TOP OTT PLAYERS AND THE THEIR FINANCIAL RESURGENCE IN THE PANDEMIC
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REPORT: OTT MARKET
TOP OTT PLAYERS
AND THE THEIR
FINANCIAL
RESURGENCE IN
THE PANDEMIC
The year gone by i.e., 2020 has hit the entertainment sector badly due to the pandemic
and the repercussions will be felt this year also. The OTT players have registered
phenomenal growth in the pandemic in terms of revenues and addition in subscribers.
We have tried to profile some of the top OTT players and catalogue their financial
performance during the Covid pandemic.
Over–the–top media services Netflix faces tough competition
(OTT) platforms have become quite with other OTT platforms in India such
popular in India since last few years. as Amazon Prime, Hotstar, Voot and
An over-the-top (OTT) media service Eros Now, each of which charge lower
is a streaming media service offered subscription rates than Netflix.
directly to viewers via the internet.
OTT bypasses cable, broadcast, and
satellite television platforms, the
companies that traditionally act as a launched Amazon Prime Music in
controller or distributor of such February 2018. You can join Prime to
content. Due to COVID-19 outbreak in watch the latest movies as well as
the country, many filmmakers are now award-winning Amazon Originals at `
releasing their movies on major OTT 129/month or ` 999/year. Prime
platforms, instead of waiting for the subscription presently also includes
(Netflix has reported
theatres to re-open. India has lots of free Amazon music alongside unlimited
significant growth in India revenue
options when we talk about OTT free, quick delivery.
from IN` 58.04 Cr in FY2018, to IN`
services. Here are the Top 10 OTT
Netflix 470 Cr in FY2019 and then IN` 900
platforms in India.
Netflix is one of the popular Cr in FY2020. India falls in the Asia
Amazon Prime Video streaming services in India. The OTT Pacific region for the US-based
Amazon Prime Video is a very platform offers three subscription plans company, which was the second-
popular video streaming service or including Basic, Standard HD and largest contributor to the yearly tally
OTT service in India. Amazon Prime Premium Ultra HD. The Basic plan with 93 Lakh new subscribers in 2020.
Video was launched in 2016 in India. comes with a price tag of ` 500, while The company had added a record 3.7
Besides English, Prime Video is the Standard HD pack is priced at ` 650 Cr paid memberships in last year. The
available in six Indian languages as of and the Premium Ultra HD plan is company had also offered a two-day
December 2018. Amazon India available for ` 800 per month. free streaming offer in India, which led
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REPORT: OTT MARKET
to 8 Lakh downloads of the Netflix in its financial statement, has claimed introduced paid subscription service
app..) that its operations were hit during the called Voot Select. Voot Original series
pandemic due to health in sporting are made available only to paid
Disney+ Hotstar
events worldwide. The pause on the subscribers. Some TV shows are being
Disney+ Hotstar is an Indian
shooting of shows between March 19 streamed a day before TV for its paid
over-the-top streaming service
to July 13, 2020, also impacted the subscribers.
owned by Novi Digital
company’s revenues. Its freemium service Voot
Entertainment, a subsidiary of
While Hotstar claims that Select was launched this quarter. `
Disney's Star India. It features two
since the easing of restrictions, the 13 crore was invested into Voot Select
paid subscription plans— "VIP",
production of shows has resumed and Kids (and in Kannada and
which focuses on domestic
and many have released on the Gujarati movie channels).
programmes and sports content
platform, it added the impact from the Operational revenue from “digital,
(including Indian Premier League
pandemic will be assessed on an print, others and & intercompany
cricket), and "Premium" featuring
ongoing basis. elim.” fell 16.6% QoQ and 20% YoY
premium international films and
to ` 40 crore. Now Viacom18's Voot
television series (including HBO, Voot
expects 50% revenue from new
Showtime and other American Voot is an Indian subscription
subscription-led service Voot Select.
original series). video on demand (SVOD) service.
