Campaign India Team
Jan 02, 2024

Is consolidation the inevitable path forward for the Indian OTT market?

SOUNDING BOARD: We ask experts to delve into the factors shaping the future of OTT in India, exploring whether collaborations or innovative disruptions will define the OTT industry in the coming years

Is consolidation the inevitable path forward for the Indian OTT market?

As the OTT landscape in India witnesses a proliferation of platforms, the recent trend hints at a strategic shift. Media houses, capitalising on the OTT surge, have launched their platforms in the past few years. However, the initially rapid growth of OTT users in India has plateaued. 

 

The Indian OTT audience base grew 20% from 2021 to 2022, but has grown only 13.5% over the last one year, highlighting that the category is now past the peak growth phase it witnessed in the two preceding years, prompting speculation about the industry's future trajectory. 

 

As stakeholders navigate this dynamic landscape, uncertainties loom over the fate of existing platforms and the potential emergence of new contenders. 

 

Mergers and consolidations have been contemplated, but are yet to be materalised –  Disney Star with Reliance, Sony with Zee, and Prime Video with MXPlayer.

 

These deliberations beg the question: Is consolidation the inevitable path forward for the Indian OTT market? Will 2024 witness more alliances, or is there room for fresh entrants to disrupt the status quo?

 

Charu Malhotra, chief brand officer and group head marketing, APL Apollo Tubes

 

Over the past few years, the growing appetite for quality video content in India has reached new heights, especially during the pandemic lockdowns experiencing exponential growth rates. However, the growth in total audience for OTT platforms has slowed post the Covid19 boost from 20% in 2022 to 13.5% in 2023.

 

Moving ahead, potential mergers among new players showcase a strategic manoeuvre to elevate the quality of content offerings, driving the industry towards innovation and customer satisfaction.

 

As the industry adjusted its growth trajectory to become more streamlined and stable with the constant human craving for entertainment, one thing remains certain — the OTT, or the content industry in general is far from stagnation, with its market size projected to reach USD 12.5 billion by 2030.

 

Ashish Aggarwal, head of product growth and marketing, Statiq

 

The future of OTT platforms in India looks promising for brands. In 2024, we can expect some consolidation of players by M&A, and new regional/niche players entering the scene. OTT is changing how brands connect with prospective customers primarily Gen Z and millennials. 

Marketing on OTT platforms is not focused on performance marketing; OTT is a potent medium for building brand awareness among relevant TG. The personalised content experience on these platforms lets brands engage with their audience in a more meaningful way. In advertising, OTT is proving its effectiveness compared to traditional TV, but with a more tailored approach. Brands are realising the importance of adapting their strategies to the on-demand nature of OTT content. This allows for targeted advertising, ensuring messages reach the right audience. Looking ahead, the key for brands is finding the right balance between creating engaging content and using the targeted advertising features of OTT platforms.

 

Jagdeep Kapoor, founder chairman and managing director, Samsika Marketing Consultants

 

OTT is very powerful due to its relevant communication ability and enhancing contextual advertising. The future of OTT is very bright and like any growing industry in the media realm, it will have consolidation , mergers, exits and new entrants. 

 

Harish Bijoor, business and brand strategy expert and founder, Harish Bijoor Consults

 

The OTT category by and large over-estimated the potential of its generic offerings in India. In the beginning there was a rush to launch OTT content and join the bandwagon. And then reality hit. This led to major attempts at marketing and advertising strategies in the media ecosystem as well. Consolidation I believe will continue when it comes to OTT platforms. On the sidelines, as niche and segmented offerings will continue to enter the market. 2024 is going to have both happen with gusto.

Source:
Campaign India

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