The over-the-top (OTT) media landscape is undergoing a significant transformation. Despite the growing dominance of OTT platforms, a recent report by EY and FICCI reveals a 12% decline in premium OTT content consumption in 2024. This downturn is primarily attributed to the increasing number of pay-TV homes and the streaming platforms’ efforts to cut costs by reducing expensive productions.
Cost-Cutting Measures Impacting OTT Content
The report highlights that OTT platforms are struggling to maintain profitability, leading them to focus on more cost-effective content strategies. This shift has resulted in a decrease in the quantity of premium content being produced. The number of films released directly on OTT platforms has dwindled to just 60 in the past year, while around 500 films were released on these platforms after their theatrical run. This indicates that most films still follow the traditional theatrical release model before making their way to OTT platforms.
Regional Content Dominates OTT Platforms
Interestingly, the report notes that regional language content accounts for 48% of the content on OTT platforms, with a significant portion being dubbed for broader audiences. This trend underscores the growing importance of regional content in the OTT ecosystem.
The report also predicts that while the volume of OTT content may increase in 2025, production costs are likely to remain low. The Indian market is expected to witness significant growth, with the number of screens projected to rise and subscriber homes expected to reach 65 million by 2027. The number of large-screen homes is anticipated to surpass 200 million by 2030, and smartphone users are expected to reach nearly 700 million.