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OTT vs Theatre: What Is The Ground Reality?
OTT vs Theatre: What Is The Ground Reality?

June 11, 2021

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The rise of over-the-top (OTT) media has caused a significant shift in the entertainment industry towards digitization and economy; as consumers in India seek differentiation and value-based offering in their media consumption.

According to a PwC’s ‘Global Entertainment & Media Outlook 2020-2024’ India is one of the fastest growing OTT markets at 28.6% CAGR and on track to become the world's sixth largest OTT market by 2024.

This trend is substantiated by the Federation of Indian Chambers of Commerce and Industry (FICCI) report, which mentions that OTT subscribers in India will reach 30-35 million by the end of 2021.

The remarkable adoption of OTT media can be attributed to several causes including the convenience, accessibility, and affordability it brings to a wide range of users.

Anyone with a mobile phone, laptop or connected TV and an internet connection can watch any content, movies or series from anywhere in the world. Further, the ability to stream content directly over the internet has increased with the rise in the number of internet connections, better network connectivity, technological innovations and the availability of smart devices.

The presence of Indian subscribers on OTT platforms is increasing day by day. Many media houses and entertainment channels have already launched their own platforms or are looking forward to collaborating with other platforms to stream their content in response to rising demand.

The shift from traditional media to over-the-top (OTT) media, particularly during the COVID-19 lockdown period, has resulted in a battle between streaming service providers to attract and retain customers.

The recent analytics shows the number of paid subscribers in India's OTT sector increased by 30%, from 22.2 million to 29.0 million. According to a recent study, the majority of Indian viewers prefer to watch regional language content on OTT platforms. In 2020, the top five metro cities accounted for 46% of total OTT video platform users, while Tier I cities accounted for another 35%.

The Indian OTT market currently features a mix of international and local players including Disney+Hotstar, Amazon Prime Video, Netflix, SonyLIV, Voot, Zee5, ErosNow, and ALTBalaji. Most of these platforms offer users a variety of programming options, including a licensed library of TV shows and films as well as original programming to constantly update their content on a regular basis.

Recently, Amazon Prime Video announced the direct-to-digital release of a few Indian movies in May 2020, and ZEE5 announced 15 direct-to-digital releases for FY21.

The direct-to-digital release strategy assists OTT platforms in expanding their customer base. Furthermore, in order to attract more paid subscribers, OTT players are working on much more affordable plans, customized language packs, investing in creating original regional content as well as mainstream plans to engage their subscribers.

Domestic players like Zee, ALT Balaji, and Reliance Bigflix are attempting to transit from traditional media to OTT-based services.

In the prevailing pandemic, OTT platforms have emerged as a silver lining when live events, movie premieres and shoots have come to a halt. Movie theatres and multiplexes have incurred huge losses since the beginning of the pandemic.

As moviegoers have remained wary of visiting multiplexes, OTT platforms have stepped in to cater to the entertainment vacuum by offering a host of broadcasting content. Furthermore, since almost every streaming service provider has been offering free trials to entice consumers from the comfort of their homes; it is time for cinemas to innovate their offerings and build consumer confidence by providing a safe and secure environment to keep the ‘Friday magic’ charm.


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Dr. Vikram Kumar

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