Menu
Over the top (OTT) media service covers a wide range of online content providers that provide streaming media as a product. OTT usually refers to video-on-demand platforms, but it can also cover areas like audio streaming, online voice-calling solutions, and messaging services.
The OTT service doesn’t require the traditional media distribution channels like cable TV providers and telecommunications networks. This service can be accessed as long as you have access to internet connectivity.
India serves as a vast and emerging market when it comes to video and other content consumption. For OTT Platforms, the Indian market is full of many opportunities to grow and thrive. With the dawn of the digital era and the rise of smart devices, the OTT industry witnessed growth far beyond expectations. India, boasting of world’s largest youth population, surely seems to harbour a promising future for OTT.
Today, in the wake of the global pandemic, OTT industry has played a vital role in bringing substantial content in the form of movies, TV shows, stand-up comedy and so much more right to the consumers. Let’s learn a bit more about OTT before we dive into the industry’s overview in India
Using an internet based content delivery system, OTT platforms allows consumers with compatible devices/hardware to access the offered content. Some devices compatible with OTT content delivery:
The OTT services have been monetized in several ways. This includes paid subscriptions, in-app advertising, and in-app purchases
OTT services mean much more than Video-On-Demand (VOD). It includes a wide range of online content types, including the following:
India contains a thriving and flourishing OTT industry that continues to grow at a quick rate. There are many local players that benefited from the early-beginner advantage and established their dominance during this huge market. Interestingly, India continues to be mostly an untapped market. Major OTT platforms from the US and other Western markets are vying to achieve a position here. And names like Netflix and YouTube have tasted success so far.
With everyone vying to induce a share of this market, the Indian OTT market has become a jumbled sphere of players and services. The most important players have the capital to form their own fresh and quality content. They’ll also promote their platforms to the audience. Then, there are players that follow a unique approach to succeed in their audience.
There is also a whole segment of platforms that’s backed by movie studios and TV channels. These more traditional players consider this a chance to profit from the digital push. The nice thing is that the majority of those players do well in this market.
Some of the interesting consumption statistics relevant to the Indian OTT industry are as follows:
Some of the biggest OTT platforms in India are as follows:
1. Hotstar
Disney-owned Hotstar has over 300 million Monthly Active Users (MAU) and is the largest OTT platform in India. It provides content in a wide range of Indian languages. Sports events, especially cricket matches, play a big role in its popularity.
2. MX Player
The Times Internet-owned MX player began operating as an OTT platform from the beginning of 2019. Before its information, this offline video player was installed by over 350 million users in the country. The move to being an OTT platform saw it creating original content and streaming its content online. It creates original regional content in many Indian languages. Interestingly, the company’s strategy has been to reach out to an audience that has mostly been ignored by other streaming services.
3. Netflix
Netflix is the largest streaming platform in the world, but it is a relatively new player in India. The quality of the content it offers means and its quick adoption so far in this market means that it has a great future here. By the last count, it had around 11 million MAUs. It is still in its early years in the country. Interestingly, Netflix has been able to get much greater feedback compared to the market leaders. There are clear indications that it has struck the right chords with Indian consumers with the help of its original and high-quality content.
4. Amazon Prime Video
Amazon Prime Video has already built a base of 13 million active users in the country. When compared to other market players, Prime Video has access to almost limitless resources in the creation of original and quality content. However, its wider presence in different markets seems to have diluted its focus on just the Indian market. Other players like Netflix, Hotstar, and ZEE5 are focused solely on the content market in India.
It is expected that creating a more focused approach can help Amazon Prime Video to become a bigger player in the Indian OTT market.
5. ZEE5
Zee Entertainment-owned ZEE5 is a local market player in the Indian OTT sector. It has more than 60 million MAUs and has banked upon the brand’s local fame. Interestingly, ZEE5 is available globally except in the US.
The Indian video streaming industry is expected to grow from 2018 to 2023 at a CAGR of almost 22%. PricewaterhouseCoopers (PwC) claims that the OTT video segment will experience the highest growth across the different sub-segments in this video streaming industry. This will be the segment that will have the biggest role in driving evolution and creativity in the country’s media and entertainment (M&E) industry.
The media and entertainment sector in India will grow by 11.28% to reach a behemoth Rs. 4.51 lakh crore figure. It was sized at Rs. 2.64 lakh crores in the year 2018. PwC reports India to be the fastest-growing M&E market in the world. It is expected to undergo the biggest growths in the following sub-sectors:
The growth in these sub-sectors will especially revolve around increased digitalization and simultaneous personalization
Some of the related developments projected in the M&E and OTT growth story of India can be summed up as follows:
These OTT players are relying on consumer data like streaming music and news, and products they purchase to present them with content they will most likely consume. According to market statistics, most of the industry revenue in 2023 will be from the following two areas:
Besides OTT, the other M&E sub-segments that will notice dramatic growth will include video games and E-Sports growing to Rs. 17.89 thousand crores and Internet advertising at Rs. 18.44 thousand crores.
The emergence, adoption, and growth of OTT have also created new challenges to the traditional big-screen movie sector. Many recent big-ticket productions in the Hindi film industry have experienced difficulty in drawing audiences to cinema theatres. It is, however, fascinating that the old TV viewership continues to grow in the country, especially in the more rural areas.
TV subscription is expected to grow by a CAGR of 11.85% by 2023 to reach Rs. 1.23 lakh crores. The state broadcaster’s DD Free Dish (direct-to-home platform) has played a big role in the rural locale’s continual dependence on television.
According to reports, the big numbers will still be seen with digital services. In 2018, the Indian OTT market generated Rs. 4.46 thousand crores in revenue. Subscription-based VoD platforms are expected to grow to Rs. 10.71 thousand crores in 2023, a CAGR of over 23%.
Currently, the OTT market is mostly dominated by advertising-based platforms. However, subscription-based services are growing at a much faster rate.
The Indian M&E content industry is undergoing a revolution that is specifically spurred by the boom in OTT services. Even when you consider the numbers from telecom service providers that claim up to 5% growth in Average Revenue per User (ARPU), it is apparent that the above-mentioned growth figures are fairly accurate for the future of the OTT sector in India.
The launch of 4G services at affordable prices is claimed to have played the biggest role in changing the entire OTT landscape in the country. The industry seems to be growing at almost an exponential rate in this market. Given the sheer size of the Indian consumer market, it is fair to think that it will be some time before the OTT sector will reach a saturation point here.
MediaGuru is a Global Services Company offering end-to-end solutions in the area of content digitization and preservation, turnkey technology projects and digital media from our offices in UAE, Singapore, South Africa and India.