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The OTT (over-the-top) industry is constantly growing and is one of the most competitive amongst emerging markets with over 40 players representing all types of content providers, said the report from industry body CII and Boston Consulting Group (BCG).
This has been led by ”strong tailwinds” from basic enablers being in place for digital video streaming such as affordable high-speed mobile internet, doubling of internet users in the last six years, increased adoption of digital payments.
Moreover, it has been also helped by India-specific price points offered by global players here such as Netflix, Prime Video, Disney+ offering plans in India at 70-90 percent cheaper than the US.
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”Strong content also helping capture eyeballs outside India,” the report said, adding Indian OTT can cater to international demand by targeting the Indian diaspora and markets that have language similarities.
There has been a remarkable surge over SVOD (subscription video on demand) content over the last few years and is expected to overtake AVOD (advertising-based video on demand), it added.
”This strong growth in the subscription is due to various initiatives taken to expand the user base through bundling and pricing innovations, amply supported by significant investment in content,” said the report titled ”Blockbuster Script for the New Decade: Way Forward for Indian Media and Entertainment Industry”.
The major players in the Indian OTT industry include – Netflix, Amazon Prime Video, SonyLIV, Alt Balaji, Zee5 , Eros Now, and Disney Hotstar Plus.
It has been additionally helped by a predominance of a younger population, with 50-55 percent population under the age of 30, it added.
”Indian OTT has progressed from early-stage to scaling stage with Transitioned from AVOD to SVOD model, growth in disposable income to drive subscription growth and investing in premium and original content,” it said.
Now, it will enter into a mass stage, which will witness, Pay-TV cord-cutting, high SVOD penetration with consumers subscribing to multiple services and live OTTs.
Moreover, the pricing of global streaming services in India has been made affordable to drive adoption.
The report expects that ”the growth story will continue and accelerate Key drivers” such as increased content spends, pricing innovations and rise of alternate formats as short-form video”.
”Short-form video grew at 150 percent + CAGR, driven by Indian short-form video players post TikTok ban,” it added.
Now the OTT players are creating content to cater to regional demand with a ”strong focus due to untapped market potential”.
”About 56 percent of the Indian population has a regional language as mother tongue, which is larger than the population of EU,” the report said.
According to the report, the Indian Media & Entertainment industry has revived to pre-COVID levels and is expected to grow to USD 55-70 billion by 2030 with a CAGR of 10 to 12 per cent, driven mainly by strong growth in OTT, Gaming, Animation and VFX.