COVID19 spurs significant growth in India’s OTT Consumption

India is currently the world’s fastest growing OTT (over-the-top streaming) market and is all set to emerge as the world’s sixth largest by 2024.

October 22, 2020

India is the world’s fastest growing OTT market, and is poised to become the world’s 6th largest by 2024.

The market is expected to grow at a CAGR of 26.8% to reach a revenue of US$ 2.9 billion by 2024.

OTT includes not only video streaming, but also internet advertising, e-sports, games, music, radio, and podcasts.

Boost in OTT consumption can be attributed to the rise in internet subscribers and new subscribers in Tier I and Tier II cities.

According to a report by PriceWaterhouseCoopers (PWC)  Media and Entertainment Outlook 2020, India has emerged as the world’s fastest growing OTT market. Over-the-Top streaming, includes not only  OTT videos, but also internet advertising, video games, e-sports, music, radio and podcasts, all of which are expected to see an increase in revenue in the next few years, growing at a CAGR of 28.6% over the next four years to touch revenues of $2.9 billion, and become the world’s 6th largest OTT market.

This sudden rise in the revenue, can be attributed to the pandemic induced 7-month lockdown, which has brought the media and entertainment industry to a screeching halt. While the effects of COVID have been devastating on most industries of the Indian economy, it has been quite severe on the M&E industry, forcing several producers launch their films directly to digital platforms, proving to be a boon for the OTT market. With enhanced networks, stronger internet connectivity and multimedia service-capable mobiles, this boost in the OTT consumption in India can be attributed to the addition of new subscribers emerging from Tier I and from Tier II cities. Furthermore, OTT services like Netflix, Amazon, Disney+ Hotstar and others have made massive investments. Along with these global players, there are several Indian production houses like SonyLIV, Voot, Zee5, ErosNow, ALTBalaji, etc. which are also making a mark for themselves in the market. 

According to the report, with the new at-home environment, there has been a rise in direct-to-consumer apps, local ‘bite-sized’ entertainment platforms. In the next few years, it is expected that there will be further increment in internet penetration and digital maturity, leading to a rise in OTT subscribers mostly from Tier II cities. The OTT landscape will get more ambitious in the next 4-5 years and OTT providers will undoubtedly emerge as the favoured platform amongst most people.

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