Innovative regulations critical for Bangladesh’s video-on-demand market

Illustration: TBS

Given the recent uptake in digital interactions, there has been a renewed urgency among governments to regulate related services under the ambit of consumer protection, privacy, safety, and harmful content. 

It is imperative to highlight that the introduction of new regulation during a recovery period of an economy should carefully consider its impact on the economy.

Bangladesh High Court's decision in January 2021, which asked the BTRC and MoIB to formulate a "guideline to operate OTT (over-the-top) web-based platforms", is an opportunity to ensure that the guidelines aim to further bolster economic recovery efforts with input from relevant stakeholders through comprehensive and transparent consultations.

The phrase over-the-top (OTT) originates in the telecom industry and describes any application or service travelling over the internet. This phrase therefore applies to any and all services running over the internet, from banking to government services.

More specifically, OTT's scope covers a diverse group of services, which require different market models, infrastructure, and levy varying degrees of business impact.

These services may include but are not limited to: entertainment, media, communication, cloud computing/storage, social media, financial services, e-commerce, Internet of Things (IoT), and online gaming.

Given this, the phrase OTT can easily become shorthand for almost any internet application and the lack of clarity can lead to poorly developed, overbroad, or misapplied regulations that infringe on human rights, limit economic growth and hinder innovation on a broad scale.

For the purpose of this article, we will distinguish between curated video content (or video on demand) that can be accessed any time with a monthly or yearly subscription and user generated content that has been posted by users on online platforms such as social media and wikis as examples of OTT development in Bangladesh.

The video-on-demand market is growing exponentially around the world. It is projected to reach $159.62 billion by 2027, representing a CAGR (Compound Annual Growth Rate) of 14.8% from $53.96 billion in 2019.

The future for Bangladesh's video-on-demand market is equally bright. With the improvement of internet speed – more than 9.5 million users in Bangladesh are using ISP or Broadband – we can expect to see more and more users on video streaming platforms, and thus the growth potential for Bangladesh's video-on-demand sector is significant.

The growth of online services such as video-on-demand has transformed the economies of both developed and developing countries, with the positive effect trickling down to small businesses and individuals.

For instance, Bangladeshis' appetite for original local content, together with payment barriers that make it difficult to access foreign services, have seen the growth of local platforms such as Bongo, Bioscope, Chorki and Binge.

These services are becoming increasingly popular among the public due to their original content as well as the inclusion of international content in their libraries.

Online services increase consumer choice, productivity, and innovation, and give local businesses and content creators access to a global customer base, providing individuals with greater choice, at a lower cost compared to traditional broadcast and media.

This ultimately expands the nation's creative industry and overall economy and helps to export Bangladeshi culture to the world.

Innovation in the OTT space field has also led to a rich and diverse internet, and has stimulated consumer demand for broadband internet access, which in turn has driven network operators' revenues, incentivising them to upgrade and expand their networks.

As Bangladesh, its people, and businesses increasingly benefit from the evolution of the global technology ecosystem, it is essential to avoid introducing rigid frameworks that could impede innovation and competition, cause consumer harm, or create obstacles to conducting businesses in Bangladesh.

In this case, the same set of rules cannot be applied to curated and user generated content.

A one-size-fits-all approach to regulating multiple services that are functionally, technically, and operationally different would be problematic and deter growth of the industry as a whole, including for local businesses.

The regulations should recognise the role of intermediaries and ensure safe harbour provisions that are offered around the world.

Governments need to recognise traditional telecommunication or broadcasting frameworks cannot be applied to regulate video on demand and user generated content.

The novelty and fast evolving nature of internet services require new, innovative regulatory models that are developed in close consultation with the industry and civil society. This ensures regulations are agile and futureproof while at the same time, responsive to local nuances. 

Before being able to reap the full benefits of the opportunities presented by online services, we urge the government to conduct in-depth analysis of the policy, economic, and regulatory implications of these new services to consumers and businesses, and how they can best be harnessed to benefit society and the economy.

This should include a thorough understanding of the types of markets considered; impact of online delivery on traditional broadcasting and telecommunication services; benefits and harms to consumers; positive effects on innovation and consumer surplus, on entrepreneurship and the startup ecosystem.

In other words, regulators must consider a multi-dimensional approach to comprehend the complicated and dynamic nature of the OTT market.

The unprecedented digital transformation that Bangladesh is currently undergoing presents numerous opportunities for both consumers and companies offering online services.

Therefore, it is important that any consideration of the online services framework be done through a thorough and inclusive public policy development process.

The author is the managing director of Asia Internet Coalition

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of his organisation or The Business Standard.