With more than 300 million Internet users and nearly one billion smartphone users, India is developing into a major market for over-the-top video, especially with nearly one third of the population consisting of consumers in the Millennials and Gen Edge generations.
A recent report from Frost & Sullivan points out that there already are more than two dozen participants in the market that range from broadcasters to telecom operators and stand-alone OTT services, with that number expected to grow rapidly over the next two years.
Pricing, usage and technical requirements will be crucial to achieving success in the market, according to the researcher.
“Pricing, data analytics, personalization and video quality will be crucial in defining the market leader in the next five years,” said Frost & Sullivan digital media director Vidya S Nath.
Increasing competition already has driven down data service prices, something that also is expected to continue.
Niche OTT services have a solid chance of success because of India’s fragmented demographics made up of multiple languages scattered across diverse regions. The industry also has access to a large international population of Indian immigrants that is hungry for familiar entertainment fare, and Frost & Sullivan believes that the market for premium content will continue to develop with players in the region likely to partner moving forward.
“Even though the return on investment for OTT services providers is slow and does not justify the business proposition in the short run, competition will spur all broadcasters to consider the OTT business,” said Research Analyst Aafia Bathool. “Exclusive content at a competitive price with a sophisticated, user-friendly interface is the way forward. To achieve this, the market will see increasing strategic alliances among ecosystem players.”
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