India’s over the top (OTT) video sector will mature in the coming five years, with competition intensifying, and new partnerships and business models emerging, according to Frost & Sullivan.
With the rapid increase in smartphone penetration and 3G and 4G subscribers, OTT is taking a greater hold. In particular, the September launch of Reliance Jio’s more affordable mobile data services and initiatives such as Bharat Net, are helping drive down the price of data service, boosting video consumption over fixed and mobile broadband, says Frost & Sullivan.“It will be critical for market participants to gauge viewership trends, price sensitivity and technical requirements while offering their video services,” said Vidya S Nath, digital media director, Frost & Sullivan. “Pricing, data analytics, personalisation and video quality will be crucial in defining the market leader in the next five years.”
YouTube and TV is dominant in subscription-based models, making digital advertising the most used business model for now, says the updated Over the Top (OTT) Video Market Update, India, 2106 report.
However, with a market of 300 million Internet users and about a billion smartphone users, along with a third of the population being millennials and Gen Y, viewership trends are being driven toward personalised content, says the analyst.
Frost & Sullivan also points to the opportunity for OTT providers to target Indian immigrants internationally.
Currently there are about 25 providers in India’s OTT space, including telcos, direct-to-home (DTH) TV providers, broadcasters and individual OTT providers, however this number looks set to rise over the coming two years.
“Even though the return on investment for OTT services providers is slow and does not justify the business proposition in the short run, competition will spur all broadcasters to consider the OTT business,” said Aafia Bathool, research analyst, Frost & Sullivan.
“Exclusive content at a competitive price with a sophisticated, user-friendly interface is the way forward. To achieve this, the market will see increasing strategic alliances among ecosystem players.”
Market leaders currently comprise Hotstar, Eros Now, Zee Networks’ Ditto TV, Asianet Mobile, YouTube, and Netflix, with coming offers from Amazon Prime Video and Balaji ALT also expected to intensify competition, says Frost & Sullivan. Other market participants include Reliance Jio, Airtel, Vodafone, Zee Network, Voot, Viacom, Spuul, Veqta, Yupp TV, Dish TV, HOOQ, Hungama, Shemaroo, SonyLIV, and Tata Sky.
