The trends that will define OTT industry in the coming years

Guest Column: Kaushik Izardar, Executive Director - EORTV Media, shares insights about the four new realities the OTT space will witness in the new normal

e4m by Kaushik Izardar
Published: Jun 29, 2020 3:41 PM  | 7 min read
Kaushik Izardar

Suddenly Komolikaka swag has been replaced by Haathi Ram Chaudhary’s robust avtaar. Watching Asur on Voot gives you goosebumps and waiting impatiently for the next season of The Family Man is the new normal. How quickly we have adapted ourselves to the new normal is worth being applauded. No longer do you see people navigating between Star Plus, Colors, Sony, or any other channel, which they used to watch religiously. What has happened to the viewers and what has caused this sudden transition? Party animals no longer want to hit the dance floors and workaholics find working from home a safe option. What our generation is witnessing has gone down in the history and the ages to come shall remember one word for sure and that is “LOCKDOWN”.

Lockdown has made one thing clear that a man should be ready to face contingencies in life. Who would have thought that one fine day the Prime Minister is going to address the nation and from the next morning the streets shall be deserted and the offices shall be empty?

Social distancing is one word that everyone abides by and staying indoors is more than just a need. What do you expect people to do in such sombre times? Either they can listen to the same news on different channels or they can explore some exciting and fascinating series on OTT media. People have found comfort in binge-watching their favourite series on different platforms because these series have a limited number of episodes and have an engulfing plot.

As per the data shared by Broadcast Audience Research Council India (BARC India), there was an increase of 5% in the viewership between March 13-March 19. Be it watching the content on TV via fire stick or watching the original content, the data says that the increase has been 5% and 10% respectively during the lockdown phase.

But despite this, people have found out ways and means to stay active, happy, busy, connected, and entertained. For this reason, there has been a sudden spike in the over the top (OTT) viewership since the first phase of lockdown began in the country. Data says that there has been almost a 20% increase in the viewership during the pandemic.

This coronavirus lockdown has brought about a paradigm shift in the entertainment industry with OTT (over-the-top) platforms seizing most of the opportunity. This consumer-centric and digitally-driven industry is one of those sections of the entertainment world which has done extremely well even in the current situation. As the need for social distancing intensified and lockdown extended, the viewership of major OTT platforms surged exponentially. It is chiefly attributed to the shutdown of multiplexes, shoots of TV shows, and other avenues of entertainment.

Amidst this lockdown period, these OTT platforms have taken the responsibility of satiating the increasing entertainment appetite of audiences. They are catering to the pent-up demand of audiences who have been ousted from the pleasure of new movie releases by constantly providing fresh content on their devices without disobeying the norms of social distancing. Web shows have become an escape point for viewers to ward off the boredom of being confined within their homes. Besides, these platforms are also rendering a sigh of relief to producers and filmmakers by allowing them to keep the show business running and providing them with enormous reach even in these horrendous times. 

EORTV is a niche platform and an upcoming premium OTT platform has content lined up focused on LGBTQ and other hormonally-challenged societal communities and to germinate an acceptance for the LGBT community by eliminating any kind of biases based on gender stereotypes and sexual orientation(s). This subject has been touched by few and the stories are very fun-loving, contemporary and in an acceptable zone. We believe not only this time, but good content will also always have an edge. 

Undeniably, the lockdown has been a boon in disguise for OTT platforms. Some experts say that owing to the potential threat of coming in contact coronavirus, people may not engage in group activities like watching movies in theatres for quite a long time. On the account of given circumstances, it seems like producers have started acknowledging the power of these platforms in terms of distributing content and reaching to a larger section of viewers. Probably, that’s the reason why instead of waiting, they are willing to release their movies on these platforms. 

It has almost been 5 years since OTT industry came to existence but it never posed any sort of threat to the business models of theatres or multiplexes till the last year. In the present situation, digitally-driven OTT platforms surely have an upper hand. This has prompted some experts to show their concern over the future of movie and theatre business due to the fact that digital releases do not draw returns as much as theatrical releases. 

