OTT or DTH : What do viewers prefer and what influences their choice

With the rising usage of internet and OTT platforms, what remains interesting is that a large section of households in India are yet to make a shift from the traditional DTH connection.

DTH stands for Direct to Home, which we receive through a dish that is affixed to the rooftop of our homes or workplaces. Whereas, OTT (over-the-top) content is whatever we watch online. OTT includes various applications like Disney+Hotstar, Netflix, Youtube, Amazon Prime among others. DTH on the other hand offers separate channels like Sony TV, Star Plus and others.

Since 2020, the Covid-19 pandemic has engulfed the entire world. In order to limit the spread of virus, many nations went into lockdown. The government of India also requested that its citizens remain at home.

With very little to do while staying at home, OTT usage began to increase. The general public now has easier access to the internet with significantly reduced data plans prices, thanks to companies like Jio, Airtel, Vodafone Idea and BSNL that have made the internet so affordable. The cost together with fast internet speed, is what gave OTT platforms a boost.

The condition for DTH in this shifting environment is getting progressively worse since the launch of OTT. We may say that overtime, DTH has grown highly constrained. Where OTT platforms regularly produce a range of material to stay competitive, DTH is entirely saturated. Any programme that airs live on DTH service must first pass censorship. OTT, on the other hand is totally uninhibited, there are no restrictions on the negative content or foul language.

The DTH industry continues to see a decline in the active subscriber base. As per the Performance Indicator Report (PIR) from the Telecom Regulatory Authority of India (TRAI), the private DTH players have lost 1.6 million paid active subscribers in Q1 of FY2022 as compared to Q4 in FY2021.

According to TRAI data, The total active subscriber base of the pay DTH sector fell to 66.92 million in the Q1 of FY2022 compared to 68.52 million in the 4th quarter of FY2021. In Q1 2021, the four private DTH operators had 69.57 million active subscribers.

Whereas, according to a report conducted by Ormax Media, the Indian OTT market has grown by 20% in 2022.The user base for OTT in the country is now pegged at 42.38 crore (423.8 million). Paid OTT users in India are now at 11.9 crore.

But at the same time, to say that OTT has replaced or will replace DTH will not be the right thing to say. With the rising usage of internet and OTT platforms, what remains interesting is that a large section of households in India are yet to make a shift from the traditional DTH connection.

You can view various news networks, entertainment channels, movies and infotainments in both SD and HD on DTH if you pay a certain amount each month let's say nearly 300 per month. But, one must purchase a Netflix subscription separately ranging from about Rs. 650 to 1500 per month depending on different packages offered.

Not just this, OTT requires a strong broadband connection with a minimum speed of about 20 to 30 mbps and to watch say Netflix on a standard LED TV with an HDMI connector, one must also own a smart TV, otherwise you will need to use an Amazon Fire Stick or Google Chrome cast to access OTT content, both the devices range between Rs. 2000 to 4000. Even though there has been a huge shift from DTH connections but a large section is still not willing to invest the amount required for internet content thus prefer DTH cable connection at home.