According to a report by SBI Research, the over-the-top (OTT) market is set to become a Rs 120 billion industry by 2023, up from Rs 25.9 billion in 2018, registering a compound annual growth rate (CAGR) of 36 per cent. The strong growth is driven by affordable high-speed mobile internet, doubling of internet users, increased adoption of digital payments and discounted prices offered by global players that offer plans at 70-90 per cent cheaper than the US.
As per the report, the rise of OTT is expected to lead to a reduction in multiplexes’ profits as over 50 per cent of the people use OTTs for over 5 hours a month. It is also seeing various local and regional players catering to regional demand. OTT has already chipped away 7-9 per cent of the entertainment industry share and revenue, and is consistently growing with over 40 players offering original media content in all languages.
Further, the report forecasts that OTT platforms’ expansion into education, health and fitness will additionally cement its future.