions for 2024
In 2023, the OTT market experienced disruptive shifts with providers offering premium content free of charge, impacting subscription revenues. Furthermore, the high cost of producing content caused continued problems with monetization, with no platform being able to break even. Freemium models began to appear, preventing password sharing and integrating ads into their services. While regulatory concerns remained, censorship was not welcomed. Looking ahead to 2024, it is predicted that efficient content strategies will emerge, with a decrease in experimental content. Market dynamics may also be reshaped by mergers and collaborations between major players such as RIL/Disney and Zee/Sony.
Regulation of OTT Platforms
In 2022, the Ministry of Electronics and Information Technology (MeitY) introduced The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021 to regulate OTT platforms. These rules establish a structure for soft-touch self-regulation with a Code of Ethics and a three-tier grievance redressal mechanism. Under these rules, every publisher must appoint an India-based Grievance Officer and become a member of a self-regulating body. Such bodies will have to register themselves with the Ministry of Information and Broadcasting.
Steps Towards Improved Regulation of OTT
There is a need for OTT platforms to establish transparent content guidelines and rating systems in line with traditional media. Independent bodies comprising industry experts, stakeholders, and government representatives should be formed to monitor content and set industry standards. Standardized content classification systems should also be implemented to help users make informed viewing choices. It is equally important that OTT platforms are encouraged to share viewership trends selectively with oversight bodies, aiding in content evaluation and ensuring compliance with guidelines.
Auditing and Compliance in OTT Industry
Regular audits should be conducted to ensure that platforms adhere to established guidelines, fostering accountability and encouraging responsible content curation.
Overall, the OTT industry has significantly revolutionized the way people consume entertainment. It provides flexibility, choice, and convenience, and continues to evolve under the influence of technological advancements, changing consumer preferences, and the dynamic media and entertainment landscape.