The title itself revealing the story that from past 1 year, Video streaming apps hold their position in such a way that even Sony TV has to display “Originals” logo whenever new show will going to start.
Eventually before 1 year, it was meant to be Netflix and Amazon Prime eat the whole market share cake of indian OTT (Video on demand) services and TV channel viewers get more options to see the original content.
Since then number of video streaming apps launched and TV era reached to questionable future where if none of the actions taken place, then definitely as title suggests, end of TV era started.
Now, talking about one more potential threat to TV era is TV channels itself finding their another source of revenue in terms of Video Streaming apps.
Let’s take some examples:-
Broadcaster Star India’s video streaming app Hotstar held on to its No. 1 spot in terms of monthly active usage in first 6 months data of 2017. The Hotstar app has crossed 300 million downloads in India. (Source:- http://www.livemint.com/)
Voot is video streaming app backed by Viacom18 Media Pvt. Ltd. and served the shows of Colors Channel and some originals considered to be OTT (Over the top) Video on demand service.In terms of Monthly usage, Voot held 4th position in viewership as per first 6 months data of 2017.
SonyLIV is backed by Sony Pictures Networks Ltd. and served all flagship Sony Channel shows.
One unique innovation which not belong to TV channels community and yet a bigger threat to TV era is YUPP TV. This is an app which provides live streaming of all TV Channels along with news and even they just started original content for some regions of India.
This app is used by those who loved their TV Shows and can’t afford to miss it. Even the app has started business meeting broadcasting services in order to tap one more unique market.This app will be slowly and steadily grabing TV’s place in terms of viewership.
Due to flexible subscription plans and feasible to use anywhere and anytime , these apps have started to break TRPs of TV shows.
There is always co linear relationship between TRP and advertising expenditure. If TRPs are lowering and viewer shift his focus to app, then definitely advertising expenditure affected.
Similarly due to these actions of shifting focus, advertisers also spend more on video streaming apps. When we talking about advertising expenditure we need to take into account portfolio of Apps and how they shaping digital advertising and digital sponsorship scenario.
As of September 1, 2017 Total 18 video streaming apps being launched for Indian viewers. Some Popular apps in India are as below:-
When talking about video streaming app as Advertising revenue source has much more deeper correlation as anyone can think about it.
The reason is very simple. YouTube has started YouTube Creator Hub in order to support content creators for making great videos. Story doesn’t end here. YouTube also earns a revenue from advertisements placed on those videos.In a way this is the perfect example of correlation between Video streaming app and Advertising revenue source.
The most crucial part of Digital Advertising (Advertising in App) is costing part.When we compare costing of placing ad in mobile app and in any TV Channel slot, there is a large difference in terms of costing.
In digital advertising there is no minimum amount of expenditure while TV advertising is the most expensive and even local brands couldn’t afford it.So, in this way too TV era has dim future because when advertising money is not injected, then how anyone can serve content??
In conclusion, Digital Advertising got one big platform for branding in terms of video streaming app apart from search network.Also, emergence of regional apps are boon for local advertisers.