India’s entertainment landscape has witnessed a significant transformation due to the rise of the over-the-top (OTT) industry. OTT players have redefined content consumption in an era of affordable smartphones and fast internet connectivity.

According to the Cellular Operators Association of India (COAI), telecom operators’ infrastructure spending increased from Rs 465.32 billion as of March 2021 to
Rs 739.22 billion as of March 2023. The surge in capital expenditure (capex) over the years was primarily driven by disproportionate data traffic from large traffic generating platforms, including OTT players.

Growth trends

India has the world’s second-largest internet user base of over 750 million, and it is expected to grow to 974 million by 2025. This presents a significant opportunity for the OTT industry. The top three OTT players in India are Netflix, Amazon Prime Video and Disney+ Hotstar, collectively accounting for 60-70 per cent of the market share.

According to the “State of Streaming – OTT Landscape in India” report by Comscore, the number of unique OTT visitors stood at 395 million in January 2020, and rose to 448 million in January 2021, driven by increased adoption of OTT during the Covid-19 pandemic. Between January 2021 and January 2022, the number of unique OTT visitors increased by 4 million over the previous year, reaching 452 million. The momentum persisted in January 2023, with the number of unique OTT visitors peaking at 466 million. However, unique visitors indicated a marginal decline in January 2024 to 460 million, marking the first decrease since 2020.

Driving factors

Some key factors driving the rise of OTT in India are:

Internet penetration: India’s internet user base has grown significantly owing to the availability of affordable smartphones and high speed internet connectivity. This has resulted in a surge in the number of OTT users in India. According to the Internet in India Report 2023 by the Internet and Mobile Association of India and Kantar, India, 707 million users, accounting for 86 per cent of the country’s internet users, utilise internet services for OTT audio and video services, making it the primary use case for internet in India.

Affordable data plans: Affordable data plans have facilitated access to OTT platforms on smartphones, leading to a shift from traditional television (TV) viewing to OTT platforms. For example, Reliance Jio has introduced a monthly subscription plan for JioCinema at Rs 29, which costs just
Rs 0.97 per day, making it the cheapest
plan available.

Cost-effective: The growth of OTT platforms can largely be attributed to their cost-effectiveness, affordable subscription plans and a variety of options for viewers. Compared to traditional cable or satellite TV subscriptions, OTT services offer great value for the same content. The only real expense is the internet data package, which determines usage frequency and membership fees. This makes OTT services a preferred option compared to traditional cable or satellite TV subscriptions.

Convenience: OTT platforms have become increasingly popular in India due to their convenience and accessibility. According to a report by the Federation of Indian Chambers of Commerce and Industry and EY, the Indian OTT market is expected to reach $12.5 billion by 2030, growing at a compound annual growth rate (CAGR) of 28.6 per cent from 2021
to 2030.

Increase in local and original content: The rise of local content production, particularly in regional languages, catering to diverse audiences, has fuelled the growth of OTT platforms in India. According to a report by KPMG, regional language content accounts for 70-75 per cent of total content consumption in India. Meanwhile, the increasing demand for fresh and original content has led to a surge in original content on OTT platforms, increasing their popularity.

OTT players scale up deployment of emerging technologies

Technologies like artificial intelligence (AI) and machine learning (ML) provide advanced content personalisation, recommendation engines and predictive analytics. To leverage these features, OTT players have started implementing technologies to analyse viewer preferences and behaviours. This helps them deliver personalised content recommendations, and improve user engagement and satisfaction. For example, Netflix uses AI to personalise content recommendations based on viewing history, while YouTube uses ML algorithms to optimise video encoding for efficient streaming across different devices and bandwidth conditions.

Further, blockchain enhances transparency, security and rights management. It facilitates secure transactions and contracts between creators, platforms and viewers, and combats piracy through smart contracts and content encryption.

