Over-the-top platforms have transformed the worldwide entertainment scene. In India, the internet entertainment market is gaining traction. In 2020, India had more than 749 million internet users; this number is expected to rise to nearly 1.5 billion by 2040, indicating enormous market potential in internet services.
OTT platforms have grown in popularity among Millennials, and Generation Z as their use of the internet and smart devices has increased. The digital age prefers to spend their time on computers, social media, and mobile devices, which has resulted in a significant shift in customer behavior.
Modern generations’ entertainment has evolved due to the mobile revolution and reduced data pricing. Do you want to discover how OTT platforms transform India’s entertainment sector? You can get the solution straight away by reading the article.
The Rise and Evolution of OTT Platforms have Made Quality Content More Accessible.
The television industry used a dull tone, while the Western world focused on “what to watch on Netflix.” When Netflix like app emerged in India, the urban generation, which grew up with western media on the internet, began making preparations to purchase subscription plans. After the COVID-19 epidemic and global lockdowns, India embraced the new concept.
In 2020, the over-the-top business was valued at 101.42 billion dollars; however, revenue is expected to reach over $205,565 million in 2022, with India accounting for $2,673 million. By 2026, the OTT market is expected to reach around 223.07 billion dollars, representing a 13.87 percent increase over the previous year. The advent of a pandemic has had a beneficial influence on the OTT ecosystem, as more viewers use OTT platforms to consume content at home.
The market will reach $3,928 million by 2026, with a CAGR of 10.10 percent. After China, India is the second most important market. By 2026, the market is estimated to generate $63,106 million in sales. The success of OTT in India is due to the growing use and expansion of internet infrastructure, which allows streaming platforms to distribute content directly to consumers without the use of media networks or traditional distribution.
A wide range of options gives viewers the freedom to consume content in the way they want and at the time they want. Let’s look at how OTT affects the entertainment and media industries.
Make a Direct Connection with your Audience.
Broadcasters heavily use traditional distribution options such as DTH platforms and cable. Over-the-top (OTT) media streaming has made it easier for broadcasters to promote their material to users. This aids in developing strong ties with the audience and brand recall and image development.
Broadcasters may gain a deep understanding of big data and analytics, which can help them understand how viewers interact with streaming programming. The data-driven strategy aids in the chunking out of better information personalized to clients’ preferences.
Pushing the Limits
In India, the most popular streaming device is the smartphone. For established entities, India is a battleground. Netflix, for example, offers a 149-per-month mobile-only option. India’s dynamic market makes it the world’s largest playground for enterprises.
Better Content Viewing Experience on a Wide Range of Devices
The most compelling reason for the OTT industry’s growth is how it provides services and improves the consumer experience. Providing a seamless content viewing experience across several devices is one efficient method. As a result, OTT platforms must provide a consistent viewing experience across platforms and devices. This could help them expand their customer base.
For Marketers and Advertisers, OTT is the Best Option.
OTT has become a primary objective for advertisers to transfer funds to streaming content and the entertainment industry, with OTT ad spending reaching over $1.3 billion. Advertisers want to investigate various ad revenue avenues to gain quality traffic, display their products, and maintain audience growth as the popularity of the OTT platform grows. As a result, their marketing ROIs increase, resulting in higher conversion rates based on user preferences and behaviors.
More Cutting Cords
The competitive dynamics of Pay TV vs. OTT have changed considerably as OTT video streaming has grown in popularity. Cable TV operators and traditional broadcasters are the biggest losers due to the tectonic upheavals in content consumption. Cord-cutting and other types of viewer untethering have a discernible impact on the TV media landscape, with the United States having the biggest number of pay-TV customers.
Since 2010, the pay-TV penetration rate in the United States has dropped from 74 to 88 percent; by 2024, more than 46 million US households will have cut the cord. By 2022, the number of pay-TV homes in the United States will reach around 68.5 million. Due to a lack of comparable choices and exorbitant rates, cable TV operators are losing subscribers, resulting in “cord-cutting,” which has transformed the broadcasting business.
As of September 2021, India had over 69 million active DTH (direct-to-home) television subscribers. In comparison to 2020, the number has reduced. Dish TV, Airtel, and Tata Sky are among the country’s major DTH providers (Play Now). India has a 100 percent digital cable television network due to obligatory legislation.
The proliferation of OTT platforms appears to be having an impact on the country’s cable television monopoly. The rising expense of cable subscriptions exacerbates this drop compared to streaming services.
Opportunities for Creators Have Been Expanded
There are plenty of creative creators throughout the world. Broadcasters and production firms that believe in generating and promoting exclusive content have demonstrated that OTT platforms are the way to go. Creators and artists who had previously fallen out of favor have reclaimed their place in the spotlight. There are plethora of famous series such as “Friends”, “Money Heist” and more, and others have just debuted.
Visual content assists creators in launching their content globally via OTT, particularly when the material of the East finds a taker and does business in the West without the barriers of language and other barriers. All of this gave the industry a much-needed boost. OTT accomplished this with a change in audio that enabled closed captioning for immediate consumption in non-local areas.
It increased revenue for production companies and independent producers by allowing them to use licensed content through partnerships with social media networks. Big studios like Eros Entertainment, are licensing music to social media platforms like YouTube and Instagram for use in shorts and reels.
DTH TV Providers are Collaborating with OTT Providers.
The growing number of cord-cutters has reduced revenue for DTH TV operators, looking for innovative ways to re-engage their subscribers. Film studios and traditional television are looking to cooperate with Amazon, Netflix, and Disney+ Hotstar as video streaming becomes more popular among Gen Z and millennials.
The majority of companies, such as Airtel and Reliance Jio, are attempting to entice viewers by bundling OTT platforms with STB devices. Tata Sky, for example, has teamed with Amazon Firestick to develop streaming devices that allow viewers to access content from many OTT platforms within a single subscription plan.
Strategic alliances of DTH operators with OTT will promote the expansion of the Indian entertainment industry with such combo models as OTT platforms shift users’ viewing patterns.
The Influence of Modern Technology
To improve the consumer experience, emerging OTT video platforms are employing cutting-edge technology such as artificial intelligence (AI). Artificial intelligence helps OTT service providers earn cash and create a tailored experience by determining what the audience likes to watch. Netflix, for example, has saved $1 billion each year by implementing artificial intelligence.
However, the introduction of 5G technology will ensure that customers’ experiences will be better than ever before. Thanks to high speed and ubiquitous connectivity, buffering, undesirable pixelation, and lag are eliminated. VOD and live streaming will benefit greatly from 5G technology and the OTT Platform.
Parting Thoughts
India’s diversity allows established OTT providers and those considering new ventures in areas other than entertainment to thrive. For OTT platforms, it’s the beginning of the end for traditional distribution channels and content publishers.
There are undoubtedly numerous challenges in paying capacity, market penetration, censorship, platform diversity, and ever-changing consumer behavior. The availability of choice changes how content is delivered and developed for the audience. Change in broadcasting tastes is evident, and the availability of choice continues to change how the material is distributed and created for the public.
Content creators and production houses have recognized the relevance of engaging in a conflict between OTT and Pay TV. Cable companies and broadcasters may both benefit from the OTT video streaming business. With OTT viewership on the rise, broadcasters can’t afford to miss out on the chance to showcase their content directly to the public.
Conclusion:
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