Working from home has taken its toll on Shefali who, at the end of the day, would like nothing more than to stay in bed and relax with some good food and great content to binge on. Call OTT platforms a tooth fairy but many viewers like Shefali have had their wish granted with the new-age thriving shows and movies that OTT has to offer.
To say that the OTT platforms underwent a dynamic growth in 2020 would be an understatement. From being on the sidelines in the early 2000s to being at the epicenter of the entertainment industry, OTT platforms have been quick to adapt and reinvent themselves as per the situation.
Taking the unprecedented 2020 year into account, the OTT sector in India witnessed a 30% rise in the number of paid subscribers, a leap from 22.2 million to 29.0 million between March and July, 2020.
While a few names hold the roost in the Indian subcontinent, the market is also peppered with production house-backed local OTT players that have been offering a more desi flavour to the Indian content palate. 2020 has been, no doubt, an interesting year for OTT platforms that pretty much set the tone for the future.
REGIONAL CONTENT GRABS THE SPOTLIGHT
As per an IBEF report, around 90% of consumers prefer watching content in regional languages while only 7% spend their time on English movies and series. It is evident that the need to #GoLocal stems from the consumer choice leading to the digital entertainment industry towards localized and relatable content. It is interesting to note that while many players are dabbling with a multi-lingual approach to reach more viewers, many home-grown one-language OTT platforms are popular as well.
We noticed a significant rise in the amount of time spent consuming content across urban and rural cities. For instance, in the pre-pandemic era, 60% of our consumers would come from the top tier 1 cities, and 40% would come from Tier 2 and 3 cities. Today, however, it is vice versa. A majority of our audience is from the Hindi hinterlands of the country.
AFFORDABLE PRICING DOES THE TALKING
The comfort of one’s regional language and affordable service is an irresistible mix for the Indian consumer. Attractive subscription plans are now garnering interest, and OTT platforms are investing in the “kam mein zyada” strategy to attract customer attention. Trial periods and offers are other popular means to generate interest, leads, and eventually, a paying audience. Moreover, OTT platforms have recognized the growing preference amongst consumers to transact online, along with the convenience and security that various e-wallets and online payment options offer. Having played a vital role in the massification of content in Tier II and III markets, ALTBalaji has revolutionized how India consumes content. We recently joined hands with payment gateways – Amazon Pay, Paytm, Paypal, and Paypoint, along with Ujjivan Small Finance Bank offering viewers with cash backs and discounts on the ALTBalaji subscription.
THEATRE AND OTT
2020 laid grounds for what can be called The Battle of Entertainment – with contenders being the existing Theatres vs. the new-kid-on-the-block OTT platforms. According to the 2020 FICCI-EY report, around 50 small and low budget films were released directly on OTT in India in 2019 and were received with much elation. However, in 2020, when the mainstream players adopted a similar, practice, not all was well in the cine-town. When the first big-budget movie starring megastars, was announced by an OTT platform, it received a mixed response from the industry but at the same time coaxed the contemporaries to warm up to the idea. Today, OTT platforms have enabled audiences with a chance to watch the latest releases from the comfort of their homes. The AI influx in the form of interactive shows also plays a great role in tipping the scales in the OTT favour.
However, Cinema halls, like many other businesses, have already geared up for their post lockdown operations by putting a system in place. At present, we believe that the uncertainty over theatre viewing is short-term, and it will pass soon which means that OTT platforms have to reinvent new ideas to hold on to their hats.
CONSUMER PREFERENCE FOR SHORT VIDEO APPS
The year also saw consumers show an affinity for short video apps. To connect with their audience, ALTBalaji associated with short video apps like Roposo, Chingari, and Firework as a part of our strategy to amplify our objective of massifying content for Bharat at large. Being an SVOD platform, our focus is to engage with the audience and expand our reach and give them a glimpse of the diverse content we have to offer.
WATCHING OTT CONTENT IN THE NEW NORMAL
The lockdown made people around the country realize just how convenient OTT is giving rise to a shift in the manner content is now consumed today. While this growth is due to a phase that no one saw coming, I believe that with the change in consumption habits, many of these first time samplers are now converted into avid followers with premium subscriptions. Seeing the viewer sentiment and their streaming behavior, all signs indicate that OTT is here to stay. The OTT sector is one that has revolutionized the M&E industry and will continue catering to the rising need for on-demand, consumer-centric, customized content.
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