OTT platforms, YouTube channels face huge losses due to internet outage

Entertainment platforms, including online-based Over-The-Top or OTT media services, have faced economic losses due to the internet outage across Bangladesh amid the violence surrounding the quota reform protests.

Those in the industry believe the loss could exceed hundreds of millions of taka.

Mobile internet services were shut down on the night of Jul 17 after violence spread across the country as part of the ‘complete shutdown’ programme called by the Anti-Discrimination Student Movement, a platform for the quota reform movement.

Broadband internet services also came to a halt on Thursday night as the situation deteriorated.

Five days after the internet shutdown, broadband service was restored on a limited scale on Tuesday night. Service became available at homes across the country on Wednesday night but the mobile internet is still down.

Moreover, even though broadband internet has been restored, many people have reported problems due to slow speed.

Mohammad Ali Haider, the head of content at OTT platform Bongo, said the firm is facing a daily loss of at least Tk 800,000-1,000,000.

He told bdnews24.com, “The internet shutdown came just after we released a web series on YouTube. In addition, we had planned to air four single plays, two serials and two movies but we have not been able to do so.

 “They have already been released on the platform, but the audience is still not able to watch them. We also suspended some regular programmes.”

 ‘Bongo’ started its journey as the first subscription-based OTT platform in Bangladesh in 2013. Along with different foreign content, the platform airs local drama series and movies.

Later in 2016, telecommunications company Grameenphone launched OTT platform ‘Bioscope’ while Banglalink Agiata launched ‘iflix’.

The streaming services became popular with people who were confined to their homes due to the lockdown during the coronavirus pandemic. Along with subscribers, the amount of content on the platforms also went up.

OTT services have become widespread in Bangladesh. Alongside this, many entertainment-based platforms have also been launched. Bongo, Chorki, iScreen, DeeptoPlay, Binge and Bioscope are among the OTT platforms operating now. Moreover, there are many entertainment platforms such as ‘Club 11’, ‘CMV’ and ‘G-Series’ that make content for YouTube.

In addition, many individuals are involved in content creation and benefit financially.

Stating that there are several thousands of YouTube channels in Bangladesh, Haider said, “Many individuals run YouTube channels personally who are earning Tk 200,000 or Tk 300,000 per month. They are also facing a loss due to the internet shutdown.

 “Almost all television channels now broadcast their programmes on YouTube and Facebook. As the internet was not available, people were deprived of watching entertainment-based programmes. Everyone in the sector has faced a huge financial loss due to the internet outage. I believe the amount crosses hundreds of millions of taka.”

Video streaming platform Chorki was just starting to gain ground three years after its launch. It grew in popularity by airing new movies and series. However, the platform is also bracing for a big blow due to the internet shutdown.

The platform’s chief executive officer Redoan Rony said the company would face a loss worth at least Tk 50-70 million due to the outage. He also pointed out the damage to the flourishing of the industry surrounding the OTT platforms.

Rony said, “Chorki is making many new series, including 12 movies, each year. Hundreds of people depend on the projects for their livelihood. The crisis is a big blow to the industry.”

Audio-video production and distribution organisation CMV had a plan to air two plays on YouTube this week. This was not possible due to the internet closure. The company also released 10 plays on YouTube in July which risked a lower viewership, according to the organisation’s owner SK Shahed Ali Pappu.

He told bdnews24.com that the company might face a loss of millions of taka due to the internet shutdown.

 “The minimum cost of each play ranges from Tk 800,000 to Tk 1,000,000. We have already invested over Tk 10 million in total. The plays aired last month will have fewer views. We had a plan to air two more plays this week, which is not possible. It is also unclear if the reach will increase over time after the internet is completely restored. That’s why all of us in the sector are at a loss.”

However, actor Riaz Ahmed, project manager of iScreen, said the damage incurred by the platform is inconsiderable compared to the loss experienced by the country in recent violence.

He said, “The plan we had for this month did not work out. We will make a new plan next month. I expect we will be able to recover the loss. But our loss is little compared to the losses of the country.”