India’s love affair with OTT Industry

India has 55 OTTs in the country in 2020, a 4X growth in last 4 years.

Indians on Smartphones:

• Spent 3 hrs 54 minutes during the lockdown period in comparison with 3 hrs 22 minutes in the pre COVID period which had reduced to 3 hrs 14 minutes in Aug as more and more people are returning back to work
• The average time spent by Indian users on OTT platforms has increased by 30-60% since early March
• With usage almost 4 hrs per day, 18% of the total time is spent on messaging apps, 15% on social media apps, 14% video streaming apps and gaming apps 10%

India’s Video streaming industry is all set to grow at a CAGR of 21.82% to reach Rs 11,977Cr by 2023

As per reports by PWC, the over-the-top (OTT) video industry will drive the growth for the next 4 years in the overall Media(M) and Entertainment(E) industry

• M&E in 2018- valued at Rs 2,64,588 Cr
• M&E by 2023- reach at Rs 4,51,405 Cr with a rise of 11.28%

Apart from OTT, other fast-growing segments will be video games and esports and Internet advertising that will notch up rates of 18.89% and 17.75% to touch Rs. 17,891 Cr and Rs. 18,446 Cr respectively

Indian Video OTT market Revenue:

• 2018- $0.5B with 82% from AVOD (Advertised based Platforms) and 18% from SVOD (subscription-based platforms) and TVOD (Transaction based platforms)
• 2023- $4.4-5B with 43% from AVOD, 32% (SVOD and TVOD) and 25% International Market

On an Average Indians use 2 or > 2 OTT apps with the expectation of ~40-50 mn paying subs by 2023 and ~600mn users will use AVOD

Time spent (in Million Minutes) on OTT platforms by Indian

1. Dec 2019- 47,707
2. Mar 2020- 46,348
3. Apr 2020- 60,013

In terms of OTT Apps, MX player tops the list with 19,120 million minutes spent on this App by Indians followed by Hotstar, Netflix, and Amazon Prime with 11,414, 5,159, and 4,226 million minutes respectively.

• MX player again tops the list in June Quarter with maximum unique visitors
• 20% increase in March 2020 in Unique visitors for Amazon Prime, 50% for Netflix, and 55% for Zee 5
• Hotstar, Voot, and Sony Liv saw a marginal decline in unique visitors during the June quarter

 A report by the Mobile Marketing Association India and GroupM, a media investment group, OTT players are likely to invest around ₹250 crores for content creation and distribution

Online Video Market Revenue Share in India:

1. YouTube- 43%
2. Disney Hotstar- 17%
3. Netflix- 10%
4. Amazon Prime- 6%
5. Sony Liv- 4%
6. Zee 5-2%
7. Others- 18%

In terms of Worldwide traffic in April 2020, YouTube tops the list with 3338.5 Cr, followed by Netflix with 296.8 Cr, and in the 3^rd position stands Amazon Prime with 21.35 Cr.

Views contributed by Indians in April 2020:

1. YouTube: 118.85 Cr
2. Netflix: 8.9 Cr
3. Prime Videos: 7.32 Cr
4. Hotstar: 6.96 Cr
5. Sony Liv: 6.64 Cr
6. MX Player: 6.62 Cr
7. Zee 5: 1.98 Cr
8. Voot: 1.08Cr
9. Alt Balaji: 0.14 Cr
10. Mubi: 0.14 Cr

Will the growing use of OTT platforms, be a revolution in the Entertainment sector, to going from Commercial Theatres to  Home Theatres?