• About
  • Contact
Saturday, April 17, 2021
Next Big Brand
  • .
  • News
  • Internet
  • Startup
  • OTT
  • Industries
  • FMCG
  • Cryptocurrency
  • Retail
  • Tech
  • Case Study
  • Interview
No Result
View All Result
Next Big Brand
Home Internet

Entertainment in India Goes Online, A $5 Billion Opportunity By 2023

Sourav by Sourav
July 4, 2019
in Internet
5 min read
0
OTT Platform

Already Indian OTT Space is cluttered.

Share on FacebookShare on Twitter

Except for the fact that every one of us loves watching them and can’t get enough, What is common between Game of Thrones, Narcos, Sacred Games and Mirzapur. All of these “Seasons” with a record-breaking massive viewership in India did not air on traditional television and have reached to their audience and at such a massive scale by Video-on-Demand, or OTT.

If you have heard this term for the first time, let us define it for you. Over the top (OTT) is a term used to refer to content providers that distribute streaming media as a standalone product directly to viewers over the Internet, traditional television platforms that act as a controller or distributor of such content.

There are more than a dozen OTT platforms thriving in India who are capturing the potential billion eyeballs. Players like Amazon, Netflix, Alt-Balaji are using the power of fast-growing middle-class urban segment which wants to consume video content on the go, coupled with super-fast and economical Internet tariffs disrupted by the entry of Reliance Jio in 2016.

Digital vs traditional media
Ⓒyourstory.com

A recent report by global management consulting firm Boston Consulting Group reveals that they have made inroads into the country and will get even more popular going forward. The report pegs that the OTT market, which now stands at $0.5 billion, will grow to be $5 billion by 2023.  According to the report, this growth is being driven by rising affluence, an increase in penetration of data into rural markets and adoption across demographic segments including women and older generations.

Digital Media platforms
Ⓒyourstory.com

The Indian OTT Phenomenon – Additive, Not Cannibalizing

Overall, it is estimated that 16 percent of media consumption in India is already on digital media. Relative to developed countries, India is lagging. However, for the Indian youth, already 25 percent of media consumption is digital (as shown in Exhibit 4). This indicates that the growth in India is likely to catch up.

There is a distinct difference in the shape of digital consumption in India vs the Developed World. The digital consumption (relative to traditional TV and print) in India has been additive and not cannibalizing traditional media consumption. For e.g. in the past one year (between 2016 and 2017), overall media consumption grew for all segments of consumers.

Globally, OTT has become the key driver for video watching and media consumption growth, with an increasing number of people consuming over the top (OTT) content through varied platforms. In the last few years, OTT content has seen substantial prevalence when compared to conventional forms of video consumption. Revenues from OTT content has seen a CAGR of 40 percent+ for the period 2005-2017 and is expected to see a growth of 20 percent in the period 2017-2023.

The advantage of using OTT service is that it is less costly in contrast to other traditional modes and more efficient and customized in terms of consumption. Moreover, it’s more customized and convenient compared to the traditional modes.

ott platforms
Ⓒyourstory.com

The Indian OTT Space – Hyper Competitive, All the Players Vying for Consumer Attention

Indian OTT space is hyper-competitive and has attracted varying types of players which offer varied value propositions to the consumers and have different business models. All large successful broadcasters in India have launched their own OTT platforms. e.g. Hotstar, Voot, Sony Liv and Zee 5. These broadcasters have put their extensive TV content libraries online, supplemented by additional content through licensing and originals. In India, these players enjoy a strong brand and consumer awareness driven by their strong TV brands. These OTTs have a combination of ad-supported and behind the paywall content.

Global OTTs e.g. Netflix, YouTube, Amazon Prime have extended their services into India. Historically, India developed a video watching habit with YouTube. The global OTTs (e.g. Netflix, Amazon Prime) have started investing in local Indian content in a significant way.

How Much Cash is Involved? And it is only growing.

Most of these players and models have evolved and entered the market in the past 5 years. The year 2017 saw the first burst of “big money” being deployed behind Indian content on OTT. Heavy investments are now underway across multiple players. The numbers of players in the Indian OTT market have witnessed a 3.5x increase in the last six years growing from just nine players in 2012 to 32 in 2018 (as shown in Exhibit 7).

Investment for original content by OTT players is increasing at a fast clip. In addition, to live sports rights, the nature of shows produced is also evolving—tent pole properties built for OTT are at a cost per hour of the 3-4X cost of traditional TV content. The need to differentiate to attract eyeballs is enabling aggressive bets on original content. Sacred Games or Mirzapur can be cited as two such examples streaming on Netflix and Amazon Prime respectively.

The BCG report analyzed the types of investments being made on OTT content across platforms. These investments are in very varied forms of content with different propositions. For example:

  • “Tent poles” or “hero content”: heavily marketed, premium content (higher cost of production)—meant to bring new eyeballs on the platforms. E,g: Narcos on Netflix, Mirzapur on Amazon Prime
  • Hit movies—expensive to buy but attract eyeballs. Black Panther on Hotstar, Captain America on Netflix
  • High profile sporting events. E.g: Indian Premier League on Hotstar

What is the Challenge? The Answer is Intense Competition

All the OTTs are Racing hard to be Among the top 3 Video Apps for Consumers. Most consumers (81 percent) have up to 3 video / OTT apps on their smartphone. Further, all platforms struggle with retention of consumers—on an average 50 percent of OTT apps installed are uninstalled in the first 7 days of installation. The competition for user share is intense—every OTT platform is vying to be among the top 3 of the consumer’s attention.

