A new report by Deloitte has brought some interesting foresights to the forefront. As per the report – titled Technology, Media and Telecommunications report – original content is expected to be the key growth driver for the players in the over-the-top (OTT) industry in India, in the coming years.
In India, the OTT players are heavily investing in creating and distributing original programming in Hindi and regional languages. Currently, a gigantic amount of Rs 2,500-3,300 crore has been set aside for OTT services in the country especially for original content production. Not just that even the movies may have their digital releases, prior to their satellite premieres.
OTT video viewers are expected to grow to 355 million by 2020, but considering the rate at which broadband connectivity is growing now, the number may grow at a faster pace. With an increase it the original content and greater popularity with the audiences, the advertising revenue share from the digital platforms will increase due to the fast pace of growth. The digital advertisement market is estimated to double to Rs 35,400 crore by 2020 from Rs 13,300 crore in 2017.
Additionally, it said the industry would focus on expanding regional content library to increase the market share. It is expected that the vernacular users will be more than 2.5 times of the English Internet user base by 2021. Currently, as much as 40 per cent of OTT viewership comes from regional content.
Currently rural India is lagging behind its urban counterpart, with only 17 per cent Internet penetration, owing to challenges in deployment of fixed broadband networks. In future, demand for fixed broadband would be limited to consumers with higher bandwidth/quality of service requirements. Wireless networks will drive Internet adoption for nearly 750 million users in India who still do not use Internet.