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OTTRACTION: Netflix Business Model in India and the Attraction to OTT

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 1

OTTRACTION:
Netflix Business Model in India and
the Attraction to OTT Platforms
in Kerala

Nithin Joseph Elanjimattom

Academic Director,
St Joseph College of Communication, Kerala

10 Over The Top in India

Abstract
Over-the-top (OTT) platforms are now familiar to almost every
internet user. This mode of entertainment enabled easy access
to international content in the regional markets and regional
content was made available to international markets alike,
especially after the pandemic. A successful business model
around online video content distribution was developed by Netflix.
The study begins by explaining the Netflix business model of
content marketing. Netflix’s artificial intelligence system tracks
user behaviour constantly, and the user profile is updated regularly
to customise the recommendations for every viewer with its
algorithm. Several other platforms across the globe and in India
followed this business model to build their business in the digital
entertainment industry. The paper’s second section discusses
the OTT platforms in India. The focus of the article is the third
section which explains the history, popularity and consumption
pattern of OTT platforms in the South Indian State of Kerala. The
data derived from the research survey proves that OTT platforms
have become popular in Kerala during the pandemic following
the overall pattern in the country. At the same time, there is also
an increase in digital piracy of downloading films from telegram.
Considering the economic boom in the digital media industry
and the rising popularity of Malayalam films, the digital
entertainment industry in Kerala is expected to have a bright
future.
Keywords: Netflix business model, OTT platforms in India, OTT
platforms in Kerala, Malayalam film industry, OTT consumption
pattern

Netflix Business Model in India and the Attraction to OTT Platforms 11
Introduction

A
dvent of the digital era has introduced several changes in
the mode of production, distribution and consumption
pattern of entertainment content. The most significant
change in the entertainment industry is the emergence of Over
The Top (OTT) streaming platforms or the ‘internet-distributed
television’ (Lotz, 2017). OTT platforms can be explained as the
distribution and consumption of media content through online
services like websites or apps, which is different from the previous
mode of satellite or cable broadcast.
Though there are different streaming platforms for video,
audio, education, and gaming, this article concentrates on the
online distribution and consumption of cinema in the
contemporary era through OTT platforms. The article has three
parts that discuss the topic from the perspectives of the global,
national and regional markets. The first part is the case study of
the OTT business model with a special reference to Netflix, as it
is the most popular streaming platform and has the best business
practices in the OTT industry. The second part deals with the
popular OTT platforms in India and the OTT market in India. The
third part deals with the regional South Indian market, Kerala,
and the OTT consumption behaviour there.
1. Netflix’s Business Model
Streaming services emerged as an alternative to the costly
television subscriptions in the US, which enabled customers to
pay for what they enjoy. The first attempt at streaming an event
live online was the Major League Baseball game between Seattle
Mariners and New York Yankees in September 1995, streamed
by ESPN SportsZone. Service providers like Apple and Amazon

12 Over The Top in India

recognised the opportunity of selling entertainment online and
ventured into that by creating their platforms. But Netflix was the
game-changer in the industry. Netflix CEO Reed Hasting explains
the OTT-driven entertainment as:
“Great stories at your fingertips on
your Smart TV, on your phone, Netflix CEO Reed
tablet, and laptop. You can start, Hasting explains the
pause, and resume watching OTT-driven
whenever and wherever you feel entertainment as:
like it. You don’t have to sit through “Great stories at your
commercials or be at the mercy fingertips on your
of an 8 pm tune-in; you just click Smart TV, on your
and watch” (Crawford, 2021; 81). phone, tablet, and
laptop. You can start,
Netflix was initially a DVD rental pause, and resume
company founded in 1997, and watching whenever
they started video streaming and wherever you feel
services in 2007 and entertain- like it. You don’t have
ment content production from to sit through
2013 onwards. House of Cards, commercials or be at
Hemlock Grove, Orange is the the mercy of an 8 pm
New Black etc., were their first tune-in; you just click
productions. In 2010 Netflix’s and watch”
revenue from streaming out-
numbered DVD rentals and in a
company policy statement, Netflix declared itself to be “primarily
a streaming video company delivering a wide selection of TV
shows and films over the Internet” (Dixon, 2013; 5). Netflix
expanded across the globe from the United States by acquiring
rights to productions and producing regional content. Netflix
developed its OTT market, trusting big data analytics curating
for individual preferences with its algorithm, namely Netflix
Recommendation Engine (NRE). Netflix’s brand identity is thus
personalisation (Havens, 2018). Catherine Johnson explains the
difference brought out by online streaming in the entertainment
industry as a shift from program-based to service-based brands
(2012).
Netflix’s artificial intelligence system tracks user behaviour