Earlier, it used to be all free. It was
Launched in March 2016, it forms the
just an ad-supported platform.
online arm of Viacom 18. It is Viacom
Voot has 100 million monthly
18's advertising-led video-on-demand
active users and aims to be one of
platform that is available as an app for
the leading Indian OTT players.
iOS, KaiOS (JioPhone) and Android
Currently driven by an Advertising
users, and a website for desktop
supported video-on-demand model,
consumption. Voot Select will cost `
Voot will continue to build scale by
99 a month after a three-day free trial,
diversifying from 1 business model
or ` 499 for the full year after a 14-day
of AVOD to 4 - VOOT AVOD, VOOT
free trial.
Kids, VOOT International and VOOT
Freemium. With the freemium model,
As of July 2020, VIP Plan costs
Voot plans to invite more first-time
` 399 for a year and Premium Plan costs
users, and give them a preview of
` 1,499 per year or ` 299 for a monthly
their original, exclusive content. The
plan. As of March 2020, Disney+
monetization and revenue plan will
Hotstar has at least 300 million active
largely be advertisement driven, but
users.
premium services for pay-per-view
Disney+ Hotstar has reported a
subscribers will also bring in money.
revenue of IN` 1628 Cr for FY2020, with Voot is available only in India,
“The current digital advertisement
losses narrowing in comparison to the and hosts over 40,000 hours of video
market is around ` 1,200 crore and
previous year. content that includes shows from
will push up to ` 6,000 in the next 2-
The company saw relatively channels like MTV, Nickelodeon and
3 years. We hope to exploit that,”
slower growth in subscription revenue Colors. Content is also available in
Gandhi said.
for FY20, in comparison to over 50% multiple languages like Kannada,
growth in ad revenue. Marathi, Bengali, Gujarati, Telugu ZEE5
According to a recent study, and Tamil. Voot has content from ZEE5 is an Indian video on
Disney+ Hotstar could become the Colors TV, MTV India, Nickelodeon demand service run by Essel Group
second-highest revenue-earning video India and other Viacom 18 owned via its subsidiary Zee Entertainment
platform in India by 2025. television channels. It also hosts Enterprises. It was launched in India
However, it is difficult to predict many Bollywood films for streaming. on 14 February 2018 with content in
whether Hotstar will be able to keep up It has produced several 'Voot 12 languages. ZEE5 recently
with the revenue growth in FY2021, Original' shows for streaming as well. announced the launch of ‘ZEE5
ending in March 2021. The company, In February 2020, Voot Club’ at ` 365 per year. ZEE5 Club
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REPORT: OTT MARKET
will enable its consumers to have movies during the quarter. However, starring Chris Pratt and Jennifer
exclusive access to most popular the average watch time per user per Lawrence.
shows before telecast on TV, apart month was 152 minutes in Q2 has slid Sony Liv Premium subscription
from select ZEE5 and Alt Balaji to 133 minutes in the third quarter. costs you ` 299 per month, ` 699 for six
shows, - 1000+ blockbuster movies, While an investor pointed out that months, and ` 999 per year.
ZEE Zindagi shows and over 90+ Live the engagement is lagging compared
MX Player
TV channels. to other platforms with similar
content, Goenka said that the low
performance of some linear TV
shows of the network has impacted
the catch-up TV consumption,
leading to lower engagement.
Zee5 revenues were at 117.8
crore, up 19 per cent quarter-on-
quarter, while EBITDA loss was at
` 175.7 crore versus ` 189.4 crore in
MX Player is an Indian video
Q2. The EBITDA losses continue due
streaming and video on demand
to higher investment in content.)
platform developed by MX Media &
Sony LIV Entertainment. It has over 280 million
users globally. The platform currently
With ZEE5 Club, subscribers
operates on an ad-supported model and
will be able to enjoy entertainment
has a streaming library of over 150,000
content without any intrusive ads
hours across 12 languages. It is
and across devices. Some of Zee’s
available on iOS, Android and the web.
popular TV shows like Kumum
The online Feature of MXPlayer is
Bhagya and Kundali Bhagya in Hindi,
available absolutely free of cost for our
Sembaruthi in Tamil, Jothe Jotheyali
users to explore.
in Kannada and Mazya Navryachi
In 2018, Times Internet acquired
Bayko in Marathi and many more
a majority stake in MX Player for $140
would be now available on ZEE5 Club
million. On 20 February 2019, MX
before telecast on Television.
