OTT platforms one of the key drivers of demand for smartphones: Rajiv Bakshi, ZEEL

In the mid of July, ZEE5 launched the fourth edition of its knowledge series ‘ZEE5 Intelligence Monitor’, unravelling the latest trends of the Indian smartphone industry. The series was launched last year with the aim to track transformative consumer behaviour across key industry verticals using detailed surveys with a highly engaged user base.

The idea behind the launch of these reports was to guide business and marketing leaders in making informed business decisions by bringing forth industry-specific insights, said Rajiv Bakshi, Chief Operations Officer - Revenue, ZEE Entertainment Enterprises Limited (ZEEL). In conversation with exchange4media, Bakshi, spoke about the trends and how OTT and smartphones shared a symbiotic relationship.

Excerpts:

One of the insights is that smartphones and OTT platforms share a symbiotic relationship. According to you, what fuels this growth?

In the early days, smartphones enabled OTT platforms to provide entertainment on consumers' personal devices, on the go. Today, the roles have reversed, and OTT platforms are one of the key drivers of demand for smartphones.

Consumption of content and services are at an all-time high, now more than ever. And the trajectory has moved way beyond Tier 1 cities alone and now significantly lies in the hands of aspirational consumers in Tier 2 and Tier 3 cities along with rural locations. Owing to OTT on smartphones, we’re witnessing a closing gap in purchase triggers and key drivers among non-metro and metro smartphone users.

OTT platforms have played a significant role in enabling this over the last few years, particularly platforms like ZEE5, which offer thousands of hours of Hindi and regional content. From an advertising point as well, it is the ability of OTT platforms to bring together a wide range of audiences and data that helps brands sharpen their focus and derive a better return on advertising investments. 

What kind of trends have you witnessed in both metro and non-metro audiences when it comes to smartphone usage?

The smartphone report has revealed amazing new trends related to the use of smartphones prevalent amongst both metro and non-metro consumers. The penetration of smartphones is one trend that highlights how the daily utility of smartphones has increased with time and thus, has permeated people's lives to be an integral part. This is because, today, consumers use their smartphones for a plethora of reasons, right from using them for work and studies, to ordering utilities, to making payments, to being entertained. Secondly, it has been found that about 60% of the metro users are likely to replace their smartphones within six months, a trend which non-metro users are fast catching up to.

We’ve also observed a trend of consumers upgrading and purchasing smartphones according to the latest brand and technology. Additionally, as per the report, it has been revealed that around 70% of non-metro consumers often purchase their smartphones online suggesting brand trust and an overall mindset change to the Internet economy.

Another interesting trend highlighted in the report talks about how the purchasing capacity and the factors for buying a smartphone have become akin for both metro and non-metro smartphone users. This has been possible because of an increase in incomes, better exposure and increased awareness amongst users living in Tier 2, Tier 3 and rural locations, which has fuelled their aspirations toward a better life. OTT platforms like ZEE5 play a major role in this – they have diversified their content libraries to cater to multiple regional markets spanning both metros and non-metros, thereby driving a strong desire amongst audiences to better their viewing experience and trigger smartphone upgrades.

According to the report, more than 53% of the audience spends four hours a day on their mobile phones. Can you tell me what the gender split is? Also, how many of this 53% are from metro cities? What are they watching/investing their time in?

Smartphones have become an integral part of our daily routines and are widely used for a plethora of tasks. Because of their high utility, people are spending more time on their phones, on average 4 hours plus. According to Zee5 Intelligence Monitor, metro consumers make more than half of this category. As per insights, users spend a majority of their time watching shows and movies across different genres, right from thrillers, crime, comedy, romance, and most importantly, relatable, and inspiring content.

According to the report, smartphones are the medium through which consumers can improve their lives. What could be the reason for users' desire to switch to newer launches?

According to the report, smartphones have opened a plethora of opportunities for consumers as smartphones have become a one-stop destination for all, right from acquiring knowledge to being an entertainment hub, and have thus become an indispensable part of people’s life. This is one of the primary reasons why consumers want the best smartphones for themselves with the latest features.

The report revealed that smartphones have emerged as a symbol of a new and ambitious India, especially for the growing middle-class in the country and so people want to be associated with reputed brands and own the newest models available. Moreover, consumers want to be up to date with the latest trends so switching from one model to another is a viable option for many.

Do you expect this usage/ time spent to increase as 5G networks become available?

Yes, in the future, with the 5G rollout, the industry would be witnessing another transformative moment. The usage of smartphones will increase owing to superior speeds and improved connectivity. The conjunction of emerging technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI) along with 5G will create new use cases. Users will be exposed to an even more seamless experience with better, innovative content, and advanced opportunities like that of live streaming with augmented reality enhancements. From the future of work and collaboration to health and medical services, as well as travel and transportation, the smartphone will become an increasingly significant part of our lives.