Netflix Business Model in India and the Attraction to OTT Platforms 13
constantly, and the user profile is
updated regularly to customise the Netflix’s artificial
recommendations for every viewer intelligence system
with NRE. Netflix’s research website tracks user
says: “we do this by using the data behaviour
about what content our members constantly, and the
watch and enjoy along with how they user profile is
interact with our service to get better updated regularly
at figuring out what the next great to customise the
movie or TV show for them will be” recommendations
about this (NR, 2018). Some of the for every viewer
user behaviours that the NRE tracks with NRE. Netflix’s
are the user profile (age, sex, research website
location, favourite content selected), says: “we do this
time and day a user watched a title, by using the data
devices used to watch, the search about what content
keywords, scrolling behaviour, our members
watching behaviour (binge watching watch and enjoy
or in intervals), the period to along with how
complete a series/episode, repe- they interact with
atedly watched scenes, instances our service to get
of pausing and fast forwarding etc. better at figuring
(Lad et al., 2019). Patty McCord, co- out what the next
creator of Netflix’s culture desk, great movie or TV
explains collecting data from users show for them will
in another way as: “a way that would be” about this.
allow them to exercise their full
powers” (2017).
80% of what people play on Netflix is from the
recommendations by the platform itself, which proves the
algorithm’s efficiency. Thus, the algorithm helps provide tailored
content for every subscriber so that no two subscribers have
similar recommendations. In 2013, the company announced that
33 million versions of Netflix were possible. With its 220.67 million
subscriber base worldwide, the NRE is powerful enough to create
even more uniquely tailored content for each individual to
consume’ (Finn, 2017).

14 Over The Top in India

 Netflix uses big data not only
to suggest recommendations for Netflix uses big data
a subscriber but also use the not only to suggest
watching, clicking, rating, and recommendations
binge-watching data to develop for a subscriber but
further content. Thus, ’the user is also use the
consuming, demanding and co- watching, clicking,
creating’ (Varela & Kaun, 2019). rating, and binge-
Thus, the user’s role is redefined watching data to
in the new mode of entertainment. develop further
Upcoming productions will satisfy content. Thus, ’the
the consumers based on their user is consuming,
behaviour as predicted by the demanding and co-
algorithm. Algorithmic sugges- creating’
tions toward favoured content are
the reason behind regularly strea-
ming content related to a nostalgic
past (Castellano & Meimaridis, 2019).
When the other streaming platforms followed the Netflix
engagement model and started providing ad-free entertainment
on a monthly/annual subscription basis, it challenged the
television industry (McDonald & Smith-Rowsey, 2018). One of
the early differences between linear television and streaming
platforms like Netflix and Amazon Prime was that they did not
belong to the large media conglomerates such as Time Warner,
NewsCorp, Disney, Viacom etc., which had been dominating the
American television and entertainment industry for decades.
Later, these conglomerates joined the streaming business with
their platforms, which boosted the OTT business. Netflix
concentrates on creating original content, while other platforms
like Amazon acquire content from production houses, and these
media conglomerates leverage their existing content.
The streaming services changed the viewing behaviour and
the nationalised media concept of linear television by establishing
themselves as international broadcasters. The streaming
services broke the concept of scheduling in entertainment which
gave more freedom and choices to media consumers. It was

