By During the coronavirus pandemic, Over-the-top (OTT) platforms such as Netflix, Hotstar, and Amazon Prime Video have witnessed a substantial increase in paid users. Let’s delve into the reasons behind this surge and the factors driving the sustained growth of these platforms.
Pandemic-Driven Boost and Sustainable Growth
While the pandemic initially acted as a catalyst, the sustained growth of OTT platforms is attributed to various factors. These include telecom bundling strategies, the preference for annual subscriptions, and the shift towards online movie viewing over traditional theatres, as highlighted in a report by RedSeer consulting.
Exponential Growth in Paid Users
The report reveals a remarkable 35% increase in unique paid users between April 2020 and February 2021, reaching an impressive 31 million users. Subscriptions also saw an 8% rise during this period, with each user holding an average of 1.4 subscriptions. Additionally, subscription revenue surged by a substantial 42%, climbing from $49 million to $68 million.
Telecom Bundling Initiatives
With lockdowns confining people to their homes, the consumption of digital content on smartphones and televisions surged. The closure of theatres further drove users to subscribe to platforms like Netflix, Amazon Prime, and Hotstar to access the latest releases. A survey by Ovum and Amdocs indicated that 44% of Indian respondents were willing to spend more on telecom bills due to bundled media services. Many households subscribed to multiple OTT platforms to cater to diverse content preferences.
Success of New Releases and Online Shift
Major OTT releases like “Dil Bechara” and “Ludo” on Disney+ Hotstar gained immense popularity, showcasing the success of web platforms. This shift was further emphasized by acclaimed films like “Gulabo Sitabo” and “Choked,” which opted for digital premieres amid lockdown restrictions.
Changing Consumer Behavior
The research indicates a significant shift in consumer behavior, with OTT platforms becoming the go-to source for new content. This shift is expected to fuel the industry’s growth trajectory, especially with a substantial portion of viewing time dedicated to daily soaps and original content.
Embracing Longer-Term Subscriptions
Contrary to past beliefs, Indian users demonstrated a willingness to invest in longer-term subscriptions during the pandemic. The reduced out-of-home spending redirected budgets towards in-home services, including OTT subscriptions. Discounts and offers on annual subscription packs further incentivized users to opt for extended commitments.
The sustained growth of OTT platforms amidst the pandemic underscores their pivotal role in catering to evolving entertainment preferences and consumer behaviors, marking a significant transformation in the digital entertainment landscape.
