Indians developed an attraction towards OTT platforms only during the COVID-19 pandemic. One of the major reasons was the closure of theatres. However, things changed in such a way that people refused to come to the big screen, leading to the failure of a lot of films. The condition remains the same until today.
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But the situation has become the same in both worlds. Maybe no one expected that even OTT has to bear the wrath of the public for a lot of underwhelming content. While 2024 was not up to the mark for Bollywood, the same can be said for web series.
Notably, one of the most highly anticipated Mirzapur Season 3 did not impress the audience as per expectations. Apart from this, another issue has now cropped up in front of the owners of the OTT platforms, which is called churn rate. It refers to those subscribers who decide to cancel their subscriptions and hesitate to renew them.
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The usage of the word has become relevant now since there were people who purchased a subscription to certain OTT platforms to watch their favorite shows. However, none of them renewed their subscriptions with some of them failing to pay again for different reasons.
Various people involved with this industry have expressed their concern since they have a fear of losing their consumers. Although there have been people who purchased subscriptions for a year, they did not watch any content for a longer period than a month, leaving their accounts dormant.
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Another thing that has contributed to the increase in churn rate is the quality of the content available on any platform. Amazon Prime Video, Netflix, or Disney+ Hotstar have preferred quantity over quality due to which audiences lose their interest in the initial few episodes and decide not to continue the show until the end.
On the other hand, some people want to watch OTT content but cannot purchase the same. The reason for the same is the subscription price, which is not affordable for everyone. While Jio Cinema has already launched its monthly subscription for a price of Rs. 29, the rest of the platforms are yet to launch a similar initiative to attract more people.
However, the senior vice president for Elara Capital, Karan Taurani, believes that platforms that feature global content can record lower churn rates.
There are certain solutions to this issue. The first is the quality of the content, which needs to be engaging from the beginning until the end. The next is affordable pricing of the subscriptions, which can help everyone to access them.
