Prasar Bharati OTT: Hindi news, music & movie channels apply; big players may stay away
Experts, however, say Prasar Bharati’s OTT raises significant concerns for DPOs, as the move to offer free registration & revenue sharing could disrupt the industry and negatively impact rev streams
Prasar Bharati on August 7 invited applications from TV channels with valid licenses to stream on their OTT platform. The offer is open to channels approved by the Ministry of Information and Broadcasting for satellite TV in India.
Industry experts see this as a significant expansion of Prasar Bharati’s digital presence, with a revenue-sharing model that allocates 65% of ad revenue to broadcasters and 35% to the pubcaster. According to industry observers, while major broadcasters with established OTT platforms may not participate and stream their TV channels on Prasar Bharati’s OTT platform, this is expected to attract Hindi news channels, music channels, and smaller broadcasters seeking broader reach and additional revenue opportunities.
Major broadcasters unlikely to share TV channel feed
The major broadcasters might not share their linear TV channel feed with Prasar Bharati for its new OTT platform, according to the senior executive of a leading broadcaster. He shared that broadcasters might be hesitant to join Prasar Bharati's OTT platform due to potential conflicts with their existing OTT strategies and the complexities it might introduce with DPOs.
“There is already tension between DPOs and DD Free Dish, and if broadcasters put their channels on OTT, it could create additional problems,” said a senior executive of a leading broadcaster on the condition of anonymity.
He further explained that while the 65% revenue share is attractive, big players may prefer to keep their content exclusive to their own OTT platforms where they have more control and potentially higher revenue. He added, “Smaller broadcasters without their own OTT infrastructure might see this as a valuable opportunity to reach new audiences with no upfront platform fees. The platform’s success will ultimately hinge on its ability to attract significant viewership and generate sustainable ad revenue, making it crucial to monitor its performance over time.”
Prasar Bharati, in its announcement, has shared that channels will be chosen based on their DAVP ad rates. Revenue from ads will be split between broadcaster (65%) and Prasar Bharati (35%). If ads slots aren't fully utilized, the extra time will be used for channel promos or Prasar Bharati's content.
News, Movies and music broadcasters show interest
Industry sources close to the development have shared with exchange4media that some leading broadcasters in the Hindi news, music, and movies genres have already submitted their applications to the public broadcaster. Another senior executive of a major music TV channel noted that this presents a valuable opportunity for broadcasters who do not have their own OTT platforms.
He believes that many broadcasters, beyond just the major ones, would be interested in streaming their TV channels on the OTT platform. He also highlighted that Prasar Bharati is aiming to reach one million subscribers.
“If the OTT app provides additional convenience and accessibility, especially with better connectivity, it may attract new viewers or make content more accessible rather than simply shifting existing viewers from one platform to another,” said a senior executive.
He explained that, for a Free-to-Air (FTA) channel, any new addition to the broadcaster’s lineup is beneficial. He noted, “The only recurring cost we incur is the HTTP Live Streaming (HLS) feed that I provide. This cost won’t be burdensome for the broadcasters.”
The HLS feed cost can vary: an HD feed typically costs Rs30,000 -Rs35,000 per channel, while a standard-definition feed ranges from Rs10,000 to Rs20,000. “The exact cost depends on factors such as negotiation terms and the specific profile of the channel,” he added.
Competition for Cable, DTH and FAST
Industry experts believe that this setup will not only hurt cable & DTH platforms but also the FAST (Free Ad-Supported Streaming TV) channels.
The industry observer shared that DD FreeDish has been a significant disruptor in the broadcasting industry, impacting revenue streams for traditional cable and DTH operators. By offering a wide range of channels for free, DD FreeDish attracts a substantial audience, particularly in price-sensitive segments of the market.
“Prasar Bharati is now launching an OTT platform and inviting broadcasters to stream their TV channels on the platform for free, using a revenue-sharing model. This raises significant concerns for DPOs, as the move to offer free registration and revenue sharing could further disrupt the industry and negatively impact existing revenue streams,” said a senior cable operator.
For broadcasters, Prasar Bharati’s new OTT platform offers an additional revenue stream. However, for DPOs, it could be a significant financial burden and potentially threaten the survival of the cable industry, said an industry observer. He also highlighted that it may also impact the DTH and the FAST channel as well.
(With Inputs from Aditi Gupta)
