The way we consume entertainment is changing. While traditional TV viewing continues to be the most preferred mode of watching content, the audience is increasingly shifting to online streaming platforms.
The growing popularity of OTT entertainment has given rise to multiple digital platforms in India, each offering content based on specific genres and themes. The emergence of these new platforms is challenging the traditional supremacy of television in India, with millions of users turning towards them for their daily dose of entertainment.
The year 2017 has been a landmark year for online entertainment with Netflix and Amazon leading the race. While there are other players like Eros Now and Hooq, they do not hold a candle to Netflix and Amazon Prime Videos.
Breaking up the headlines and statistics-
On a global level, there has been an exponential rise in the consumption of on-demand content, with more than 65% of all OTT viewers consuming at least 1 hour a day. Statistics from India also show that this figure has grown from just 14% in 2013 to 21% in 2015. With the number of internet users expected to grow from 313 million in 2016 to 830 million by 2020, it is estimated that by 2022 the Indian OTT market will reach $5.06 billion.
Furthermore, according to a recent report by Google and KPMG, the time spent watching videos on smartphones has grown over 5 times since 2013.
According to a report by The Times of India, OTT services generated $1 billion in revenue in 2016 with Netflix contributing $300 million alone. While these numbers are expected to grow exponentially in the coming years, traditional broadcasting still reigns .
Over-the-Top services are a relatively new phenomenon in India. But they’re quickly becoming a way of life for the country’s consumers.
According to a recent report by the Internet and Mobile Association of India, over 350 million Indian users will be subscribing to Over-the-Top (OTT) services by 2023. OTT refers to watching TV and other content through the internet without a physical connection. This is in contrast to traditional cable or satellite television, which requires a physical connection.
Today, India boasts more than 350 million OTT users, but that number is expected to grow dramatically in the next decade. By 2023, it is projected that there will be more than 500 million OTT users across the country.
The impact of OTT Platforms on certain age groups
According to statistics, over 40% of urban youth watch television exclusively through mobile devices .
That change has led to an increased demand for streaming content. From the younger generation who can afford access to smartphones, to older audiences who are looking for entertainment and learning, India's OTT market has seen a drastic increase in popularity over the last two years.
Older demographics watch more TV than younger ones. The penetration of smartphones in India plays a major role in the popularity of OTT applications amongst youth.
Wrapping-up
India is also one of the first countries in the world to go all-digital with its television broadcasts. This means that while they're watching traditional television, people can go online via their smartphones and stream content on their computer screens as well. This is a major advantage when it comes to OTT consumption because people don't have to wait until they have time to sit down and watch a show — they can watch it whenever they have time.
