E-CineIndia April-June 2020 ISSN: 2582-2500

Article Mausumi Bhattacharyya Growth of OTT in : The Covid Factor

Introduction ing pattern of consumption of products and service offerings. This shift of consumption Greeted with much fanfare and hope, year preference is happening on a gigantic scale 2020 has presented humanity with a challenge and in all likelihood, will have a lasting ef- that is ominous and debilitating. With each fect on the functioning of several industries. passing month, the Covid-19 pandemic has Lockdowns, social distancing and evolving firmed its grip, bringing in its wake- unfore norms of ensuring personal hygiene, as route seen misery, suffering and deaths. Optimism, to protection from corona virus infection, is which marked the start of the year, lies in modifying on an everyday basis the way we complete shambles. With most governments work, relax, think and read (Mallikarjunan imposing national lockdowns and emphasiz- 2020). Taking this line of argument further ing on strict compliance of social distancing Matthew (2020) adds that Covid-19 outbreak norms, to arrest spread of Covid-19, free and has accomplished what advertisement cam- normal movement of millions of citizens has paigns by top-notch brands have often failed been disrupted. Home confinement, physical to. The pandemic has forced consumers, in separation from families, friends and relatives, large numbers, to revise their preferences al- spectra of employment loss or pay cuts and most overnight. Matthew (2020) opines that above all constant anxiety about preventing stimulating change of customer preferences is contacting the disease is the emerging order. never easy. Preferences tend to be inflexible Covid-19 is ushering in several alterations at and therefore remain impenetrable even in the rapid pace and thus laying the norms of a new face of the best marketing campaign messag- normal. es. Yet several such psychological resistances Emphasizing the unprecedented impact the have been dismantled by the pandemic, some- Covid-19 induced pandemic is having on the thing that brands are often left desiring for. lives of millions of citizens, Mallikarjunan Matthew (2020) points out habituated shop- (2020) draws attention to the way its alter- ping mall aficionados, found every establish- Page 1 E-CineIndia April-June 2020 ISSN: 2582-2500 ment closed overnight. Left with no option, top platforms in India during the lockdown they had to quickly adapt to online shopping. period, it is pertinent to access the degree of The same holds true for those who previously potentiality this channel held out in the In- harboured varying degree of anxiety towards dian context prior to onset of the pandemic. online shopping. Matthew (2020) holds that This will aid in precisely comprehending the both groups were compelled, by situation, to quantum of attractiveness escalation that oc- explore the wide spectrum of e-commerce, curred once the threat of Covid-19 firmed its something they had not previously planned grip over the country and led to constituting to. As lockdowns prevailed and online order- of restrictions. ing and delivery service emerged the saviour, Examining the proliferation of OTT platforms many got used to shopping from the comfort in the country, most of which are owned and of their homes and also became proficient in operated by United States based media orga- the e-commerce operations (Matthew 2020). nizations, Fitzgerald (2019) had noted that Such displayed resilience is not restricted to most companies held positive and favour- shopping and shopper attitude only. Menon able views about possible business expan- (2020) states that restrictions imposed in the sion in India. Such optimism was fuelled by wake of Covid-19 pandemic profoundly trans- the rapidly growing internet user base, of the formed media and entertainment consumption country, and also percentage of users of lat- pattern also. As lockdowns prevented people est gadgets and technological advancements. from venturing out, either or leisure or work, Hence on the radar of US based OTT plat- form operating companies, India represented social life increasingly moved to online plat- a lucrative potential. Fitzgerald (2019) admits forms. Social media provided the opportuni- that such companies are well aware of the last ty to stay connected with families, friends, mile infrastructural and technological bottle- colleagues, neighbours and others. With out- necks, which has denied vast stretches of rural of-home channels of entertainment closed India from unhindered internet connectivity. by government order, following of at-home Yet what held out promise was the 460 mil- channels of entertainment displayed steady lion strong internet using population, ranked growth and popularity (Menon 2020). As such just behind China’s 721 million user base. For television viewing rose both in terms of view- the service providing companies, this user ership and viewing time and gaming applica- strength implied presence of a lucrative mar- tions recorded higher number of