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Over the Top (OTT) Video Market, India- Competition Set to Intensify with Broadcasters, Studios and Telcos Expanding their Services- Notes Frost & Sullivan

247 Days ago

Business Wire India
India is considered an attractive market for multiscreen video consumption, which has led to the emergence of numerous Over-the-Top (OTT) service providers in the past two years, including the recent entry of Netflix. Growth of smartphones penetration and improvement in Internet speed in India has provided ample opportunities for OTT providers but the market is still in an emerging state.

Frost & Sullivan’s market insight on the OTT video market in India finds that there are about 66 million unique connected video viewers in India every month, and about 1.3 million OTT paid video subscribers. Various disruptive innovations in technology, as well as business models, will drive the growth of the market over the next five years, despite the market facing several challenges today.

The market insight includes an overview of the market landscape and ecosystem, trends in Internet video consumption, forecasts for video viewers and paid subscribers from 2015 to 2020.

According to Research Director, Vidya S Nath, “With an increase in the use of smart devices in India, content owners and aggregators are using non-TV platforms to improve reach and generate revenues through subscription and advertisement. However, it’s hard to woo the Indian consumer. Success in OTT video distribution will depend on the ability to offer variety of content, new content, at a reasonable price and impeccable user experience.”
While today a few broadcasters such as the Star TV Network and Zee Entertainment are driving services as well as viewership for OTT video, over the next five years, there will be more broadcasters as well as cable and DTH operators expanding their OTT services. However inadequate bandwidth speeds and the incumbency of YouTube in the market have challenged market participants.

“India may have over 225 million Internet users, but for consuming video, one needs high-speed broadband access and only about 35% of these users have access to it, says Nath. “OTT video subscription numbers fluctuate dramatically every month. We find that advertising video on demand (AVOD) is the most preferred mode of OTT video delivery in India currently.” 
Among content types, there is an increasing demand for short duration video content. This is primarily attributable to the average low Internet speeds and changing preferences of many Indian viewers. It is common to find online viewership peak during major sports events like the IPL, elections, or breaking news.

Platforms such as YouTube offer opportunities for independent content creators who can publish their videos online without the hassles of negotiation with large networks. Now, with the entry of Netflix in India, independent professional content production will continue to grow. Broadcasters who have their own content or video platforms with a variety of publishers are driving the market (such as YouTube and Hotstar, BoxTV, Eros Now, and Ditto TV). Apart from these, there are but a few small aggregator companies such as YuppTV, Spuul, among others.

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