OTT platforms have emerged as the primary method for watching video content. Particularly in the present age, they are interactive and immersive while enabling the highest user convenience. They are primarily in contrast to linear television, where the viewer is a passive participant. In India, 2/3 of the population watches internet content for at least one to two hours per day, and that percentage is predicted to increase. Additionally, consumers are very engaged with online content, and the OTT format gives consumers newfound authority.
As a result, these platforms have become distinctive marketing playgrounds. After a detailed survey, it is identified that the availability of new content, show variety, and scheduling flexibility as the primary factors driving OTT platform usage. Original content will be a crucial differentiator across genres, and help platforms attract subscribers while maintaining loyalty. Since regional languages are the future of consumption and business, OTT providers produce content in them in response to the rising demand for originals.
Spending Money on OTT Subscriptions
Nearly 60% of those who have yet to subscribe to online websites or apps claim they are not interested in paying money to consume content on online platforms. In contrast, one-fourth of those who subscribe to online websites or apps claim to spend more than Rs. 500 on monthly subscriptions. Additionally, recommendations from friends and coworkers, followed by social media buzz, most encourage people to watch any content on online platforms.
Customers may now actively engage with the content, unlike linear television’s largely one-dimensional, rigid era. Additionally, it gives them a wide range of options for binge-watching, time and location, and navigation, all of which will be key in forming the following round of opportunities for digital marketers to reach a larger Indian audience.
Rise in Demand for OTT Platforms in India
Unlike most other industries, the Covid-19 pandemic changed the game for the media and entertainment sector. While multiplexes experienced a surge in the previous decade, 2020 ended up being the year of OTT entertainment, with cineplexes and movie theatres closing most of the year. People worldwide who were confined to their homes resorted to computer displays for pleasure.
According to a recent PwC analysis, India is the world’s fastest-growing market for streaming platforms, also known as over-the-top or OTT service providers. It is anticipated to surpass South Korea, Germany, and Australia to take the sixth-largest market position by 2024 with an annual growth rate of 28.6 per cent. Another study by the National Association of Software and Service Companies found that there were roughly 40 OTT platforms in India in 2020, most of them in regional languages. According to a Boston Consulting Group analysis, the market will be worth $5 billion by 2023.
Future of OTT Platforms in the Indian Market
OTT video streaming services like SonyLIV, Netflix, Amazon Prime Video, Disney+ Hotstar, and Voot have all experienced tremendous growth in India. Regional streaming apps targeting non-Hindi and non-English markets increased as online audiences grew beyond millennials and metro areas, including homemakers and seniors. The demand for localised content has been relatively high on many regional sites, including Oho Gujarati, Hoichoi, Aha, and NeeStream.
With a recent Media Partners Asia (MPA) study outlining a second growth phase, the expansion of OTT is anticipated to continue. By 2027, the business projects the OTT market in India to more than double in size, reaching roughly $7 billion USD. Trends in stay-at-home entertainment consumption have sped up the sector’s growth during the epidemic and by India’s rising internet-connected population, which is predicted to reach 900 million users by 2025.