The income of Over-The-High (OTT) video content material suppliers is about to extend at a development fee of 28 per cent between 2019 and 2024 in India, in keeping with a examine by PwC on world leisure and media outlook.
The OTT video section income in India was $0.8 billion in 2019 and is projected to develop to $2.9 billion by 2024, pushed by altering traits of media consumption, rising gadget ecosystem and accelerated by the Covid-19 pandemic.
US, China, South Korea, Germany and Australia are among the many key markets for OTT gamers resembling Netflix and Amazon. However the development fee in India will surpass the worldwide development fee over the following 4 years.
“Within the case of OTT, there can be a two occasions development in India in contrast with the worldwide development fee over the forecast interval. By way of absolute income, India can be sixth globally by the top of 2024. The drivers of the expansion being smartphones, related TVs and availability of inexpensive information,” stated Rajib Basu, accomplice and chief, leisure and media — PwC India.
He added that the brand new at-home setting has led to the rise of direct to shopper apps, native ‘bite-sized’ leisure platforms and person generated contents format. “In tier 2 and tier 3 cities, there’s a important proliferation of OTT mode of supply,” Basu stated.
Whereas the worldwide OTT market income is predicted to extend at a CAGR of 13 per cent to $86.8 billion by 2024, the expansion fee for India is estimated at 28 per cent.
Inside the OTT choices, subscription VOD (Video On Demand) would be the prime driver of income, growing at a 30.7 per cent CAGR from $708 million in 2019 to $2.7 billion by 2024. In case of subscription VOD, a person pays a recurring price to an operator that grants them entry to all content material with out restrict. That is in distinction to transactional VOD, the place customers principally pay per view. There are platforms that additionally supply each choices to the person.
“By 2024, the s-VOD section in India can be 93 per cent of the market towards 83 per cent globally,” Basu stated.
PwC in its report additionally stated that OTT revenues are anticipated to surpass that of field workplace in 2020, totally on account of Covid-19 and cinema halls being closed as a result of lockdown.