downloads ket waiting to be explored with meaningful and time spent. With movie theatres closed, and engaging content. To this end Bhushan over-the-top platforms gained popularity and (2016) had earlier indicated that India has the also witnessed a surge in number of viewers capability of becoming a hub for local content and also subscribers (Menon 2020). Specifi- development for the different OTT platforms. cally, over-the-top (OTT) platforms, have sur- Indications of this is prominent from a report faced as a new lifeline not only for entertain- published by KPMG highlighting just about ment seeking viewers but also for producers 0.5% viewership for television programs and directors of different stature. And going which are originally produced for US coun- by reports of experts, this trend is here to stay tries and the Western world. Hollywood pro- (Menon 2020). Building on this perspective, duced films and other foreign titles generate this article specifically delves into how OTT about 10% of box office earnings, with indica- platforms have gained prominence and ca- tions of the contribution percentage going up tered to different segments in these times of in future. In contrast, Indian content attracts about 60% viewership across television and uncertainties. OTT platforms (Bhushan 2016). Hence In- Potential of OTT in India: Pre-Covid 19 dia came to be regarded as the battleground scenario where clash of Amazon and Netflix, over market dominance, will pan out. If the pric- Prior to exploring the evolution of over-the- ing packages offered during introduction of Page 2 E-CineIndia April-June 2020 ISSN: 2582-2500 these OTT services are indications to go by, sumers of OTT content, in 2019 about 14% the battleground analogy may well hold true. new women consumers adopted the medium Amazon launched Amazon Prime Video at (Malvania 2019). When viewed from a gen- introductory pricing of Rs. 499 or $7.50 for der-neutral perspective, the study found that a full year, in an obvious effort to neutralize among new adopters 63% hailed from the 45 Netflix’s basic monthly subscription charges years to 54 years age group with another 18% of Rs. 500. To lure viewers both offered 30 belonging to the 35 years to 44 years group. days of free trial, Amazon taking it a step fur- This was interpreted by researchers as indica- ther by extending free subscription offers for tion of growing acceptance of the subscription its Prime Shopping Service members (Bhu- model, clarified by the growth of consumer shan 2016). Other OTT platforms also adjust- base across different age groups. Since wom- ed their subscription rates accordingly with en and those hailing from lower social strata ErosNow charging between 75 cents to $1.50 were found to be fast embracing OTT stream- every month and Hotstar making its premium ing, it was concluded that the once niche me- service available at $3 per month. This differ- dium was transforming into one for the masses ential pricing pattern indicates to market po- (Malvania 2019). Focus of service providers tentiality which companies are eager to con- on diversified local content, thereby offering solidate on (Bhushan 2016). subscribers a wider choice, was making a dif- ference and altering the practice of prime-time Yet observers point out availability of local television viewing. Pointing to lowering cost content and its generation holds the key to of data and smartphones in India, the report market superiority. It is considered to be the observed that these have aided growth of au- differentiating factor between OTT platforms dience segment C by 17%, audience segment and determines which viewers subscribe to D and E by 13% while segment B showed in greater numbers (Bhushan 2016). Hence growth by only 4% (Malvania 2019). In oth- Netflix roped in Anurag Kashyap’s Phantom er words, members of categories not typically Films to put together its first indigenous con- perceived as lucrative are strongly fuelling the tent Sacred Games, and Amazon also signing proliferation of OTT services in India. him for Stardust and The Family Man. The lat- ter also got Excel Films on board to produce According to another report published by The Powerplay, Mirzapur and Made in Heaven. Boston Consulting Group, India’s OTT mar- Amazon has a total of nine shows under pro- ket is pegged to hit $5 billion by 2023 (ET duction and an equal number in other stages Brand Equity 2018). Rising level of affluence, of finalization (Bhushan 2016). While Net- data percolation in the rural areas and high- flix’s streaming package initially consisted er acceptance of the medium among women, of acquired parallel cinema titles, Bollywood middle aged and senior generations were cit- content and regional productions, Amazon ed as prime movers of acceleration (ET Brand focused on getting bigwigs like Dharma Pro- Equity 2018). ductions, T-Series and Vishesh Films to pro- duce content for Prime Video. The former had even entered into a licensing agreement with Shah Rukh Khan’s Red Chillies Entertain- ment to own global rights of streaming