OTT players estimated to invest Rs 250 cr for content creation, distribution in 2020: Report

MUMBAI: The growing competition in the OTT video streaming market has prompted key players to invest in original content as well as grow the reach through strategic distribution tie-ups. According to an MMA India-GroupM report, OTT players are estimated to make hefty investments of approximately Rs 250 crore for content creation as well as distribution in 2020.

The Mobile Marketing Association India (MMA India), a leading global mobile trade body, in collaboration with GroupM, a media investment group, today launched the third edition of ‘Mobile Marketing Ecosystem Report 2020’.

The report stated that original content creation and programming in digital media has come a long way. It noted that the journey began with independent YouTubers engaging their followers with User Generated Content, further giving birth to large-scale content creators such as Dice Media and TVF that introduced original webisodes, specifically catering to the taste of the Indian consumer.

According to the report, OTT players have further strategically introduced basic affordable packs to balance out the above capital investments. For example, the ‘Hotstar VIP’ low-cost subscription pack and Netflix powered ‘mobile-only’ plans introduced at a 50% cheaper rate. Amazon Prime and Netflix have even tied up with multiple renowned film production companies to produce cutting-edge original content.

Globally, video and audio content have been dominating internet consumption. Capitalising on this, OTT has created a stir in the market with original content across genres.

Incorporating innovative business models to increase the network of distribution through retail, e-commerce, OEM partnerships, and much more, OTT players international and domestic alike, have imbibed product and service offerings that allow consumers to experience a premium value package of consuming content on the go with mobile device proliferation, the report said.

With more than 30 OTT players and 10 music streaming apps in existence catering to various entertainment and media demands, Indians are prone to consuming content across an array of digital formats and platforms, the report said noting that the focus is bound to shift towards the monetisation of content.

The report also highlighted that among all active mobile internet users in India, which stands at approximately 451 million, entertainment is the purpose for a whopping 84%.

This is followed closely by communication at 79% and the use of social media at 67%. Net commerce and online shopping fall quite far behind in numbers at 40% and 23% respectively. This clearly indicates the need for digital video and OTT platforms to continue making the interface mobile-friendly, thereby ensuring a wide reach to all those actively consuming content on the go.

The report further stated that marketers believe that influencer marketing helps them engage with the customer in an interactive way and thus 80% of them would increase ad spend next year. With attention spans of consumers being short, short-format advertising content is key. Currently, India is the sixth-largest market in the consumption of video ads. It also noted that 90% of new internet users over the next five years are expected to prefer regional languages to access the internet.

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