OTT Content: The Rising Dominance of OTT Platforms in the Media Entertainment Industry

Changing Viewing Habits of OTT Content

With the growth of smartphone usage and affordable data plans, audiences especially millennials and Gen Z are spending more time consuming content online on their mobile devices. They prefer on-demand access to a wide variety of films, TV shows, web series and short videos of their choice available online rather than being restricted by linear television schedules and channel options. This has led to audiences rapidly shifting from traditional television viewing to streaming content online on various OTT platforms.

Rise of Global OTT Content Giants

Global OTT Content giants like Netflix, Amazon Prime Video and Disney+ have seen exponential subscriber growth worldwide over the past few years. Netflix surpassed 200 million paid subscribers globally in 2020. Disney+ also achieved impressive numbers with over 100 million paid subscribers within 16 months of its launch. This showcases audiences' increasing preference for subscription based video on demand services over traditional TV. These major players have extensive budgets for original programming and acquiring media rights which helps attract and retain large user bases.

India's Growing OTT Market

India currently has over 600 million smartphone users which has enabled massive adoption of OTT video streaming in the country. Local players like Hotstar, ALTBalaji, SonyLIV, ZEE5, Voot and MX Player have seen subscriber numbers rise significantly with affordable pricing plans and regionally relevant content in Indian languages. The Covid-19 pandemic further accelerated OTT growth in India as lockdowns pushed people indoors and boosted digital media consumption. OTT revenue in India is projected to rise to $15 billion by 2030 from $0.8 billion in 2020 according to various estimates, showcasing India's potential to become one of the largest OTT markets globally.

Rising Investments in Original Content

To stay ahead in the competitive OTT space and attract new users, platforms are substantially increasing investments in exclusive original programming. Netflix plans to invest $17 billion in content in 2022 alone. Amazon Prime Video has also ramped up spending on new Indian originals. Platforms are funding new genres like crime thrillers, romantic dramas and young adult shows. Prestigious filmmakers are being brought on board to direct OTT-specific films and series. High production value originals help platforms differentiate their content catalogs and build brand loyalty among subscriber bases. Original shows also ensure exclusive availability which discourages users from switching to other services for that specific content.

Changing Content Consumption Trends

OTT platforms are seeing shifting viewership patterns compared to traditional TV. Binge-watching of entire seasons of web series within days of their release has become commonplace. Short-format videos under 30 minutes are gaining popularity on platforms. Verified viewership metrics now also play a crucial role in determining the success and returns on investment of new original productions. Data analytics help fine-tune commissioning decisions and genre strategies going ahead. With increasing options and reduced attention spans, platforms need agile strategies to keep users engaged across all types of content.

Rising Global Co-productions

Cross-border co-productions between streaming giants and production houses globally have also seen an upswing. This allows platforms to share costs while expanding their content libraries with international appeal. For instance, Amazon Prime Video co-produces the hit thriller series Mirzapur with an Indian production company to cater to audiences in India and worldwide. Netflix also funds international originals like Delhi Crime and Sacred Games. Such partnerships leverage respective strengths to create compelling multi-lingual content for OTT audiences globally. Major platforms have even started releasing some original titles simultaneously worldwide to tap international fandoms.

Upcoming Challenges and Opportunities

While OTT media consumption continues surging ahead, platforms face newer challenges around Justification of rising content investments,subscriber acquisition costs, password sharing issues and potential over-the-top regulation in some countries. At the same time, emerging technologies around 5G connectivity, VR headsets, voice interface access present new avenues for platforms to engage audiences through innovative experiences.

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Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.

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