Dear Zindagi, Happy New Year and Om Shanti Om (Bhushan 2016). Citing a report by research organization Kan- tar, Malvania (2019) discussed the trend of OTT consumption in India prior to onset of the pandemic. With increasing ownership of Fig: Projected growth of OTT market in India smartphones, women were noted as fast adopt- ers to the new technological offering. While Source: ET Brand Equity 2018 42% women were found to be regular con- Page 3 E-CineIndia April-June 2020 ISSN: 2582-2500 The above representation details forecasted ed above. As is visible, movies and mu- growth of the different OTT platforms, even- sic cumulatively dominating other segments. tually culminating into the projected growth When Indian TV shows are added to these, of the overall medium in India. As is evident, the appeal of local content among the diaspo- advertising based platforms are expected to ra gets magnified. With Indian OTT platforms register 43% growth, subscription based plat- having access to these treasure troves, their forms are likely to grow by 32% with anoth- potential market penetration in coming years er 25% growth coming in from international gets clarified. markets. In comparison to 2018, this implies From the different reported findings, it can shrinkage of the advertising based platforms therefore be deduced that India holds lucra- and expansion of the subscription based plat- tive proposition for OTT service providers form. The study forecasts 40 million to 50 in the short and long term. Lowering of data million subscription based platforms users charges and increasing of smartphones, in the and close to 600 million advertising based rural areas, coupled with expanding age and platform users by 2023 (ET Brand Equity gender demographics of people switching to 2018). With 48% of internet users expected to OTT entertainment, will be strong facilitators be from rural India by 2023, the report sug- of the projected growth story. With local con- gests that if OTT service providers are able tent poised to be in great demand, specifically to generate quality regional content there will Bollywood movies and film music, focus of be significant opportunity for their growth and service providers may well be on garnering dominance in the country. Since most Indian rights to such works to cater to their audienc- OTT operators have access to quality digital es. While Amazon and Netflix are forging col- library pertaining to cricket, Hindi films and laborations with local directors and produc- music, they will be in an advantageous posi- tion houses to develop relevant content, the tion vis-a-vis international service providers. quantum of movie and music titles they will Hence these companies should stay focused be to exclusively stream will also be an im- on generating more Indian niche content, to portant determinant of viewer base. And here- be able to exploit the favourable environment in the home-grown service providers may be and register significant growth in coming on an unequal playground, given the financial years in India and abroad, the report suggest- foundation of Amazon, Netflix and others in ed (ET Brand Equity 2018). the league. Growth of OTT in India: Post-Covid 19 scenario Though the segment was expected to grow, Menon (2020) notes that the lifestyle change, the pandemic has brought about, will augment the process. With out-of-home options shrunk or inaccessible, the demand for in-home en- tertainment has spiked. As accessibility and the new habit of maintaining social distance becomes priority, new viewers have been mi- grating towards OTT platforms for their daily Fig: Proportion of Indian content viewed by dose of entertainment (Menon 2020). Stream- respondents ing services are enrolling viewers from varied locations and from different demographics. As Source: ET Brand Equity 2018 and when the pandemic subsides, this trend is For the international market, optimism stems expected to remain unaltered because of the from the viewer preference pattern enumerat- psychological hangover the virus and its ef- Page 4 E-CineIndia April-June 2020 ISSN: 2582-2500 fect will have on people (Menon 2020). It is shootings stalled, for films and television se- expected that recover in the media and enter- rials, and release of major titles postponed in- tainment industry will be slower compared to definitely, demand for fresh content has been other industries, providing a fertile ground for growing steadily among home bound people. introduction of technological innovations to With their mix of premium content, original deliver quality entertainment at the doorstep. shows, blockbuster films and classic films and Virtual concerts, virtual live shows, virtual programs, OTT’s is deftly filling in the - cre collaborations and diversified delivery -mod ated void. With content available in different els can aid strengthen connection between languages, they are dishing out fresh and daily viewers and service providers (Menon 2020). entertainment doses to a wide cross-segment Viewer comfort, in respect to OTT