Every few years, we witness a paradigm change in a lot of categories, where new technology comes and makes existing one redundant;, this happens across sectors. We have seen such shifts from landline telephones to mobile phones to smart phones, color televisions to smart TVs, vacuum cleaners to robotic mopping machines, and so on and so forth.
In the broadcasting space, one such pattern that has strongly evolved is of cord cutters, who are consuming traditional linear channels on smart TVs, and fuelling growth of video consumption on digital platforms. This entire content gobbling is happening across various screens, and such consumption of content on smart TVs is the next big trend and these smart TVs, where you can consume OTT content and linear content, are terms termed as connected TvTV (CTV). Let us deep dive a little more deep to know about CTV and how it is changing consumption habits, moving linear TV audience to digital video- consuming audience.
CTV stands for connected TV and is any smart television set used to stream video over internet. These are often videos that are streamed vis via apps that are downloaded through interface like google Google Store.
You do not need cable to watch any shows or sports, etc. All you need to do is cut the cord with your old cable box or satellite connection and have the smart TV connected with a good internet connection, and the apps built into your smart TVs, or you can get the apps connected via inexpensive streaming devices like Amazon Fire TV or MI Box.
Across the world, the trend is that viewers are cutting the cord with the linear and consuming content on smart TVs on apps like Netflix, Hotstar, Zee5, Sony LIV, etc. Some of these platforms not only have variety of content but also have live streaming of channels at nominal subscription fee, which can save you a few thousands rupees of cable fee. These #cordcutters are changing the way linear television was consumed earlier, and this is making way for Connected CTVs.
Connected TV is taking the digital advertising world by storm. Getting your ads on the big screen at very affordable pricing, reaching the cord-cutters, and mixing up your marketing mix are just the tip of the iceberg when it comes to reasons why connected CTV advertising is quickly growing in adoption. It has lot of engagement opportunity, and this entire process of media convergence is set to fuel growth of video consumption with the help of connected devices like mobiles and smart TVs.
According to Statista, internet subscriber growth in India is forecast to reach 974 million by 2025, making it a faster-growing, and an increase in the internet subscriber base, have led to the growth are contributing to the growth of smart TVs or CTV in India.
India’s total TV consumption has grown by 37 percent on the back of accessible and great quality content on streaming platforms, taking the consumption to cross a record 1.21 trillion minutes. According to some published reports, 21 percent CTV- viewing households are cord cutters, i.e., households who cut the cord with linear TV, and are consuming content on smart TVs or OTTs. This has significantly changed the scales as earlier direct-to-home (DTH) was expected to add to the volume of television viewers; instead, we now see a new user pool that is not only moving away from DTH but also cutting the cord completely in favour of OTT/CTV.
We are seeing huge investment by many companies in strengthening their digital offerings. Many broadcasters are launching their owns apps, or distributing their channel through other established apps, to reach out to cord cutters audiences.
CTV advertising is the next big thing for the Indian digital advertising market. Globally, CTV viewing has increased by 81 percent, and in India that statistic currently stands at 31 percent, opening up huge opportunities for not only online content platforms but also CTV advertising. As per one an Amazon report, in 2025, we expect CTV will to reach over 40 million homes from around seven million homes today and that is a massive opportunity. Keeping brand away from the CTVs has already created FOMO feeling among marketeers and across the board rooms, strategies are being relooked and pivots in media plans are being made to reach out to these cord cutters.