India’s video landscape is experiencing a significant shift, with OTT (Over-the-Top) platforms emerging as a key driver of revenue growth. A recent report by Media Partners Asia (MPA) predicts that premium OTT video-on-demand (VOD) will generate an impressive 50% of the new revenue in the country’s video market. This exceptional growth is transforming the entertainment industry, creating new opportunities for content creators, consumers, and businesses.
Overview of the Indian OTT Market
In 2022, the India OTT (Over-the-Top) market was valued at $200.5 billion. It is expected to grow from $234.9 billion in 2023 to $836.5 billion by 2032, with a compound annual growth rate (CAGR) of 17.20% during this period. Key drivers of this growth include the increasing commoditization of sports and entertainment services and rising competition among OTT providers.
Historically, television has been the cornerstone of India’s video consumption. However, the advent of affordable smartphones, high-speed internet, and a growing digital-savvy population has accelerated the shift towards OTT platforms. These platforms have many advantages over traditional television, including on-demand content, personalized recommendations, and a wider range of genres and languages.
Content investments are now increasingly moving towards online video. By 2024, online video, excluding sports, is expected to capture a 24% market share, up from 8% in 2017. This share is anticipated to grow further to 30% by 2028.
In 2023, the premium online video sector, which includes providers of long-form entertainment, sports, and news, generated about $1.7 billion in revenue. This figure is expected to rise to $3.7 billion by 2028. To cater to the growing demand for high-quality, original content, the sector has invested $2.2 billion in local content across entertainment and sports.
Factors Driving OTT Market Trends
- The easy availability of a wide variety of content is driving the growth of the OTT market. There is a surge in demand for new content, with platforms offering free content to attract viewers.
- The increasing use of smartphones, tablets, and smart TVs with high-speed internet connections is making it easier for people to access OTT content.
- The growth in the number of internet users and the rollout of faster internet technologies like 4G and 5G are further propelling the OTT market.
- More and more people are choosing OTT platforms over traditional TV for their entertainment needs. This trend is expected to continue in the future.
The OTT Boom
The OTT boom has led to a surge in content creation. To cater to the diverse preferences of the Indian audience, platforms are investing heavily in producing original content that resonates with viewers across different regions and demographics. This has given rise to a new breed of storytellers and actors, who are gaining widespread recognition and popularity through their OTT ventures.
Moreover, OTT platforms have democratized content consumption. With subscription models that offer affordable access to a vast library of content, these platforms have made entertainment accessible to a wider audience. This has led to an increase in advertising revenues, as brands recognize the potential of reaching a targeted audience through OTT platforms. Local telecom providers are bundling OTT services with data plans to enhance their value, boosting market growth.
OTT Key Market Players & Competitive Insights
| Key Companies in the OTT market | OTT Market Segmentation | OTT Streaming Devices Outlook | OTT Service Verticals Outlook | OTT Monetization Model Outlook |
| Meta | Game Streaming | Smartphones &Tablets | Media & Entertainment | Subscription-Based |
| Netflix | Audio Streaming | Desktops & Laptops | Education & Learning | Advertising Based |
| Amazon | Video Streaming | IPTV & Consoles | Gaming & Service Utilities | Transaction-Based |
| communication | ||||
| Apple |
Impact of OTT
The influence of OTT goes beyond just the entertainment industry. It has driven growth in related sectors, such as telecom, which has seen increased data consumption due to video streaming. Moreover, the OTT ecosystem has generated job opportunities in fields like content creation, production, technology, and marketing.
The Challenges
While the OTT industry is experiencing unprecedented growth, it also faces challenges. Piracy remains a significant issue, impacting revenue generation for content creators and platforms. Ensuring content quality and maintaining consumer trust are also crucial for sustaining long-term growth.
The Future Ahead
Looking ahead, the future of OTT in India appears promising. As technology continues to evolve, we can expect to see innovations such as augmented reality, virtual reality, and interactive content enhancing the viewing experience. Furthermore, the integration of OTT with other platforms and devices will create new opportunities for content distribution and monetization.
In conclusion, OTT video content is undeniably the driving force behind the growth of India’s video market. Its ability to offer personalized, on-demand content has captured the imagination of the Indian audience. As the industry continues to mature, it is poised to create a significant economic impact and redefine the way we consume entertainment.
FAQ
What is driving the rapid growth of India’s OTT market?
The Indian OTT market is experiencing explosive growth driven by several key factors. Increasing internet penetration, particularly in rural areas, is expanding the potential customer base. The availability of affordable smartphones has made OTT content accessible to a broader audience. Additionally, OTT platforms are providing a diverse range of content in multiple languages, catering to the varied preferences of Indian viewers. This shift from traditional television to on-demand content consumption has significantly fueled the OTT boom, reflecting changing consumer behavior.
How is OTT impacting the traditional television industry in India?
The OTT market is significantly disrupting the traditional television industry. Viewers are increasingly cutting the cord and opting for OTT platforms due to their flexibility, affordability, and variety of content. As a result, traditional broadcasters are facing challenges in retaining audiences and advertising revenue. To compete, many broadcasters are launching their own OTT platforms or partnering with existing ones.
What are the major players in India’s OTT market?
India’s OTT market is highly competitive, with both domestic and international giants vying for market share. Some of the major players include domestic players such as Disney+ Hotstar, Zee5, JioCinema, SonyLIV and global players like Netflix, Amazon Prime Video and YouTube.
What is the future outlook for India’s OTT market?
The future of India’s OTT market looks promising. With increasing internet penetration, rising disposable incomes, and advancements in technology, the market is expected to continue growing at a rapid pace. We can anticipate the emergence of new players, innovative content formats, and increased competition. Additionally, the integration of OTT with other technologies like virtual reality and augmented reality could open up new opportunities for the industry.
I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.
