How OTT is redefining home entertainment
The outbreak of the coronavirus pandemic has had a negative impact on the global economy and industry as people are confined to their homes. People’s frustration with the lockdown has also peaked due to house arrest. OTT platforms such as Netflix, Amazon Prime, DisneyPlus, HBO Max have become a reliable source of entertainment for people during idle times.
Over time, the popularity of the OTT platform is increasing day by day for various content. With just a few clicks, users can now customize watchlists with content of their choice.
Netflix is more popular with people than HBO Max and Disneyplus. While HBO Max and Disney Plus have 7.4 million and 8.76 million subscribers respectively, Netflix has 22.6 million subscribers spread across 190 countries around the world.
The huge collection of movies and TV series across regions and genres is the main reason for Netflix’s popularity. However, China, Crimea, North Korea, Russia and Syria have no Netflix subscribers.
Netflix was first conceived by two men named Mark Randolph and Reed Hastings. From this idea, Netflix was founded on August 29, 1997 in Scotts Valley, California, United States.
Netflix started with only 30 employees and 925 accessible contents. Anyone could subscribe to Netflix for $4 a month with $2 shipping.
Over time, Netflix’s popularity has grown. In 2005, the platform reached 42 lakh subscribers. On October 1, 2006, he announced $1 million for the first person to develop a video recommender system that could outperform the company’s current algorithm, Cinematch.
The 2013 Netflix series “House of Cards” won three Primetime Emmy Awards. Netflix expanded to six European countries in 2014, and the streaming service won seven Creative Emmys for “House of Cards” and “Orange is the New Black.”
Later, with the rise of OTT platforms, the subscriber base of Netflix exceeded 50 crores. Since 2016, the streaming service has focused on creating new original content to grow its global subscriber base. Since then, Netflix has dominated the OTT platform market.
Amazon Prime is another popular streaming service among OTT platforms. This streaming service is monetized through SOVD (Subscription Video on Demand) and TVOD (Transactional Video on Demand).
OTT receives a revenue report from the platform’s parent company, Amazon Streaming Services. Another reason for this is the non-fixed monthly subscription fees. Instead, it relies on a huge annual subscriber base of Prime members, who spend $119 a year on all Prime content.
Amazon Prime Video had 9.65 million subscribers at the end of 2019 and continues to grow. Among many Amazon businesses, Prive Video has relatively few employees. However, Amazon is trying to overcome this by ramping up staff very quickly across 15 offices in different countries.
Amazon Prime has become the largest and most profitable subscription model in the world by launching offers such as Free Shipping, Prime Video, Prime Reading, Prime Music, Gaming, attractive discounts, etc. Amazon earns $3.18 billion worldwide from subscription services.
A comparative review of Netflix and Amazon Prime
Netflix streams FourK and HDR content. The video and sound quality is also exceptional. On the other hand, Amazon Prime cannot stream HD quality content over slow internet connections.
Subscribers can only watch movies and TV series on Netflix. On the other hand, apart from movies and TV series, Amazon Prime subscribers can also enjoy additional benefits such as Amazon Prime music and faster Amazon delivery.
While Netflix supports a variety of devices, including game consoles, the situation is completely opposite for Amazon Prime.
While Netflix has a large collection of documentaries and popular series, Amazon Prime’s collection is relatively small. As a result, Netflix is naturally more expensive than Amazon Prime.
Only 897 movies on Netflix are unrated so far. On the other hand, only 31,000 66 movies on Amazon Prime are unrated so far. This means the movies are either too old to be rated or not old enough to go through the rating process.
While Netflix allows users to limit downloads, Amazon Prime Video places no restrictions on video downloads.
Battle for content
The content battle is also a factor to consider when comparing Netflix and Amazon Prime. Amazon Prime Video unexpectedly surpasses Netflix in exceptional content.
With 24,000 movies and 21,000 TV shows, Amazon Prime Video’s collection is vast. On the other hand, while Netflix has 15,000 original (own) content, the number of third-party content on the streaming platform fluctuates.
However, Netflix is still ahead of Amazon Prime in terms of content. Netflix has always outperformed Amazon Prime Video in terms of content quality. So, even though it is relatively expensive, everyone is more interested in Netflix content than Amazon Prime
Also, Netflix has more original content than Amazon Prime. By 2022, Netflix will produce nearly 2,000 original films, which have received hundreds of nominations and 15 Oscars.
Another criterion to determine which streaming platform is better between Netflix and Amazon Prime is the number of subscribers. In this regard, Netflix with 213 million subscribers has long since overtaken Amazon Prime Video in terms of popularity with 175 million subscribers.
As mentioned earlier, Netflix streams FourK and HDR content. In contrast, Amazon Prime only streams HD quality content.
Netflix is therefore the first choice of viewers when it comes to streaming for a unique viewing experience. Especially for those who stream Netflix from an 85 inch TV, they can enjoy the taste of a cinema or home theater.
Moreover, Netflix’s acceptance and popularity among family audiences has also increased due to its content of various funny TV shows and movies for kids and various family franchises.
Catch-up TV shows close to streaming
People’s preferences and tastes have changed over time. Nowadays, OTT platforms have become one of the main sources of entertainment for people. As a result, the demand for streaming platforms has increased and the number of viewers has decreased.
According to NMS and Nielsen Bangladesh surveys, TV viewership in Bangladesh was 42% and 74% in 1998 and 2011 respectively. In 2016, this rate had reached 82.9%. However, since 2017, the country’s television ratings have dropped to 80.
The number of television channels in the country has increased over time. But the quality of the broadcast content has not increased. Added to this is the irony of extra commercial breaks. As a result, many people are no longer interested in wasting time in front of the television. Along with this, due to lack of proper planning, the professional staff of many channels lost their jobs and became unemployed.
Information Minister Hasan Mahmud said television broadcasters are losing between 500 and 1,000 crore in advertising revenue every year due to Bangladeshi advertisements on international downlink television networks. For this reason, the government has currently banned local advertising on foreign networks.
Due to the lack of budget under the pressure of capitalism, it is difficult for local channels to continue operating without the sponsorship of various organizations. For this reason, there is no alternative for ad-free channels. Accordingly, it is time for the relevant authorities to think about how to sustain TV channels in the competitive market.
How TV Channels Can Survive
There is no substitute for content optimization to increase audience demand. Along with this, the abundance of ads should also be reduced. Because every viewer sits in front of the television hoping to be entertained. Therefore, it will be difficult for TV channels to survive in the competitive market if they cannot respond to audience demand properly.
In this case, the solution may be to put content from local TV channels on online streaming services. TV channel reception can be increased by combining live antenna TV with local TV channels broadcasting their news, sports, live events and shows over the internet with live TV streaming services.
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