Netflix Business Model in India and the Attraction to OTT Platforms 15
more like a library where the
individual could choose the
content according to her/his will The streaming services
and could access them together broke the concept of
as a season. Thus Netflix deve- scheduling in
loped a different relationship entertainment which gave
regarding media with producers, more freedom and
consumers and regulators choices to media
(Jenner, 2018; 4 - 9). Netflix’s consumers. It was more
productions got the most like a library where the
nominations for the academy individual could choose
awards, and they won the most the content according to
academy awards and the her/his will and could
Emmy awards as a studio in access them together as
2021, which itself testifies how a season. Thus Netflix
much impact the platform has developed a different
created. relationship regarding
media with producers,
Though Netflix is the most consumers and
popular OTT platform in the regulators.
world, the company also faces
threats as a business enter-
prise, and its algorithm has drawbacks. Huge debts, limited
copyrights, high investment requirements, increased competition,
piracy, and strict regulations in many countries are the threats
the company faces (Maddodi & Prasad, 2019).
2. OTT Platforms in India
India, the second most populated country on the planet and
one of the largest consumer markets in the world, provides
immense opportunities to the online entertainment industry. The
FICCI-KPMG report (2017) explained four factors that made the
OTT platforms popular in India such as the development of the
digital infrastructure by laying optical fibre, Wi-Fi enabling etc,
the data price war among the telecom service providers after
Reliance Jio’s entry, the popularity of smart devices in India and
the video consuming habit developed with the popularity of internet
(Fitzgerald, 2019). The same has been pointed out in other

16 Over The Top in India

studies also (Kumari, 2020; Parnami & Jain, 2021). The yearly
subscription charge for any OTT platform is less than the expense
for a middle-class family to go out and watch a movie in the
theatre once which made the platforms popular. Later, the
pandemic made the situation advantageous for the OTT industry,
which resulted in a steep rise in the number of OTT subscriptions
(Nijhawan & Dahiya, 2020).
The first independent OTT platform
developed in India was Reliance The yearly
Entertainment’s BIGFlix, introduced in subscription
2008.Digivive's nexGTv is the first
charge for any
OTT platform that developed a mobile
OTT platform is
app in India in 2010. nexGTv live-
streamed the Indian Premier League less than the
(IPL) cricket tournament on mobile expense for a
devices. Hotstar, one of the most middle-class
popular OTT platforms in India, was family to go out
launched by Star India in February and watch a
2015. Hotstar purchased the rights to movie in the
the streaming of IPL and became theatre, which
more popular among the Indian made the
audience. Later in 2019, Star and, platforms
consequently, Hotstar were acquired popular.
by The Walt Disney Company, and
Hotstar is thus now Disney+. Several
Indian and International platforms
were introduced during this time, including Netflix and Amazon
Prime, which gained popularity in the country in no time.
Netflix marked India as a key market in its new phase of global
expansion in 2016 (Hastings & Meyer, 2020). Amazon Prime
released Inside Edge in 2017, its first original web series in India,
while Netflix launched its first original Indian web series, Sacred
Games, in 2018. Web series are the favourite content for Indian
consumers (Singh, 2019). The OTT platforms could not ignore
the regional audience in a country like India, with more than 20
different film industries based on languages. Netflix and Amazon
Prime thus started producing regional content. Netflix has

