The year 2023 for the OTT sector in India was both dynamic and transformative, as the digital streaming landscape witnessed unprecedented shifts in Consumer Behaviors, Content Strategies, Technological Innovations and Policy Discussions. It closely resembled the delicate process of peeling back layers of an onion—each revealing a nuanced dimension of the entertainment industry. Facilitating this progress will be $10T+ Indian Economy and $100B+ Media Sector within the next decade.
But the question remains, do we have the building blocks to meet the demand of this golden market that has now only scratched the surface of OTT-scape? Exploring the trends of 2023 and delving into future insights might offer us valuable inklings.
Having surpassed 400 million streaming subscribers and garnered over 125 million paying subscribers, we find ourselves completing a significant phase in the evolution of our industry—the incubation/land grab phase. Over the past few years, we’ve observed considerable and, at times, irrational investments in both content creation and marketing, contributing to the remarkable position we now hold. As we transition into the consolidation phase, our focus shifts towards establishing scaled enterprises and identifying clear industry leaders. The potential consolidation involving entities like Sony-Zee and Disney+ Hotstar, along with a potential suitor, sets the stage for Indian giants to compete on a global scale, matching the consumer reach of their international counterparts.
Consolidation conversations by their natural process leads the industry towards charting the Path to Profitability. Lesser players and sharper focus on returns will have a rippling effect on the content ecosystem. Fewer buyers chasing even lesser stories will hopefully raise the bar on storytelling in the years to come.
OTT platforms play a crucial role in democratizing content by overcoming geographical constraints of theaters and linguistic barriers posed by linear channels. Presently, we are consuming content in a greater variety of languages than ever before, marking a transformative shift for India from a landscape of ‘One Country – Multiple Language Markets’ to a unified ‘One Country – One Market.’ The direct impact of this paradigm shift is evident in the emergence of several 500 crore-plus box office movies in 2023, signaling a noteworthy trend. The prospect of achieving box office milestones exceeding 1000 crore is now within reach.
Speaking of shift in consumer behavior, more and more Global Consumers (diasporas and non-diasporas) have started consuming Indian content. We are now witnessing close to 20% of consumption coming from global audiences. If the past decade was about explosion of Korean content, the coming decade will certainly speak the story of Global Explosion of Indian Content. Given the recent accolades conferred upon Indian content and talent, it is inevitable that the next global blockbuster will emerge from India in the near future.
Interestingly, a closer look at content in the past few years has a story to tell. On one hand, there is a surge in content with a truly global narrative and ambiance, while on the other hand, we have blockbusters crafted in an extravagant ‘Desi’ style of cinema. The crucial debate is not merely about South vs Hindi content but, more significantly, about the clash between the global and Indian approaches to filmmaking. In the current era of globalization, where novelty is highly sought after, the concept of “Local is Global” becomes paramount. Our traditional storytelling style is inherently unique and serves as a valuable gift to global audiences—one that we should steadfastly preserve.
An evident indicator of a maturing sector lies in the establishment of a Responsible Governance Mechanism. Over the past few years, all key stakeholders—government bodies, regulators, and industry players—have dedicated substantial efforts to shape what was once a growing sector, now recognized as a ‘sunrise’ industry. Through ongoing dialogues, these collaborative efforts have propelled the sector to a position where it operates responsibly, considering cultural nuances, while simultaneously fostering innovation and continued evolution in content.
As we log into 2024, the future seems full of exciting opportunities. We will perhaps witness every trend, every step in the playbook. From greater stories, and bigger blockbusters, to consolidation and sharper investments, we will perhaps witness all of it. Who knows, we may even witness the emergence of successful aggregators to act as the bridge between 50+ streaming platforms and audiences.
In the meantime, what do we as consumers have to complain about? Keep Streaming!
(This article is authored by Rohit Jain – Chair, IAMAI Digital Entertainment Committee and President, Lionsgate Play – Asia)
