Connected TVs take centre stage as HD falls behind

The digital revolution in the country is driving a significant change in content consumption patterns. The popularity of streaming services and on-demand content has led to a decline in interest for traditional High-Definition (HD) channels. In its place, Connected Television (CTV) has emerged as the new norm for television viewing, particularly in the realm of sports.

The shift towards CTV is indicative of a broader trend towards digital-native content. The convenience and flexibility offered by this technology has made it a preferred choice among audiences, leading to its rapid adoption. With the continued growth of CTV, it is clear that the way people consume and engage with television content is undergoing a significant transformation.

As India continues its transition towards digital-native content, the switch from High-Definition (HD) to Connected Television (CTV) is projected to accelerate in the coming year. With the launch of JioCinema's offering of the Indian Premier League (IPL) for free on CTV, the trend towards this technology is expected to rise.

HD TV, once considered a symbol of prosperity, is witnessing a decline in subscription numbers in recent years, while CTV viewership continues to grow. A recent report by Kantar-GroupM states that the number of connected TVs reached 22 million in the last year, and is projected to reach 30 million this year. Although these figures are based on household numbers, CTV is known to be a co-viewing experience, with an estimated 80-90 million individuals expected to watch content on CTVs. According to a recent Google data, in May 2022 alone, over 60 million people in India streamed YouTube on their TVs, and in 30% of instances, they watched together with other people. The availability of a popular property like IPL for free on CTV is likely to further increase its popularity among viewers.

The trend towards Connected Television (CTV) in India is particularly evident in the case of cricket tournaments. The number of households tuning in to watch cricket on High-Definition (HD) channels has seen a significant decrease in recent years. In 2022, 4.3 mn indian urban households watched IPL’22 ,whereas only 3.6 mn households watched ICC T20 World Cup’22 on HD TV and 1.5 million households in mega cities viewed the tournament on HD channels.

The change in viewership can be attributed to the growing accessibility of IPL content on CTV platforms. This shift is expected to accelerate with the upcoming availability of IPL on CTV platforms for free streaming, as opposed to the traditional linear TV where viewers must pay to access the content. The convenience and affordability of CTV is driving its widespread adoption among audiences and represents a major transformation in the way sports content is consumed.

The rise of Connected Television (CTV) as a platform for sports viewing is a result of its superior features and user experience. With the ability to stream live matches and access a diverse range of on-demand content, an increasing number of people are opting for CTV as their preferred method for watching sports.

The engaging nature of CTV makes it an ideal platform for high-intensity sports viewing, such as the Indian Premier League (IPL). The upcoming season of IPL is expected to follow this trend, as more viewers turn towards CTV for their sports consumption needs. The combination of live streaming capabilities and a wide variety of on-demand content sets CTV apart from traditional television and makes it a leading choice for sports fans.

Overall, the rise of streaming services and the advancement of technology have led to a shift in the way people consume and view media, making HD TVs less relevant. Additionally, the growth of broadband connections in India has played a significant role in this trend. As of 2022, the number of broadband connections in India has risen to 32 million, making it easier for people to access streaming content on their CTVs. With access to high speed internet on their phones, a lot of consumers are also seen streaming content on CTV through their mobile hotspots.

Krishnarao Buddha, Sr. Category Head - Marketing at Parle Products Pvt. Ltd said that the pandemic has affected the pattern of content consumption by audiences all across the world. Staying at home, online streaming of television, movies, and videos became the key source of knowledge, entertainment, and getaway. The ability to see content on any device, at any time, became nearly compulsive for consumers, speeding viewers' transition from linear TV to connected TV.

“The market for connected TVs (CTVs) is one of the fastest growing in India right now. The rise in popularity of these internet-enabled devices that are displacing the good old linear televisions throughout cities is mostly due to the low cost of smart televisions, introduction of 5G network, rising broadband penetration, and the accessibility of international content,” said Buddha.

He added that the number of connected televisions in India is expected to double in the next two years, from the current 20-22 million connected television homes (about 10% of TV homes). According to the 'Spotlight23' research by GroupM-owned marketing firm Wavemaker India, urban cities would see the most growth until 2025.

Samir Sethi, VP& Head of Brand Marketing Policybazaar.com was also optimistic about the growing numbers of CTV consumers. “Connected TV is on a growth path and I see this growing constantly. I see it growing on two accords--the prices of the connected TV devices are coming down drastically and it will become very affordable for people not only in the metro cities but even in smaller towns to switch to smart TV and the other reason is that the DTH players are introducing a lot of combo plans along with fibre internet which also give free access to live TV. These two aspects will be key drivers of growth of connected TV,”said Sethi.

The trend of "cord cutting" is gaining momentum globally, not just in India. The growth in popularity of connected TVs (CTVs) is due to the convenience, flexibility, and superior viewing experience that it offers. With the increasing affluence levels of CTV audiences, it has become a highly sought-after cohort for advertisers looking to reach consumers with a high spending potential. The shift from traditional linear televisions to connected TVs is happening across the world, as viewers prioritize the benefits that come with CTVs.

Quoting from the Changing Landscape of Indian Television- GroupM Finecast and Kantar survey, Bhairav Shanth, Co-Founder- ITW Universe said that although it is still possible that more affluent viewers are on linear TV, but they form a much smaller proportion of the total linear TV viewership and on the flip side, 2 in 3 affluent households prefer CTV. The way that ads can be targeted on CTV (as opposed to the same ad across all linear TV viewers) means that it will be more efficient and impactful for those looking to reach out to affluent viewers to advertise digitally.

“Recent research has suggested after conducting a survey amongst NCCS A and B residents of 16 cities to understand their preferences.It showed that the Household Income for CTV Viewers was 1.2 times higher than those that watched only Linear TV. Moreover CTV viewers are 2x times more likely to own smartphones that cost more than 40K. The more important point is that most of the respondents in the study around 78% said they intend to switch to CTV in the near future and every 2 in 3 preferred CTV as the primary mode to access TV,”added Shanth. 

This year’s IPL may prove to be a game-changer in the way people consume content on their large screens. Especially, sports. With high-quality streaming and the biggest variety of language options available, the CTV sports watching experience is bound to become a massive phenomenon this summer.