Netflix Business Model in India and the Attraction to OTT Platforms 17
launched Netflix South India to
produce Telugu, Tamil, Kannada The OTT platforms
and Malayalam content. Apart from could not ignore the
this, exclusively regional language regional audience in a
platforms like Neestream, country like India, with
ManoramaMax (Malayalam), Aha
more than 20 different
(Telugu), Oho, Super (Gujarati),
Planet Marathi (Marathi), Sun NXT film industries based
(Tamil, Telugu), Hoichoi (Bengali), on languages. Netflix
Kanchanka, Tarang Plus (Odia) and Amazon Prime
etc. too grew fast. thus started producing
The different business models regi-onal content.
in the Indian OTT industry are Netflix has launched
Netflix South India to
i. Subscription-based (SVOD):
produce Telugu, Tamil,
The consumers pay a monthly/
yearly subscription to the Kannada and
platform to access the content. Malayalam content.
Eg. Netflix, Amazon etc.
ii. Advertising-based (AVOD):
The content is shared free on the platform while the
consumers have to watch advertisements which adds to the
platform’s revenue. Eg. MX Player
iii. Transactional Video on Demand (TVOD): The consumers
have to pay only for the video they watch, a pay-per-view
concept. Eg. BookMyShow.
iv. Hybrid: This is the business model in which the OTT platforms
generate revenue by combing SVOD, AVOD and TVOD
models. Eg. Disney+
v. Freemium: Some platforms have a freemium model which
lets the subscribers enjoy their content for free to a certain
limit with ads, and beyond that, they have to pay. This is a
middle ground between the AVOD and SVOD models. Eg.
Viu
vi. Bundled Subscription: The subscribers can view content from
different platforms with a single subscription, while the OTT
platforms get better reach and fees from the aggregator. Eg

18 Over The Top in India

 Jio Fiber, Times Prime etc.
vii. Freebie: Access to the OTT platform is given as a freebie to
the subscriber of a telecom network or a network connection.
Eg. Jio Cinema.
The report published by MICA in 2021 regarding the post-
pandemic consumption of OTT platforms in India pointed out a
surge in the online consumption of entertainment in India (MICA,
2021). The same growth was seen in content creation and
consumption related to online gaming, short-form videos, news
apps, music streaming, podcasts, paid and unpaid video
platforms, and education platforms during the pandemic. The
Indian OTT market is estimated at 13,500 crore rupees (1.8 billion
USD) and is expected to double by 2025. The OTT platforms’
compound annual growth rate (CAGR) is estimated to be 28.6%
in the next four years.
Among the 1.38 billion Indian population, internet subscribers
are already 800.94 according to the TRAI report of August 2022
(TRAI, 2022), which is on a steady rise. According to the Mobile
Broadband India Traffic Index report, there is a 31% growth in
data traffic with an average of 17 GB of data consumed every
month per user and the Millenials, and the Gez Z spend an
average of 8 hours online (Mbit, 2022). The OTT trend will
increase with the spread of 5G technology to tier II and III cities in
India. All these are favourable to the growth of the streaming
industry. India is one of the most potential markets for OTT video,
considering the prediction that India’s entertainment and media
(E&M) industry is expected to reach Rs 4,30,401 crore at 8.8%
in 2026. The OTT market will expand at an impressive 14.1%
CAGR to reach INR 21,032 crore in the same year, according to
the Global Entertainment & Media Outlook 2022–2026 (PWC,
2022).
Many of the platforms are now shifting to hybrid and freemium
models and have different tiers of subscription plans like mobile
only, basic, and premium. Here is a list of the most popular OTT
platforms (with at least a million unique users) and their mode of
operation in India.

Netflix Business Model in India and the Attraction to OTT Platforms 19
 OTT & Ownership Launched Revenue Subscription Unique

