The media & entertainment industry has changed profoundly in the past decade. In 2010, Netflix was just getting into streaming, and today, the traditional media empires worldwide are in panic mode.
Users have never had better choice at such a great price. What does this mean for everyday people & business interests alike? In this piece, we’ll explore the future of OTT streaming, and what it means for the entertainment business.
As the purchasing power of Millennials outweighs that of declining Boomers, their spending habits are shifting towards OTT. In the past 12 to 18 months, video-streaming on OTT in India remains largely a metro phenomenon. A recent consumer study by ‘Counterpoint Research’ reveals that the topmost five metros account for 55% of OTT users, while Tier I cities bring in 36 percent of the audience.
Companies offered customers the ability to watch TV on demand, Millennials have been leaving cable or satellite providers.
Besides being a loud trend, video consumption on these platforms is primarily for young generation too, with a massive 89% of users range between 15 to 36 years of age group. Salaried employees & workers are the largest consumer group, followed by students, business owners, housewives and others
Although households are progressively subscribing to multiple OTT services, there’s a limit to what number the common consumer will sustain.
The previously mentioned heavy-hitters will exacerbate the rate in service closures/consolidations by drawing subscribers away from incumbent players.
While these new services ought to contribute to a rise within the range of OTT subscribing households, the number of services available will likely experience the inverse.
Powerhouses like Amazon, Roku, Apple, and even VRV seek to capitalize on the existing services available by aggregating the staggering number of options into a more palatable experience for consumers. These corporations hope to possess a grip during this next phase of the streaming war by offering – or getting ready to offer – streaming services of their own whereas also providing a point of aggregation for consumers.
OTT streaming permits content providers the flexibility to reach new markets.
While traditional TV providers face physical network limitations, OTT opens the door to reach a worldwide audience wherever an adequate internet connection exists.
As a result, content licensing agreements are evolving to meet the rising demands of video providers who are no longer geographically restricted.
In addition, streaming video is more or less closely connected to social media, since viewers watch on the same devices as they use for social media. Video providers are using social media to better grow and engage their audiences. This can be a double-edged sword, however, as viewers can air their grievances on social networks for all to see.
