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How Netflix is Changing TV Viewing In India

Netflix or Amazon Prime or Cable or Digital channels on TV

Recently, at a gathering of friends, during a lull in the conversation, someone asked: “So, what have you been watching lately on Netflix?" And someone else laughed and said: “This is the question that has replaced ‘What have you been reading lately?’"

Everyone present was subscribed to Netflix and Amazon Prime. Everyone had one or two shows to recommend that they had watched in the last week or two.

When’s the last time you saw a movie in theatres? How about the last time you watched a movie or show on Netflix? If you’re like most consumers, you’ve done the second thing more often.

In the not-so-distant past, TV viewers were forced to wait a week for the next instalment of their favourite shows, parcelled out by networks in half-hour or hour-long increments. Fast forward to 2019, when media and tech companies are subverting that schedule and the majority of viewers using TV streaming services watch an average of four hours of content in one sitting

I cannot remember the last time I turned on an Indian television channel for entertainment. It has been video streaming services or over-the-top (OTT) media for the last two years-and-a-half, ever since Netflix launched in India.

Netflix is dramatically changing the way we consume entertainment in India. It is giving us enormous choice, the ability to watch at our convenience and, of course, it gives us the pleasure of binge-watching. Who wants to wait for one whole week for the next episode to know what happened next? We want to know it now.

Going to the theatre to watch a film is an experience larger than the film itself -family outing, date, stolen kisses, popcorn and soft drinks. If a lot of people in the hall are laughing, you also laugh, even though you’ve missed the joke. You are moved to tears against your will, just because people all around you are sniffling. And, of course, there is the whole sensory experience. You need to watch some films on the big screen, especially if you like seeing monsters eating skyscrapers.

Television was different. We did not have to move from the sofa to enjoy a film, and we were happy with that for decades. We could always switch channels. All seemed fine with the world. The theatre for that special film experience and, for the rest, television.

But we failed to notice something. We failed to notice that at theatres, show timings were fixed. If you arrived late, you missed the beginning. Similarly, television works on a fixed schedule. Of course, if you could not be home to watch an episode of a favourite serial, you could record it and view it later, but how many of us, other than the most committed viewers, actually did it?

In other words, the film in the theatre (or the serial on TV) controls your time. A service like Netflix completely inverts that. You control your time - when and how much. You can spend nine hours on a weekend and finish off the full season of a serial. Or you could watch a few episodes of a thriller, take a break with a romcom for a few evenings, and then go back to the mayhem.

And, please remember, you can always rewind if you missed the joke, or pause the film at any time and go to the toilet. That is freedom.

What Netflix has also exposed us to is some great TV shows that we would never have got the chance to watch otherwise—edgy, complex shows from France, Germany, Spain, Poland. 

Netflix and Amazon Prime are still free from Indian censorship, but one does not know for how long. But as long as these services remain outside the net, Indian filmmakers have a chance to make the films they have dreamed of. There are several Indian shows and films on these channels that would never have got financed - or made the way they were - through the usual processes. Of course, there is nudity and foul language. But that is real life.

Netflix and Amazon Prime will change our concept of TV viewership, and what we should demand as intelligent viewers. The format gives the viewer unmatched freedom, and the content gives more highs than Indian television has ever given.

By supporting multinational production at an unprecedented scale, streaming giant Netflix has changed the face of entertainment on a global scale.

Even as movies bring in record amounts of money at the box office, Netflix grows its number of subscribers by around 10% a year and now has an estimated more than 59 million subscribers in the U.S. alone.

There’s no doubt Netflix is the definitive modern media company, and its impact is felt in a number of industries. It’s what experts call the Netflix Effect. The Netflix Effect is when a new series catapults an unknown actor to fame - overnight - a result of millions of people binge watching a show.

Before Netflix, consumers went to the movies, rented VHS tapes or DVDs and watched whatever was on live TV. Now, consumers can stream content instantly to any device, anywhere. Netflix has changed how consumers access film and TV. They’re no longer tied to the TV and forced to sit through commercials.

By creating compelling original programming, analysing its user data to serve subscribers better, and above all by letting people consume content in the ways they prefer, Netflix disrupted the television industry and forced cable companies to change the way they do business.

It has certainly accelerated the trend towards cord-cutting. The site eMarketer estimates that the number of American households who have cancelled their cable services reached 18.4 million in 2019. That still leaves about 88 million American households who continue to pay for cable television.

The debate regarding direct-to-digital release has witnessed a massive rift in the film industry. The ongoing COVID-19 lockdown has impacted several industries across the world—however, one of the most hit industries in the film and television industries.

