“55.1 million people are expected to cut the cord by 2022.” – eMarketer
OTT streaming services are attracting 71% of internet users which makes it almost urgent to invest in integrated online video platforms for distributing and monetizing original and curated content. With a ballooning content production, the organization of content both on the users’ end and back-end system should be the priority.
Global Media and Entertainment Trends
“33% of people watch online videos on a Smart TV with video-enabled apps and 23% use a video game console.” – Statista
But why are people moving to OTT?
According to a study by Telaria and Adobe, people retain traditional screens to stream their favourite live sports, events, and news. But with telecom services like Verizon, AT&T, T-Mobile, and Sprint rolling out 5G internet plans in the US, OTT video platform now has the bandwidth to deliver UHD streaming for these niches too.
The global trends are pointing the same way.
The Indian Finance Minister Nirmala Sitharaman while presenting the Budget for 2020 proposed to allocate Rs 6,000 crore for the BharatNet program which will be a shot in the arm for broadband connectivity, especially in the rural areas.
While India is keen to welcome 5G, the task before the policymakers are to ensure that the telecom infrastructure and related technologies support its divergent demography, economic conditions, and shifting market trends.
In response to the favourable technology and investment climate, platforms like Netflix, Amazon Prime Video, Disney-owned Hotstar and Zee5 are making a beeline to the Indian OTT video audience.
Data consumption has seen a steep rise in the last three years as a reflection of cheaper Internet data costs, says Amitabh Kant, CEO of the policy think tank NITI Aayog.
Global OTT revenues are predicted to reach $129 billion by 2023. Despite SVOD being the general streaming services trend, it is building up to a saturation point leading to a new phase in the Internet lexicon – Subscription Fatigue.
People have finite entertainment budgets and SVOD services are easy to cancel. These factors make it more prone to churn.
47% of US consumers say they’re frustrated by the growing number of subscriptions and services required to watch what they want. Source: Deloitte survey
The OTT viewing trends are, however, more favourable to advertisements than TV viewers. Top OTT video platform providers allow advertisers to better target their ads to specific demographics or types of consumers who are likely to be interested in their products or services.
The first experience of VR and AR was in gaming and entertainment. But research shows that the development of enterprise extended reality (ER) solutions are growing fast. 65% of the companies surveyed said they are working on industrial applications.
AR is all set to see a 38% annual growth in healthcare by 2025.
Applications in healthcare are expected to see many use cases in 2021.
- Virtual reality (VR) has is being adopted in treating patients with phobias and anxiety disorders. Combined with biosensors to monitor physiological reactions like heart rate and perspiration, therapists can understand how patients react to stressful situations in a safe, virtual environment.
- VR is also used in helping people diagnosed with autism develop social and communication skills.
- Patients with visual or cognitive impairments can also be diagnosed and treated.
- Augmented Reality can be used by surgeons in the theatre and in training to alert them to risks or hazards while they are working.
Global Vs Local Competition
If you think the lion’s share will be retained by global OTT content providers, you are pleasantly off the mark!
Indian music streaming services app company, Gaana has used a hyperlocal approach and competitive pricing to give stiff competition to Spotify, Apple Music, YouTube Music and Amazon music service. It attracts 152 million monthly users, effectively half of Spotify’s global user base.
Netflix, Disney+, Amazon Prime and Hulu are already in a race for market share. But now they must also compete with Bollywood powerhouses who are luring users with almost free offers.
Hotstar built its base by streaming cricket matches. The Los Gatos, a California-based firm is offering a mobile-only service at less than half the typical subscription price, and raising spending on local content faster than in any other market.
The OTT landscape is going to be in a churn with the introduction of 5G internet and the vistas that it opens up. While sustainability and margins are the proverbial elephants in the room, innovative services are pushing media and entertainment trends in favor of OTT streaming platforms.
Despite the multiple services available in the market, the video streaming market still has the capacity to absorb viewership. Breaking into the scene with a new video OTT platform is not as difficult as you imagine. Explore how to build an OTT platform customized to grow your own brand.