As low cost of mobile data and affordable smartphones revolutionise the OTT video streaming landscape in India, the users are now comfortable paying Rs 400 (less that $6 a month) on average to avail these services, according to a new report.
Given the crowded Indian OTT space, consumers have likely tried most OTT services and now see the value in paying more, according to the report by US-based software company Brightcove titled ‘The Future of OTT in South Asia’.
“Out of 40 OTT platforms in India, narrowing it down to two-three services with a monthly subscription will mean churn rate will be high for many platforms,” the report mentioned, adding that offering a free tier with ads and a premium tier without ads or limited ads is the key for the existing players.
On the contrary, in Pakistan and Bangladesh, the OTT users are exposed to fewer services, so they are “unlikely to see the value of paying a higher fee until they have tried out the service”.
“There is an affinity for homegrown Indian content in Bangladesh and Pakistan markets. Indian OTT providers launching in these markets would cater to both local audiences and the diaspora segments,” noted the report that covered seven countries, with more than 3,000 unique online respondents (aged 16 and above) in India, Bangladesh and Pakistan.
In South Asia, 60 per cent of respondents use social media to discover new content and platforms.
“Ads are acceptable but for a lower fee as 33 per cent are willing to pay lower or no fee in return for watching ads and only 24 per cent are willing to pay a higher fee for no ads,” the findings showed.
Mobile viewing is a must have as 70 per cent of viewers prefer to consume content on their mobile phones, followed by TVs (55 per cent) and personal computers (53 per cent).
Nearly 64 per cent of viewers of those surveyed want a monthly subscription, whether it’s SVOD, AVOD, or a hybrid of both and 55 per cent of viewers have one or more free online video sharing services as their go-to TV viewing platforms, according to the report.
Brightcove offers cloud-based platforms to publish and distribute digital media, including Brightcove Video Cloud, an online video platform.