Threat of New Entrants

1. Relaxation of Regulations: by Government for obtaining

broadcasting licenses
2. Capital Investments: High upfront capital investments required
3. Economies of Scale: Established brands can achieve lower
average costs per unit of output
4. Product Differentiation: Originals, localized regional content,
exclusive broadcasting rights
5. Incumbency Advantages: Loyalty and trust

Bargaining Power of Suppliers Bargaining Power of Buyers

1. Scripted Content: Higher bargaining power with production
houses and artists due to the rise in demand for high-quality
original content.
2. News & Regional Content: Lower for readily available news
content and regional programming. With advent of OTT
localization, the bargaining power of local product houses has
gone up.
3. Threat of Forward Integration: Ease of production and
distribution of content with OTT platforms
Competitive Rivalry
1. Industry Concentration: TV and satellite are dominated
by few major players while streaming is characterized
by greater competition and diversity
2. Diversity of Competitors: High diversity due to
originals, exclusive content, streaming rights, regional
content etc.
3. Exit Barriers: Asset-light business models such as
content aggregation platforms have lower exit barriers
 Consumers (Viewers)
1. Price Sensitivity: Consumers do not want to pay for
subscriptions and are also spoiled for choices.
2. Intrinsic Leverage: Low switching costs, multiple
substitutes available and cannot backward integrate
 Advertisers
1. Price Sensitivity: Want to lower ad-spend and have
multiple choices for advertising. No Product differentiation
unique to OTTs
2. Intrinsic Leverage: Advertisers have big budgets and
run large-scale advertising campaigns

1. Low Switching Costs: Eg. Online piracy

2. Streaming Services: Mainstream channels streaming services
(Zee5, SonyLIV), free alternatives (YouTube, Vimeo, Spotify),
other prominent OTT services (Netflix and Amazon Prime
Threat of Substitutes Video)
3. Other forms of Entertainment: Social media (Facebook,
Instagram, TikTok, Twitter)
4. Technology advancements: Disruptions with VR, AR, and AI
(faster, immersive, targeted)