However, some predicted that the consumption patterns that they are experiencing right now are not likely to stay after things get back to normal and people resume their regular lives. Even though OTT platforms offer convenience and control to watch any show at any time, it cannot be compared with the pleasure and experience of watching movies on big screens. Also, many research studies have proved that viewers usually prefer fresh and original content, which may persuade movie buffs to step out of their house and watch films in theatres. 

Moreover, the structure of the content that these OTT platforms offer may work against themselves. Typically, most of the content streaming on these platforms consist of start, middle but no end, until it is a movie release. It goes and goes, episode after the episode, and season after the season. While on the other hand, the movies that release in theatres gives the sense of finality, that too, in a limited time. This could also be a driving force for audiences to visit theatres. Thus, what we believe to be the strength of the OTT industry, may turn out to be their drawback. 

Considering all these factors, combined with the small share of revenues that these platforms generate, it can be said that it is improbable for OTT industry to threaten the theatre and movie business. Therefore, uncertainty looms over the disposition of OTT industry after the lockdown comes to halt and everything goes back to normal. 

As per given the new realities, the OTT industry is expected to go through four trends in the approaching years.

First: Film Makers continue to release on OTT Platform with an added production margin and don’t spend on P&A (an Akshay Kumar film typically goes at Rs 65-70 cr for Digital Rights whereas during this lockdown his film Laxmi Bomb went at a whopping Rs 125 cr approx on a digital platform.) 

Second: The release of mid or low budget movies on OTT platforms. 

Third: The third one is the change in the economic model of film-making as movies could be made under a budget so that producers will not have to suffer much loss if it gets a digital release (if a movie is produced at Rs 25-30 cr. It will be always advisable to sell it to the OTT platform with some margin and get the monies recovered rather spending more Rs 10 cr on P &A and releasing in theatres and wait for the luck to favour you)

Fourth: The consolidation of OTT platforms. Some experts also believe that most of the entertainment avenues shall co-exist in the future by feeding each other and independently serving their goal. 

Furthermore, these streaming platforms usually do not embrace the conventional advertisement-based revenue model. This implies that they have to count on cash that may lead to high debt for companies. Therefore, given the growing competition, the platforms with strong economic backing, strategic investors, and a robust team of corporate communication are likely to survive and gain an edge over those with lack of proper economic structure and other advantages.

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Meta expands payment options on WhatsApp to grow India business

The tech giant has partnered with Razorpay and PayU to make payment 'as simple as sending a message'

By e4m Staff | Sep 21, 2023 7:41 AM   |   2 min read

WhatsApp

Indian consumers shopping on WhatsApp can now pay using Google Pay, Paytm, PhonePe or debit and credit cards within its app. 

The announcement was made at Meta's Conversations Conference in Mumbai on Wednesday. 

WhatsApp has more than 500 million users in India, the largest in the world. However, the government has capped its in-app pay service to 100M users. Now, users can shop and send a payment through the app of their choice within WhatsApp. 

“We’re making it easier to complete a purchase directly in the chat. Starting today, people in India can add items to their cart and send a payment using the method of their choice from all supported UPI apps, debit and credit cards, and more”, according to the company’s blog. 

Meta has partnered with Razorpay and PayU to make payment “as simple as sending a message”. 

Meta also announced “WhatsApp Flows” on Wednesday that will enable businesses to offer more functions such as choosing a train seat, ordering food or booking an appointment all without leaving the chat window. 

The company will make Flows available to businesses globally using the WhatsApp Business Platform in the coming weeks. 

Meta also announced that it will soon expand Meta Verified to businesses on Instagram, Facebook and WhatsApp after having rolled out the feature for creators in March.

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India leading in terms of businesses having embraced messaging: Zuckerberg

The Meta CEO was attending the company's Annual Conversations in Mumbai virtually where a slew of new features for WhatsApp were announced

By e4m Staff | Sep 20, 2023 2:11 PM   |   2 min read

whatsapp

“India is a country that's at the forefront of a lot of what we're going to talk about today,” said Meta CEO Mark Zuckerberg in his virtual address during the Meta’s Annual Conversations in Mumbai on Wednesday.