20
Streaming (in India) Model Charges Users in
Platform (Sept 2022) millions as
of (Mar
2021)
MX Player Times Group Feb 2019 AVOD 499 pa 148.4
(premium)
Prime Amazon Dec 2016 SVOD 1499 pa 47
Disney+ Star India & Walt Disney Feb 2015 SVOD, 1499 pa 46
Hotstar Company (as Hotstar) AVOD (premium)
Netflix Netflix Inc. Jan 2016 SVOD 799 pm 34
(premium)
Zee5 Zee Entertainment Enterprise Feb 2018 SVOD 699 pa 25
SonyLiv Sony Pictures Networks india Jan 2013 SVOD 999 pa 21
(premium)
aha Aha Media & broadcasting Feb 2020 SVOD 399 pa 18
Voot Viacom18 Mar 2016 SVOD 299 pa 12.2
Jio Cinema Reliance Jio Sept 2016 Freebie Reliance Jio 9.5
mobile plans
YUPPTV YuppTV Oct 2015 SVOD 49 pm 9.4
ALT Balaji Balaji Telefilms Limited Apr 2017 SVOD 300 pa 7.6
Sun NXT Sun TV Network Jun 2017 SVOD 480 pa 2.7
Eros Now Eros Media World 2012 SVOD 399 pa 1.2

Over The Top in India

Source: MICA Report 2021
3. OTT Platforms in Kerala
The South Indian state of
Kerala has been an early adopter
of technology related to cinema India is one of the
and entertainment in the country. most potential
The first Indian 3D movie was My markets for OTT
Dear Kuttichathan released in video,
1984 which was in Malayalam considering the
(Saran, 2014; 37). The first 70 prediction that
mm film in South India was the India’s
Malayalam movie Padayottam entertainment
released in 1982 (Indpaedia, and media (E&M)
2019). Another milestone in the industry is
history of Indian cinema was the expected to
release of the Malayalam movie reach Rs
Moonnamathoral (2006) which 4,30,401 crore at
was the first Indian film to be 8.8% in 2026.
distributed digitally (The Hindu,
2006). Similarly, the film
audiences in Kerala welcomed
the OTT platforms and the online streaming of entertainment.
The OTT platforms had gained popularity in Kerala, and films
were distributed through different platforms even before the
pandemic. Even though there have been feature-length films and
web series like Karikku released online on YouTube, the
pandemic was decisive regarding the popularity of the OTT
platforms in Kerala, just as in the case of other parts of the country
(Jain, 2021). Grandmaster (2012) is the first Malayalam film
platformed on an international OTT, Netflix. ManoramaMax,
launched in September 2019, is the first streaming platform
exclusively for Malayalam content. Neestream was the first
regional OTT platform to release a movie through the streaming
platform with Isakkinte Ithihasam in November 2019. Movies like
Kumbalangi Nights (2019) and Lucifer (2019) attained national
attention through their release on OTT platforms even before
the pandemic. The filmmakers recognised selling the online

Netflix Business Model in India and the Attraction to OTT Platforms 21
distribution rights of the films to the OTT platforms as an additional
revenue source along with the theatre revenue and satellite rights
even before the pandemic.
When the release of films through theatres was impossible
due to the pandemic, the filmmakers chose OTT release as their
option in the uncertain times in 2020. Sufiyum Sujathayum was
the first film released on a streaming platform (Amazon)
bypassing the theatre release in July 2020, which marked a new
era in the Malayalam film industry. The film producer, Vijay Babu,
faced severe criticism for this move. Maniyarayile Ashokan is
the first film directly released on Netflix in August 2020. Later, the
film C U Soon (2020) by Mahesh
Narayanan was the first film Sufiyum Sujathayum
produced with the intention of a was the first film
direct OTT release. C U Soon was released on a
shot indoors on an iPhone and streaming platform
released on Amazon Prime during (Amazon) bypassing
the pandemic. The film Santho- the theatre release in
shasthinte Onnam Rahasyam was July 2020, which
another film that was shot under marked a new era in
the covid restrictions and made for the Malayalam film
the OTT watch. It was a one-shot industry. The film
movie of 85 minutes and was producer, Vijay Babu,
released on Neestream. Later, faced severe criticism
popular films The Great Indian for this move. The film
Kitchen (Nee Stream), Irul (Netflix), C U Soon (2020) by
Halal Love Story (Amazon Prime), Mahesh Narayanan
Churuli (Sony Liv), Joji (Amazon was the first film
Prime), Madhuram (Sony Liv), produced with the
Home (Amazon Prime) etc were intention of a direct
released through different OTT OTT release. C U
platforms. Soon was shot
The OTT-released movie The indoors on an iPhone
Great Indian Kitchen bagged the and released on
award for the best feature film Amazon Prime during
in the Kerala State Film Awards the pandemic.
2021. Big-budget movies like

