Over-the-top (OTT) media service covers a wide range of online content providers that provide streaming media as a product. OTT usually refers to video-on-demand (VoD) platforms. The OTT service does not require the traditional media distribution channels like cable TV providers and telecommunications networks. This service can be accessed as long as you have access to internet connectivity.
India, one of the largest video and other content consuming markets in the world, the digital and smartphone revolutions have played their roles in giving a huge boost to this segment in the past few years. The future of OTT is also promising in the country with the largest number of young people in the world.
OTT growth story
OTT players now realize that offering different consumption options is beneficial in this market. This includes options like unlimited usage in certain areas, different payment tiers for different services in lesser development markets, and the affordability game in some areas.
Content creators are coming up with new and innovative ways to attract consumers. Marketers are looking for new ways to touch consumers at the point of consumption. They are also seeking ways to point consumers immediately toward purchase. Many players are leveraging the capabilities of AI in understanding consumer interests and consumption habits to create content that appeals to individual users. These OTT players are relying on consumer data like streaming music and news, and products they purchase to present them with content they will most likely consume.
TV subscription is expected to grow by a CAGR of 11.85 percent by 2023 to reach `1.23 lakh crore. The state broadcaster’s DD Free Dish (direct-to-home platform) has played a big role in the rural local’s continual dependence on television.
Future of OTT in India
If we talk about the future of OTT in India, there is a huge market for the OTT industry platforms like Hotstar, SonyLiv, Amazon Prime Video, Voot, MX TV, etc. India is the only country where more than 50 percent of its population is below the age of 25 and more than 65 percent below the age of 35.
And, nowadays everyone owns a smartphone and this COVID-19 pandemic situation followed by a nationwide lockdown has provided an impetus to OTT platforms and given a new rise to the OTT industry. Even producers and filmmakers are showcasing their films on these platforms.
Hence, it is likely that in future we will consume all movies on OTT platforms. First day first show is everyone’s dream, which will now come true through OTT platforms.
Currently, the OTT market is mostly dominated by advertising-based platforms. However, subscription-based services are growing at a much faster rate. From an overall growth perspective, the OTT segment is extremely bullish as far as India is concerned. Original content is likely to be the key growth driver for the OTT industry in the coming years.
Telecom companies boost OTT platforms
The launch of 4G services at affordable prices is claimed to have played the biggest role in changing the entire OTT landscape in the country. The industry seems to be growing at almost an exponential rate in this market. Given the sheer size of the Indian consumer market, it is fair to think that it will be some time before the OTT sector will reach a saturation point here.
The Indian movie and entertainment industry is undergoing a revolution that is specifically spurred by the boom in OTT services.