INDUSTRY ANALYSIS Over-The-Top

Platforms
By: Pankaj Ranjan & Rashi Agrawal
Indian Video-OTT Industry: An over-the-top (OTT) media service is a streaming media service offered directly to viewers via
the Internet. The global OTT market jumped by 55% in 2020 (due to Covid-19 lockdowns) & is expected to grow to $169.4 billion
at a CAGR of 14% by 2023 from $104.11 billion in 2019. The seeds of OTT in India were laid with the entry of YouTube in 2008
Regional || Broadcasters || Global || Distributors || Telecom || Social Media || Others

07 08 09 10 11 12 13 14 15 16 17 18 19 20

2007 2010 2015 2020

Source: Businesswire
Key Players: YouTube captured the OTT market as a first mover. 500 minutes of fresh video content gets uploaded on YouTube
per minute. Hotstar gained the market share with live sports broadcast of IPL & ISL. Global players like Netflix and Amazon Prime
Video appeal to a niche target audience through Originals, while Indian players like Voot target daily soap opera viewers.

PLATFORM YouTube Sony Liv Netflix

PARENT Alphabet Star India Viacom 18 Sony Pictures Amazon Netflix
GOOGLE PLAY STORE DOWNLOADS 5 B+ 100 M+ 50 M+ 50 M+ 100 M+ 500 M+
UNIQUE USERS (MARCH 2019) 274 M 128.5 M 22.5 M 24.5 M 23.1 M 15.5 M
AVERAGE MINUTES PER USER 7.4 Mins 13.4 Mins 3.8 Mins 2.7 Mins 96.3 Mins 24.1 Mins
REVENUE MODEL AVoD + SVoD AVoD + SVoD AVoD AVoD + TVoD + SVoD SVoD SVoD
274030 128523 22533 24579 23102 15501

31.0% 32.1% 27.5% 27.9%

34.3%
54.6%

UNIQUE USERS
(‘000)
69.0% 67.9% 72.5% 72.1%
65.7%
45.4%
Total Users
Female Unique Users (Mar'19)
Male Unique Users (Mar'19)
Youtube Hotstar Voot Sony Liv Amazon Prime Video Netflix
Comedy,
Comedy, Action,
Comedy, Documentary, Comedy, Reality, Comedy, Drama, Documentaries,
KEY GENRES Drama, Family, Reality
Sports, Drama, Comedy
Romance, Drama Horror, Reality, Thriller
Drama, Horror, Kids,
Thriller/Crime, Drama,
Romance
Horror, Animation
Source: Indian OTT Platforms Report 2019, Brandwatch
OTT generated ₹173 Bn in terms of revenue in FY19. AVoD in the industry drove 82% of revenue. The SVoD count is
expected to reach ~40 M subscribers by 2023, while AVoD will cater to ~600 M users by then. The average revenue per user
Business Model
(ARPU) is expected to hit ₹785.65.

Advertising Video-on-demand (AVoD):

Marketing through video-based content introduced in 2018. Major restrictions include
200000
skip ad button, short attention span, and inefficient targeting.
150000
100000
50000 Subscription-based Video-on-Demand (SVoD):
0 Unlimited access to TV series & movies with no ad interruptions or pay-per-view from
(in million) services like Netflix, Hotstar, etc. on a monthly/quarterly/annual subscription fees.
2017 2018 2019 2020 2021f 2022f
2023f
Transactional Video-on-Demand (TVoD):
Revenue TVOD Video Downloads SVOD AVOD Services like TATA Sky, DishTV, Hathway, etc. which provides pay-per-view services for
TV series and movies.

400
Pricing Incentives:
300 1. Free Trials: to push the consumers towards platform consideration
200 2. Freemium: basic package are offered for free and premium features can be
bought at a subscription cost
100 3. Bundling: platform customized to cater to audience which is price sensitive &
prefers mobile only like Netflix
0
(in million)
2017 2018 Platforms are taking a hybrid approach to maximize their user base and target the price
2019 2020f 2021f sensitive Indian audience. Our research shows that the Indian audience prefers low cost
2022f movie content either on big screens like TV or on-the-go platforms like mobiles &
2023f
tablets.
Users SVOD TVOD Video Downloads Free OTT Video Viewers
Source: Statista
Internet affordability has proven to be the key enabler of OTT in India: The latest technological innovations, mobile data
affordability (₹18.5/GB), and deeper internet penetration have been the real drivers of OTT demand in India. Over 200 Indian originals
were released in 2019 with Zee5 leading the game with 80 shows. 31 original Indian regional shows were released across platforms.

63% of viewership
Mobile Penetration comes from non-metros

500 Million
smartphone users Content for all
In 2019 YouTube kids has
The biggest rival of Netflix is our need for sleep.
100M + views Reed Hasting, CEO,
Netflix
Internet Penetration
630 Million The video streaming market in India has exploded -- thanks to Reliance Jio
internet users in 2020 75% of -- with 65% of video consumption coming from rural India that has only
40% Internet connectivity.
regional content TV Ramachandran, President,
user base by 2021 Broadband India Forum (BIF)
~80% streamed
content influenced by AI Hotstar’s consumer base reveals unique choices of each viewer – men are
based recommenders Services & Devices watching drama and movies from the South are being consumed in the
North. While the enchantment of cricket remains unabated, customers are
like Facebook watch, iTunes
increasingly getting attracted to kabaddi and football.
Chromecast, Amazon Fire stick Uday Shankar, President,
₹ 2.5 Billion The Walt Disney Company APAC Chairman, Star & Disney India
spent on content
creation & distribution