Zuckerberg also lauded India and Indians for “leading the world in terms of how people and businesses have embraced messaging as the better way to get things done.”

The Meta CEO also spoke about the new innovations on WhatsApp. “We’ve continued to innovate with our messaging formats, our group chats and broadcast channels. And it's the same focus that we're bringing to how we support businesses, creating simple to use and easy to scale tools so they can connect with their customers in meaningful ways,” he said.

Zuckerberg also expounded on the various ways in which WhatsApp supports businesses, such as creating customized experiences, etc. During the event, Meta announced brand new features for WhatsApp Business, such as UPI integration. The company also announced the expansion of Meta Verified to businesses on Facebook, Instagram and WhatsApp. 

“Now, as you know, we’ve launched our own payment solution in Brazil and in Singapore, and today I am excited to announce that we are bringing this service to India. With payments in India, we’re going to support other payment methods as well, including all UPI apps. This is going to make it even easier for people to pay Indian businesses within a WhatsApp chat using whatever method they prefer,” he said in his address. 

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Elon Musk to charge 'small' fee for X (Twitter) subscription

The Twitter owner said that the move may help weed out bot accounts

By e4m Staff | Sep 20, 2023 1:20 PM   |   1 min read

Elon Musk

X (formerly Twitter) users may soon have to pay subscription fees to use the platform, according to Elon Musk. The magnate has hinted that he could soon enforce a paywall around the business to get rid of bot accounts, which has become a throne on his side: “We are moving to having a small monthly payment for use of systems.”

Musk made the disclosure when he was in a meeting with Israeli PM Benjamin Netanyahu who visited Tesla Motors in California. Currently, the platform charges users for accessing premium features of X such as checkmarks for verified accounts.

By enforcing subscriptions, bot account users may get discouraged from creating new accounts.

Musk has not mentioned how much the new paid service may cost or what special features can the users avail of.

In the meeting with Netanyahu, Musk also addressed the issues of antisemitism prevalent on the plaform.

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OTT won't be regulated as telecom service: DoT

DoT said that the current definition of telecom services under the Telegraph Act is good enough and that there’s no need to add OTT in the new bill

By e4m Staff | Sep 19, 2023 8:28 AM   |   2 min read

OTT

The Department of Telecommunications (DoT) has reportedly said that OTT (over-the-top) players won’t come under the purview of the definition of  telecommunication services in the Telecom Bill.

According to news reports, DoT said that the current definition of telecom services under the Telegraph Act is good enough and that there’s no need to add OTT in the new bill.

The government won’t be enabling a revenue-sharing model between the OTTs and the telecom-sharing providers.

The report also quoted a government official who said that there’s no revenue-sharing mechanism in the works.

Telecos have been demanding a share of the revenue earned by OTT players who have been using the former’s network for carriage of their apps.

In their defence, the telecom companies contend that the streaming apps have been offering heavy services and generating disproportionately high traffic, pushing them to upgrade their network capacity.

The new Telecom Bill is set to replace the Telegraph Act, which defines “telegraph” as “any appliance, instrument, material or apparatus used

or capable of use for transmission or reception of signs, signals, writing, images and sounds or intelligence of any nature by wire, visual or other electro-magnetic emissions, Radio waves or Hertzian waves, galvanic, electric or magnetic means.”

The move to remove OTT from the Telecom Bill is reportedly expected to be tabled in the winter session of the Parliament.

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Ad Nauseum: Are AI algorithms hurting ad performance?

Increasing use of AI-generated content & data can decrease production of original content, while simultaneously increasing the volume of deductive and AI-generated content, say experts

By Shantanu David | Sep 19, 2023 8:27 AM   |   6 min read

ai

As we navigate the oft murky depths of the internet and digital media, sailing from content to information, and weaving between news and retail; that is when it happens.

Ad nauseum, whether it’s the act of repeating something to the point of aversion or the effect of seeing the same ad for air fryers for days after having innocuously Googled ‘healthy French Fries’ that one time, seems to be occurring more frequently. And you can blame it, as you can most things according to certain talking heads these days, on the advent of Artificial Intelligence.

