INDIA’S OTT streaming industry is expected to grow to $13-15 billion (£9.62-11.1 bn) over the next decade, according to a joint report on media and entertainment.
The OTT (over-the-top) industry is constantly growing and is one of the most competitive amongst emerging markets with over 40 players, said the report from industry body CII and Boston Consulting Group (BCG).
According to it, the compounded annual growth rate (CAGR) of the sector is expected to be 22-25 per cent.
This has been led by "strong tailwinds" from basic enablers such as affordable high-speed mobile internet, doubling of internet users in the last six years, increased adoption of digital payments.
Moreover, it has been also helped by India specific price points offered by global players such as Netflix, Prime Video and Disney+ offering plans in India at 70-90 per cent cheaper than in the US.
Besides, the OTT sector is also witnessing a rise in investments in Indian original content. This has led to growth in original content available to users.
"Strong content also helps capture eyeballs outside India," the report said, adding Indian OTT can cater to international demand by targeting the Indian diaspora and markets that have language similarities.
There has been a remarkable surge over SVOD (subscription video on demand) content over the last few years and is expected to overtake AVOD (advertising-based video on demand), it added.
"This strong growth in the subscription is due to various initiatives taken to expand the user base through bundling and pricing innovations, amply supported by significant investment in content," said the report titled "Blockbuster Script for the New Decade: Way Forward for Indian Media and Entertainment Industry".
The major players in the Indian OTT industry include Netflix, Amazon Prime Video, SonyLIV, Alt Balaji, Zee5, Eros Now and Disney Hotstar Plus.
It has been additionally helped by a predominance of a younger population, with 50-55 per cent of the population under the age of 30, it added.
"Indian OTT has progressed from early-stage to scaling stage with the transition from AVOD to SVOD model, growth in disposable income to drive subscription growth and investing in premium and original content,” it said.
"About 56 per cent of the Indian population has a regional language as their mother tongue, which is larger than the population of the EU,” the report said.
According to the report, the Indian media and entertainment industry has revived to pre-Covid levels and is expected to grow to $55-70 bn (£40.69-51.78 bn) by 2030 with a CAGR of 10 to 12 per cent, driven mainly by strong growth in OTT, gaming, animation and VFX.
(PTI)
