Indian OTT landscape sees huge transformation as demand surges for regional content

As the world emerges from the global pandemic, the video distribution landscape is continuing to change at a furious pace. The rapid migration of viewing on streaming platforms which accelerated in 2020 and 2021, has seen new data-based business models emerge, with an increased focus on advertising as subscription growth tapers off. OTT platforms in India spent Rs 3700 crore on original content in 2021. Netflix was the largest investor, spending around Rs 1479 cr, followed by Amazon Prime Video with a spend of around Rs 1035 cr, as per Omdia's 'India. India’s over-the-top (OTT) video streaming market may record a compounded annual growth rate of more than 20% to touch $13 billion–$15 billion over the next decade, riding on original content and pricing innovations, a new report said. Paid subscribers are also estimated to expand at a CAGR of 17% to reach 224 million by 2026 from the current 102 million, according to All About Screens. The current overcrowding of the Indian OTT market means consolidation in this sector is inevitable. Going forward, there will be merger and acquisition activity among local players as the emergence of new technologies and moves to revitalise legacy media businesses that are meanwhile continuing to transform the shape of the business globally, in multiple ways as the market continues to develop.

The growth in the OTT industry, which makes up 7-9% of its entertainment industry, will also be driven by low data costs, and the rise of short-form content, the report says. OTT platforms invested an estimated $665 million in content in 2021, with Netflix, Amazon Prime Video, and Disney+ Hotstar leading the pack with a combined spend of $380 million. The country is witnessing a boom in regional content and platforms created to address this demand. The share of regional language consumption on OTT platforms is expected to cross 50% by 2025 from 30% held in 2019, easing past Hindi at 45%, the report said. India’s video streaming

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