Tanushree Basuroy
Research expert covering India
Connected TV in India - statistics & facts
The declining trend in pay TV households in India has signaled a switch to connected TV and free-to-air (FTA) television in the country. Connected television (CTV), the more nascent of the three segments of the Indian television market, refers to television that is internet-enabled such as a smart TV, and allows for content streaming. However, with digital media advancing by leaps and bounds, the CTV ecosystem expands beyond the scope of smart TVs. In fact, a standard television can be turned into a CTV using external devices such as connected set-top boxes, consoles, or streaming devices such as Amazon’s Fire TV Stick.
The CTV segment is primarily divided into subscription video-on-demand and advertising video-on-demand. Ad-based streaming platforms were a welcome alternative as recognized by streaming giants who had already subsidized their rates in the Indian market. Major players such as Disney+ Hotstar and Amazon Prime Video offered both subscription and advertising-based models.
Streaming vs over-the-top (OTT) vs CTV
The CTV segment owes much to the booming streaming market in India. While the terms may seem interchangeable, a fine line draws a distinction between streaming, over-the-top (OTT) content, and CTV. While streaming refers to the overarching concept of consuming audio and video content via the internet on any device, OTT refers to the method of streaming content “over-the-top” of the internet which is what sets it apart from watching the same content via cable. Going a step further, CTV is the method of streaming content on a television screen. The difference between OTT and CTV lies simply in the device used.The CTV segment is primarily divided into subscription video-on-demand and advertising video-on-demand. Ad-based streaming platforms were a welcome alternative as recognized by streaming giants who had already subsidized their rates in the Indian market. Major players such as Disney+ Hotstar and Amazon Prime Video offered both subscription and advertising-based models.
Established television distributors lead the way
Increasing disposable incomes resulted in the smart TV being the leading choice of device for CTV consumption, with Samsung emerging as the Indian consumer’s preferred brand. Established players within the television service providers, Airtel and Tata Play (formerly Tata Sky), were quick to jump on the CTV opportunity with platforms such as Airtel Xstream and Tata Play Binge+. Conversely, the launch of the JioTV+ app by the digital arm of Reliance Industries, Jio Platforms, has presented a strong adversary despite its exclusive nature.CTV advertising: the golden goose of television and OTT companies
Advertising is expected to secure a promising future for the CTV market both internationally and domestically. The positive attitude harbored by audiences evident in their willingness to engage with ads in exchange for good content and sharper ad recall compared to their linear TV counterparts, led advertisers and media owners to expand their CTV ad spending. Industry experts have further identified the advantages of combining CTV with addressable TV to amplify ad reach. Addressable TV pertains to the ability of displaying various ads to different households while streaming the same content. CTV advertising presents a 400 million U.S. dollar opportunity in the years to come.
