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OTT platforms are gaining popularity but not at the expense of television

India will also be among the world's top TV advertising markets overtaking the UK, Germany, France and Brazil during this period which further makes a case for TV advertisers in today's times

Avirat Parekh        Last Updated: June 7, 2019  | 19:05 IST
OTT platforms are gaining popularity but not at the expense of television

Out of the 16 originals that Amazon Prime Video plans to launch this year, seven would be from the Indian market. Similarly, Netflix would be releasing nine original series in India and another eight original movies in 2019. First mover, Hotstar, is also pulling up its socks in terms of original content. No wonder, India's OTT video market, as per PwC's Global Entertainment and Media Outlook report, is all set to triple to Rs 11,976 crore by 2023. "Improving data affordability and accessibility has made India an attractive destination for international players. These platforms are also backed by attractive subscription rates, localised content and bundled packages, subscription video on demand (SVOD) witnessed a 64 per cent YoY growth in 2018," says Rajib Basu, Partner and Leader, Entertainment and Media, PwC India.

While there is no doubt that Indians increasingly are opting to consume the latest season of Game Of Thrones or Sacred Games on their personal devices, the PwC report says that unlike the developed markets such as the US where OTT platforms are actually growing at the expense of television, TV continues to rule the roost in India. OTT in India last year was 5 per cent of the overall subscription pie, while constituted a healthy 81 per cent. In contrast, OTT subscription revenue in the US was 11 per cent, while TV experienced a de-growth from 87 per cent in 2014 to 79 per cent in 2018. TV subscription revenue in the US is expected to further de-grow to 70 per cent by 2023. In India, however, TV subscription revenue, as per the PwC report, is expected to continue its dominance at 81 per cent in 2023, while OTT subscription will be around 8 per cent. The reason for this is the fact that a considerable portion of India continues to be media dark and TV channels still have ample scope to penetrate, while the TV market in the US is saturated and chord over there is rampant.     

India will also be among the world's top TV advertising markets overtaking the UK, Germany, France and Brazil during this period which further makes a case for TV advertisers in today's times. Overall, India's entertainment and media industry is set to clock over Rs 451,373 crore by 2023 growing at a CAGR of 11.28 per cent, on the back of demand for OTT, internet advertising, E-sports and music.  The total Internet advertising revenue for India saw a 40.2 per cent year-on-year increase from 2017. The total internet advertising revenue for India in 2018 was $1.2 billion and is expected to reach $2.6 billion dollars by 2023.

The report also states that music, radio and podcasts are an "emerging" segment in India and the revenues would surpass $1.5 billion by 2023. The report quotes the International Federation of the Phonographic Industry (IFPI) that 96 per cent of smartphone users in India are using their devices to listen to music. This figure would climb to 99 per cent for 16-24-year-olds by 2023. The report also states that India's E-sports revenue is small at present but has a strong potential with a calendar of well-supported events and leagues emerging.

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