A new report suggests that 2020 has been a ‘tipping point’ vis-à-vis streaming sites’ revenues overtaking theatrical earnings; advertisers see a ‘big opportunity as it’s the space to look out for’
Prashant Singh (HINDUSTAN TIMES; October 31, 2020)

There’s no doubt that OTT (over-the-top) platforms have seen a sharp rise in 2020, especially since the lockdown came into force. In fact, according to findings from a media and entertainment report by PricewaterhouseCoopers, Indian OTT market is set to become the world’s sixth largest by 2024 surpassing South Korea, Germany and Australia, to touch revenues of $2.9 billion over the next four years. Interestingly, as per the report, India is already the fastest-growing OTT market internationally, expanding at a CAGR (compound annual growth rate) of 28.6%.

Comfort and price!
Experts, on their part, feel that streaming platforms were destined to rise rapidly. “For the last five to six years, I have maintained that the OTT space is waiting to explode, and due to practical reasons. Over the years, watching movies in theatres has become quite a costly affair if you include tickets, food and travelling etc. OTT world, on the other hand, is a blessing for such people as they — and their entire family — can access tonnes of content now by paying a fixed amount, while sitting within the comfort of their homes,” says filmmaker Tigmanshu Dhulia, who is busy with the prep of his new web series.

The report suggests that over the next four years, OTT platforms, along with internet advertising; video games, e-sports and music; and radio and podcasts are going to be the top segments that are expected to witness revenue growth in India. Apparently, in 2018, the SVoD (subscription video-on demand) revenues were a third of India’s total box office revenues but the report suggests that as digital platforms attract audiences, the country’s movie box office may fall by 2.6% over the next four years even as SVoD’s growth spikes by 30.7%. Interestingly, the report underlines that 2020 is a ‘tipping point’ as SVoD revenue overtakes theatrical earnings. So, the big question is: has the Covid-19 pandemic, due to which the theatres have been shut and people have been cooped up at homes, helped speed up the rise and penetration of OTT players in India? Analysts agree in unison.

“It goes without saying that the OTT space is spreading rapidly. For instance, the platform that’s running Scam 1992 is seeing a huge jump in its subscription. And it’s also true that the lockdown restrictions as well as fear [of Coronavirus] are also playing a part [in people turning towards streaming portals],” says filmmaker Hansal Mehta, whose new web series, Scam 1992: The Harshad Mehta Story has hit the bull’s eye. At the same time, the filmmaker believes the charm of big screen isn’t going to wither away anytime soon. “I feel theatres may have a difficult time making a comeback but eventually, they will,” he adds.

The top space
Actor Nawazuddin Siddiqui concurs, adding that theatres will always have a special appeal of its own, but OTT platforms have several advantages, not just for viewers but makers, too. “On one hand, people — from across the world — have access to my content despite any kind of lockdown. And for makers, streaming sites have brought in a level-playing field. Plus, some really great talent is coming through due to the streaming world,” says Siddiqui, who has had a tryst with OTT through several shows/films such as Sacred Games, Serious Men and Raat Akeli Hai.

Now, as OTT platforms disrupt the traditional Indian content space, advertisers, too, see a big opportunity as it’s space to look out for. “It’s a given that the share of online platforms, especially OTT sites, in the total advertising pie is going to increase. But therein also lies a challenge, as it’s time for advertisers/creative people to sit and, what I call, ‘thunk’ [think hard] about how to embed and seamlessly insert advertising in the OTT space without interrupting the narrative [of the show/film],” says ad whiz Prahlad Kakar.

Coincidentally, the coming days may also see a number of top Bollywood names — such as Akshay Kumar, Ajay Devgn, Hrithik Roshan, Shahid Kapoor and Aamir Khan, among others — having a tryst with the OTT world. But film analysts feel theatres aren’t going anywhere. “Yes, the OTT space is spreading but the 70mm screen will fight back and eventually, shine bright again,” concludes trade expert, Taran Adarsh.