Subscribers – the new ruler of content!

Working from home and going back to the lockdown mode has taken its toll on Shreya, who would like to OTT & relax with some food and great content to binge at the end of the day. Call OTT platforms saviors of the hour, but many viewers like Shreya have had their wish come true via the new-age cutting edge shows and movies that OTT offers.

Like so much else that transformed overnight during the global pandemic that hit 2020, the Over-the-top media service Industry too rounded a bend that it is unlikely to return to its original space. Even in the wake of the pandemic and subsequent lockdowns, one noteworthy trend was the acceleration of content consumption through these OTT platforms. Subscription VOD will be the prime driver of revenue in India, increasing at a 30.7 percent CAGR from $708 million in 2019 to $2.7 billion in 2024, according to PwC.

The OTT industry is ultimately about diversified content. Creating a hit show among the divergent audience’s taste & preference is a huge risk that the industry balances on though with the support of fairly robust analytics. Some recent times have showcased how subscription business in the digital video space is winning the race. According to PwC’s Global Entertainment & Media Outlook 2019–2023, Subscription video on demand will increase at a 23.3% CAGR from INR 3756Cr in 2018 to INR 10708Cr in 2023. The numbers showcase the fact that audiences are willing to pay for unique narratives and fresh storytelling.

The pandemic has outgrown many earlier norms and has created a new phenomenon ‘content gone digital’ thereby highlighting the fact that whether it’s movies, OC, music, news, broadcast, or even sports, the consumption is happening across digital platforms. Another reason for subscriptions being the key is shifting the audience from broadcast to digital media. This gets fulfilled and serviced by the fact that digital content is now immersive, inclusive as well as individual, thereby demanding attention across divergent groups of families, new to the digital, experimental as well as selective individual audiences.

According to IBEF, India’s OTT sector saw the volume of paid subscribers rise by 30% to 29.0 million from 22.2 million during the March–July 2020 period alone. The platforms are heavily investing in differentiated content to attract and sustain this audience that is while willing to pay but extremely fickle. Studies also show an average SVOD audience will not pay for more than 2.5 video platforms or OTT apps at a given point in time.

Analysing active churn and consumer behaviour is an immense learning mechanism that allows deep insights into your users. Enables an average digital marketer to improve upon the consumer experience and engage in-depth and width. Whether it’s in-app, push notifications, A/B testing, subscription pop-ups, simple registration/subscription steps, or the viewing experience, it will all determine if the free viewer will convert to a subscriber or just skirt on the edges leading to zero benefits for the platforms.

Subscription video on demand (SVOD) services have put out more original shows than broadcast or cable in the last year and have been fairly responsible for the entertainment industry’s growth. Future growth of OTT players depends upon affordable pricing options, customized language packs if needed, buffer-free experience, retention strategies, and great content regularly launched with a clear business model.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of ET Edge Insights, its management, or its members

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