Following the rapid expansion of OTT platforms, viewers now place more importance on OTT than traditional cinema. OTT has significantly increased entertainment options, allowing viewers to access diverse content from the comfort of their homes.
OTT Content: The growing dominance of OTT (Over-the-Top) platforms in the digital entertainment world is a significant story, but 2024 witnessed an unexpected downturn in this sector. According to a recent report by EY (Ernst & Young) and FICCI (Federation of Indian Chambers of Commerce & Industry), premium OTT content consumption decreased by approximately 12 percent in 2024.
This report indicates that while OTT platforms have broadened the range of options for viewers, they are also facing numerous challenges due to production costs and competition.
Reasons for the Decline in OTT Content Consumption
According to the report, the main reason for the decline in premium OTT content consumption in 2024 is the reduction in production budgets by platforms. Companies are focusing on creating better quality content at lower costs, avoiding expensive productions. The aim is to maintain profitability and survive in the increasingly competitive landscape.
Furthermore, a decrease in the number of pay-TV homes (homes with traditional cable and satellite TV) is also considered a major contributing factor to this decline. The decrease in pay-TV homes signifies that some viewers still rely on traditional television and haven't fully transitioned to OTT. This shows that despite the growing popularity of OTT, a significant portion of TV viewers still prioritize traditional media.
Reduction in Content Volume
The report also mentions a decrease in the volume of premium content. In 2024, only about 60 films were released directly on digital platforms, while approximately 500 films were made available on OTT later. Overall, more than 1600 films were released throughout the year, which is 64 more than the previous year. This clearly shows that most films are still released in theaters first, then later on digital platforms.
Regional language content on OTT is rapidly gaining popularity. According to the report, approximately 48 percent of the total content released on OTT in 2024 was in regional languages. This content was also dubbed to reach a wider audience. This indicates that Indian viewers now prefer entertainment content in their mother tongues, which presents a significant opportunity for OTT platforms.
The State of Content in 2025?
According to the report, the volume of OTT content may increase in 2025, but pressure on production costs will remain. This means that OTT platforms will explore new ways to create better content while trying to keep expenses under control. The report also predicts that the number of homes with large screens in India will exceed 200 million by 2030.
Meanwhile, homes with smaller screens like smartphones will reach approximately 700 million. This clearly indicates that the consumption of digital content will increase rapidly across various screen sizes. Furthermore, the number of subscriber homes will increase from 47 million to over 65 million by 2027, indicating the continued popularity of OTT.
