[logo of amazon and netflix, obtained from their official logo disbersing media center links on their website]
A while ago, I blogged that Netflix should enable offline mode. I made a case as to why that is not just neccessary, but rather mandatory if netflix wishes to survive. And now, as of this writing not only is netflix offering offline video, amazon prime video is finally here. It just so happens that Prime Video always had offline mode.
For me, as a consumer, this is a god send. This and other scenarios such as the entry of Reliance Jio are a sign of things. It is not a coincidence that netflix and amazon video make an entry into the second most populous country in the world, and Jio launches in India. Internet has always been one of those things that was needed but not available. Despite the valiant efforts of Reliance, Jio will still fall well short of meeting the broadband needs of Indian consumers. However, at least, there is availability in a place where there none to start with. This explains why Netfilx and Amazon are making an entry into the Indian market.
This will also signify an intense shift in the way we consume media. The smartphone - cheap as it is - is perhaps the only gateway for a lot of folks to everything from accessing information to porn to entertainment. Now that (limited) broadband access is also in place, Netflix and Prime Video need to do what they can to get people to use it. I see this impacting a lot of folks in a variety of ways.
Obviously, Vodafone and Airtel will have to reduce their rates. They would rather make less money and keep their customers than the other way around. So, data rates and broadband rates should come down drastically, and then stay steady.
Compression technology should also improve incredibly. India will always be a special case when it comes to broadband speeds. We still believe 256 to 512 Kbps qualifies as 'broadband'. I am already seeing Prime Video offering to deliver an hour of content for less than 100 MB. That is just awesome. Of course, compression technology is usually open source. So, what we will probably see is innovation in the ability to compress content on the fly, and then deliver it.
Another place where I see this impacting is general entertainment. Especially, movie box office. The television has already taken a huge bite out of movie business (which explains why a box of popcorn costs more than the movie ticket itself). With folks being able to get entertainment on their mobile screens, there is an even less reason to step out of the home and sit in a cramped movie hall and watch half a dozen trailers, ads and what not, before the actual movie starts.
Then, there are the originals. As it is already happening with many bollywood productions, I fully expect some of the more advanced movie studios like YashRaj and Red Chillies to tie up with these streaming providers for exclusive content. I wont be surprised if SRK or Salman Khan produce and may be even act in special content. I expect them to have a huge pay day as well.
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