In recent years, the Indian media and entertainment landscape has witnessed a seismic shift, with traditional cable and satellite television giving way to over-the-top (OTT) streaming platforms. This transition, often referred to as “cutting the cord,” is not just a trend but a profound transformation reshaping how content is consumed across the country. This shift is revolutionary change reshaping the media and entertainment landscape. Here’s an in-depth look at how cord-cutting in India is driving an OTT revolution.
West Versus India OTT Platforms: How the Content Strategy Differs?
India’s streaming industry has revived to pre-COVID levels. The market is expected to grow to $55 to 70 billion by 2030, driven by strong growth in animation, gaming, OTT, and VFX. Several factors like widespread availability of broadcast infrastructure, growing demand for a personalized experience, and increasing use of portable devices have resulted in OTT consumption growth in Western regions.
Technological advancement and the emergence of new apps and independent platforms for OTT content have proven to be growth drivers. Most tech companies like Facebook, YouTube, and Amazon, along with connected device providers including LG, Samsung, and Xiaomi, and studios like MGM, Paramount, Disney, and Sony, have entered the OTT space, providing wider choices to people in the West.
OTT platform growth combined with subsequent content popularity has seen regional content from different provinces gaining international popularity. South Korean dystopian drama has become one of the most-watched content on Netflix globally. Similarly, Indian dramas like Delhi Crime, Sacred Games, etc., have become the most enjoyed content by audiences globally.
In emerging economies, most eyes are set on growing opportunities, specifically in the Indian subcontinent. Major players from the Western region are debuting the foray with diverse content catalogs and engaging subscription offers. Some players have collaborated with or acquired local brands to establish their presence in the region.
For example, with the launch of Disney Plus in 2019 in the US, the streaming service expanded to many countries, including India. Instead of launching a separate app for Indian users, the company acquired the Hotstar streaming platform and later rebranded it as Disney+ Hotstar. This helped the company to attract millions of subscribers in India.
The AVOD (advertising-based video on demand) model is more popular than the SVOD (Subscription-based video on demand) model; it shows the unwillingness of the audience to pay for online content. Thus monetizing online content is one of the challenges in India. Over 20 million viewers in India stream content on YouTube, while Netflix has 40 million monthly active users. Unlike the Western region, only 10% of viewers in India access the OTT platform for viewing original content.
Cord-cutting in India: How the OTT Platform Will Bring it?
India has almost 353 million OTT users and around 96 million active paid subscriptions, translating into a 25.3% penetration. Currently, India has 96 million active paid OTT subscriptions across 40.7 Million paying (SVOD) audiences. More than 66% of the paid subscription audience is male.
However, the top 6 metros contribute just 11% to India’s OTT universe while 35% to total paid subscriptions in India. Delhi, Mumbai, and Bengaluru are the top 3 cities in this regard, with around 8 Million active paid subscriptions each.
Rise of OTT Platforms
People are shifting from “Let’s go to the theater for movies” to “What to watch on Netflix today?” Everything is available on over-the-top (OTT) platforms like movie premiers, sports, and more. For example, Netflix released the Abhimanyu Dasani starter “Meenakshi Sundareshwar,” Zee 5 released “Antim: The Final Truth” starring Salman Khan and Aayush Sharma, and “Gehraiyaan” starring Deepika Padukone and Siddhant Chaturvedi as main lead released on Amazon Prime Video.
Many series such as “Sacred Games,” “The Family Man,” and “Aarya,” elevated the popularity of streaming platforms among the tech-savvy generation who now prefer OTT over DTH and cable TV subscriptions even before COVID-19 spread. The trend has created buzz post-pandemic due to its convenience over traditional broadcast.
Now everyone can watch their favorite content on their smart device. Viewers get wider options to choose from with content variety, languages, and on-demand viewing. The availability of content from anywhere and anytime is giving rise to cord-cutting in India.
The OTT content market is at a peak point in India and is expected to grow 10 times to 5 billion by 2023. The OTT revolution has undoubtedly come a long way in India, from two OTT platform providers in 2012 to around 40 players. The monthly active users for India’s OTT sector have grown at a surprising rate of 300% since 2019 and will reach approximately 680 million in 2021. Rural and tier 2 & 3 cities’ consumption of streaming content has reached 80% share.
Growth Drivers for OTT Players in India
OTT video consumers in India have evolved effectively in the last couple of years. Viewers spend more than 8 hours a week on streaming content; this represents an excellent opportunity for platforms to tap into the ever-expanding world of digitally connected Indians. More than 30% of viewers prefer to watch content in languages like English and Hindi.
