Access to affordable data, rural mobile phone penetration, rising affluence and service adoption across demographic segments — including women and the older generations — are some key drivers for the Indian over-the-top (OTT) industry to unlock its potential and reach a market size of USD 5 billion (Rs 35,730 crore) by 2023, says Boston Consulting Group.
The OTT content market in India is at an inflection point, BCG said in a recent report, Entertainment Goes Online. While there are various business models — SVOD (subscription-based platforms), AVOD (advertising-based platforms) and TVOD (transaction-based platforms) — the market is still at a nascent stage with lots of promise.
“There are over 30 OTT apps and the study shows over 80% don’t use more than three apps, so breaking from the clutter becomes the biggest challenge. But what we are seeing is that consumers are lapping up the medium and, while India is a price-sensitive market, many consumers are willing to pay for value,” said Kanchan Samtani, partner & director at BCG. Even as the market is largely advertising-led, “we see 40-50 million paying subscribers by 2023,” Samtani said.
Source: The Economic Times