The Changing Landscape of India’s OTT Space: A Comprehensive Analysis

The year 2023 marks a significant turning point in India’s OTT (Over-The-Top) space. The dynamics of the industry have shifted since the onset of the pandemic in 2020. While cinema halls witnessed a surge in construction, the initial boom in OTT apps has subsided. People are now rekindling their love for cinema halls, evident from the release of high-budget movies like “Pathan” and “Gadar 2.” However, the OTT space continues to evolve, and it’s essential to analyze the current scenario. Which OTT apps are leading the market, which ones are struggling, and what does the future hold for India’s OTT landscape? Let’s delve into this in detail.

India’s Leading OTT App: Jio Cinema

As of the present, Jio Cinema claims the title of India’s number one OTT app, boasting an impressive user base of approximately 143 million (14 crores). What sets Jio Cinema apart is its free access to content, which began gaining traction during significant events like the FIFA World Cup and IPL. Jio Cinema’s strategy is not limited to movies and shows; they have their sights set on sports as well. The platform secured a lucrative deal with the BCCI worth 6000 crores to broadcast India’s cricket matches for the next five years.

Table: Jio Cinema – India’s Leading OTT App

App	User Base	Key Features
Jio Cinema	143 million (14 crores)	Free access, sports broadcasting, diverse content

Jio Cinema’s future plans include becoming a one-stop destination for all forms of entertainment, aiming to outshine TV and other OTT apps. Their strategy includes producing original content, collaborating with renowned directors, and ensuring a wide array of content genres, catering to various tastes.

The Decline of Hotstar

Hotstar, which once held the top spot in India’s OTT space due to its dominance in cricket streaming, has faced a decline in recent times. Despite its user base of 89 million, the absence of major cricket events, such as IPL, has affected its market position. Hotstar made efforts to retain its user base by streaming cricket matches like the Asia Cup on its mobile app. However, these measures are expected to yield only short-term results.

Table: Hotstar – Facing Market Challenges

App	User Base	Challenges
Hotstar	89 million	Loss of cricket viewership, content quality

Hotstar’s challenges include regaining lost viewership and delivering compelling content that resonates with a broader audience. While it continues to offer content from National Geographic and Disney Plus, it faces an uphill battle in regaining its previous stature.

The Potential Merge of Zee5 and Sony Liv

Two significant players in the Indian OTT landscape, Zee5 and Sony Liv, are on the verge of merging. This merger, valued at 10 billion dollars, will bring together 70 TV channels, two OTT apps (Zee5 and Sony Liv), and create India’s largest TV network with a 26% market share. Zee5 has a broad content library, while Sony Liv boasts a user base of nearly 40 million.

Table: Zee5 and Sony Liv – A Potential Merger

App	User Base	Content Library
Zee5 & Sony Liv	40 million (Sony Liv)	Broad content range, merger potential

The merger aims to leverage the strengths of both platforms to compete with Jio Cinema effectively. With Zee’s production capabilities and Sony’s user base, this merger could reshape the Indian OTT landscape.

The MX Player Dilemma

MX Player, a popular app in India with 113 million users, faces a dilemma. While it has a significant user base, its reliance on ads for revenue poses challenges. The inconsistency in ad rates makes it necessary for MX Player to introduce premium subscriptions. Additionally, competition from other OTT platforms and the rise of VPN-based viewership have affected its revenue model.

Table: MX Player – Balancing Free and Premium Content

App	User Base	Revenue Model
MX Player	113 million	Ad-based, need for premium subscriptions

MX Player’s future relies on transitioning to premium subscriptions or seeking potential mergers to adapt to the evolving OTT landscape.

Netflix’s Unique Approach

Netflix, with a user base of 46 million in India, stands out due to its premium pricing. Despite being one of the costliest OTT platforms, it has successfully built a substantial user base. To further enhance its revenue, Netflix introduced an ad-supported plan, allowing users to access content while watching ads. Additionally, Netflix actively acquires content that aligns with the current market trends.

Table: Netflix – Premium Pricing and Content Acquisition

App	User Base	Revenue Strategy
Netflix	46 million	Premium pricing, ad-supported plan, content acquisition

Netflix’s adaptability to changing market dynamics and its focus on content relevant to the audience have contributed to its continued success.

Prime Video’s Evolving Strategy

Amazon Prime Video, with a user base of 51 million, has evolved its strategy in response to market changes. Initially, it offered a vast selection of free content to prime members. However, it has now shifted to a more comprehensive model that includes rental services for third-party content. Amazon’s primary revenue source remains e-commerce, with Prime Video serving as an additional benefit.

Table: Amazon Prime Video – Evolving Revenue Model

App	User Base	Integration with e-commerce, rental services
Prime Video	51 million	Supplementary benefit to Amazon Prime membership

Prime Video’s strategy revolves around providing an additional incentive for Amazon Prime memberships while ensuring its content remains competitive.

Conclusion: Navigating the Future

The Indian OTT space is a dynamic and competitive landscape, with various platforms vying for dominance. Jio Cinema, with its free content and strategic sports partnerships, currently holds the top position. However, its future may depend on its ability to introduce paid plans without losing its user base.

The potential merger of Zee5 and Sony Liv could create a formidable contender, leveraging Zee’s content library and Sony’s user base. Hotstar, once a dominant force, faces challenges in regaining viewership and offering compelling content.

MX Player grapples with the need to introduce premium subscriptions or explore merger opportunities to address its revenue concerns. Netflix’s unique approach, including premium pricing, ad-supported plans, and content acquisition, has allowed it to thrive.

Amazon Prime Video focuses on integrating with e-commerce and rental services to complement its primary revenue source. As the OTT landscape continues to evolve, adaptability and a keen understanding of market dynamics will be crucial for success.

In this ever-changing environment, the future of India’s OTT space remains uncertain. The ultimate victors will be those who can navigate the shifting sands of user preferences, content acquisition, and revenue models effectively. Only time will reveal which OTT platforms will emerge as the true leaders in this digital entertainment revolution.