OTT Market In India: $5 Billion By 2023, AVOD To Drive The Growth

Must Read

Can CBD Gummies Be Beneficial For College Students?

College students often feel more pressure than they have ever—or will ever—feel in their entire lives. Many...

Cloud Computing is Redefining the Education Industry!

Today, the benefits of cloud computing are being recognized in educational industries around the world. Most of...

Will You Buy iPhone 12 Pro At US$20,500?

if you are suspecting any typo error here, you are highly mistaken! The price of iPhone 12...

The over-the-top (OTT) platforms that India has had at its disposal in the recent times has been insane. Other than the usual suspects in Netflix and Amazon Prime Video, its great to see India developing its own OTT subscription service through Hotstar, VOOT, etc. But all of these points in one direction – the flourishing scenario of OTT market and a big window of opportunity for all the players in India. A report by Boston Consulting Group points towards the growing Indian OTT market and the reasons why the Indian consumers prefer the OTT form of content delivery over the other forms of content delivery. Let us look at what the report has to say.

Indian OTT Market In Next 5 Years

The Boston Consulting Group stated that the OTT content market in India is “at an infection point“. BCG then went on to describe the potential scope that the other OTT business models might have in this country, like that of  SVOD (subscription-based platforms), AVOD (advertising-based platforms) and TVOD (transaction-based platforms).

In 2018, the revenue contribution of the Indian video OTT market was $500 million. A whopping 82% of the revenue was from AVOD, while the rest of the 18% was from consumer pay (SVOD, TVOD). However, by the end of 2023, this number is expected to increase tenfold! Yes, you read that right. The Indian OTT market is expected to generate $5 billion in revenue in the next 5 years. That too, with much more of an equal distribution. The predicted share is – 43% from AVOD, 32% from SVOD & TVOD and rest 25% from the global market.

Advertisements

Indian Video OTT Market

After that, the report goes on to point towards the fact that there is one television in every Indian household. Hence, coordinating times so that the whole family gets to watch their favourite shows might be difficult. The OTT provides an escape to this by allowing the user to access content from an extremely diverse range as and when is convenient for the user.

Interestingly, 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.

The Types of Media Consumers In India

The people consuming the media in India has been categorized in the report to be roughly of three types. They are:- Traditionalists, OTT Experimenter and Early Adopter.

Types of Media Consumers

The traditionalists are used to refer to the people who consume media other than that of the OTT platform. The OTT Experimenter is similar to the traditionalists in the sense that it does have media consumption from the other platforms. However, in addition to that, it also has media consumption from the OTT platform as well. The Early Adopter refers to those people who are primarily dependent on OTT platforms for content consumption. Now, the early adopters are the ones which will drive the OTT platform forward. Still much of an urban phenomenon, it is expected to be more distributed in the years to come.

Surprisingly, a majority of consumers (81%) do not have more than 3 video or OTT apps on their phones. Probably that’s the reason every OTT player is trying too hard to be among the top 3 of the consumers’ attention.

Advertisements

The Untapped Rural Market

According to BCG, nearly 50% of total Internet users in India by 2020 (650+ million) will come from rural India. Interestingly, the OTT players are now beginning to target this market with the production of regional shows. This added with the boom in data consumption in the rural areas provides a great opportunity for the OTT players to profit from.

In A Nutshell

In a nutshell, the above report by Boston Consultancy Group throws light on the types of media consumers in our country, as well as the total amount of content consumed in terms of money. It identifies the potential of having such a huge consumer base and it being able to drive a $5 billion dollar Indian OTT industry in the future. In all fairness, none of the analysis seems to be out of place. People are taking to the OTT platforms in a much better manner than what they used to. Will it grow at the rate predicted in the report? With life getting busier and busier, it is very possible to imagine people preferring an OTT subscription over a normal TV subscription. Hence, the possibilities are, indeed, endless.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

After Facebook, Now Twitter is Caught Abusing Phone Number For Ads

Thanatophobia, or fear of death, is a relatively complicated phobia. Similarly, fear of losing your digital accounts to...

Warren Buffett’s Stake In Apple Is Worth More Than Combined Valuation of All Startup Unicorns in India

The Oracle of Omaha has got an eye for a good bet and it's proven time and again. Once a popular critic...

Microsoft Aims Global Acquisition Of TikTok, Including India!

It seems like TikTok can finally shed its Chinese origin from all over the world. It has recently...

Will Google’s Move To Delete 2,500 YouTube Channels Add Fuel To The Fire With China?

The US-China trade war has started rearing its ugly head. Both sides are now turning to extreme measures on the digital front...

Will You Buy iPhone 12 Pro At US$20,500?

if you are suspecting any typo error here, you are highly mistaken! The price of iPhone 12 Pro is US$ 20,500 now...

Google Is Shutting Down Google Play Music

Google Play Music will soon be buried in Google's graveyard. The company has announced that by December the service will be completely...

In-Depth: Dprime

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

Fantastic 4: Four Day Work Week A Flashpoint Of Innovation?

It has been an idea that has been mooted by many, perhaps also somewhat sceptically. From being a dark horse to becoming...

More Articles Like This