OTT platforms invested Rs.55.21bn in FY2021
The video OTT market in India is expected to reach Rs.581.21 billion FY2027, expanding at a CAGR of ~16.58% from FY2023 to FY’27, according to a ResearchAndMarkets report. It was valued at Rs.249.09 billion in FY2022.
The OTT industry growth is being driven by the low cost of data plans and the rise of short-form content, said the report, adding that the entertainment industry accounts for 7%-9%.
In FY2021, OTT platforms invested an estimated Rs.55.21 billion, with Netflix, Amazon Prime Video, and Disney+ Hotstar leading the pack with a combined expenditure of Rs.31.55 billion, the “OTT (Over-the-top) Market in India 2022-2027” report said on 27 Jan 2023.
The flexibility of audio as a medium and its ability to provide aid in a screen-dominated lifestyle makes it an essential medium for consumers. Gaana, Spotify, JioSaavn, Apple Music, Amazon Prime Music, Wynk Music, Google Play and Hungama Music are some of the major platforms in this market.
The audio OTT market in India was valued at Rs.57.48 billion in FY2022 and is expected to reach Rs.119.11 billion by FY2027, expanding at a CAGR of ~15.68% during the FY’23-27 period.
According to a survey, about 75% of smartphone users listen to music on their phones, 86% of which use on-demand streaming.
In 2022, Hotstar (rebranded as Disney+ Hotstar) was the most-subscribed OTT platform, with around 58.4 million subscribers as compared to 44.9 million in 2021.
Its subscriber base increased by three times from 45.9 million in Q1 FY2022 to around 50.1 million in Q2 FY2022, driven by the coverage of the Indian Premier League (IPL) and favorable pricing of its annual plan.
Audio streaming platforms such as Spotify, JioSaavn, Gaana and Amazon Music have shown a 12% growth in the number of overall users in June 2022 in comparison to January 2021.
In Q4 of 2021, Spotify’s revenue grew by 14.5% year-on-year to Rs.92.4 billion, while the Premium service revenue grew by 16% YoY to Rs.106.5 billion.
The company’s focus is on branding, AI-driven personalization of its app, releasing unique podcasts and playlists, and providing affordable plans. This allowed it to grow significantly within a year of it entering the market.
The popularity and demand of smart TVs and other connected devices have increased significantly post-lockdown. Partnerships with the content aggregators will help the players to add new content based on audience preferences.
There are several foreign language web series and movies available with these aggregators, which when dubbed or subtitled, can be targeted to speakers of English, Hindi or any other regional language in the country, the report said.
Featured in the report were: Amazon Prime Video, ALT Digital Media Entertainment Limited (ALTBalaji), Disney+ Hotstar, Eros Now, Gamma Gaana Ltd, Hoichoi Technologies, MX Player, Netflix Entertainment Services India LLP, SonyLIV, Saavn Media Pvt Ltd, Voot and Zee5. fiinews.com
