Rs 11-14 mn gained from OTT direct paid subscriptions in FY19: Times Internet study

According to the KPMG Media & Entertainment report 2019, subscription revenues have registered a 3X increase in FY19, totalling to Rs 12 billion, with contributions from both direct subscriptions and telco partnerships. The same report predicts that the digital media market in India is set to become the second largest within media and entertainment, as it is set to touch Rs 386 billion by FY22.

Video will have a huge role to play in this growth, as online video consumption shows no sign of slowing down in the next few years. In 2019, two-third of the audiences spent at least 1 to 2 hours a day watching content online, and it is expected to grow further in 2020. Hence, it is important to understand how many users are willing to subscribe to watching OTT content and what their expectations are.

Times Internet has long standing advertising partnerships with leading OTT (Over the Top) players. The brand’s latest ‘OTT Player User Behaviour Study’ brings together learnings from primary research and insight studies done amongst 2,000+ Times Internet users to understand how audiences are consuming and interacting with OTT content. The report is meant to enable decision makers at OTT services, as well as media agencies and advertisers with insights into the mind of an Indian OTT consumer.

According to the Times Internet study, it is estimated that Rs 11-14 million was gained from direct paid subscriptions in FY19. Netflix and Amazon Prime accounted for the bulk of direct subscription revenues. Backed by the robust live sports, international and live TV content, Hotstar contributed a signiï¬cant percentage to the overall direct subscription revenue.

Original content is going to be a strong diï¬€erentiation factor in the crowded OTT space. Original content across genres helps platforms entice subscribers, while quality helps retain them. With the growing demand of originals, OTT players are creating content in regional languages, since it is the future for consumption and commerce.

Key Findings:

Of the people who subscribe to online websites/ apps, one-fourth claim to spend more than Rs 500 on monthly subscriptions
Among people who have not subscribed to any online website/ app, nearly 60% people are not keen on spending money to watch content on online platforms
‘Recommended by Friends/ colleagues’ emerged as key inï¬‚uence for watching a show/ movie at 44%, followed by ‘Buzz on online media’ at 25%
TV series/ web series are the most often watched content, with 30% people preferring to watch those. Movies follow, with 22% people preferring to watch them. News is third at 17%
1-2 hours a day is the average time spent on OTT with 40% people spending at least 1 to 2 hours a day to watch content online. 27% people said that they spent less than 1 hour a day on watching content online. 20% people said that they spent 2-3 hours a day on watching content online

Clearly, online content is high on engagement and is in snackable formats. OTT has empowered the consumer in a fundamentally diï¬€erent way. Unlike the relatively unidimensional, inï¬‚exible era of linear television, over-the-top TV now enables customers to actively interact with content. It also oï¬€ers them a wide array of choices, in terms of binge watching, time shift, place shift, and navigation.

Word of mouth, followed by buzz on social media, are the key motivators to watch any content on online platforms.

In the excessively competitive business environment that exists today, gaining consumer attention is the holy grail for marketers. And, with over-the-top television helping consumers access their favourite content on demand, advertisers need to reimagine their customer outreach strategies.