The rapidly increasing over the top (OTT) space is likely to see consolidation over the next five years, according to industry experts. In the OTT digital space, the number of players will shrink and I predict the maximum number of players that will remain in this space will not be more than 10 in the next three to five years. Advertising money is going to get even more fragmented and with increasing players, it's going to get worse," media veteran Raj Nayak said at the Ficci Frames event. I think that's when the real realisation of value will happen both in terms of subscription and advertising, he said.
Nayak, who recently quit as Viacom 18 chief operating officer noted that digital players have devalued their product. A recent report by global management consulting firm Boston Consulting Group expects the OTT market to be USD 5 billion by 2023. The report had noted that the number of players in the Indian OTT market had grown from 9 in 2012 to 32 players in 2018.
It had also noted that all platforms struggle with retention of consumers, and on an average 50 per cent of OTT apps installed are uninstalled in the first seven days of installation. Media firm Zee Entertainment Enterprises video on demand service Zee5s chief executive officer Tarun Katial felt the broadcasters perhaps missed a chance by creating a catch-up TV environment on the digital platform than on-demand original content.
Broadcasters have done a good job with OTT, very differently from anywhere else in the world, but we, unfortunately, created a catch-up TV VoD platform and this is where we have come in late than the Amazons and Netflix of the world, he said. He further pointed out that this is the only place where the industry was a little slow although it was strategic in nature and haven't gone as fast as the Netflix of the world. On whether OTT and television will continue to coexist, Star India president and head Hindi GEC Gaurav Banerjee said that streaming will not kill television.
He added that there is an opportunity of a billion screens if the number of phones and televisions are added. Nayak too echoed the similar sentiment and said television is here to stay. I believe they will both coexist. In the next 10 years, television is here to stay and digital streaming will grow at a very fast pace, he said.
(With inputs from agencies.)