We are the generation of Video consumption! And OTT platforms are the biggest beneficiaries of this.
The Jio revolution has made internet cheaper than ever before (in India). A whole new audience beyond the metros now has both access & reach.
The Jio revolution has made internet cheaper than ever before (in India). A whole new audience beyond the metros now has both access & reach.
OTT (Over-the-top) platforms provide one big advantage to the users (versus Television) - you can watch WHAT YOU WANT, WHEN YOU WANT.
Hence the term VOD - video on demand!
Hence the term VOD - video on demand!
Here is how OTT platforms make money:
a. AVOD - Ad-based Video on Demand or Advertising Video on Demand:
In this case, the platform runs advertisements & makes money from brands.
In this case, the platform runs advertisements & makes money from brands.
YouTube is a champion at this (while they have also launched an ad-free subscription model lately).
b. SVOD - Subscription Video on Demand:
Users pay a fee per month / year to become subscribers of the platform, and have access to all the content on it.
Users pay a fee per month / year to become subscribers of the platform, and have access to all the content on it.
Netflix is the best example of an SVOD platform.
In the Indian context, Netflix is the most premium (expensive) OTT platform.
In the Indian context, Netflix is the most premium (expensive) OTT platform.
c. TVOD - Transaction Video on Demand:
In this case, the user pays to view a certain piece of content only!
Can be a movie or a web-series or a documentary.
The user does NOT get access to other content on the platform.
In this case, the user pays to view a certain piece of content only!
Can be a movie or a web-series or a documentary.
The user does NOT get access to other content on the platform.
Salman Khan’s movie Radhe was released earlier this year on Zee5/ZeePlex OTT at a pay-per-view cost of INR 249.
d. HYBRID:
A combination of two or more of the above models constitutes a Hybrid model.
The platform makes money from more than one source.
A combination of two or more of the above models constitutes a Hybrid model.
The platform makes money from more than one source.
Disney+ Hotstar is a great example of this. They make money through advertisements while also offering subscription plans to the customers.
So what do OTT platforms SPEND money on?
The most important & critical expenditure for an OTT is Content! Content acquisition happens in two ways:
1. “ORIGINALS”: OTTs produce original web-series, movies, documentaries which are released & available ONLY on their own platform. Nowhere else, online or offline.
Sacred Games on Netflix
Mirzapur on Amazon Prime
Special Ops on Disney+ Hotstar
Are examples.
Mirzapur on Amazon Prime
Special Ops on Disney+ Hotstar
Are examples.
2. RIGHTS ACQUISITION: Platforms acquire rights for content, for the OTT category only.
This means the content is also available on other mediums such as TV or theatres, but in the OTT space will be available only on one platform which has acquired the rights.
This means the content is also available on other mediums such as TV or theatres, but in the OTT space will be available only on one platform which has acquired the rights.
Live sports & movies predominantly rule this space.
Disney+ Hotstar @DisneyPlusHS owns the biggest market share among OTTs in India.
One of the reasons is that the platform is part of a media conglomerate which produces content through the year.
Add to that, they hold the rights to almost all of the Indian cricket content.
Add to that, they hold the rights to almost all of the Indian cricket content.
Other dominant names in India are - Amazon Prime, Zee5, SonyLiv, Netflix & Eros Now.
Regional platforms have emerged in recent times, catering specifically to the Bharat audience.
Stage @STAGEdotin - Haryanvi and
Aha @ahavideoIN - Telugu
Are two great examples who have seen great success in a short time.
Stage @STAGEdotin - Haryanvi and
Aha @ahavideoIN - Telugu
Are two great examples who have seen great success in a short time.
India has an estimated 35 Crore OTT subscribers, a 25% penetration!
A major chunk of the population still remains untapped. The space will only grow & it will be exciting to see how the “Content Wars” shape up.
END.
A major chunk of the population still remains untapped. The space will only grow & it will be exciting to see how the “Content Wars” shape up.
END.
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