What is driving connected TV’s rise in India?

Connected TV or CTV is being touted as the next big thing in India that will transform content consumption on the bigger screen. CTV is witnessing explosive growth thanks to the increase in the number of smart TVs, the push towards higher adoption of wired broadband, and the availability of digital-native content.

According to a recent report by FICCI-EY, the number of smart connected TVs will exceed 40 million by 2025. The report added that the CTV growth will end the monopoly of broadcasters on the large screen. Further, around 30% of content consumed on these screens will be social, gaming, and digital.

ZEE5 India Chief Business Officer Manish Kalra said that the growth in online content consumption coupled with innovations in the connected ecosystem has elevated the overall indoor experience for consumers. He also stated that ZEE5 has seen a 3X growth in content viewing on CTV.

“An important factor in the growth of CTV is that it is engineered to deliver an enhanced experience that supports the new age technologies that are now being used in film making. It lends itself to tech innovations on content display, delivery, and the viewing experience, which are critical aspects of the overall user experience,” Kalra added.

GroupM India President – Data, Performance, and Digital Products Atique Kazi believes that the key factors influencing the CTV growth are: TV unit sales of smart televisions increasing, HDMI extensions making non-smart television units smart, and post lockdown increase in new broadband and fibre installations.

He also pointed out that the access to over 40 VOD players offering CTV applications and various price points is another factor driving the CTV growth. The change in user behaviour due to the shift from appointment viewing to on-demand viewing has also played a part in the rise of CTV, he adds.

While stating that a large number of households are either cutting the cord by giving away linear TV connections or switching the cord by moving to a light DTH/Cable TV plan, Kazi noted that CTV will complement linear TV in India.

“The power of television is unparalleled and is here to stay. CTV is looked at as one additional distribution to the mix. With the rise of CTV user base, marketers will need a unified view of linear and addressable TV opportunities,” he added.

Samsung Ads Senior Director-India and South East Asia Prabhvir Sahmey is of the view that a number of other factors are at play in giving a fillip to CTV. He states that CTV will appeal to even more consumers as an integral household device due to its smart features like easier navigation, enhanced capabilities, and a more personalised experience.

“Thanks to the bigger screen and quality content, Indians are starting to see that CTV is the most premium device for OTT viewing. Mobile might be good for a quick snack but for the whole ‘meal’, TV is the preferred option,” he said.

Sahmey also believes that CTV’s growth is independent of the issues faced by linear TV. “I don’t believe CTV is disadvantaged in any way because traditional mediums are still growing strong, nor do I think that the growth of CTV has to be at the expense of these traditional mediums - there is room for both.”

Nikhil Kumar, Vice President - India & SEA, mediasmart, pointed out that CTV was earlier seen as an alternative to linear TV, but has now emerged as the preferred medium for many consumers to consume content.

“People are spending more time indoors, accepting the 'new normal' and using CTV as a source of on-demand always on entertainment. CTV's recent growth is also due to the growing internet speeds and the increasing accessibility of internet-connected devices,” he said.

According to the mediasmart India CTV Report 2021, CTV viewing in India is on an upward trajectory and has risen by 31%. “In April 2020, 21% of CTV viewing households were cord-cutters (households who cut the cord within the past five years), whereas 22% were cord-nevers (households with no cable/satellite subscription in the past five years),” Kumar said citing the report.

Xiaomi India Category Lead- TVs Eshwar Nilakantan informed that the smart TV category has grown from 8% to 90% in the last four years. He further stated that Xiaomi has played a pivotal role in driving Smart TV adoption in India.

“Currently the 4K penetration is less than 20% and we see this as an opportunity to make 4K TVs available for everyone in India. With personalisation becoming the future of content consumption on smart TVs, we expect more personalised recommendations from Patchwall for content from 30+ partners,” he stated.

Xiaomi's Patchwall sits on top of the Android TV software and runs as an alternate user interface. According to the Patchwall Replay Report 2021, more users are cutting the cord on traditional cable and DTH connections. Further, there has been a 300% increase in consumption of streaming content on PatchWall-enabled TVs.

“Also, with products like Mi TV Stick and Mi Box 4K, we have brought solutions that make streaming a lot more convenient on non-smart TV sets. These products make for the best ways to convert a regular TV into a Smart TV,” Nilakantan asserted.

The Trade Desk India GM Tejinder Gill said traditional TV is still popular in some of the smaller cities and towns. That said, he sees huge potential for the growth of CTV in other parts of the country, and even in smaller towns.

"Research confirms that Smart TV share in the TV market soared to 84% in 2021 from 67% in 2020. This means that households will have both cable/DTH as well as broadband connections for the next few years. The “Digital Bharat” that we envision will not be an “or” market but an “and” market, where old and new channels will coexist in varying proportions," he elaborated.