Beginning of the value+ era

As COVID-19 enters the endemic phase and in-person entertainment makes a comeback, OTT players must offer more value and personalized service to retain viewers.

By Prabhu Ram

Through the course of the pandemic, India has been living, working, and unwinding at home. In an everything-from-home context, Indian consumers have been binge-watching content – on an array of devices, including their smartphones and their TVs. India is currently the world’s fastest-growing OTT market and is anticipated to exceed USD3 billion over the course of the next five years.

There is a need to cater to evolving consumer needs, aspirations, and preferences, as well as to tailor content as per age, viewing history, and time spent.

Consumer insights from CyberMedia Research (CMR) point to an increased content consumption through the course of the pandemic. The lack of avenues for content consumption – whether it be cinema theatres or on TV, led people to explore and embrace OTT. In fact, our most recent CMR Consumer Snapshot Survey shows Netflix, Amazon PrimeVideo, and Disney Hotstar+ being the top three preferred OTT platforms for consumers.

OTT platforms, including Disney Hotstar+, Amazon PrimeVideo, and Netflix, are seeking to build on the increased consumption trends. A key factor for OTT platform success depends on its ability to attract and retain viewers. In a multiplatform OTT era, there is a need to cater to evolving consumer needs, aspirations, and preferences, as well as to tailor content as per age, viewing history, time spent, amongst others.

Widen the user base: Responding to the increased content consumption by true digital natives, and attracting new consumer cohorts onto the OTT platforms, there has been an increased focus by OTTs for debuting OTT-first exclusive premieres of Bollywood and vernacular movies. And, our insights, point to the increased time spent online by not just natives, but digital laggards, comprising an older demographic.

Content > OTT brand: OTT platforms are focused on bolstering their original content programming. While some plan to introduce new original programs, others are focused on debuting new seasons of existing programs. With a focus on original content, Viacom launched Voot Select, and Sony introduced the new SonyLiv.

Dovetailed to the focus on original content bank, is the increasing focus on incorporating vernacular into the program mix. For instance, Amazon Prime Video’s Family Man 2 had predominantly Tamil dialogues to suit the milieu. While that may have been necessitated by the milieu, it does make a platform like Prime Video accessible to newer audiences, who may not have experienced it before. Similarly, the success of Malayalam movies, such as Kumbalangi Nights and #Home in recent times, beyond their core, intended audiences, also speaks to this trend.

OTT-bundled offers from telecom operators Airtel, Jio, and Vi focus on a symbiotic partnership with OTTs to enable accessibility for consumers.

Accessibility matters: In a price-sensitive market such as India, one-size-fits-all pricing does not work. It’s a dynamic market, and home to different consumer cohorts, with varying capabilities to pay. In short, freemium is king. To enable consumers to take the leap from free to premium will require content to be compelling, and for dynamic pricing models, including sachet pricing, to attract and retain new consumers.

Friends forever: Recent consumer insights point to subscribers tending to stick to their service providers in case they have access to their preferred OTT platforms. OTT-bundled offers from telecom operators, Airtel, Jio, and Vi for OTT platforms like Amazon Prime Video and Netflix focus on a symbiotic partnership with OTTs to enable accessibility for consumers. For instance, prepaid plans with up to 2GB of data per day from these operators offer daily data, calling, SMS coupled with attractive streaming benefits.

As India gets vaccinated, cinema theatres reopen slowly, in-person events make a comeback, and most importantly, India potentially enters an endemic phase of the COVID-19, OTT platforms will have to start competing with other entertainment forms for consumer eyeballs and time spent. This also means that OTT platforms will have to continuously focus on offering value to consumers, to enable increased engagement and retention.

Ram leads the Industry Intelligence Group at CyberMedia Research 

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