22 Over The Top in India

Drishyam 2 and Minnal Murali
waited for theatrical release, but
the wait got prolonged due to There were
pandemic restrictions and were controversies over
released through Amazon releasing movies on
Prime and Netflix, respectively. the OTT platforms in
The movie Arkariyam (2021) the post-covid period
was released simultaneously as the theatre owners
on multiple OTT platforms and film distributors in
such as Amazon Prime, Kerala protested. As a
Neestream, Koode, Roots result, the producers
Video and Cave. Several films agreed that movies
were released on the OTT would be released on
platforms even after the covid the OTT platforms
restrictions were withdrawn. only 42 days after the
There were controversies theatre release.
over releasing movies on the
OTT platforms in the post-covid
period as the theatre owners and film distributors in Kerala
protested. As a result, the producers agreed that movies would
be released on the OTT platforms only 42 days after the theatre
release. The theatre owners association and Film Exhibitors
United Organisation of Kerala (FEUOK) demand an extension
of the OTT release from 42 to 56 days after the theatre release
(Mathrubhumi, 2022). The association also demanded that film
producers should produce theatre-friendly movies rather than
for OTT platforms.
OTT platforms in Malayalam aim at the 3.5 million Malayalee
diaspora audience spread across the globe. This is clear when
one of the platforms High Hopes has its subscription plans in
dollars. Some platforms like Cave and Roots Video introduce
themselves as the online space for culturally diverse content,
parallel cinema and documentaries. Platforms like High Hopes
have just created a platform, but the content is embedded as
YouTube videos. The different OTT platforms in Kerala are:

Netflix Business Model in India and the Attraction to OTT Platforms 23
 OTT Ownership Launch Revenue Subsc-
Platform Date model ription (as
on Aug
2022)
Manorama MM TV Sept 2019 SVOD 799 pa
Max
Nee Neestream Nov 2020 SVOD, 949 pa
Stream Creations TVOD
Pvt Ltd
Koode Studio Mojo Dec 2020 SVOD, 499 pa
TVOD
Prime Eon New Jan 2021 TVOD,
Reels Release SVOD
Pvt Ltd
Roots Roots Feb 2021 TVOD,
Video Entertainment SVOD 1047 pa
Pvt Ltd
First Palmstone Apr 2021 TVOD
Shows Multimedia
LLC.
Saina Play Saina May 2021 SVOD, 999 pa
Infotainments TVOD
Pvt Ltd
Matinee Pen and Paper Jun 2021 SVOD
Creations
Cave India MMX Jul 2021 TVOD, 1499 pa
Entertainments SVOD
Pvt Ltd
Jaiho Cinesoft Aug 2021 TVOD
Movies Pvt Ltd
High High Hopes Jun 2022 SVOD $15 pa
Hopes Film Factory
SS Frames Sahasrara Aug 2022 TVOD
Cinemas
Pvt Ltd

OTT platforms exclusively for adult content in Malayalam

Yesma and Sringara are gaining popularity in the state. The trend
in the Malayalam OTT industry is mostly TVOD. OTT platforms

