Economic Growth Through Digital Transformation

The dawn of Over-the-Top (OTT) platforms in the entertainment and communication space has received a mixed response globally. As these platforms deliver streamed content via Internet-connected devices, they have received mostly negative reviews from Hollywood. Purists such as Martin Scorsese and Christopher Nolan have decried the death of cinema, as these platforms have eaten into the revenue of television networks and channels. The platforms have had a negative impact on stakeholders (writers, actors, directors), prompting the Writers Guild of America to go on strike in 2023 demanding credit and loyalty. The writers’ strike emerges as an interesting case study as the dispute majorly centered on the lack of a framework for compensation and royalty payments from streaming content. The strikers also demanded guarantees that artificial intelligence will not encroach on writers’ credits and compensation.

Today, OTT platforms in India are growing at an exponential rate, with their market value estimated to reach 3.22 billion dollars by 2025. This is a by-product of the digital revolution instituted by the current government in the mid-2010s. Firstly, the efforts of the government and the private sector to improve access to high-speed internet have allowed millions of individuals to become comfortable with online transactions. Secondly, this new generation of internet users has also shown a propensity to move away from tradition, bringing much-needed competition to the space. In fact, it is not an exaggeration to attribute the rise of India as a global economic power to the emergence of an internet-savvy generation, who today represent a growing consumer base for a variety of industries, including OTT. Therefore, while western economies and China have been battling recession-like conditions, India’s new and booming digital infrastructure is one of the factors that has allowed the country to become the 5th largest economy in the world.

In light of the growth in the digital sectors, especially in the OTT sector, it becomes essential for the authorities to institute a flexible and effective regulation model. The entertainment and communication sector is primarily a labor-intensive sector that requires government oversight to protect the rights of performers. Moreover, this sector plays an essential role in shaping the cultural, social, and political attitudes of individuals, and it is therefore essential for the government to institute adequate checks and balances. These checks and balances already exist when it comes to traditional media, but the same structures cannot be used in the digital space, hence creating a gap.

Clearly, these are daunting challenges, but they also represent the second step of the digital revolution. While it is fashionable to hold the government responsible for any shortcoming in our economy, it is also essential that we hold the private sector accountable. The government has helped create a favorable climate for the private sector, which in turn has led to growth, especially in the digital space. Here, it is simultaneously important for private actors to self-regulate and not take risky bets. The demise of BYJU’s is a prime example of the irresponsible conduct within the private sector in India, where companies often chase growth and expansion beyond their means. Instances like these are concerning, as they may undo the groundwork done. Therefore, while the 2010s were marked by the growth of the private sector, this decade requires regulated and sustainable growth.