Is streaming now cable TV without the cord?
It’s become practically a meme. By the time you figure out what to watch on Netflix while eating your dinner, your dinner is over. That’s when you turn back to scrolling on your phone while watching the finally chosen content. A senior industry figure recently mentioned to this reporter that while this has been happening this is not being talked about. “Nobody, who has a CTV, is logged into only one app. You’re using multiple, at least five if not more. “So who are we fooling?” Free Style For Prabhvir Sahmey, Senior Director – India, Samsung Ads, we are going through a transition phase, and a lot of business models are changing and evolving rapidly. “Some really good content will be behind paywalls or hybrid monetization systems. I don’t think we’ve reached a point where we have an absolute. So, the industry is learning, implementing and reinventing.” “From the consumer lens: they have gotten used to having more choices. However, all that choice can be overwhelming. Younger audiences are turning to newer platforms to find the content they crave, while we’re seeing traditional TV viewers migrate to streaming. At the end of the day, consumers are driven by content over the platform. However, streaming offers a new way of consuming content on the big screen, which we previously had been used to from our mobile device,” he adds. For years, TV has been the dominant large-screen viewing for home entertainment, what has changed is how we access it, as technology evolved over time. “We’ve moved from the time of accessing TV via the antenna, to Dish/Cable, and later to internet Set-Top-Box TV and Dongles. As Connected TV evolved, content has taken centre stage. It's also become clear that no single platform can encompass all genres, prompting both content and content providers to evolve in tandem with our changing viewing habits,” notes Nikhil Kumar, Chief Growth Officer, Affle. Counting Cords Affle’s research also found that as many as 84% of households have more than one person watching CTV. With different viewer types watching different content on CTVs, the OTTs have also expanded their offerings. It’s not very different from TV in that sense - on linear television one would switch between channels, and now they Priya Iyer, COO – South, Initiative India, believes this trend of cord-cutting in India has been fuelled by widespread digital adoption, viewer fatigue with linear TV content, and the appealing experience offered by OTT platforms, particularly their premium offerings. “Initially, Indian OTT platforms provided a diverse range of on-demand original content at little to no cost, enticing many urban consumers to abandon traditional TV subscriptions. However, with the proliferation of numerous platforms, consumer experience has suffered due to increased clutter and rising subscription rates,” she says. “For instance,” despite the increased cost, the average OTT user encounters far fewer ads compared to traditional TV, typically under 4-5 minutes per hour versus 12 minutes of commercials per hour on TV. The primary driver for cord-cutting remains convenience—the ability to watch content on demand and escape rigid broadcast schedules—which continues to attract multitasking and time-strapped audiences. Whatever the case, CTV is not the one screen to rule them all, only in ignorance binds them. Simultaneously, streaming platforms, those channels providing content on tap, sans regularly scheduled breaks, are realising the need for including said breaks. Ad Breaks “While it's true that subscription rates for SVOD platforms have risen over time, and advertisements have infiltrated subscription packages, the overall cost comparison is nuanced. Even with discounted yearly plans, the average user with multiple SVOD subscriptions now spends between Rs 350 to Rs 1000 per month, excluding broadband costs, which is notably higher than cable or DTH packages,” says Iyer. However, the argument for streaming being cheaper than linear TV isn't solely about cost but also about the value proposition and consumer preferences. Despite the increased cost, the convenience of on-demand content and the reduced ad exposure on OTT platforms remain attractive to many consumers. The opportunity to provide on-demand content also frees users from scheduled programming. This flexibility extends to subscription options, allowing viewers to tailor their plans to their preferences without long-term commitments. From as little as Rs 29 to as high as Rs 1499, today viewers have access to multiple content types and can be accessible across various devices, from Smart TVs to smartphones. “Moreover, the allure of original programming draws subscribers with exclusive content and original programming - often niche and unavailable on Cable TV. Within the Indian context, we have seen the monumental success of original series like Scam 1992, Asur, Rocket Boys, etc.” says Kumar. Then there is also the huge attraction of novel original content from other languages such as Arabic, Korean, and Turkish - which have found their way into the viewer’s homes on streaming platforms. Further, personalization algorithms on streaming platforms enhance the experience by recommending tailored content, enriching discovery. Sahmey notes that each business has to survive for profitability beyond revenue and user base. “Content spend in India is expected to reach US$10bn in five years, and while trials and offers are a way of acquiring and retaining users at some point over time prices will need to rationalize to help keep and sustain a healthy ecosystem.
switch between OTT, Gaming, and FAST channels.
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