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Daily-current-affairs / 03 Jan 2022

OTT Platform : Daily Current Affairs

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Relevance: GS-3: Science and Technology- developments and their applications and effects in everyday life

Key phrases: OTT, Netflix, online, internet, subscription based,

Why in News?

  • The Indian OTT streaming industry is expected to grow to $13-15 billion over the next decade at a CAGR of 22-25%, according to a joint report on media and entertainment.

What is Over-the-top platform?

  • OTT Platforms, also known as the Over-the-top platform, are web-based services offering video and audio streaming content. The OTT platforms allow you to pay for the type of content you want to watch. You don’t have to deal with a cable operator, satellite connection, or other broadcast mediums.
  • The best part that makes OTT more advantageous over the traditional viewership is accessibility and subscription-based service. You can access international-level content from anywhere around the world.

OTT market in India:

  • In India, the OTT business is only about four years old. Netflix was the first OTT platform to launch, followed by Amazon Prime Video and more than 40 others. The first company to commission Indian originals was Amazon. Following that, Netflix delved into the realm of local content.
  • Amazon Prime Video has around 17 million paying customers, second only to Disney+ Hotstar (18 million), with Netflix India having five million and Zee5 having 11 million or more.
  • It made watching movies more easy, available, and economical for a broader range of users. Anyone with a phone having an Internet connection can watch a movie from anywhere on the globe.
  • The Indian OTT market is anticipated to reach Rs 237.86 billion (US$3.22 billion) by FY25, up from Rs 42.50 billion (US$576.73 million) in FY19, according to a report.
  • By FY23, India will have 500 million or more online video users, which will rise as smartphone and internet penetration increase.
  • The Indian OTT streaming industry is expected to grow to $13-15 billion over the next decade at a CAGR of 22-25%,

Advantages of OTT Platforms:

  • It is handy because the content is viewed at any time and from any location. A person with a smartphone and a decent internet connection can watch national and international films and television series of their choice.
  • The cost of a subscription is reasonable. You may view lots of online content for a thousand rupees per year or 200 rupees per month.
  • OTT platforms provide new and high-quality content. For OTT platforms, unique concepts and filming approaches are tested. The language barrier isn’t an issue because most sites have a range in multiple languages.
  • You can watch the video material on multiple devices at any time. It also has a download option, allowing you to watch your favourite movies even if your internet connection is poor.
  • OTT platforms offer an ad-free experience to viewers. Users won’t have to view the same advertisement over and over again, and they’ll be able to watch the show uninterrupted.

Disadvantages of OTT Platforms:

  • People with poor internet connections will not be able to enjoy a smooth viewing experience. Access to the Internet is also required because the materials are only available online.
  • Security and privacy are the two most pressing problems for OTT platforms. The information saved on their platform should not be exploited for illicit reasons, either during sign-in or in their search history.
  • Another issue with OTT services is the lack of censorship. Therefore, people of all ages particularly children are exposed to a wide range of content not suitable to their age .
  • People might quickly become addicted to OTT platforms due to the wide range of content offered, resulting in a limited social life.

OTT Regulation in India:

  • OTT Platforms, unlike other media providers such as television, print, or radio, are comparatively new, and hence so far in India there are no such laws or rules governing and regulating the content on these platforms.
  • Due to the pressure to regulate the content on these platforms, the Internet and Mobile Association of India (“IAMI”), which is the representative body of the OTT platform, came up with the idea of a self-regulatory model.
  • But, this idea could not be implemented as the Government of India in November 2020 amended the Government of India (Allocation of Business) Rules, 1961 and brought the OTT Platforms under the purview of, Ministry of Information and Broadcasting.
  • The government recently formulated the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021(“IT Rules, 2021”) which replaced the Information Technology (Intermediaries Guidelines) Rules, 2011. Though the rules have been framed under the Information Technology Act, 2000, Part III of these Intermediary Rules, which is mainly concerned with the regulation of Digital news media and OTT Platforms, would be administered by the Ministry of Information and Broadcasting.

Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021

  • These guidelines with respect to OTT platforms state that they should comply with the laws of India and not stream content against integrity and sovereignty of India, ensuring security of the country and friendly relations with foreign countries and not stream content which may disturb public order. The platforms also have been cautious of various racial and religious beliefs and practices.
  • They need to set up a 3 tier redressal mechanism. First-tier will be a grievance redressal mechanism set by the platforms themselves. The second tier, being a self-regulatory body, headed by a retired Supreme Court or High Court Judge or other eminent person. The third tier will be an inter-ministerial committee (IMC) set up by the government as an ‘oversight mechanism’. This committee will be formed on the same lines as followed by the TV industries such as the BCCC.
  • The platforms also have to provide age ratings such as’ U’ or universal rating and others as per age groups.

Way Forward:

  • OTT platforms have a great future. Considering the present situation, the need for an unbiased regulatory body to regulate the contents on OTT platform is necessary. The public today is looking for content that brings out the truth and realities of the society, provides regional varieties, and most importantly that does not hurt the sentiments of people. The government must take care that the regulatory measures do not override the rights of people and provide an effective regulatory process.

Source: The Hindu 

Mains Question:

Q. The Indian OTT streaming industry is expected to grow to $13-15 billion over the next decade at a CAGR of 22-25%. Discuss a few advantages and limitations associated with OTT platform? Should OTT Be Censored Or Regulated In India? Illustrate.