Indian OTT entertainment platform Eros Now, and multinational professional services network KPMG in India have published an in-depth report on India’s OTT market which projects that India will have more than 500 million online video subscribers by FY 2023, making it the second biggest market in the world after China.
According to the study, 87 per cent of users in India consume their content on mobile phones and spend an average time of about 70 minutes per day on OTT platforms.
It suggests the “varied and innovative” offerings blended with superlative services will let OTT platforms cater to the growing market. Eros Now, which is known for its extensive movie library, apart from offering originals, digital movie premieres and short-format content ‘Quickie’, has been a leading OTT platform satiating increasing consumer demands across device forms such as Smart TVs, tablets, etc.
Other study highlights:
Love for films: Indians continue to love their movies and movie related content; 30 per cent of the respondents prefer watching movies on OTT platforms.
Original content as a differentiator – Original and exclusive Indian content is one of the biggest drivers in the OTT space. Quality Indian narratives are traveling beyond the South Asian audiences around the world. The massive base of digital content consumers prefers new stories that this country must tell.
Online video transcending geographies – Distribution ecosystem is set to become stronger. Role of value chain partners like OEM, DTH, ISPs and Telcos is likely to grow as creators look at multiple avenues to reach the end consumer.
Innovations in pricing to boost subscriptions – New user profiles indicate that companies have to focus on smaller towns and rural markets as a sustainable business model would need to be anchored by small town viewers and eventually subscribers.
Fostering multi-format consumption and engagement – Short-format video content, movie premieres, documentaries, original music and other formats enable OTT players to engage diverse sets of online video consumers. Today, audiences look forward to enjoying varied content formats on digital platforms.
In order to cater to consumer demands, Eros Now plans to invest to create new original shows for their platform. It has also introduced ‘TV Se Pehle’, wherein movies premiere on the platform prior to their satellite broadcast and started to offer original short-format content. Soon, Eros Now plans to launch over 50 short form original series under its ‘Eros Now Quickies’ category. The premium Indian OTT player’s several strategic brand associations has enabled the app to be available in smaller towns of the country and in over 135 countries across the globe.
Rishika Lulla Singh, Chief Executive Officer, Eros Digital, said, “India is one of the fastest growing entertainment and media market globally and is expected to keep that momentum. As data and digital infrastructure has become exceedingly accessible even in small cities of India, the market for OTT has widened enormously. At Eros Now, we strive to constantly engage the existing consumers and expand our reach by offering new and innovative services.”
Girish Menon, Partner & Head Media & Entertainment, KPMG in India, said, “The online video consumer in India has evolved in a significant way in the last couple of years. With consumption now going mass and viewers spending close to 8.5 hours a week on online video, we see a homogenous pattern of consumption emerging cutting across age groups, income levels and professions. Our report also touches upon the future of this consumption evolution, and how online video could potentially disrupt traditional distribution in the coming years. This represents a large opportunity for platforms to tap into the ever-expanding universe of digitally connected Indians.”
The increasing Internet penetration and access to digital infrastructure across India make it an important market for the OTT industry, according to the report, which suggests that content innovation, services across device forms and partnerships have established Eros Now as a key player and will further strengthen its position in the growing market.