24 Over The Top in India

like Matinee offer filmmaking opportunities by registering personal
profiles. An OTT platform CSpace was announced by the
government of Kerala under the aegis of the Kerala State Film
Development Corporation (KSFDC). Most local platforms
struggle without new content and releases since they cannot
compete with multinational and national OTT giants presenting
a variety of content, better paychecks to content creators and
higher marketing budgets. Some platforms have become inactive
by now, such as Prime Reels (www.primereels.com) and
Theatre Play (www.theatreplay.live), and there has been no
update of content on some of the platforms for quite some time.
Confederation of Indian Industry (CII), in its report released on
April 2022 titled ‘Regional is the new national – Way Forward for
the South India Media and Entertainment Industry’ revealed that
the digital entertainment platforms in the South are steadily
growing at 25% and is expected to be worth Rs 16,200 crore by
the same year (CII 2022). Though the Malayalam film industry is
the smallest in South India in terms of its market share,
Malayalam films have grabbed
international attention through the
films released on OTT plat-
forms. Films like Minnal Murali
and Drishyan 2 have been Though the Malayalam
trending on Netflix and Amazon film industry is the
Prime. The rights to Malayalam smallest in South India
OTT releases like Home and The in terms of its market
Great Indian Kitchen have been share, Malayalam films
purchased by other film industries have grabbed
in India, which also shows the international attention
impact of Malayalam film through the films
releases. The rights to Drishyam released on OTT
2 have been purchased by a platforms. Films like
Chinese production house due to Minnal Murali and
the popularity that this film and its Drishyan 2 have been
prequel have garnered (Kumar, trending on Netflix and
2021). Considering the economic Amazon Prime.
boom in the digital media industry

Netflix Business Model in India and the Attraction to OTT Platforms 25
and the rising popularity of Malayalam films, the digital
entertainment industry in Kerala is hoping for a bright future.
3.1 OTT Consumption in Kerala
A study on the OTT consumption pattern in the district of
Kottayam, Kerala, has been conducted with a simple random
sampling survey of 100 people (55 males and 45 females) using
Google Forms. 80 of the respondents are either millennials, or
Gen Z. 75 respondents have a college education. The
respondents spent an average of 2.5 hours on the internet daily.
60% of the respondents watch entertainment content on their
smartphones which is also consistent with previous studies
(Sundaravel & Elangovan, 2020). 60% of OTT users joined the
online platform during the pandemic. 40% of OTT users subscribe
to OTT platforms to watch popular web series, while 45%
subscribe only to watch new releases.
73% of the respondents objected to the release of films on
OTT and said they would prefer to watch new releases on a
theatre screen. This goes in line with another similar study
conducted in Kerala in another district Thrissur (Sujith & Sumathy,
2021). In a study by Puthiyakath & Goswami, they found that
internet users prefer OTT over television broadcast (2021), while
in this study, there is a preference for theatre over OTT regarding
new releases. 36.6% of respondents said that they would decide
whether to watch new releases on OTT platforms or the theatre
according to the genre and making of the movie.
Among the active users of the internet, 53% use telegram to
download new movies. The reason they shared regarding the
download of movies from telegram groups was that there are
several releases, and it was not safe to go to the theatre during
the pandemic. Also, for students, it is not economical to subscribe
to different OTT platforms since the films are released on different
platforms. Students share the subscription of the platforms
among their friends as there is an option to use the same
subscription on multiple devices, which helps them to split the
subscription charges and manage their monthly expenses.

26 Over The Top in India

 The survey gives a general idea of the consumption patterns
of the Kerala audience. And the data derived from the survey
proves that online streaming and OTT platforms have become
popular during the pandemic. The study goes along with the
CII report that there is a 55 - 60% increase in the new

