Internet users all over the world are growing rapidly, India is one of the fastest growing when it comes to internet penetration. The main consumption of the internet is for media consumption. With increasing internet speed and growing Wi-Fi and 4g networks in India, consumers have an option to access the media content of his/her choice be it information, entertainment or social activity anytime, anywhere. The rise of digital media content providers such as Netflix, Hotstar, YuppTV, iTunes Library (Apple TV) and Sony LIV etc. are challenging the traditionally maintained supremacy of the television as the main entertainment hub.
India’s active OTT video subscribers in 2015 were 15 million and is expected to grow to 20 million by 2016 says a recent Media Partner Asia (MPA) report. It further expects this figure to grow to 105 million by 2020. This is in comparison to the 168 million TV households in India in 2014 out of which 180 million are cable and satellite (C&S) subscribers according to FICCI-KPMG report. Though OTT media has grown quite a lot in just a short span there is quite a long way to go. The growth of OTT media services is expected tremendously on the back of smart phone penetration in India, however poor broadband penetration and bandwidth still remain challenges to their growth.
For all the potential advantages of OTT, rights management is an critical issue, with 48 percent of respondents saying that gaining content rights for multiple screens is the most significant business challenge. Pay TV operators are most concerned with this (nearly two-thirds agree), while 45 percent of content providers share this concern.
A slightly smaller number of respondents, 41 percent, say bandwidth caps are a challenge, and another 41 percent say that a lack of consumer awareness is a concern.With the increasing adoption of OTT services and with net neutrality becoming the norm, the growth predicted globally looks real. Market penetration is definitely on the rise. Questions do arise on how sustainable it is and whether there are disruptions on its way. But for now, the answer is no for disruptions – other than any regulatory restrictions that might arise.
Success in today’s digital age requires agility, innovation, and an emphasis on customer satisfaction. With OTT’s ability to quickly offer a variety of services to customers whenever they want on their preferred devices, it’s safe to say this market will easily meet, or exceed, the staggering predictions of 2019.
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