platforms, of people whom television and films are not and their confidence in content quality and being able to cater to. In other words, OTT service delivery, both for new and existing service providers are moving, with alacrity, customers, is expected to improve due to in- into spaces left by other media and entertain- creased exposure to the medium during lock- ment channels and seeing revenue and mem- down. This is reflected in the 20% viewership bership hikes (Patwa 2020). hike, platforms have recorded. With people Kaushal (2020) informs about rising subscrib- working from home, leading to saving of er fortune of ZEE5, Alt Balaji, Amazon Prime travelling time, entertainment consumption Video and Netflix. Though specific growth via OTT has gone up (Fernandes 2020). Be- figures have not been officially disclosed by tween February 2020 and March 2020, Net- all and sundry, yet the fact that leading pro- flix witnessed surge in users by 30%. Hike in duction houses are opting the OTT platform consumption hours and extension of prime- route for their big-ticket films, amplifies the time slots have also been recorded. Currently growing popularity of this medium of online morning prime time has extended from 8 am entertainment. Basis available industry level to 11.30 am, an hour longer than previously. data, Kaushal (2020) states that post outbreak Evening prime time extends from 6 pm to past of the Covid pandemic in India, consumption 12 am, a good four hours longer than usual of original shows produced by OTT platforms (Fernandes 2020). Surge in revenue of OTT grew by 200% while that of movies, went up platforms during the lockdown period, when by 236%. During the entire duration of the revenue for most other businesses hit rock national lockdown, Alt Balaji added close to bottom, also bear testimony to how viewers 17,000 first time subscribers every day. When preferences are swirling towards in-home on- compared with 10,600 daily new subscribers line entertainment in the post Covid period. prior to be lockdown, the quantum increase ZEE5, one of the 30 OTT players in the do- is computed at about 60% on an average mestic market, saw its paid viewership go up (Kaushal 2020). The platform currently has by 45% and subscriptions swelling by 80%. 1.7 million direct active subscribers, riding on Viewing time went up by 50%, Daily Active the momentum it achieved across all its main Users increased by 15% and its application markets and demographics. Like ZEE5, view- download, by 41% (Patwa 2020). The com- ing time and subscription numbers displayed pany also experienced 3 times rise in viewer- an upward swing for Alt Balaji also (Kaushal ship on connected devices over the duration 2020). of the lockdown. Company officials attribut- ed this new found popularity of ZEE5 among Buoyed by the response received, several online streaming viewers to their sturdy con- OTT platforms transformed into launch pads tent, which covers different genres and 12 re- of Bollywood and regional films which were gional languages and can cater to 1.25 lakh earlier expected to have theatrical releases this viewing hours (Patwa 2020). This underlines year. ZEE5 hosted the premier of Ghoomketu, the aspect of ‘content being king’ in the OTT featuring Nawazuddin Siddiqui and Anurag segment. Observers further adds that with Kashyap. This film was completed in 2014 Page 5 E-CineIndia April-June 2020 ISSN: 2582-2500 and was meant to have traditional release. But ing the film ready within June. It is reported due to uncertainty existing around re-opening that Akshay Kumar is taking the lead in con- of movie theaters, the producers deemed it vincing producers to release the film on the prudent to stream the movie via an OTT plat- Disney+Hotstar OTT platform to ensure that form. This, according to industry, is indicative none suffers financial losses due to the current of an emerging trend which will witness even volatile situation (FJP 2020). Given the inter- the seasoned movie theater viewer transform- est being demonstrated by leading production ing into an OTT viewer (Kaushal 2020). houses, directors and actors in putting up their latest projects for OTT release, underlines the Though some big-budget releases are seeing growing acceptance of this platform emerging postponement of commercial release, list of as an entertainment mainstay in this era of so- films exploring the OTT route to -commer cial distancing and utmost personal hygiene cial release is growing. Amitabh Bachchan and precaution. Though some big-ticket mov- starrer Jhund and Abhishek Bachchan starrer ies are holding out for better days before com- Ludo will both be released and streamed by mercial launch, interest of top grossing actors OTT service providers (FJP 2020). Though for commercial launch of their latest flick via the name has not been revealed or an official OTT validates the importance of this medium. announcement made, yet as per available in- And this surely will attract more viewers who dustry inputs, a major player within the OTT will join the platforms