Increasing Craze Of Ott Platforms In India

Category: Total VDO Date Published: July 25,2022

India’s OTT industry is growing like never before now, against the backdrop of pandemics. The regional OTT platforms have also contributed to the rise

Another year has been lost to the pandemic, and various sectors such as real estate, hospitality, and mobility are counting their losses and making projections of when they’re likely to attain their pre-Covid growth levels. Amid this doom and gloom, the media and entertainment sector presents an encouraging picture. According to a recent report by the Confederation of Indian Industry and Boston Consulting Group, India’s media and entertainment industry has revived to pre-Covid levels and is expected to grow to $55-70 bn by 2030 at 10-12% CAGR, driven mainly by strong growth in OTT, gaming, animation, and VFX.

The report explains that the media and entertainment industry contracted by 10% year-on-year in 2020, its market size decreasing from $26 bn in 2019 to around $24 bn in 2020. This contraction was mainly due to a decline in advertising revenues across mediums such as print, television, and radio. However, digital led-consumption of OTT services and gaming is now driving the growth, helping the industry grow 12-16% year-on-year in 2021, to a market size of $27 bn. Today, OTT has a 7-9% market share in India’s $27 bn M&E industry. However, by 2030, its market share is expected to increase to 22%-25%. Meanwhile, television’s market share will decline from around 35% to 24%. The growth in the number of Indian households with a Pay TV subscription, such as Tata Sky and Dish TV has more or less stabilized, only growing at 2%. However, India is seeing a growth of 51% in the number of households with a subscription-based video-on-demand service or SVOD.

This growth in subscription-based OTT services offered by the likes of Netflix, Amazon’s Prime Video, and Disney+ Hotstar can be attributed to the improved internet and smartphone penetration and payment mechanisms.

As the experts pointed out, the Indian OTT industry has just started scaling up and will continue to remain a high-volume market. Hence, expect more pricing experiments and bundling of OTT services with your mobile data plans as more global streaming players tap into the Indian market.