The over-the-top debate ends here

DEVELOPMENT GOVERNMENT POLICIES GROWTH
05 Nov, 2022

NEWS HIGHLIGHTS

Theme : Government Policies ; Growth and Development.
Paper : GS - 2, GS - 3

OTT platforms are audio and video hosting and streaming services which started out as content hosting platforms, but soon branched out into the production and release of short movies, feature films, documentaries and web-series themselves.Examples: Netflix, Hotstar, Amazon Prime Hulu, Pluto TV, and many more.
These platforms offer a range of content and use artificial intelligence to suggest users the content they are likely to view based on their past viewership on the platform.

TABLE OF CONTENT

  1. Context
  2. OTT Platforms
  3. Factors Responsible for the Growth of OTT in India
  4. Regulation of OTT
  5. Issues with the OTT Platforms

Context : The telcos allege that OTTs are taking a ‘free ride’ on their infrastructure and should pay an access charge. Therefore, there is a need to take adequate steps in this direction for smooth functioning of the emerging media and entertainment industry.

OTT Platforms : 

  • OTT platforms are audio and video hosting and streaming services which started out as content hosting platforms, but soon branched out into the production and release of short movies, feature films, documentaries and web-series themselves.Examples: Netflix, Hotstar, Amazon Prime Hulu, Pluto TV, and many more.
  • These platforms offer a range of content and use artificial intelligence to suggest users the content they are likely to view based on their past viewership on the platform.
  • India is currently the world’s fastest growing OTT market and is all set to emerge as the world’s sixth largest by 2024.

Factors Responsible for the Growth of OTT in India : 

  • Urbanization and Westernization: Migration to big cities and cultural changes in media consumption have made customized interfaces of OTT more attractive to users.
  • Access to Digital Services: High-speed mobile internet at affordable prices, doubling of internet users, increased adoption of digital payments, have given OTTs a competitive edge.
  • Democratization of Media: The OTT industry benefits a number of small content producers and artists in India, who have mastered their craft.It also helps in accessing regional films around the country as well as globally.
  • Convenience: Limited Advertisements, Pause & Play options, flexibility to stream movies anywhere any time (e.g. while traveling) have combined to fuel OTT industry's eye-catching growth in India.

Regulation of OTT : 

  • The Indian government announced new rules to regulate the Over-the-top (OTT) service providers and digital content providers in India.

  • The new rules are called Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021.

    • As per the new rules OTT platforms will have to self-classify the content into five age-based categories: U (Universal), U/A 7 years, U/A 13 years, U/A 16 years, and A (Adult).

    • The rules also lay down a soft-touch self-regulatory architecture with a Code of Ethics and three-tier grievance redressal mechanism for OTT platforms.

Issues with the OTT Platforms : 

  • Lack of Direct Regulation: There is no separate legislation or body for regulation of OTT platforms. They are only governed by the Ministry of Electronics and Information Technology (MeITy).
  • Threat of Cybercrime: In the process of subscribing to an OTT platform, people share their confidential information like bank details, credit card access, which has the potential to be misused and lead to cybercrime.
  • Effect on Telecom Revenue Stream: For voice calls and SMS messages, OTT platforms like Whatsapp and Telegram use the network infrastructure provided by telecom service providers like Airtel and Jio.
  • Risk to Moral Fabric of Society: Critics have always pointed out that the content on these platforms contains obscenity and vulgarity, which is negatively affecting the youth.

FAQs : 

1. What are OTT Platforms?

Answer : OTT platforms are audio and video hosting and streaming services which started out as content hosting platforms, but soon branched out into the production and release of short movies, feature films, documentaries and web-series themselves.Examples: Netflix, Hotstar, Amazon Prime Hulu, Pluto TV, and many more.

2. How much is India growing as an OTT Market?

Answer : India is currently the world’s fastest growing OTT market and is all set to emerge as the world’s sixth largest by 2024.