As people are consuming content in their privacy on their smartphones, the growth of OTT players like Netflix and Hotstar has been phenomenal. This has alarmed DTH operators. Their active subscribers’ strength has gone down considerably. They are not able to compete with OTT players like Amazon Prime Video as latter offer original content in all languages.
The OTT users get content at low price. As per April-June 2017 quarter data released by the Telecom Regulatory Authority of India (TRAI), the DTH active subscriber base at 65.31 million grew by 7.9% on a year-on-year basis. The same in April-June 2016 had grown by 52%. In contrast, the video OTT user base of 16 players, which stood at 63 million in August 2016 rose to 164 million in August this year, a phenomenal growth of more than 160%.
According to Jehil Thakkar, partner, Deloitte,“Apart from bundling of services, bundling of service with handsets is another reason behind consumers streaming content online. For example, many of these apps now come pre-embedded in smartphones. Also post Jio’s entry in the market cost of data has gone down tremendously, so people have started streaming content online.”
Kartik Sheth, CEO, Wynk, commented: “Partnership with OTT apps has allowed to provide a seamless viewing experience to consumers, who instead of downloading five different video streaming apps, can just opt for one app, in this Airtel TV — to view different content,”
As more and more OTT players are joining hands with telcos, it is becoming a win-win step for both, but it is giving jitters to DTH operators. Coupled with more reliance on smartphones is signalling a danger to DTH players.
Source: http://cablequest.org/index.php/news/dth-news/item/11539-dth-facing-stiff-competition-from-ott-players-ott-registers-160-growth
The OTT users get content at low price. As per April-June 2017 quarter data released by the Telecom Regulatory Authority of India (TRAI), the DTH active subscriber base at 65.31 million grew by 7.9% on a year-on-year basis. The same in April-June 2016 had grown by 52%. In contrast, the video OTT user base of 16 players, which stood at 63 million in August 2016 rose to 164 million in August this year, a phenomenal growth of more than 160%.According to Jehil Thakkar, partner, Deloitte,“Apart from bundling of services, bundling of service with handsets is another reason behind consumers streaming content online. For example, many of these apps now come pre-embedded in smartphones. Also post Jio’s entry in the market cost of data has gone down tremendously, so people have started streaming content online.”
Kartik Sheth, CEO, Wynk, commented: “Partnership with OTT apps has allowed to provide a seamless viewing experience to consumers, who instead of downloading five different video streaming apps, can just opt for one app, in this Airtel TV — to view different content,”
As more and more OTT players are joining hands with telcos, it is becoming a win-win step for both, but it is giving jitters to DTH operators. Coupled with more reliance on smartphones is signalling a danger to DTH players.
Source: http://cablequest.org/index.php/news/dth-news/item/11539-dth-facing-stiff-competition-from-ott-players-ott-registers-160-growth
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