With the increasing demand for variety, original content is expected to be the key growth driver for the 30-player over-the-top (OTT) industry in the coming years, who have earmarked around Rs 3,300 crore for the same, says a report.
OTT players are heavily investing in creating and distributing original programming in Hindi and regional languages. Currently, Rs 2,500-3,300 crore have been set aside for OTT services in the country especially for original content production, says a technology, media and telecommunications report by Deloitte.
The report sees regional content increasing on the digital platform, while production houses may use the OTT route to release content such as movies before their television premieres. “Advertising revenue share from the digital platforms will increase due to the fast pace of growth,” it said. The report estimates that digital advertisement market more than doubling to Rs 35,400 crore by 2020 from Rs 13,300 crore in 2017.
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, the report said without mentioning the present viewership numbers. 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.
“This increase can be credited to the improvement in mobile devices technology and internet connectivity, which has provided the viewers with the option of accessing digital media content on the go,” the report said. Currently, as much as 40 per cent of OTT viewership are in regional content.