Several producers have decided to release their film directly on the OTT platforms rather than theatres; after all, theatres are not going to open anytime soon. This particular decision has been taken owing to the monetary and logistical factors. However, the “OTT vs. theaters debate” has just begun and is not about to end in the unforeseen future.

The emergence of OTT platforms has disrupted the entertainment sector. It is being propelled by the rise in the standard of living, evolution of smartphones, ubiquitous and affordable Internet connectivity coupled with increasing penetration in rural areas, and changing preferences of the audience. Content is now king in a real sense, and it is personalized and provides opportunity for wider focused distribution. A recent Boston Consulting Group report has predicted that the OTT segment in India is currently pegged at $0.5 billion and is poised to grow to $5 billion by 2023. Affordability and convenience are the key factors that have propelled the OTT revolution in India.

It is noteworthy that several OTT players have been producing original shows and films besides offering live entertainment, which has managed to capture eyeballs. The proliferation of OTT platforms has evoked apprehension among the filmmakers that this may be the death knell for theatrical experience. It is now not uncommon to see certain films opting for the OTT route to reach out to the appropriate target audience. Video streaming platforms have certainly made watching movies affordable, convenient, and available ‘on the go,’ especially for those who prefer binge-watching.

That said, going out of home to socialise and unwind by watching movies is still ingrained in social fabric in India. Moreover, gourmet food and an escapism experience as accompaniments to theatrical viewing make it still attractive. It is a major source of revenue for the film. The box office route is still a viable option for both content companies and theatres if the past track record are anything to go by, be it occupancy, footfalls, revenue or operating profits. It serves as a key measurement metric for the success of a motion picture. It is unlikely for big-budget movies opting for an OTT platform- only route in the near future unless there is an exclusivity of content to a particular OTT platform.

Both mediums, for now, are holding on to their exclusivity with formats and the USP attached to it. Both of them, though serve the same type of content, but the purpose and consumer variables are different. I might look for theatre experience for 3D animation or much-awaited releases, but I would fall for OTT platforms more On-The-Go with more like documentaries, interviews, podcasts, special interest content, history, or web series. It is more likely to say OTT has impacted ongoing TV viewership rather than theatrical experience.

According to the 2020 FICCI-EY report of 2020, about 50 low budget films were released directly on OTT in India in 2019. OTT guarantees a broader audience for small films with less saleable names. It cuts costs on printing and advertising. A theatrical release is a costly affair for them as distributors do not show much of an interest. Thus, it acts as a saviour for smaller films, but it cannot replace the exhibition industry.

So, the digital release of feature films is not a new trend. There has been a 100% increase in the streaming subscription revenues last year. Besides offering live entertainment, several OTT players are creating noteworthy web series and film that has managed to capture the eyeballs. It has created a tension that the filmmakers will lose out on the theatrical experience. Video streaming platforms have certainly made experiencing movies convenient, affordable, and available ‘on the go,’ especially for those who prefer binge-watching.

So, although the theatres still draw an enormous footfall, the streaming platforms’ presence cannot be made palpable. A digital release is a different game, and every film has a unique strategy to stand out. Nevertheless, the exhibition model will endure this challenge a well. Earlier as well, there were challenges such as VCRs, VCD, and DVDs. Now the streaming platforms have come up. During every trial, people though that the theatres would perish. But all the problems have been done and dusted very time. It too shall pass

They are watching movies by going out of the house, and using it as an opportunity to socialize is embedded in India’s social fabric. Movies, coupled with dinner, is escapism for the next-gen from their daily routine. Although streaming has made the movie-watching experience cheap and comfortable, the fun to go out of the house using this occasion cannot be replaced.

Currently, both the mediums are holding on to their exclusive formats and the USP attached to it. Both of them serve almost the same type of content, but the purpose and consumer variables are different. People might look up to the theatre experience for 3D animation or much-awaited-films. While on the other hand, the audience will rely on the OTT platforms more On-The-Go with more like podcasts, exclusive interest content, history documentaries, interviews, or web series. It is more likely that OTT has been impacted by the ongoing TV viewership rather than a theatrical experience.

The co-existence of both theatres and OTT platforms in the long -run is something that we all can foresee in the future. It is merely because of the relevance these two platforms hold in terms of viewers and the content. While people watch OTTs on weekdays, on the other hand, people watch movies over the weekend. However, the technological revolution will redefine theatre for a type of content such as genre movies for sure.

The current audiences are not willing to shy to shed an extra penny to seek a completely transformative experience for fresh, relatable, and engaging content. Thus, exaggerating either of them is incorrect.

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