as new subscribers. segment has bought the release rights of both films. Jhund has been produced by Nagraj, An indication of competition among OTT ser- Bhushan Kumar, Krishan Kumar and others. vice providers to capture greater share of the Reports indicate that the film narrates the sto- flourishing market can be had from seven re- ry of Vijay Barse, a superannuated sports in- leases which has been lined up Amazon Prime structor and founder of Slum Soccer, a Nag- Video. Spanning across different languages, pur based NGO (FJP 2020). Ludo, directed by Amazon has pulled off a coup of sorts which Anurag Basu, had been slated for release on will help it consolidate its position in the Indi- 24th April 2020 but had to be called off due an OTT market, vis-à-vis competition (IANS to the pandemic and the ensuing lockdown. 2020). Shoojit Sircar’s much awaited latest An OTT release is therefore the option that offering Gulabo Sitabo has been released on the makers explored and, in all probabili- 12th June 2020 on Amazon Prime Video. The ty, finalized. Interesting to note that besides other Hindi film to be released on the- plat Abhishek, the film has a cast ensemble- in form, though the date has not been announced cluding the likes of Rajkummar Rao, Pankaj yet, will be Shakuntala Devi with Vidya Balan Tripathi, Fatima Sana Shaikh, Aditya Roy in the lead (IANS 2020). Tamil flick Ponma- Kapur and Sanya Malhotra. It is produced gal Vandhal starring Jyotika premiered on 29th by Bhushan Kumar, Krishna Kumar, Anurag May 2020. Penguin, made in Tamil and Tele- Basu, Divya Khosla and others (FJP 2020). gu and starring Keerthy Suresh, got released Even ‘Laxmmi Bomb,’ a movie of the hor- on 19th June 2020 on Prime Video again. Pro- ror-comedy genre and staring Akshay Kumar, senjit Chatterjee starrer Bengali movie Niran- is expected to release on Disney+Hotstar. This tar has been released on ZEE5 along with a movie was scheduled for theatrical release on television premiere on 28th June 2020. Ragini 22nd May 2020. But that could not be achieved Chandran and Siri Prahalad starring, due to the lockdown and also non-completion movie, Law will be releasing on 17h July 2020 of post-production work (FJP 2020). It is re- tentatively. Another Kannada movie, French ported that since the post production team is Biriyani starring Danish Sait, will start stream- currently working from home, completing ing from 24th July 2020. flick Su- remaining work is taking more time than it fiyum Sujatayum, featuring Aditi Rao Hydari would otherwise. However, the team is opti- will also have an Amazon Prime Video release mistic of wrapping up pending work and hav- though the precise date of the same has not Page 6 E-CineIndia April-June 2020 ISSN: 2582-2500 been announced (IANS 2020). Amazon has entertainment programs aired on television set itself a three-month period over which it channels. Even VOOT Kids, a video-on-de- will slate releases of the new films and these mand platform operating on the subscription will be made available to viewers across 200 based model, reported six times increase in nations and territories globally (IANS 2020). everyday subscription numbers for the period preceding announcement of the national lock- Reaction of theater owners and relevant as- down in March (Mahendra 2020). Post an- sociations is hardly surprising. Following the nouncement of the lockdown the registration decision to release Ponmagal Vandhal via the numbers went up by 50% sans any marketing OTT route, The Tamil Nadu Theater and Mul- efforts on the part of the platform. To capitalize tiplex Owners Association has warned that all on this trend, OTT service providers adroitly future movies produced by Suriya’s 2D Films planned initiatives expected to drive up chil- will be banned from theatrical release if the dren viewing time and viewership numbers. decision is not revoked. The Association has ZEE5 introduced a new free segment, ZEE5 also threatened that any film which has Suri- Kids, specifically for this audience segment. ya in the lead, will also faces the same con- Disney+Hotstar streamed content from the sequence. Incidentally Suriya, a superstar of Disney+ library, besides commissioning fresh Tamil cinema, is the producer of Ponmagal episodes for current content stock (Mahendra Vandhal and also husband of lead actress Jy- 2020). otika (IANS 2020). Several exhibitors have also protested the move by different produc- In addition to films and other programs, ers to give rights of their films to OTT majors streaming of music programs has also attracted like Amazon Prime Video. INOX, operators its fair share of listeners during the lockdown of the multiplex chain, described the grow- phase. On 29th March 2020, Instagram and In- ing affinity among production houses to move dian Music Community collaborated to host a away from the globally prevalent practice of virtual musical gala titled ‘Live In Your Liv- theatrical release and viewing of films as both ing Room.’ This program featured artists like ‘alarming and disconcerting.’ The group re- Armaan Malik, Naezy and Lisa Mishra and minded houses exploring OTT releases and their live performance was streamed globally premieres that movie theatres and film con- through Instagram (Verma 2020). Preceding tent developers have always shared a mutual- this initiative, IG Live had streamed ‘Togeth- ly beneficial relationship and complemented er at Home,’ a series of performances by lead- each other in revenue generation. In the pres- ing musicians like Chris Martin, Keith Urban ent situation, unilateral decision of producers and John Legend. The programs stressed on and actors to move away from the laden path the importance of staying at home and tak- will destabilize that relationship, warned the ing all necessary safety precautions to keep multiplex leader (IANS 2020). Going by the corona infection at bay (Verma 2020). Spoti- stature of movies, which will eventually have fy, an application streaming music, launched OTT commercial releases, it can be said that the Spotify Covid-19 Music Relief Project, such protests and warnings have probably not to raise funds for organizations which are di- had the desired impact. Alternatively, it mag- rectly involved in assisting those in dire need nifies the discomfort that OTT service provid- due to restrictions and lockdowns. Amazon ers have been able to stir within theater own- Music and YouTube Music came forward and ers and exhibitors. contributed to the MusiCares’s Covid-19 Re- lief Fund meant to extend financial support to Content generation and streaming for children, workers of the music industry, who lost earn- has also emerged as a strategic priority area ing opportunities due to imposed restrictions. for OTT platforms. This has been stimulated Independent content promoting platform by findings of a study, conducted by Broadcast Hungama Artist Aloud, launched a digital Audience Research Council (BARC), under- concert series christened Stay At Home Stay lining a 39% jump in viewership of children Page 7 E-CineIndia April-June 2020 ISSN: 2582-2500 Entertained. This multilingual, multi-talent Yet a silver lining is the rising viewership that and multi-genre initiative was streamed live OTT platforms have managed to add during over a fortnight starting from 1st April 2020 the extended lockdown period. It is anticipat- (Verma 2020). This brought together artists ed that leveraging higher viewer numbers and like Shibani Kashyap, Suneeta Rao, Sherrin viewing hours, platforms will be able to drive Varghese, Mame Khan, Manani Scott and oth- up advertisement linked revenues. Given the ers who went live on the Facebook Page of traction they will be able to generate, compa- Hungama Music, performing their homes. nies may be willing to scale up advertisements on OTT platforms. Hike in advertisement rev- So, it can be deduced that OTT platforms and enue might help the service providers offset music applications diversified their offering the increased delivery costs, necessitated by bouquet to pull new viewers and listeners, increased consumption (Shafer and Bacon, thereby widening their subscriber and listener 2020). Experts, however, points out that this base. This translated into business and reve- equation may not be as linear as it appears. nue growth and the trend is likely to continue With demand for products and services expe- in the near future. While initiatives like film riencing downturn, due to lockdown and re- releases and others have attracted brickbats strictions, companies are taking a hit in terms from players operating in the more tradition- of revenue. Their earnings are also getting al channels and mediums, it has certainly not squeezed due to complete stoppage of busi- dampened the growth ambition of these new- ness and economic activities. With balance age media channels and platforms. sheets getting impacted, the degree of willing- Revenue Challenges ness among companies to allocate additional funds or continue with existing budgets for While popularity ratings of OTT platforms advertisement campaigns on OTT platforms can be expected to consistently head the up- remains doubtful (Shafer and Bacon, 2020). ward direction, comments on the revenue The jury is still out on this aspect and only potential exposes probable challenges in the future course of governmental decisions and path. Shafer and Bacon (2020) points out that initiatives to open up economic and business the Covid situation has led to more people activities will provide indications about the opting for the video-on-demand subscription trend advertisement based revenues will take model. This requires the viewer to pay a fixed (Shafer and Bacon, 2020). So, additional rev- rate, independent of consumption volume. An enue generation to offset escalated delivery increase in subscription numbers, in a lock- costs remains an area of OTT operation where down situation, may not always imply grow- clarity is still awaited. ing revenues. When consumption goes up, OTT service providers also experience higher Shafer and Bacon (2020) states that chan- monetary outflow on account certain