Player was relaunched as an OTT
Zee5 had 54.7 global million
platform with original programming. It
monthly active users (MAU), and 5.2
Sony Liv (marketed as SONY has licensed contents from various
million global daily active users
LIV and formerly as SonyLIV) is an Indian and International studios
(DAU) in the September 2020 quarter,
Indian general entertainment, video including FilmRise, Sonar
the MAUs and DAUs stood at 65.9
on-demand service that is owned by Entertainment, Screen Media Films,
million and 5.4 million respectively in
Sony Pictures Networks India Pvt. Goldmine, Hungama, Shemaroo,
December 2020. Genka shared that
Ltd., based in Mumbai, Maharashtra, Paramount Pictures and Sony
the lack of TV content during Q1
India. Sony Liv's Library consists of Entertainment.
impacted the conversion of active
18 years of content from the Sony
users as a large part of the “funnel”
to add users was TV catchup
Entertainment Network channels in ALT Balaji
India: Sony TV, Sony SAB, Sony Ten, ALTBalaji is an Indian
content.
Sony Max, Sony MAX 2, Sony PIX subscription based video on demand
The company will not invest
and Sony Six. platform which is a wholly owned
any capital in MAU-DAU conversion
Sony Liv is the first Indian subsidiary of Balaji Telefilms Ltd.
and it is going to be largely based on
Over-the-top media service platform ALTBalaji is available across 32
the catch-up TV portfolio. Zee5 will
to produce music content for a different interfaces for its viewers. The
target 15-18 per cent conversion of
Hollywood feature film - producing content has been made available on
MAU to DAU in the next fiscal.
music for the Hindi version of the mobile and Tablet Devices (Apple
The video streaming service
blockbuster titled Passengers, phone, Apple iPad, Android phone,
released 18 original shows and two
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REPORT: OTT MARKET
Android tablet), Web browser media streaming and video-on-demand based in Mumbai. It produces and
(Desktop Browser), Android TV, and services. The digital platform is publishes videos, audio series, web
Windows (Windows PC, Windows accessible on most Internet-connected series, documentaries, text and doodles
Mobile, Windows tablet). screen including mobile, tablets, web through its online channel. Founded
and TV. by former Network 18 and TV 18
executives B. Sai Kumar, Ajay Chacko,
and Sanjay Ray Chaudhari, it is a
content-based startup and was
launched in April 2016.
OTT market to grow at 26%
CAGR and touch $4.5 billion by 2025
in India.
MPA report projected the
SVoD market will grow by 30% CAGR
from 2020 and reach $1.9 billion by
The platform has blockbuster 2025, while AVoD segment is expected
films like Cheeni Kum, Happy Bhag to surge over the next five years at a
Their website claims the Jayegi, Manmarziyaan, Bajirao CAGR of 24% to reach $2.6 billion.
platform to be the largest content bank Mastani, Tanu Weds Manu Returns, At a time when people are
seen in India. The stories range from Goliyon ki raasleela Ram-Leela, stuck at home due to the COVID-19
drama, comedy, and romance, to thriller, Rockstar, Shubh Mangal Savdhan and pandemic and looking for
crime, and mystery. The content bank more. Eros Now also has web-series entertainment options, the overall
also includes 100+ hours of kids' and films like A Monsoon Date, Maunn, online video market for India is
content as well as urban regional shows Salute Siachen, Black & White projected to grow at a compound
in Bengali, Hindi, Marathi, Punjabi, interviews and more in their segment annual growth rate (CAGR) of 26
Tamil & many more languages. You called E- Buzz. The subscription cost percent between 2020 and 2025 to
have a choice of three streaming of the Eros Now Premium subscription reach $4.5 billion in revenue over the
membership plans - 3 months for ` 100, service is ` 99 per month for a single next five years, says Media Partners
6 months for ` 180 or 12 months for ` device and ` 399 per year for a single Asia (MPA) in its new report titled
300. device. India Online Video & Broadband
(ALT Balaji’s COVID-19 Eros Now Subscribers Grow Distribution 2021.
