India's OTT market can reach $ 5 billion in 5 years, says Boston Consulting Group

MUMBAI: Access to affordable data, rural penetration of rural mobile phones, increased prosperity and services in all demographic sectors – including women and older generations – are key levers for the Indian OTT industry market size of $ 5 billion (Rs 35,730 crore) by 2023, says the Boston Consulting Group.

The OTT content market in India is at a turning point, BCG said in a recent Entertainment Goes Online report. While there are several business models – AVOD (platforms based on subscriptions), AVOD (advertising platforms) and TVOD (trading platforms) – the market is still underway with many promises.

"There are over 30 OTT applications and the study shows that over 80% do not use more than three applications, so breaking the pile is the biggest challenge. But what we see is that consumers are spoiling the medium and while the India is a price-sensitive market, many consumers are willing to pay for value, "said Kanchan Samtani, partner and director of BCG. Even when the market is largely driven by advertising," we see 40-50 million subscribers pay by 2023, "said S amtani.


By the way, rural India will play an important role in OTT consumption. The report reported that 48% of Internet users (about 650 million by 2023) are expected to come from rural areas. "With the growing penetration of mobile phones in Grade 3, Grade 4 (cities) and rural areas, there will be many consumers who will be OTT first, who have never consumed content on television," said Samtani.

In addition, with the development of regional content by various players, the rural market is ready to become an important opportunity. OTT, following the wave of increased data consumption and Internet access in rural India, opened a new distribution channel that is viable for regional / specialized content.

The report also reported that OTT players with Indian content had the opportunity to take advantage of international markets where there was a huge dispersion that paid higher average fees for content.

However, a great challenge will always be platform convenience, for which OTT players will not only have to invest in content but also in marketing as well as in the strategy of acquiring and retaining subscribers.