types of nels like YouTube, Roku, Pluto TV and Vudu variable costs as restrictions creates hindranc- seems to be partially well placed, given their es in the network for content delivery. It push- business model of free service supported by es up delivery cost, proportional to quantum advertisement based revenue. Recent studies rise in consumption. Rise in subscription is indicate that YouTube is the leader in the vid- therefore countered by rise in content deliv- eo-on-demand supported by advertisement ery expenditure, rendering gains from fixed revenue business space. Other players lag be- charge subscription quite marginal (Shafer hind YouTube significantly. and Bacon, 2020). Hence even with a jump in subscriber number in the short term, OTT platforms may not register higher earnings per subscriber. This gives rise to the probability of financial strains masked by expanded sub- scriber base. Page 8 E-CineIndia April-June 2020 ISSN: 2582-2500 spends are controlled by corporates trying to shrug off the twin impacts of economic shut- down and ensuing global economic recession. If this becomes reality, the increased subscrip- tion based earnings may not be sufficient to offset the loss. OTT platforms like Amazon Prime Video, Disney+Hotstar, YouTube and others may find ways to survive the situation, given the earnings of their parent companies from business verticals other than OTT. The going, however, may get tough for smaller OTT players, who are not part of or do not have the financial backing of such strong par- ent entities. So, while the present hike in sub- scriber numbers and viewing time are reasons for optimism, there are enough indications in the evolving global economic scenario for cautious treading. Conclusion It can therefore be summarized that the Covid-19 pandemic and ensuing lockdown and travel restrictions has been a blessing in disguise for the OTT platforms in India. Though the segment was forecasted for strong Fig: Usage percentage of advertisement-sup- growth in the near short term, the momentum ported online video services has received a fillip due to the prevalent condi- tions. Platforms have registered growing sub- Source: Shafer and Bacon (2020) scription based viewership and also viewing As is evident, YouTube commands about half hours. The prolonged closure of multiplexes the share of the total video-on demand sup- and single screen movie theaters has forged ported by advertisement revenue market. Its a closer tie-up between OTT service provid- nearest competitors lag by a considerable ers and leading Bollywood and other regional margin. With nearly 2 billion views, record- production houses, resulting in a slew of big ed every month, YouTube certainly has the ticket movies getting released across various advantage in the short term. The channel can platforms. While this will enable producers drive up revenues, from this category further, to reach a wider viewer base and ensure re- by convincing more viewers to enroll for its turn on investment, it will help OTT providers premium subscription package which offers penetrate into new territories and demograph- advertisement free streaming. But it must be ics boosting subscription based revenue. Top kept in perspective that YouTube’s digital ranking cine stars and production houses per- business portfolio is not cocooned from the sisting with OTT releases, in spite of threats effects of global economic uncertainties. So, by multiplexes and relevant associations, is in the scenario of depression or recession in- indicative of an emerging trend that may pose duced advertisement spend curbs, the shocks significant challenge to multiplex and movie will be felt by the channel also. theater owners. Notwithstanding these posi- tives, OTT operatives must remain cautious Cumulatively this underlines the probabili- of the recessionary trends across several econ- ty of a situation where channels may have to omies. This may adversely impact their ad- face financial uncertainties if advertisement vertisement revenues and coupled with higher Page 9 E-CineIndia April-June 2020 ISSN: 2582-2500 cost of content delivery, due to increased con- to-release-on-ott-platforms-amid-covid-19- sumption, can pose a unique roadblock in the lockdown. Last accessed 7th June 2020. growth path of OTT service providers. Free Press Journal. (2020). Akshay Kumar’s References: ‘Laxmmi Bomb’ to release on Disney+ Hot- Bhushan, N. 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This paper was presented by the author in an International Webinar titled ‘Covid 19 Pandemic and Commu- nication: It’s Use and Misuse in Shaping Discourse vis-à-vis Society, Economy and Culture’ organised by the Rabindra Bharati University, Kolkata on June 17, 2020

Dr. Mausumi Bhattacharyya is an Associate Professor of the Centre for Journalism & Mass Communication, Visva-Bharati University, Santiniketan and a Post-Doctoral Fellow of the Indian Council of Social Science Research at Jamia Millia Islamia University, New Delhi.

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