iWorld

Paying OTT subs to reach 30-35 mn by 2021, only 2x growth in ad revenue

Digital media is set to overtake filmed entertainment this year

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2019/07/23/tv2.jpg?itok=qmbuJh_0

MUMBAI: Digital media is set to overtake filmed entertainment in India this year in terms of revenue. While TV will retain its pole position as the largest segment, digital will also overtake print by 2021 to reach $5.1 billion, according to a report from FICCI and EY report on ‘How a billion screens can turn India into a media and entertainment powerhouse’.

In this overwhelming growth of digital media, telecom operators will be the future MSOs. As per the report, while 60 per cent of total consumption today is through telco bundles, it is estimated to grow to over 75 per cent by 2021 and cater to over 375 million subscribers. Smartphone penetration is just 36 per cent in 2018, leaving massive room for growth. 30 per cent of phone time is dedicated to entertainment.

“While watch time could grow 3 to 3.5x over the next five years, resulting in a massive inventory growth, advertising revenues will grow only around 2x. CPMs will correspondingly fall during the period for non-premium inventory,” the report added.

Along with growth in advertising revenues, subscription revenue is also projected to grow. The report predicts 30-35 million paying OTT video subscribers and 6-7 million paying audio subscribers by 2021.

“Digital segment will benefit from the growing popularity of e-sports, AR/VR technologies, online gaming and fantasy sports, all of which are “Generation Z” products,” it added. “With its massive base of internet users, India’s digital media market is attractive to global streaming platforms looking to capitalise on the country’s fast-growing digital consumption. This is especially true as competitively priced 4G services become more widely available.”

The report went on to mention that despite the growth in digital media consumption, piracy threat is
“likely to restrict full monetisation of content as well as large-scale acceptance of SVoD in India”. It mentioned, “Indian market is highly price-sensitive and is driven majorly by advertising revenues. Several sectors such as print, digital, television and radio derive major share of their revenues from advertising.”

The report highlighted that consolidation will be needed for platform profitability as contest costs will remain high as each platform produces or acquires content to meet its needs. It also added that post the new tariff order regime, OTT platforms are sure to benefit due to increased parity between television and OTT content choice and costs.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/06/znap.jpg?itok=MMj3WkZ6
ZEE5 Global announces its latest partnership with Cashback App ZNAP

MUMBAI: ZEE5 Global has announced its partnership with cashback mobile app ZNAP in UAE. The application offers users a unique shopping experience with rewards and bonuses while sitting at home. The partnership will provide users a chance to earn cashback credit and a monthly subscription to premium...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/06/zee5.jpg?itok=grtGwXNF
ZEE5 records over 50% increase in WoW viewership

KOLKATA: During the lockdown, ZEE5, as India’s Entertainment Super-App has continued to entertain and engage diverse audiences by serving bespoke content across languages and a spectrum of devices. The platform’s popularity surged further as the week-on-week viewership soared by 52 per cent for all...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/06/sripriya.jpg?itok=eL13v_OX
It’s a match! Tinder and Pocket Aces team up to show how people are Dating In 2020 in the new format ‘FilterCopy Mini’

NEW DELHI: In a bid to constantly innovate, and cater to the changing content consumption habits of the audience, Pocket Aces’ short-form video channel, FilterCopy, has launched a new Instagram-first format called ‘FilterCopy Mini’ that will focus on telling short,  relatable stories in just under...

iWorld Social Media
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/06/Paytm.jpg?itok=dLdWmPW5
Paytm to acquire Raheja QBE General Insurance to expand financial services offerings

NEW DELHI: India's homegrown financial technology platform Paytm (owned by One 97 Communications Ltd) along with Vijay Shekhar Sharma is set to acquire Mumbai-based private sector general insurer Raheja QBE. The acquisition is subject to customary conditions, including, approval from the Insurance...

iWorld e-commerce
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/06/MN-Vyas.jpg?itok=4q0HG0qg
5G remote production: Need of the hour or call of the future

Broadcast to mobile is a fascinating concept which came into light in the early 2000s. The mobile networks were busy with offering GPRS based services. The early days saw a variety of mobile broadcast solutions including DVB-H, DMB, DAB-IP, ISDB-T and MediaFLO.

iWorld Telecom
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/04/tik-tok.jpg?itok=h4QCBokF
TikTok ban to see influencer spillover onto YouTube & social spaces

KOLKATA: The recent ban on Chinese social media platform TikTok in India sent shockwaves across the country's TikTok community. The platform, which leverages viral, user-generated content, has more than 120 million users as recorded in June 2020.

iWorld Social Media
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/03/Amazon%20Prime%20Video.jpg?itok=0P2ByXZo
Dedicated Amazon Prime Video app now available on all Windows 10 devices

NEW DELHI: Customers in India can now access Prime Video through a dedicated app available on the Microsoft Store on Windows 10 devices. Using the new Amazon Prime Video for Windows app, customers are now able to stream Prime Video content online or download Prime Video content for offline viewing...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/02/tiktok.jpg?itok=LI9e2Clw
TikTok clarifies: Don't intend to take legal course against ban

KOLKATA: The government of India under Section 69A of the Information Technology Act recently imposed a ban on 59 Chinese apps including TikTok. Several reports said that the video-sharing platform could take a legal route. However, the company has refuted such reports saying that it has no plans...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/02/jagananth.jpg?itok=DAsXvS_v
Shemaroo Entertainment to live stream Jaggannath Puri Rath Yatra 2020

With mandated restrictions on public gatherings during religious ceremonies and festivals, many devotees are turning to digital platforms for a solution. Taking the legacy forward, Shemaroo Entertainment Limited, India’s leading content house, is live streaming the traditional Rath Yatra from the...

iWorld Over The Top Services

Sign up for our Newsletter

subscribe for latest stories

* indicates required