What is OTT platform and how it's work. DTH v/s OTT

 

OTT Platform

According to a recent report by the Telecom Regulatory Authority of India-TRAI, the average active subscriber base of DTH services was 25 in the quarter (April-June) as compared to 72.44 million in the January-March quarter.  The percentage has fallen sharply to 54.26 million.

What is OTT Platform

The full form of OTT is Over-The-Top.  OTT is a platform that provides video or other media content through the Internet.

 The term OTT is commonly used for Video On Demand Platforms, besides audio streaming, OTT Devices, VoIP Call, Communication Channel Messaging, etc.  OTT Content is made available to the public through the Internet.

Reason for decline in DTH subscribers

The decline comes after the new DTH tariff regime came into force from 1 April.  The decline in customer base exposes the challenges that DTH operators have to face in order to implement the new tariff regime.

Meanwhile, the spread of (Over the Top)OTT service has also affected DTH membership numbers.  OTT service providers are offering both attractive content and subscription packages to consumers, amid high competition in the region.  However, regulation of OTT platforms is still a contentious issue that the government is considering.

A recent survey has shown that around 55% of Indians prefer OTT services over DTH services and around 87% of Indians these days use mobiles to watch videos.

Equality and Inequality in DTH and OTT

DTH is an abbreviation for Direct To Home service.  It is a digital satellite service that allows customers to watch programs on television directly through satellite broadcasts anywhere in the country.

Its signals are digital in nature and are received directly from the satellite.

Over The Top- OTT is an online content provider media service that offers streaming media as a standalone product.  The term is commonly used in relation to video-on-demand platforms, but also refers to audio streaming, message service, or Internet-based voice calling solutions.

It requires access to internet and access to smartphones, tablets, laptops / computers.

The content and context of DTH and OTT are completely different.  OTT platforms are highly personal in nature, while DTH connections are more social in nature.

They are also complementary to each other, such as OTT platforms informing about content available on DTH by advertisements.

Are DTH Service Providers Really Decreasing?

The 25% decline is not entirely correct as TRAI has changed the method of calculation, presenting the numbers in a new and more accurate way.  Thus more accurate data of customers has been made available rather than a decline in the number of customers, which creates the illusion of a decrease in the number.

The price factor and tariffs of OTT platforms have not been so low as to remove DTH from the market or significantly reduce the number of subscribers.

The new tariff system has changed the fee / bill format where consumers have the option of paying only for the channels they want to watch.  The bill of any two customers will be less or more or different from each other depending on the user's personal usage.  So it is not fair to say that everyone's fees have gone up.

Bundling or package of channels makes it easy for the consumer to opt-in as the selection of content of choice with minimum tariff is a very difficult practice.  It is not a fully developed plan but the region is still working on it.

It also gives an opportunity to customers to choose how and what platform they want to see.  Traditional broadcasting has its own place and opportunities will be available for new options such as OTT platforms.

Just as DTH overtook the cable connection with its arrival, OTT is now overtaking DTH.  This is the reason why many DTH service providers are working together with OTT platforms to keep themselves in the market.

TRAI is developing an 'app' to offer an alternative to the channel package for consumers and help reduce their bills.  So that further work can be done in this field with maximum assistance of the customers as no business can succeed if the customers are dissatisfied and ignore their wishes.

Why are OTT platforms overtaking DTH service providers?

The convenience and ease with which OTT platforms can be viewed make them more attractive.  Mobile phones can be carried anywhere and if there is availability of data, you can watch programs of your choice anywhere.

There has been a steep decline in the cost of data services in the last few years which has increased the number of average users including rural areas.

The OTT platform presents a better option than the tedious process of choosing a channel combination in DTH and higher tariffs.

OTT platforms such as Netflix and Amazon Prime (despite their relatively expensive ones) reflect people's demand and interest due to the availability of the Internet and ease of carrying smartphones, tablets or laptops.

Can OTT platforms overtake DTH service providers altogether?

As far as the conflict or competition between DTH and OTT is concerned, we must remember that these are technologies that allow the same products to be consumed in different ways.  It is only appropriate that the consumer has the option to choose which of these platforms are more suitable for him.

The overtaking of DTH in the market by OTT depends on various factors.  One of the important factors is the OTT platforms' reliance on internet connections, which are still not evenly distributed and are not accessible to more than half of India.

Roughly two-thirds of the Indian population does not actively use the Internet, making the option of OTT very limited.  So the idea of ​​OTT leaving the DTH or cable connection behind is still untimely.

Even DTH has not completely eliminated the cable connection as the market still has significant active players in the sector who have spread their cables across the country.  That is why they cannot be considered as inactive but instead they are regaining their hold in the market.  For example - JIO fiber.

It is necessary to identify the variety of devices that are consumer friendly.

Future of OTT platforms in India

Of course, the spread of OTT will increase.  Internet access is increasing day by day and with the help of Digital India and Broadband programs they are reaching remote areas.

The ease of information collection and, even more important, confidence in the phone indicates that the basis of OTT is going to grow further.

It is a question of convenience where quality is being improved with more youth joining OTT platforms.  Indian youth are its biggest consumers and India's online video demand is U.K.  And has reached close to China, leaving America behind.  According to the KPMG report, India will have more than 500 million subscribers across all OTT platforms by 2023.

Internet streaming speed has been better than before and it will improve further due to plans like Digital India in the future.

Regulatory aspect

The challenge in regulating OTT is that it is a part of the Internet and it is extremely difficult to separate it from the wider Internet.  Regulators are faced with the challenge of how to separate it and then regulate it separately from the larger Internet, which is impossible.

OTT providers are governed by section 79 of the Information Technology Act, 2000, where intermediate responsibilities vest.  Therefore OTT service providers are not required to engage in the entry, transmission and reception of content that does not make them responsible for the content.

Regulators are now focusing on smaller issues that are specific only in the Indian context.  Our licensing services are highly regulated, so the issue is not regulation but reduction of high level of telecom service regulations so that everyone is empowered to choose their modes of consumption.

After the content is available for OTT platforms, a clear arrangement has been made under the Information Technology Act regarding their management.

Many systems need to be built for OTT platforms right now.

Information Technology Act, 2000

The Act regulates the use of data and information in computers, computer systems, computer networks and electronic formats.

The following subjects are listed as crimes among other things in the Act:

• Tampering with computer-source documents.
• Hacking of computer systems
• Cyber ​​terrorism, that is, infiltrating a protected system with the intention of endangering the unity, integrity, sovereignty or security of the country.
• Fraud using computer resources etc.
• Section 79 of the Information Technology Act, 2000

It exempts arbitrators from liability in certain cases.  It states that arbitrators will not be responsible for any third party information, data or communication links provided by them.

Road ahead

Transparency on OTT platforms is extremely important, especially for an industry that deals with so many people and has limited regulation in force, as it is primarily an entertainment platform and will provide more options for consumers going forward.

Over time, the cohesion between all the old, new and emerging multi-media platforms will create an equal opportunity based on market dynamics, rather than being forced through a regulator for support, pricing and directions.