The new Trai(Telecom Regulatory Authority of India) framework received a lot of complaints from subscribers about the rising prices of their monthly subscriptions. Also, the subscribers found the migration to the new channel packs a very tedious process. At the same instance, over-the-top applications like Hotstar, Netflix, Zee5 and more are feeding on a lot of attention from the audience because of the top-rated shows.
The consumers are more attracted to these applications as they are more affordable and the range of content on these platforms is quite good.
Widespread distribution of OTT applications
Before Reliance Jio came into the telecom industry, people barely used to consume video content online. Watching a YouTube video on a smartphone was a great deal because data packs were very expensive. However, the scenario has changed. We are getting to see a lot of very cheap data packs which have immensely increased video consumption. Also, a lot of OTT application like ZEE5, Hotstar, and others are offering data plans as freebies. This led to an increased traffic to these applications. Another advantage is the personalized recommendation which these apps can make. Hence, subscribers can watch what they like, and what genre they prefer, rather than being tied down by having to watch whatever is broadcasted.
The difference in Rates.
Being a very combative industry, there is also the pricing factor which has been driving the OTT fever in India. People are opting for cheaper plans and data tariff wars have bruised the industry, the telecom operators now want to set themselves apart from these OTT apps. As a result, many subscribers are getting access to these apps free of cost. This is in high contrast to the DTH industry where subscribers pay a fixed monthly rental.
However, the difference in pricing comes even when you are paying for these apps.
Hotstar’s Rs 365 VIP plan shall give you the privelege to watch Live cricket, Premier League matches and Formula 1 races along with other premium content. Compare the same packs on your DTH subscription, and you will be surprisingly paying a similar amount on a monthly basis instead of the annual subscription, hence the cost difference is inevitably high!
Aftershock in the Industry.
In such cases, it is but natural that people are attracted like a magnet towards the OTT applications. With the impressive quality of shows on these platforms, massive investments from the companies and increased data consumption will contribute to this factor. It can also be said that the coming of the new Trai tariff regime has somewhat shot the transitions as many subscribers are thinking that they are shelling out more for their subscription. But, it is also worth keeping in mind that since DTH is such a highly penetrated and reliable form of the broadcasting system, the reasons are not yet compelling enough to make the subscribers do a complete flip to OTT platforms.
Food for thought! What do you want to choose?