Source: News18, tech.hindustantimes.com, KPMG, Hotstar Watch Report

Hotstar overtook YouTube with live sports streaming: Platforms are differentiating themselves based on the extensive
range of content within the genre. The introduction of gamification in live sports has ensured sustained viewership and increased
customer engagement.
Live Sports Live Sports
120
1. Hotstar: Digital arm of Star Network, used to broadcast
100 sporting events like IPL, ISL, Pro Kabaddi League and highlights of
matches
80
2. Sony Liv: Sony Entertainment’s digital arm which focuses on
60 the sporting events like UEFA Champions’ League, WWE, UFC,
Cricket tours and Big Bash League and NBA
40
3. YouTube: A content channel focused towards highlights,
20
repeat telecasts, and other user generated content for sports
0
2007-06 2008-06 2009-06 2010-06 2011-06 2012-06 2013-06 2014-06 2015-06 2016-06 2017-06 2018-06 2019-06 2020-06

HotStar YouTube Sony Liv

Movies Movies
120
1. Netflix has gained huge interest of the crowd in terms of
100 movie searches since the lockdown and has been a top name
across the country
80
2. Fmovies had tried gaining the market share in 2017 but quickly
60 lost steam
40 3. YouTube provides a pay-per-view option for the movies, but
the interest has just kept falling over the last 5 years and is now
20 relevant in live streams and other user generated content
0 4. Prime Video has been unsuccessful in creating a buzz in the
16/08/15 16/02/16 16/08/16 16/02/17 16/08/17 16/02/18 16/08/18 16/02/19 16/08/19 16/02/20 movie industry even during the lockdown
hotstar youtube netflix prime video fmovies
Source: Google Insights
Bigg Boss live cast overrules the series/TV shows’ interest: Integrations like Indian Idol ‘Sing-Along’ will fade away borders
between OTT & TV. The partnership between players in the telecom industry, OEMs, and TV/Broadband will drive growth in the
consumer base. Interactive content like Black Mirror: Bandersnatch will increase engagement & loyalty.
TV Shows
TV Shows
120
1. Voot emerges as a trendy topic when we consider the peaks of
100 interest based on search. This is synchronous with the Bigg Boss
telecasts
80
2. Hotstar and Netflix have been capturing the latest buzz with
60
their portfolio of Originals or in-house productions like Aarya,
40 Criminal Justice, Sacred Games, Delhi Crime, and Mirzapur
3. YouTube is a dying breed in terms of TV Shows because of the
20
Original content and OTT arms of TV broadcasters limiting
0 YouTube releases
16/08/15 16/02/16 16/08/16 16/02/17 16/08/17 16/02/18 16/08/18 16/02/19 16/08/19 16/02/20

hotstar youtube netflix prime video voot

TV Vs. Digital only

Global vs Indian TV Shows:
120
1. Indian audience prefers local-content over international
100
content
80 2. Worldwide successes like Game of Thrones have been
outperformed by regional content like Bigg Boss Tamil, and
60
Reality TV Shows like Roadies and Bigg Boss
40 3. The peaks in interest studied have spanned over the last 15
years, thus providing enough evidence that the transition from
20 YouTube-only era to 30+ OTT channels have also not been able to
transform the Indian viewers and their choices.
0
2007-06 2008-06 2009-06 2010-06 2011-06 2012-06 2013-06 2014-06 2015-06 2016-06 2017-06 2018-06 2019-06 2020-06

bigg boss tamil yeh ri shta kya kehlata hai bigg boss game of thrones roadies
Source: Google Insights
COVID IMPACT: OTT consumption grew by 34% between 1st and 21st March 2020. Data consumption on OTT platforms rose by
COVID
249% as against February 2020. This number changes to a whopping 947% when the period is extended to July 2020. The
average time spent on the OTT platform was 70 mins per day per user in July 2020.
Area Impact Timeline Direction for OTT
Week of Lockdown
Sports industry Switch from live audience to telecast viewing (IPL, Football) 1 year Positive
Shopping
TV Content Content demand increases 6 months Positive

Food Delivery OTA TV “Cord cutting/Cord Shaving” in progress 2 years Positive

Social distancing becomes a habit – Decreased hall audience 1 year Positive

Mobile Wallets Cinema
Film releases on digital platform 1 year Positive

Other OTT AR/VR research to make content more lively 3 years Positive
Technology
AI for better content recommendations and customer targeting 6 months Positive

Music Data Faster Broadband and cheaper data packs 1 year Positive
Consumption Deeper Penetration of Internet services 1 year Positive

Social Hotstar observed a 20% increase in the afternoon band watch-time,

while maintaining the prime-time consumption.
News

Business News

Grocery

OTT (Hotstar, Netflix, Amazon)

-40% -20% 0% 20% 40% 60%

Percentage Change

Source: Hotstar Watch Report, OMDIA, Financial Express

The Indian consumer is price sensitive, and hence a strong negative correlation is observed between subscription fees &
user retention. Entertainment is the primary need for a whopping 84% of 451Mn active mobile internet users. Over 80% of users
have 3 or fewer video streaming apps.

Reasons to Unsubscribe

Increase in Subscription Fees 68.88%

Dissatisfaction with Quality of content 59.32%

Lack of time to watch shows 43.14%

Bad user interface & experience 40.68%

Unavailability of diverse set of show 37.60%

Easier access to pirated content 19.41%

Inmpulse to invest time otherwise 13.71%

Other

Source: Voodly, Comscore

THANK YOU