The new buzz in India’s entertainment industry, Over-The-Top digital platforms, or OTT is living up to its name. The lead players Netflix, Amazon Prime Video, Hotstar, Spuul, Hooq, Eros Now, Sony LIV, Hungama Play, VOOT, ALT and YouTube is gearing the space for online video viewership and advertising revenues. Amongst that, at least half-a-dozen more digital platforms are en route.
Once dragged by poor internet infrastructure and low household income, the world’s second-largest internet market has exhibited tremendous potential in the recent years which emerges Netflix and Amazon Prime as market leaders. According to research firm Media Partners Asia, India’s online video market, valued at over $700 million, is expected to grow to $2.4 billion in value by 2023.
Indian viewers becomes mature with the revolution of Digital Media. Earlier, online streaming was considered a luxury, an increasingly growing number of Indians are giving online streaming services a try. More than 35 streaming services have launched or expanded their businesses in India since the launch of digital revolution, with many more planning to enter Bollywood soon.
Many of these services are owned by local television networks and production homes. Balaji Telefilms, known for producing some of the most watched family TV shows in India, has amassed over 2.5 million paying customers on ALTBalaji.
India’s improving internet infrastructure
Much of the credit for the boom in streaming goes to the stark drop in India’s mobile data prices. Reliance Jio, a telecom operator owned by India’s richest man, Mukesh Ambani, kickstarter a telecommunications price war in the nation in the second half of 2016, when it began offering a bulk of data at no charge to customers for an extended period of time.
The months that followed its launch brought tens of millions of new users to the web, and changed the way many consumed data. Thrifty Indians, once extremely conscious about each megabyte they burned on the web, are now reportedly clocking 1.5 million terabytes of data each month.
Another barrier that has hindered the adoption of internet video services is Valuation. Price of Subscription Plan for Amazon and Netflix is almost same from last 3-4 years, which makes people to buy the pack easily.