How OTT platforms has gained so much Popularity in recent times?

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In India, OTT platforms have seen remarkable growth in recent years. The term OTT stands for "Over the Top.". It is used to deliver audio, video, and other media content directly to users through the medium of the internet. In India, there are various OTT platforms available. Netflix, Amazon Prime, Disney Hotstar, Alt Balaji, Zee5, Sony Liv, etc. are prominent OTT platforms in India. The OTT gained popularity during the COVID-19 pandemic. During the pandemic, restrictions were made on theaters, which accelerated the growth of OTT platforms, and people started adopting the online culture of entertainment. According to a report published by Eros Now-KPMG on OTT viewers, every Indian spends approximately 70 minutes per day on video streaming platforms, with a consumption frequency of 12.5 times a week. The evolution of the sources of content consumption in India can be traced from Doordarshan to D2H to OTT platforms.

In this blog, we will cover the features of OTT that have led to its growth in India, the revenue generated by the OTT market in India, and its future scope.

 

Factors that have led to the growth and popularity of OTT platforms:

 

•  User-Friendly:

OTT platforms are easily accessible to everyone who has an internet connection, and the interface of these platforms is very user-friendly. These platforms monitor user consumption habits and suggest content based on the user's preferences. You just need an email ID or phone number to register on any OTT platform.

•  Cost-Efficient:

As compared to the cost of traditional TV cables and movie theaters, the OTT platforms seem to be much more compatible for users and budget-friendly. The yearly subscription costs of these platforms are affordable, and they also provide a wide range of content as compared to the limited resources of TV cable.

 

• Wide Range of Content:

OTT platforms provide a wide range of content, such as Bollywood, Hollywood, and even Korean dramas. OTT platforms such as Disney Hotstar and Sony Liv also provide old, evergreen movies. feature, OTT has also gained popularity among older people.

 

• Easy access to an internet connection:

According to Statista," the internet penetration rate in India went up to nearly 47.8 percent in 2022, from just 4 percent in 2007. By 2021, the number of internet connections across the country will have tripled, with urban areas accounting for the highest density as compared to rural areas.". The above data is taken from Statista. Easy access to the internet at affordable prices has led to the growth of OTT platforms.

•  Change in tradition:

a.k.a. The changing consumer preferences, especially in the new generation of youth, a.k.a. "Genz," have contributed to the popularity of OTT platforms. Also, the change in lifestyles of different generations has led to the decline of traditional TV cables. On the OTT platforms, one can watch the content according to their preference at any time. The craze for OTT platforms among youth is because of the on-demand availability of content such as movies and web series.

•  Easy access to smart devices and technology:

Earlier, people were not as aware of technology as they are now; the only means of entertainment for them was the radio and television. However, easy access to smart devices at affordable prices has contributed to the growth of digital content consumption.

 

 How do OTT platforms make money?

 The OTT platforms mainly monetize themselves in two ways: one is subscription-based, where people purchase monthly or yearly subscriptions to OTT platforms; the other is through advertisement-based revenue. So how big and profitable is the OTT market?

 According to a report published by Media Partners Asia, the Indian OTT platform market generated a revenue of $3 billion in 2022 and is estimated to reach $7 billion by 2027. According to the Ormax OTT Audience Sizing Report of 2022, India currently has 424 million subscribers to OTT platforms.

 

The Future of the OTT Platforms in India:

 As we can see, the growth rate and revenue generated by the OTT market in India are huge. It has a share of 7-9% in India's $27 billion media and entertainment industry(source: Business Standard). India is a diverse country; it has a variety of cultures and traditions, and this provides enough space for the OTT platforms to grow. 

The emergence of OTT platforms has also given the new struggling actors the chance to show their talent on the platforms, which has led to the emergence of new local OTT platforms.
The changing consumption culture of Indians has also given space for the growth of OTT in India.

Consumers now watch a variety of online content whenever and wherever they want. So it would be interesting to see the growth of the OTT platforms in India and whether they would be able to manage the diverse tastes of diverse India or whether they would face a decline as well. Let's see what happens in the future.

 

Disclaimer: The above-mentioned data is taken from the survey reports from different websites.