The term OTT refers to “over-the-top,” which stands for media distribution over the Internet. Nowadays, IP networks are distributing more and more media across the globe. According to some authorities, we must stop differentiating between OTT and broadcast TV entirely. Presently we are facing a future in which all TV is distributed via OTT. According to a recent report, the penetration of smartphones in India is expected to reach around 99% by 2022. OTT platforms are predicted to rise at a CAGR of 22% by the end of 2022 to approximately INR 6000 crores.
The OTT industry is gradually maturing its nature along with other features. Today we’re passing through a period in which the technology informing OTT trends is becoming much more settled than ever.
Low cost and efficient mobile recharge packages and good connectivity of the Internet have allowed both rural and urban communities to consume video content at an alarming rate.
OTT platforms are providing online content from different genres. Some of the popular OTTs are Netflix, Amazon Prime, and ALT Balaji, etc.
There are many reasons for this incredible growth of OTT platform usage, such as:
● Fresh Content
● Easily accessible And Cheap
● Screening Movies Before Television Screening
● Free Subscriptions on few OTT Platforms
● No Interruptions
● Video On Demand
● Exclusive And Quality Video Content
● Download And Watch Later
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With such a large user base containing a huge number of smartphone customers under the age of 35, OTT platforms will focus much more on youth-friendly content. An additional factor helping in the enormous growth of OTT platforms in India is the increasing level of disposable revenues, which means an average Indian buyer can use up more on his relaxation purpose today as correlated to a few years back. Shows and movies in local languages such as Tamil and Telugu, Bengali have entertained people from various fronts and aspects to these platforms; the reason being endless movies and shows in their mother tongue at cheap prices.
It’s not that such platforms have content that is only for the youth; they also offer something for the youngsters, the aged, and every other age group.
Internet data consumption per minute has also decreased compared to the past. Some time ago, streaming a two-and-a-half-hour movie needed 1GB of data for 360p quality. But now 800MB is enough for the same movie to show in 480p quality. Therefore, the quality of streaming has been enhanced with the reduction in data consumption. People can watch two movies today by consuming just 1 GB or 1.5 GB of data. At the same time, the growth in the OTT industry could bring less popularity to the DTH industry because OTT is undoubtedly a better choice for a DTH subscriber.
Price also plays a prominent factor in OTT; Amazon Prime saw an enormous user base than Netflix in 2016 because of this component. Amazon Prime charges INR 129 per month for endless access, while Netflix charges INR 800 for its premium quality content. So, OTT platforms must work on a strategy to provide absolute benefits at minimum cost, a tough nut to crack but an essential one to attract the Indian audience.