Cable TV Industry Faces Challenges as OTT Streaming Dominates: Former CEO of BARC India
The cable TV industry is currently grappling with survival as over-the-top (OTT) streaming services continue to take over the market. The former CEO of BARC India, Partho Dasgupta, sheds light on the changes required for the cable industry to sustain itself amidst this growing competition.
There’s no denying that the way we consume television has drastically changed over the years. Gone are the days when we would plan our schedules around our favorite shows. Cable TV used to be our window to the outside world, providing entertainment for people of all ages. However, with the advent of OTT platforms, people now have the freedom to stream shows on-demand, pause and resume at their convenience, and watch wherever and whenever they want. This convenience at the click of a button has redefined the expectations of today’s audience.
According to reports, the cable TV industry in India has witnessed a significant decline in subscription revenues. In 2010, cable TV earned around Rs 27,000 crore, but it has now plummeted to an estimated Rs 13,000 crores. This decline in revenue highlights the growing popularity and ease of viewing offered by OTT platforms, posing a major threat to the cable TV industry.
The challenges faced by cable TV operators began almost a decade ago when the government introduced mandatory digital set-top boxes, leading many customers to cancel their subscriptions. Furthermore, the Telecom Regulatory Authority of India (TRAI) implemented the New Tariff Order in 2019, making it more complex for consumers to select TV channels and resulting in higher prices for cable TV services.
In response to a significant price hike by broadcasters such as Zee, Sony, and Star, the Cable Operator Association of Gujarat has filed a special civil application in the Gujarat High Court. This move further compounds the troubles faced by cable operators who are already losing business to DTH and OTT platforms. A further increase in channel prices may prompt more subscribers to switch to DTH and OTT services, exacerbating the situation.
India is currently home to 424 million OTT users, according to the Ormax OTT Audience Sizing Report 2022. Therefore, cable operators must enhance their performance levels to remain sustainable and competitive. They need to adopt innovative pricing packages and attractive deals to survive in this evolving media landscape.
To stay competitive, cable TV operators must embrace technological advancements and upgrade their infrastructure to support high-definition (HD) and 4K content delivery. This will allow them to highlight the superior quality of their offerings compared to certain OTT platforms that may have bandwidth limitations. Additionally, incorporating interactive features such as extensive video-on-demand libraries and interactive TV guides can enhance the viewing experience and make it more competitive with OTT convenience. Ad-free viewing is another factor that may attract viewers back to cable television.
Moreover, cable TV operators should develop user-friendly apps and services to enable subscribers to access content across multiple devices, including smartphones, tablets, and smart TVs. By ensuring a seamless transition between traditional cable and digital streaming, and potentially partnering with popular OTT platforms to integrate their services into cable TV packages, operators can provide a comprehensive entertainment solution for their viewers.
In this rapidly evolving media landscape, the cable TV industry as a whole must consider radical changes to avoid becoming a relic of the past. The industry needs to adapt to the preferences of modern viewers and find innovative ways to deliver content in a convenient and compelling manner. Only by embracing technological advancements and enhancing their offerings can cable TV operators hope to survive the rise of OTT streaming services and secure their place in the future of entertainment.
In conclusion, the cable TV industry in India is facing significant challenges as OTT streaming platforms continue to gain popularity. However, by making necessary changes, such as embracing new technologies and offering enhanced services, cable TV operators can still thrive in this evolving media landscape.
