OTT IS THE WAY AHEAD!
The Boston Consulting Group’s report titled ‘Entertainment Goes Online’ which recently came out stated that Indian OTT market has a potential to reach $5bn by 2023. Access to affordable data, mobile penetration into rural markets, rising affluence and adoption across demographic segments including women and older generations are some of the key drivers that will help the Indian over-the-top (OTT) industry to unlock its potential and reach a size of $5 billion by 2023.
As per the report, OTT content market in India is at an inflection point in India. And while there are various business models, including SVOD (subscription-based platforms), AVOD (advertising-based platforms) and TVOD (transaction-based platforms), the market is still at a nascent stage with lots of promise. There are over 30 OTT apps currently and about 80% of the Indians do not have more than 3 apps on their phones.
The upside here is that, the consumers are lapping up to the medium and are also willing to pay for the services. It is also estimated that India will see anywhere between 40-60 million paying subscribers by 2023. The report said that 48% of India’s internet users (~650 million by 2023) are expected to be from rural areas. This medium is far reaching and touching Indians in every corner of the country, due to increasing mobile penetration in tier 3, tier 4 and rural areas.
The rural market will also be poised to become a key market for all the players. Not only India, but the Indian OTT apps also have the potential to reach the international markets, where the consumers are paying higher for consuming the content.
To reach the goal, is not going to be a cakewalk for the OTT players. They will have to constantly invest in making new and good content, market the content and also focus on making sure the consumer is retained and new consumers are joining the platform.
Last week in this column we discussed how there were rumours floating around of content on such platforms being censored. But if it does happen in the near future, it is bound to affect and hamper the good growth that we have seen and the growth that we will see. For the OTT platform to reach its $5bn potential by 2023, it needs to grow at its own pace and without any interference or hindrance. This is surely going to be a big game changer in the time to come, especially if it fulfils its potential.
By – Amul Vikas Mohan