related subscription spike has 56% Y-o-Y to Reach 29.3 Million According to the MPA's report,
flattened, as Balaji Telefilms’s revenues Revenue of $155.5 Million and India's online video industry generated
from the streaming service declined Adjusted EBITDA of $54.8 Million an estimated $1.4 billion in revenue in
from ` 22.2 crore in the preceding 2020, while advertising and
Arre
quarter to ` 14.9 crore in Q1FY21. subscription contributed 64 percent
According to the company’s and 36 percent, respectively.
management, ALT Balaji has a churn
Among the top five services
rate of around 66%, which means that
which accounted for a combined 85
two thirds of subscribers generally
percent share of total revenues in 2020
don’t purchase new subscriptions
include YouTube (43%), Disney+
when theirs have run out.)
Hotstar (16%), Netflix (14%), Amazon
Eros Now Prime Video (7%) and Facebook (5%),
Eros Now is an Indian quoted MPA executive director Vivek
subscription based over the top, video Couto as saying.
on-demand entertainment and media Couto added that the average
platform, launched in 2012. It is owned number of subscription video-on-
and controlled by Eros Digital, the demand (SVOD) services subscribed
digital media management arm of Eros by customers reach 2.8 in India and
International plc. The network offers Arré is an Indian OTT platform Southeast Asia.
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REPORT: OTT MARKET
In its report, MPA projected India making up 30 percent of its "While the direct-to-digital
the SVoD market to grow by 30 global subscription base. premiere of films is unlikely to
percent CAGR from 2020 and reach Adding more, Shah said that sustain, reopening of cinemas will
$1.9 billion by 2025. However, online YouTube remains the market leader in not necessarily impact consumption
video advertising saw a marginal AVoD and accounted for 67 percent of on OTTs. Streaming services are
decline of 2 percent year-on-year and total online video advertising in 2020. not just pushing for more originals,
reached an estimated $909 million in However, MPA India VP looked the whole experience is also getting
2020 due to decreased demand. sceptical and said that YouTube's modelled for urban-ready homes
Despite this, the advertising video- market share may decline to 55 percent with technologies like Airtel XStream
on-demand and Jio Giga
( A V o D ) Fiber," Shah
segment is said.
expected to The
surge over the latest MPA
next five years report claims
at a CAGR of 24 India's mobile
percent to reach broadband
$2.6 billion by penetration is
2025. forecast to grow
"Subscription- steadily to 66
based online percent by 2025
video services as commercial
benefited roll-out of 5G
significantly in expected to
2020 as the begin in 2021.
country went The new
into the investment by
lockdown. Key private telcos
players are has boosted
investing in India's fixed
premium local broadband
content while leveraging sports, movie in 2025 with domestic broadcaster- market which till now has remained
rights, and aggressive consumer backed platforms and short-form user under-penetrated at merely 6 percent
pricing to drive subscriber adoption. generated content video players of households.
The SVoD market will remain expanding their base. The report further claims of
competitive as Disney+ Hotstar scales "Local premium content and India's fixed broadband market to grow
its direct subscription business while sports rights will help broadcaster- at a CAGR of 18 percent to reach 45
Netflix and Amazon Prime Video deepen backed platforms gain share. Increased million subscribers with over 82 percent
partnerships with mobile and fixed reach and engagement with rural of subscribers through fiber by 2025.
broadband operators," the business millennials will improve monetisation Infrastructure growth has
daily quoted MPA India vice-president for short-form video platforms," Shah helped Indian customers look for
Mihir Shah's statement. said. expanded broadband capacity which
MPA predicts Disney+ Among other things, MPA includes video conferencing, work from
Hotstar may secure over 80 million report said that OTT content home, digital classes, and video
subscribers in India if they continue investment in India touched $700 streaming.
to invest in local originals and retain million in 2020 as domestic and global The MPA provides
key sports rights. In 2020, the online platforms continue to invest in India's independent research, advisory and
channel invested in acquiring big- burgeoning SVoD opportunity. Estimate consulting services across media,
ticket Bollywood films, following claims OTT content cost may grow at a telecoms, sports, and entertainment
which its subscribers rose to 26.8 CAGR of 18 percent to reach $1.6 billion industries in Asia Pacific and the Middle
million as of December 2020, and between 2020-2025. East.
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