Context
∙ India’s OTT market, sized at $2.5 billion, went through a major disruption in 2023.
About
∙ This disruption was due to Jio Cinema offering the most premium content-IPL, free to users.
∙ This negatively impacted subscription revenue growth for peers and the industry at large and led to Disney Plus offering cricket World Cup free for mobile customers.
What are OTT Services?
∙ OTT (Over-the-Top) refers to content providers that deliver media directly over the internet to users without the need for traditional cable or satellite TV services.
∙ Essentially, OTT platforms utilize streaming technology (transmit data [audio, video, etc.] in real time over the internet) to deliver their content to users.
Indian OTT Sector
∙ Market Size and Growth: The OTT market in India is currently at 10,500 crore, including subscription revenues. This is expected to touch 12,000 crore by FY 2024 and 30,000 crore in FY 2030 with a 20 per cent growth on year-on-year basis, according to CII.
∙ There are currently over 45 million OTT subscribers in India.
Key Players:
∙ Global giants: Netflix, Amazon Prime Video, Disney+ Hotstar.
Benefits
∙ Domestic players: ZEE5, SonyLIV, Voot, MX Player, ALTBalaji.
∙ Regional players: Aha (Telugu), Hoichoi (Bengali), Voot Select (Tamil).
ο Media Ethics Code) Rules 2021 to establish regulations for Over-the-Top (OTT) platforms.
∙ Recently, the Union government has introduced a new bill that will consolidate the regulatory framework for various broadcasting
∙ Original content: Rising focus on creating original Indian shows and movies, catering to diverse regional and linguistic preferences.
∙ Genre diversification: Expansion beyond traditional genres like drama and comedy, with thrillers, documentaries, and reality shows gaining popularity.
∙ Language focus: Increased focus on regional languages, with platforms launching original content in Tamil, Telugu, Malayalam, and other regional languages.
∙ Short-form content: Growing popularity of bite-sized content like web series and short videos.
Challenges
∙ Competition: Intense competition among both global and domestic players requires robust content strategies and competitive pricing.
∙ Data costs and affordability: High data costs remain a barrier for some users, particularly in rural areas.
∙ Piracy and copyright infringement: Protecting content from piracy remains a challenge.
∙ Regulation and censorship: Balancing creative freedom with government regulations and cultural sensitivities requires careful navigation.
Laws Regulating OTT Platforms
∙ In 2022, the Central Government issued the Information Technology (Intermediary Guidelines and Digital services, including over-the-top (OTT) content.
∙ The bill, once passed, will set up content evaluation committees for regulation and watchdog.
Opportunities
∙ Rural market expansion: Strategies to address data affordability and cater to regional content preferences can unlock rural market potential.
∙ Technological advancements: Integration of Augmented/Virtual Reality and personalized recommendations can enhance viewer experience.
∙ Consolidation and partnerships: Potential for mergers and acquisitions or strategic partnerships to optimize resources and compete effectively.
∙ Global content export: Indian OTT platforms have the potential to export original content to international markets.
Way Ahead
∙ The Indian OTT sector is poised for continued growth, driven by rising disposable incomes, increasing internet penetration, and a growing appetite for diverse and engaging content.
∙ Overcoming challenges like affordability and piracy while capitalizing on opportunities in rural markets and technological advancements will be crucial for sustained success.
