Improving connectivity coupled with affordable data prices, rising smartphone penetration, favourable shift in demographics, leading to the rise of ‘affluent and elite’.
Improving connectivity coupled with affordable data prices, rising smartphone penetration, favourable shift in demographics, leading to the rise of ‘affluent and elite’, and building up of supply content is expected to boost the size of the country’s over-the-top market to $5 billion by 2023, according to a latest report by the Boston Consulting Group.
“Overall, it is estimated that 16% of media consumption in India is already on digital media. Relative to developed countries, India is lagging. However, for the Indian youth, already 25% of media consumption is digital. This indicates that the growth in India is likely to catch up,” the report states. The year 2017 saw the first burst of ‘big money’ being deployed behind Indian content on OTT. The number of players in the Indian OTT market saw a 3.5-time jump in the last six years, growing from just 9 players in 2012 to 32 in 2018.
The report states that both ad supported and consumer pay model will continue to co-exist in the OTT market. “As content evolves and becomes differentiated, we believe that consumer pay models will evolve further in India — with SVOD (subscription based platforms) becoming a substantial part of the market.”
Although international players like Amazon Prime Video and Netlix command considerable popularity in the domestic OTT market, indicating consumers’ readiness to pay for ‘compelling content’, over 40% of customers prefer regional content, the report said.
However, the key to realising the $5 billion opportunity of the Indian OTT market hinges on overcoming the barriers to awareness of OTT apps and content offering, the report adds.