Indian OTT market to be among top 10 by 2022: Assocham-PwC study

India is expected to be the 10th-largest market for OTT in terms of revenue in 2022, according to a joint study by Assocham and PwC. The OTT video market is being propelled by consumer content demand, lower internet prices and portability preferences. Increased focus on localised content is the key to the Indian OTT market. The study added that mobile internet subscribers are set to double from 406 million in 2017 to 805 million in 2022. 

India’s per capita media and entertainment spending is likely to be capped at $32 or Rs 2,080 by 2021, according to PTI. 

“The spend is much lower than that of China, which will stand at $222 or Rs 14,430 for the same period, and that of the US, which will have the highest spend at $2,260 or Rs 1.46 lakh,” the study pointed. 

PwC’s Global Entertainment and Media Outlook 2018-2022 also stated that large markets without a tradition of gaming – China, India and Russia – will account for 41 per cent of social/ casual gaming revenue growth from 2017 to 2022. Digital distribution and movement from packaged media to games as services supported by micro transactions are key to growth. New technologies like VR/ AR and ninth-gen consoles are promising innovations in the gaming world. However, revenue contribution from the same will be limited over the next few years. 

When it comes to e-sports, India is seen as having the highest CAGR (2017 – 2022) in the world at 56.6 per cent. The rapid rise of e-sports is being fueled by recurring consumer interest and the increasing attention paid by advertisers and sponsors. At present, favourable demographics – millions of young consumers with increasing levels of disposable income – are making consumer contribution the largest revenue stream. 

The OTT market size is expected to reach $52.68 billion in 2022 from $30.36 billion in 2017, it claimed. Transactional video on demand and subscription video on demand is set to grow at a compounded annual growth rate (CAGR) of 10.1 per cent during the period 2017-2022. 

During the same period in India, the segment is expected to grow from $297 million to $823 million in 2022 at a CAGR of 22.6 per cent. With increasing smartphone penetration and lower data tariffs, VoD is showing promising growth, the report said. 

Globally, the industry has recently witnessed a shift in focus from content and distribution to user experience. 

The large number of choices in the video-on-demand segment has spoilt consumers in India, the study noted. 

“Hotstar has had a first-mover advantage in the OTT space in India. Other top players in the OTT ecosystem include Voot, SonyLIV, Netflix, Amazon Prime, Eros Now and ALTBalaji. Start-ups such as Arre and YuppTV are an additional presence,” it added. 

With increasing traffic in metro cities, the time spent on viewing videos is also on the rise. Cab aggregators, such as Ola, have installed tablets inside their cabs with a wide range of curated content for passengers at no additional cost.

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