OTT platforms invested an estimated $665 million in content in 2021, with Netflix, Amazon Prime Video, and Disney+ Hotstar leading the pack with a combined spend of $380 million
NEW DELHI : India’s over-the-top (OTT) video streaming market may record a compounded annual growth rate (CAGR) of more than 20% to touch $13 billion–$15 billion over the next decade, riding on original content and pricing innovations, a new report said. Paid subscribers are also estimated to expand at a CAGR of 17% to reach 224 million by 2026 from the current 102 million, according to All About Screens, a report by multinational professional services network Deloitte.
The growth in the OTT industry, which makes up 7-9% of its entertainment industry, will also be driven by low data costs, and the rise of short-form content, the report says. OTT platforms invested an estimated $665 million in content in 2021, with Netflix, Amazon Prime Video, and Disney+ Hotstar leading the pack with a combined spend of $380 million.
The share of regional language consumption on OTT platforms is expected to cross 50% by 2025 from 30% held in 2019, easing past Hindi at 45%, the report said. India’s video streaming industry is highly fragmented, with more than 40 operators. Global streaming service providers (such as Amazon, Disney-owned Hotstar, SonyLiv, and Netflix) compete with domestic service providers (such as Zee5, Voot, and MX Player), as well as a host of regional and ultra-localized players. Demand for OTT streaming content based on geo-demography is on the rise, both within India and internationally from the considerable Indian diaspora. The country is witnessing a boom in regional content and platforms created to address this demand.
The report said that in the early stages, India’s OTT market was dominated by pricing structures suited to advertising-led video-on-demand services to maximize consumer acquisition. However, it said a subscription-led video-on-demand model will emerge stronger in future, with paid subscribers in India estimated to increase at a CAGR of 17%.
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