Image: (Source)
Indian OTT viewers spend around 70 minutes a day on a video streaming platform like YouTube or Netflix with a consumption frequency of 12.5 times a week. Viewers are accessing more than 2 OTT platforms at a given time. With approximately 1.38 billion population, India has a big market for OTT platforms. There are many growth drivers for OTT players in India, they are:
Investments in Content
OTT platforms are expected to invest over ₹1,920 crores to produce original content for India in 2021. It shows around a 17% rise over ₹1,400 crores spent in 2019. This is the result after the services had seen a sharp growth in audiences during the 2020 lockdown. The OTT platforms will increase spending on sports content to ₹30,000 crores between 2021 and 2025.
The investment in original content makes sense as viewers are learning to pay for content they enjoy. In 2020, more than 29 million subscribers paid for 53 million OTT video subscriptions, a figure that is forecasted to grow to 39 million subscribers for 71 million subscriptions in 2021.
Netflix has nearly 40 originals scheduled for 2021 and is growing its slate by almost three times compared to 2020. At the same time, Amazon Prime Video has almost 50 local originals in stages of development and 30 in stages of production. Demand for original content is expected to double by 2023.
Content – New Battlefield for Viewers
A growing number of consumers from tier 2 and 3 cities have prompted regional content production. The top 8 cities in India contributed almost 70% of the total audience, from which 60% of traffic comes from tier 2 as well as tier 3 cities.
Old shows are being re-aired on OTT video platforms, whereas investments in new content are growing continuously. Amazon acquired MGM for $8.45 billion, giving access to MGM’s library of more than 17,000 TV shows and 4000 film titles.
India has a diverse market with many different languages that are widely spoken across the country. Hence OTT players are focusing on localization as it helps them to connect with Indian users in terms of geography, user experience, local languages, etc.
India has around 10 music & podcast streaming apps and 40 OTT players in existence, catering to diverse entertainment and media demands. It has opened new opportunities for OTT platforms to promote hyperlocal and regional content. The share of hyperlocal content consumption on OTT platforms is expected to surpass 50% of the total time spent by 2025.
Government Regulations
The MIB (Ministry of Information and Broadcasting) has stressed the necessity for some form of regulation of OTT players to streamline the sector. It has notified the guidelines for Intermediaries & Digital Media Ethics Code 2021. OTT platforms have to set up a potent three-tier grievance redressal mechanism according to new rules. Regulation helps to enhance the quality of content in the future.
Content Innovations and Application is the Future of OTT: Isn’t it?
Undoubtedly OTT is the future of television, and the sector is at a nascent stage. Content innovation is the way that defines the direction of evolution; new applications like food delivery, streaming, education, fitness, and more are downloaded and used. Many educational apps like Byjus, Unacademy, and more are using the streaming approach to educate learners in a better way.
Most OTT players are creating content to cater to the needs of modern-day viewers and trends. Content and technology are coming together to introduce a solution that caters to the unique business environment.
Looking at the growing demand for streaming content, it can be said that OTT platforms are here to stay. Hence streaming businesses should develop a feature-rich OTT platform script that helps them to satisfy the growing demand of viewers. We at Alphanso Tech provide you with excellent development services for video streaming and can help you launch your own OTT platform at a pocket-friendly price. Contact us today at sales@alphansotech.com for further information.
Frequently Asked Questions
What is “cord-cutting” in the context of media consumption?
“Cutting the cord” refers to the trend of moving away from traditional cable or satellite TV subscriptions to stream content over the Internet via over-the-top platforms.
Why is OTT becoming so popular in India?
OTT platforms are gaining popularity in India due to several factors:
- Affordable Data Plans.
- Wide range of international and regional content.
- Original Programming.
- Convenience of on-demand viewing.
Which are the leading OTT platforms in India?
Some of the leading OTT platforms in India include:
- Netflix
- Amazon Prime Video
- Disney+ Hotstar
- Zee5
- SonyLiv
How do OTT platforms differ from traditional TV?
OTT platforms differ from traditional TV in several ways:
- Content Delivery
- On-Demand Access
- Variety and Personalization
What are the future trends for OTT in India?
Future trends for OTT in India may include:
- Use of AI and data analytics to offer tailored content.
- New revenue models to cater to changing consumer preferences.
- Increased global reach for Indian content and creators.
How can content creators benefit from the OTT boom?
Content creators can benefit from the OTT boom by:
- Access to a global audience.
- More opportunities for innovative storytelling.
- Multiple revenue streams.
Are there any free OTT platforms available in India?
Yes, several OTT platforms offer free content with advertisements. Some examples include:
- MX Player
- JioCinema
- Voot
What are the subscription models available on OTT platforms?
OTT platforms typically offer several subscription models:
- Subscription Video on Demand (SVOD)
- Advertising-Based Video on Demand (AVOD)
- Transactional Video on Demand (TVOD)
Are there any regional OTT platforms in India that focus on local content?
Yes, several regional OTT platforms focus on local content, catering to specific languages and regions. Examples include:
- Aha (Telugu content)
- Hoichoi (Bengali content)
- Sun NXT (Tamil and Telugu content)