Rise of connected TVs prompts OTT platforms to focus on family-centric shows

According to a recent report by media consulting firm Ormax, 36% of SVoD (subscription video-on-demand) audiences in urban India are regularly using connected TV (CTV) devices, which enable streaming of videos and music via the internet. As a result, there has also been an increase in co-viewing of streaming content among SVoD audience, which has implications on content and marketing strategies of OTT platforms in India.

As of August 2024, India had 547 million OTT users, but active paid subscriptions were only around 100 million, according to Ormax.

Family entertainment takes centre stage

About two-thirds of connected TV audiences watch streaming content with other members of their families, making inclusive content catering to different life-stages a critical success factor for the Indian SVoD market in the times to come, the report said.

“Urban audiences have embraced connected TV wholeheartedly, drawn to its premium content, immersive viewing experience, and the ability to seamlessly switch between platforms. Rural and tier-two and three markets are also experiencing rapid growth, fuelled by a combination of increasing internet penetration, affordable smart devices and AVoD (advertising video-on-demand) options. We're seeing a surge in younger demographics, who are digitally native and prefer streaming content on their own terms," Manish Kalra, former chief business officer, ZEE5 said.

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Entertainment industry experts say CTV offers a unique opportunity to reach a diverse audience with targeted messaging, as far as advertising goes. Family co-viewing has also surged, making CTV the centre of home entertainment, particularly during festive and holiday seasons, when demand peaks.

“CTV is reshaping content consumption, aligning with family-centric co-viewing trends. With 65% of our paid subscribers now preferring connected TVs, our (ZEE5) campaigns and offerings have increasingly focused on delivering immersive, large-screen experiences for co-viewing families," Kalra, who quit the company about a fortnight ago, said.

Further, this insight powers initiatives like “ZEE5 TV Dekha Kya", a campaign educating viewers about the convenience of on-demand access on connected TVs. “Interestingly, evening and weekend bingeing has become common as families explore diverse genres together. This shift not only influences how content is consumed but also drives demand for stories that resonate with all age groups, paving the way for family entertainers and regional hits," Kalra said.

Also, in view of the growing adoption of CTV and demand for premium viewing experiences, most of the platform’s library is now available in 4K, high-definition resolution, he said.

Regional content, new formats fuel growth

Devyani Ozarde, managing director and lead – media and entertainment, Accenture India, said improved Internet, and higher disposable incomes have made CTVs a preferred choice for first-time buyers, offering affordability and ease of use. “Younger viewers are drawn to live sports and premium content, while older adults use CTVs for niche content and staying connected with family. Recognizing the growing importance of the creator ecosystem, OTT platforms are investing heavily in original content and live sports to attract and retain subscribers. There is a strong push towards producing high-quality original content in regional languages to cater to India’s diverse linguistic and cultural landscape," Ozarde added.

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Industry experts said that one of the most prominent effects of CTV is the revival of the traditional family viewing experience. The large screen size, user-friendly interface, and availability of diverse content have made it more inviting for families to gather around the TV.

Mahesh Sharma, president- strategic partnership and alliances, Chaupal, a platform specializing in Punjabi, Haryanvi and Bhojpuri content, said that the arrival of CTV has provided a larger screen and a more immersive viewing experience for OTT content. CTV has also made it easier for OTT platforms to reach a wider audience and compete with traditional broadcasters.

“Family-oriented content, such as movies, reality shows, and children's programming, is often consumed together, fostering shared experiences. The multi-profile features of streaming platforms also allow multiple members of the family to create personalized recommendations, making CTV an ideal medium for group entertainment," said Kaushik Das, founder and CEO of AAO NXT, an Odia language OTT platform.

He added that one of the most significant changes will be the increased production of regional content in various languages. Further, with technological advancements, interactive and immersive content formats are likely to become more prevalent. This includes the rise of formats like “choose-your-own-adventure" storytelling, which allows users to make decisions that affect the outcome of the show or film.

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Virtual reality (VR) and augmented reality (AR) may also have a role to play in the evolution of content production. “Companies will need to adopt more localized marketing strategies, catering to specific regional preferences and cultural nuances. Regional content will require marketing campaigns that resonate with local audiences, using language and imagery that reflects their interests and values," Das pointed out.