OTT is a hot commodity. Its already taken over the US and has quickly branched out to international territories. Companies have been scrambling to grab land in every suitable market possible and next up on the list is India.
Why India? Here are the top three reasons.
1. Room For Growth and Low Competition
Currently there are about 1.3 billion people in India — or in other words, a lot of customers. Of course, not all of them have access to the internet, not even half! With the growing infrastructure and the introduction of the smart phone, Indians are becoming more connected than ever. According to Internet Live Stats, in 2010 only a little over 9.3 million Indian citizens had access to the internet, now, less than seven years later, that number has more than quadrupled to 450 million people ( more people than the US Population) — 450 million people who are looking towards their phones for entertainment. And that number is expected to more than double by 2025, according to the Boston Consulting Group.
Despite this large group, there are only about 29 native OTT companies fighting for the loyalty of the people. Meaning, there is an plenty of pie to go around without having to hit the elbows of the person next to them.
2. Ripe for creating life long customers
One thing that should be on every company’s mind is future proofing their business. And one way to future proof a business is by targeting a younger demographic that will grow old with the service. The median age of India’s 1.3 Billion citizens is 26 years old, compare that to Japan (47 years-old), Germany (47 years-old) and the UK (41 years-old). This young age means years upon years of loyalty, if the company plays its cards correctly.
3. Crowded, but not conquered
As mentioned above, OTT companies are starting to pop up across India. Right now the most dominant player is HotStar with 65 million subscribers — less than 2% of the nation — in second place with 13 million subs is Voot and Amazon comes in third with 9.2 million subs. Surprisingly, Netflix, which has over 100 million subscribers (half being outside the US), only has 4.2 million subs in the country. And even with subscribers from each service combined, the total doesn’t reach 2% of the population. For comparison, Netflix is estimated to reach more than 15% of the US population.
With a little more than 11% of its population having access to internet, India has a great deal of growth ahead of itself. Luckily, smartphones have been an effective way to connect its citizens to the world wide web and continues to increase the number of users by millions year over year. With a young population thirsty for relatable content and the lack of a dominant force in its OTT market, India is the perfect hotbed for new and existing streaming platforms to spread their wings and fly, which is why there has been and will continue to be a surge in the amount of digital platforms fighting for eyeballs in the region.