Telcos’ OTT offerings

Reliance Jio, Bharti Airtel and Vodafone Idea (Vi) are offering incentives with their post-paid and prepaid plans such as free subscriptions to Netflix, Amazon Prime, etc. Some of the plans launched by telcos are as follows:

Reliance Jio

Jio offers a prepaid plan priced at
Rs 1,198, which comes with a validity of 84 days, unlimited voice calls, 2 GB data per day and 100 SMSs per day, along with access to 14 OTT platforms including three months of Disney+ Hotstar mobile subscription, 84 days of Amazon Prime Video mobile subscription and Jio Cinema Premium. Other OTT subscriptions include Sony LIV, ZEE5, Lionsgate Play, Discovery+, Sun NXT, Kanchha Lannka, Planet Marathi, Chaupal, Docubay, EPIC ON and Hoichoi.

Another prepaid plan offered by Jio is priced at Rs 148. It comes with a validity of 28 days and 10 GB total data. It offers access to over 12 OTT platforms including JioCinema Premium, Sony LIV, Zee5, Sun NXT and Discovery+.

Moreover, Reliance Industries, Viacom18 Media and Walt Disney Corporation have agreed to form a joint venture to merge Viacom18 and Star India’s television and digital streaming businesses. The venture will create an entertainment giant in India, offering leading TV and digital streaming platforms for entertainment and sports content, including access to JioCinema and Hotstar.

Bharti Airtel

Airtel offers a prepaid plan priced at Rs 359, which comes with a validity of one month, 2.5 GB data per day, unlimited voice calls and 100 SMSs per day. It offers subscription to Airtel Xstream Play including free 15+ OTTs like SonyLIV, Lionsgate Play, Fancode, Eros
Now, hoichoi and ManoramaMAX for all devices.

Another prepaid plan by Airtel is priced at Rs 699 which comes with a validity of 56 days, 3 GB data per day, unlimited voice calls and 100 SMSs per day, along with Amazon Prime membership for 56 days and subscription to other OTT platforms like SonyLIV, Lionsgate Play, Fancode, Eros Now, hoichoi and ManoramaMAX for all devices.

In addition, Bharti Airtel has launched a high decibel 360° campaign for Airtel Xstream Fiber, focusing on home entertainment. The campaign, in collaboration with advertising agency Fundamental, will use multiple platforms including television, outdoor advertising and digital channels. The creatives will be adopted in nine languages, which are Hindi, Tamil, Kannada, Telugu, Marathi, Gujarati, Bengali, Malayalam and Punjabi. The campaign highlights the seamless integration of leading OTT platforms and TV channels accessible through Airtel Xstream Fiber, capturing all touchpoints of entertainment
for users.

Vi

Vi has launched a prepaid plan priced at Rs 169, which comes with a validity of 28 days, free voice calls, 8 GB total data and free SMSs, along with 90 days’ subscription to Disney+ Hotstar.

Another prepaid plan by Vi, priced at Rs 501, comes with a validity of one month, 90 GB total data, unlimited voice calls, 3,000 SMSs and a choice of two subscriptions. These include a six-month trial of Amazon Prime with paid auto yearly renewal, one year of Disney+ Hotstar  mobile-only subscription, one year of SonyLIV mobile-only subscription, or one-year subscription to SunNXT.

Vi has also launched Vi Movies & TV, priced at Rs 199 for post-paid users and Rs 202 for prepaid users. It provides access to 13+ OTT apps, 400+ live TV channels and complimentary access to several content libraries. Vi Movies & TV aims to simplify the viewing experience with only one subscription for multiple platforms and provide the best value for money to its users by saving multiple subscription costs.

Conclusion

The OTT industry is undergoing a transformation in 2024 driven by key trends such as content diversification, global expansion, increased competition, and integration of emerging technologies like AI and blockchain. Platforms are investing in original productions and localising content to cater to diverse global audiences, while forming strategic collaborations to compete effectively. To succeed, OTT platforms must adopt advanced development strategies, scalable architecture, user-centric design, robust security measures and innovative monetisation models. Going forward, agility, data analytics and partnerships are crucial for future-proofing platforms and staying ahead in the digital streaming world.

Net, net, the future of the OTT industry in India looks promising, with predictions of substantial growth and job creation. The audience remains the ultimate beneficiary, enjoying a range of choices and the power to curate their viewing experience.