“AI plays a big role in digital ads, making things smoother and better. But there's a worry that AI might make ads too similar because it only uses similar data,” observes Sanjeev Jasani, COO, Cheil India.

And that’s only what’s happening at the metaphorical shop front. Things behind the counter have the potential to get a lot messier. And that’s even as more advertisers, publishers, and media merchants pivot towards the inarguable efficacy and application of AI technologies.

Ghosts in the machine

Agreeing with the universal sentiment that AI is the next big thing, Shashidhar Sharma, Country Head – Programmatic, GroupM Nexus, says the utilization of AI and its inherent ability to analyze extensive data sets for extracting insights has led to a multitude of practical applications, and increased revenue generation, and thereby has a consequential impact.

“However, the possibility of the data sets themselves being biased does exist. An increasing use of AI-generated content and data has the potential to decrease the production of original content, while simultaneously increasing the volume of deductive and AI-generated content. Subsequently, this heightens the risk of content loops, which impacts advertising and programmatic vastly as we advertise pertinent content trying to reach out to relevant users. If content loops or echo chambers become predominant, users will progressively shift away from them and seek out original content that provides up-to-date and contextually accurate information.”

Siddhant Mazumdar, Head, Mediabrands Content Studio – India, says that Artificial Intelligence unquestionably has the potential to generate echo chambers across various applications. “With the proliferation of AI-generated content, there's a concern that AI may end up primarily curating content created by other AI systems, sidelining human involvement. This scenario presents a somewhat dystopian perspective. As AI content becomes indistinguishable from human-created content, it becomes increasingly challenging to ascertain its source.”

Indeed, consumers today have been exposed to different forms of echo chambers for a while now. It’s not (just) that people in your digital surroundings think like you and agree with your views on so many things, excellent as you may view them to be.

“Social media platforms, for instance, employ AI algorithms that repetitively serve content or products based on users' preferences, limiting exposure to diverse viewpoints. This phenomenon can also occur in conversational chatbot experiences, where strong biases or one-sided information may dominate, offering limited exposure to counter viewpoints,” says Mazumdar.

“Similarly, if data bias creeps into the way we use algorithms within digital advertising, the subsequent insights will be impacted. The risk is high, but the solution is also a continuous process that should start immediately. AI/ML should be approached with the understanding of what insights to use, which trigger points we optimize for, and what target user persona we are aiming for. If we lose vision as stated above, we do run the risk of deductive data sets being repetitively used, reducing the efficiency drastically,” says Sharma.

The Exorcists

Jasani says to fix this we need to use different types of data and AI that shows different ideas. “This way, ads can be more interesting and work better. Advertisers and publishers should prioritize responsible AI usage. Regular data audits, transparency in algorithms, and continuous monitoring are key. Human oversight is essential to ensure that AI-driven ads resonate with the intended audience while respecting ethical and cultural boundaries,” he says.

In Sharma’s opinion, publishers should explore the potential of AI capabilities for fine tuning the content rather than creating it from scratch. “I would emphasize on the significance of original content which has never been more crucial and should be given due attention. The usage of original content with AI supporting the mechanism by throwing in research insights would be my recommendation.”

Mazumdar adds that subject matter experts with neutrality in mind can supervise or guide AI content creation, ensuring it remains grounded in human sensibilities. “Looking ahead, AI platforms should ideally provide tools that allow users to control the extent of AI involvement in the processing, empowering everyone to have greater control over the outcome. This balance between AI and human oversight will be vital in maintaining the impact and human touch of ads.”

Sharma also says that advertisers should have checks and balances in place to ensure user persona mapping is done accurately so that biased or inaccurate insights do not impact the overall strategy.

So while echoes are definitely growing in the void that is digital media, there is still a chance to curb that while we still have our hands on the remote.

Epilogue

Mitesh Kothari, Co-founder and Chief Creative Officer, White Rivers Media sums it up, saying, “AI is a mixed bag in today's ad world. On one hand, it helps us pinpoint our target audience, refine our advertising campaigns, and enhance efficiency through machine-learning techniques. On the other hand, it can also steer you into an echo chamber of comparable concepts.”

