Smart TV scores over mobile devices for OTT content, finds survey

If you thought the majority of subscribers of over-the-top (OTT) and video on demand platforms watched most of their content on mobile devices, you would be mistaken. Smart TV or connected television (CTV), which enables streaming of content through the internet, is emerging as a popular alternative in metros and Tier-I cities across India.

A survey by Mediasmart and VTION (which analyses consumer data analytics) across metros and tier-I cities shows that 50 per cent of smart TV users prefer to watch streaming content on TV rather than on mobiles or tablets when they are at home. Thirty-six per cent still prefer their more personalised mobile phones.

In terms of consumption patterns of those watching stre­a­ming TV, 41 per cent prefer OTT for movies and serials, 17 per cent prefer music, 11 per cent games, 10 per cent news, and only 21 per cent prefer creator-generated content such as You­Tube. In the mobile device spac­e, YouTube is the biggest draw.

Shailesh Varudkar, chief business officer of VTION, says that during Covid-19, more households in metros and tier-I cities bought broadband at home and also opted for higher speeds. On the other hand, he said, the price of smart TVs has been falling (with the entry of small screen smart TVs, it is down to sub-Rs 20,000), making them very affordable. Nine out of 10 TVs sold in Q2 2022 were smart TVs, according to Counterpoint.

“There have also been a growing number of bundled offers from DTH (direct-to-home) as well as cable operators for subscribing to OTT apps combined with TV channels. And OTT players have also reduced subscription rates. These changes have helped the proliferation of OTT platform viewing on TV,” said Varudkar.

Clearly, this is still an urban, middle class and upper middle class phenomenon. These classes can afford high-speed broadband and channel subscription. But then, that is the market for OTT, too.

But what is giving a big fillip is the expected massive expansion of fixed broadband to homes, either through fibre to the home or 5G wireless last mile connectivity. Reliance Jio has already announced that it will bring high-speed broadband to 100 million homes.

Media Partners Asia estimates that the total addressable market of daily active users of connected TV homes will hit 47 million by 2027.

Last year, the market size was a mere five million households but it is expected to nearly tre­ble and reach 13 million in 2023.

There is huge growth potential considering that the number of pay TV users is around 210 million TV households (or 892 million TV viewing individuals) in the country while 110 million subscribers are on pay TV.

Mediasmart-VTION estimates that currently there are 14 million connected TVs with an addressable 42 million TV viewing individuals (based on the assumption that three persons at home view programmes together).

According to industry estimates, Netflix with around 7-8 million paid subscribers has more viewers watching its content on TV rather than on a mobile. It clearly helps that the basic tariff of a mobile or tablet is just Rs 149 while the basic entry for TV (with PC, phone and tablet) is higher at Rs 199 per month. Netflix India did not comment on the issue.

OTT video platforms decli­ned to give any break-up of subscribers who use mobiles and tho­se who use TV or both to see their content.

However, Mediasmart sho­ws that 82 per cent of the connected TV devices generate re­quests from at least four or more OTT platforms.

Screen time

• 60% of consumers access streaming content through pre-installed apps or via smart stores
• 26% access content through dongles
• 14% access it through gaming consoles or internet set top boxes  
• 39% of connected TV (CTV) owners have 40-54 inch television sets
• 4 hours is the average time spent watching CTV content 
• 74% of CTV viewing is primarily by adults
• 11% of CTV is primarily by grandparents
• 64% prefer watching CTV content with their family