Over-the-top (OTT) content players such as Netfllix, AltBalaji, and Amazon Prime have gained huge popularity in India recently. With more original content and growing regional focus, these players are trying to tap on as many users as possible in the country.
A recent report by global management consulting firm Boston Consulting Group reveals that they have made inroads into the country and will get even more popular going forward. The report pegs that the OTT market, which now stands at $0.5 billion, will grow to be $5 billion by 2023. According to the report, this growth is being driven by rising affluence, increase in penetration of data into rural markets and adoption across demographic segments including women and older generations.
The report 'Entertainment Goes Online' divides the segment into three types -- SVOD (subscription-based platforms), AVOD (advertising-based platforms) and TVOD (transaction-based platforms) -- and says that today 82 per cent of the market is captured by AVOD and 18 per cent by SVOD and TVOD. However, by 2023, it says, share of AVOD would come down to 43 per cent, while share of TVOD and SVOD would increase to 32 per cent and the rest 25 per cent would go to international market.
The report also highlights another interesting trend and says that while traditional media continues to be the media of choice for consumers with an overall share of 84 per cent, India is seeing an increase in the share of digital in media consumption.
"Overall, it is estimated that 16 per cent of media consumption in India is already on digital media. Relative to developed countries, India is lagging. However, for the Indian youth, already 25 per cent of media consumption is digital. This indicates that the growth in India is likely to catch up," it adds.
The report also says that there is a distinct difference in the shape of digital consumption in India. The digital consumption (relative to traditional TV and print) in India has been additive and not cannabilising traditional media consumption. For eample, in the past one year between 2016 and 2017, overall media consumption grew for all segments of consumers.
Here are other interesting findings of the report:
- 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.
- Most consumers (81 percent) have up to 3 video/ OTT apps on their smartphone.
- Further, all platforms struggle with retention of consumers- on an average 50 percent of OTT apps installed are uninstalled in the first 7 days of installation.
- The competition for user share is intense-every OTT platform is vying to be among the top 3 of the consumer's attention.