“Remember, in this data-driven age, staying on top of your datasets and keeping a finger on the pulse of consumer sentiment is crucial. Use AI to craft ads that speak directly to your audience, striking that perfect balance between its advantages and pitfalls.”

 

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Urge & request media to stop speculating: Koo Founders

'We are committed to our dream of taking Koo to the world and beating the best with Indian tech,' said the founders.

By e4m Staff | Sep 18, 2023 12:25 PM   |   2 min read

Koo

After the reports that the homegrown micro-blogging platform, Koo, is actively seeking a partnership with a party possessing robust distribution capabilities, the founders have now issued a statement urging media to stop speculating.

The statement highlights that 2023 has been one of the toughest years for the startup ecosystem around the world. Funding has come to a standstill and only near breakeven or early stage startups are lucky to raise funds, that too at low valuations / heavy markdowns.

“While our stable state plan was to scale more before generating revenue, Koo too was caught in this unfortunately sour market timing and had to switch gears from a growth trajectory to a revenue generating engine. With just 6 months more on our trajectory, we would have beaten Twitter in India” read the statement.

The founders of Koo believe that from growing rapidly to cutting down on growth and proving unit economics, within 6 months of revenue experimentation, Koo took a 180 degree turn and proved that this is a real business. 

“While the market is unfavourable, we as founders are committed to our dream, of taking Koo to the world and beating the best, with Indian tech. We believe that India needs to have a seat at the table that's currently only reserved for global tech giants.”


“The next phase for Koo is to build scale and that will happen with either funding or through a strategic partnership with someone who already has scale. With the current reality of a slow investor market, the best way forward is to partner with someone who has the distribution strength to give Koo a massive user impetus and help it grow. With a platform that's scale ready, Koo can outshine competitors with the right push on growth. While we talk to the right partners to build this out, we urge and request our well wishers and friends in the media to stop speculating and be patient till we have something concrete to announce. All we can tell you is that, with all these changes, Koo will be much stronger as an organization and will make all of us proud,” it further read



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Deccan Herald & Prajavani join hands with Quintype’s AI digital experience platform

Quintype’s digital experience platform empowers the editorial team with custom workflows, bi-directional print-to-digital syndication and innovative storytelling formats

By e4m Staff | Sep 18, 2023 10:58 AM   |   2 min read

Quintype

Quintype has announced its collaboration with The Printers Mysore of Deccan Herald and Prajavani. This partnership has facilitated The Printers Mysore in doubling its active user base and maintaining stable website traffic.

The Printers Mysore aims to harness the power of its influential media brands to enhance its digital media presence for the next-generation news consumers.

In this journey, Quintype, with its AI-powered newsroom growth platform and deep digital publishing expertise, stood out as the ideal partner for The Printers Mysore's progressive digital approach.

This strategic collaboration has enabled Deccan Herald and Prajavani to bolster its digital-first newsroom approach. They adopted Quintype's flagship News CMS platform, hosted on AWS, which comes fully equipped with all essential editorial features and the added benefit of seamless bi-directional print-to-digital syndication. Remarkably, over 2 million stories were migrated to Quintype’s platform without any dip in website traffic. Furthermore, most of their URLs now achieve a "Good" rating in Google's Core Web Vitals assessment.

“Our aim was to enhance our tech stack to offer our readers unparalleled experiences with a great design that is Clean, Crisp and Contemporary. The new platform aligned perfectly with our editorial team's criteria, including efficient workflow management. The entire Quintype team, from tech to product to support, was physically present in our office during the go-live of the new Prajavani and Deccan Herald websites. They closely worked with our team throughout the process, ensuring a smooth transition,” said Sitaraman Shankar, CEO of The Printers Mysore and Editor of Deccan Herald.

"We're thrilled to team up with The Printers Mysore, a media titan in India boasting nearly 9 million print readers and an impressive over 100 million monthly pageviews," expressed Chirdeep Shetty, CEO at Quintype. “Our DXP platform is designed to aid publishers in reducing website downtime and amplifying traffic. It's a robust tool for efficient content generation and omnichannel distribution powered by a state-of-the-art tech stack."

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