Netflix Business Model in India and the Attraction to OTT Platforms 27
subscriptions to the OTT
platforms (CII, 2021) findings of The survey gives a
a similar study by Uthaman and general idea of the
Faizal (2021). This study also consumption patterns
shows the existence of digital of the Kerala
piracy, a woe that the OTT audience. And the
platforms and filmmakers have data derived from the
continuously raised. survey proves that
online streaming and
Conclusion OTT platforms have
The streaming platforms are become popular
labelled as the fourth generation during the pandemic.
television or TV IV, which has
uniqueness regarding the
choice of content and personalisation (Jenner, 2018). Though
TV IV is the latest and best version, it is not devoid of challenges.
The certification of films in the online entertainment scenario is a
challenge considering India’s cultural diversity and the people’s
oversensitivity. The unregulated digital atmosphere of content
sharing has erupted controversies in the country with series like
Sacred Games, Tandav, Pataal Lok etc (Dutta, 2021).
Shows like these were well-received and have added to the
popularity of the OTT platforms but have led to several litigations
regarding the creative freedom in filming violence, sex and
offensive language. The Ministry of Information and Broadcast
gave a new set of directives in 2021 to regulate online content
creators, which demand: “a publisher shall take into consideration
India’s multi-racial and multi-religious context and exercise due
caution and discretion when featuring the activities, beliefs,
practices, or views of any racial or religious group” (MIB, 2021).
Also, it is directed to classify the contents as U (Universal), U/A
7+, U/A 13+, U/A 16+, and A (Adult) based on context, content,
target audience, tone and impact. This is a positive move from
the government, which helps the consumers to make an informed
choice considering the diverse and oversensitive Indian audience.
On the other side, when movies are released online through
OTT platforms, the challenge that digital content creators and

28 Over The Top in India

filmmakers face is piracy (Smith & Telang, 2016). Subscription
to platforms like Netflix is comparatively expensive in India, which
makes piracy an attractive option (Lobato 2020, 126; Jha, 2018).
The study on the Kerala market too points to piracy. Blockchain
technology is expected to save content creators from digital
piracy soon. Blockchain technology stamps a unique digital
watermark on online content, allowing only authorised users to
consume the content (Ouyang et al., 2019).
Though money flow in the OTT industry in India is expected
to increase, the platforms struggle for a decent profit, about which
Netflix CEO Reed Hasting commented, ‘the lack of profit in the
Indian market is frustrating’
(Laghate, 2022). Indian custo-
mers are more inclined to watch
free content online than pay for the
same, which is the basic reason Netflix CEO Reed
for this ‘frustration’ (Khanna, 2017). Hasting
Sull & Turconi suggest ways for commented, ‘the
Netflix to be more successful in the lack of profit in the
Indian market by live broadcasting Indian market is
sports, acquisition of Indian frustrating’. Indian
production houses, finding a local customers are
partner in India considering its more inclined to
premium pricing, and introducing watch free content
limited advertisements (2021). online than pay for
the same, which is
The platforms are not giving up the basic reason for
even though the market is not this ‘frustration’.
rewarding according to their
expectations. Still, they are
aggressively into the Indian
entertainment market with reality
shows, award nights, and even
buying exclusive rights for celebrity weddings, apart from
producing original content and buying rights to films. With the
advent of Virtual Reality and Augmented Reality, the OTT
experience is expected to be more interactive and social in a
couple of years, with the characters in a movie inter-

Netflix Business Model in India and the Attraction to OTT Platforms 29
acting with the audience and
the particular audience being
a part of a fight scene, song The Price Waterhouse
sequence or a football Coopers report
match. Thus the platforms predicted: “India holds
want their viewers to spend the most potential of
more time on their platforms. any market in the world,
More time spent on the and its breakneck rate
platforms allows them to of growth will see total
track user behaviour and OTT video revenue
preferences more, which overtake South Korea,
would help them tailor Germany and Australia
content and push sugge- to jump to being the
stions according to the sixth-largest market in
individual’s likes (Lamkhede 2024”
& Kofler, 2021).
The Price Waterhouse
Coopers report predicted:
“India holds the most
potential of any market in the world, and its breakneck rate of
growth will see total OTT video revenue overtake South Korea,
Germany and Australia to jump to being the sixth-largest market
in 2024” (PWC, 2020). Thus, the boom in the consumption pattern
of the OTT platforms may be called ottraction, a portmanteau of
the words OTT and attraction.
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