Netflix logo
©netflix.com

Just the Tip of the Iceberg

As per the report, the Indian OTT market is poised for growth and both ads supported, and consumer pay model will continue to co-exist. The consumer pay model could take many different shapes ranging from pure OTT Subscription Model to Telco drive aggregator model as well as Transaction based model, particularly in categories such as films and sports. It is expected to reach a market potential of $4.5 to 5 bn by 2023.

However, tapping this potential will require a host of player actions to fall in place; these include the availability of relevant differentiated content, development of regional markets and consolidation. As content evolves and becomes differentiated, we believe that consumer pay models will evolve further in India—with Subscription model becoming a substantial part of the market.

Previous Post

Dailyhunt Makes Strong Moves To Strengthen The Leadership Team

Next Post

CPO Chris Cox and Whatsapp VP Chris Daniels Leave Facebook

Sourav

Sourav

Excellent story-teller, with a background in SEO and Digital Marketing. Likes to write and give form to opinion and incidents.

Related Posts

60% of Indian CMOs to have budgets for influencer marketing in 2021:ClanConnect
Case Study

60% of Indian CMOs to have budgets for influencer marketing in 2021:ClanConnect

April 16, 2021
Zeta in Advanced Talks with SoftBank to Raise at $1 Billion Valuation
Internet

Zeta in Advanced Talks with SoftBank to Raise at $1 Billion Valuation

April 15, 2021
Flipkart is All Set to Acquire Cleartrip
Industries

Flipkart is All Set to Acquire Cleartrip

April 14, 2021
Pine Labs Acquires Fave in Deal Valued over $45 Million
Internet

Pine Labs Acquires Fave in Deal Valued over $45 Million

April 14, 2021
Larry Page and Sergey Brin, Co-founders of Google, Join $100 Billion Club
Industries

Larry Page and Sergey Brin, Co-founders of Google, Join $100 Billion Club

April 13, 2021
Microsoft Acquires Nuance in a Whopping $16 Billion Deal
Industries

Microsoft Acquires Nuance in a Whopping $16 Billion Deal

April 13, 2021
Next Post
chris daniel and chris cox

CPO Chris Cox and Whatsapp VP Chris Daniels Leave Facebook

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

RECOMMENDED NEWS

xiaomi revenue India smart tv

Xiaomi Is One of Two Brands That Rule The Indian Smartphone Segment!

2 years ago
automobile sales - next big brand

Dark Times Continue to Linger – Overall Automobile Sales in India is Down by 19.08%

1 year ago
Diving Deep In The Digital Space With Abhishek Duggal aka #Duggi

Diving Deep In The Digital Space With Abhishek Duggal aka #Duggi

1 year ago
Jeff Bezos to Step Down as CEO of Amazon Later This Year

Jeff Bezos Ranks First Among Top 50 Donors List in 2020: Chronicle Study

2 months ago

FOLLOW US

  • 33.7k Fans

BROWSE BY TOPICS

2018 League amazon Amazon Great Indian Sale Amazon Prime Apple Apple Inc Automobile Industry Balinese Culture Bali United Budget Travel Champions League Chopper Bike Doctor Terawan facebook Facebook app future group hotstar Indian OTT Platforms Indian Smartphone Market Istana Negara Jio Market Stories Maruti Suzuki National Exam Netflix Netflix India Netflix Originals oppo OTT OYO Realme Reliance Industries Limited Reliance Jio RIL Samsung Tata Motors Tiktok TikTok India TikTok Videos Visit Bali Vivo whatsapp Xiaomi Xiaomi India YouTube
Next Big Brand

We Talk About Brands

Follow us on social media:

Recent News

  • boAt Raises Rs 50 Crore from Qualcomm Ventures
  • 60% of Indian CMOs to have budgets for influencer marketing in 2021:ClanConnect
  • Sachin Bansal’s Chaitanya India Fin Credit Applies for Universal Bank License

Instagram

Follow Me!

Latest News

boAt Raises Rs 50 Crore from Qualcomm Ventures

boAt Raises Rs 50 Crore from Qualcomm Ventures

April 16, 2021
60% of Indian CMOs to have budgets for influencer marketing in 2021:ClanConnect

60% of Indian CMOs to have budgets for influencer marketing in 2021:ClanConnect

April 16, 2021
  • About Us
  • Privacy Policy
  • Terms and Conditions
  • Disclaimer
  • DMCA Policy
  • Our Team
  • Contact Us
  • Sitemap

© 2019 NBB. All Rights Reserved.

No Result
View All Result
  • .
  • News
  • Internet
  • Startup
  • OTT
  • Industries
  • FMCG
  • Cryptocurrency
  • Retail
  • Tech
  • Case Study
  • Interview

© 2019 NBB. All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.