What is driving consumption on Netflix and other OTT platforms?
Telecom bundling worked well for OTT video increasing number of subscriptions per year
The pandemic led online streaming platforms see a significant growth as offline entertainment shut down, and various stakeholders turned to online platforms as viewers started relying on OTT players for fresh content. Over the past year, online OTT industry saw significant changes with high quality content releasing on various platforms with the aim to garner subscribers. Here are a few latest insights on how the industry has grown and what has driven consumption for the subscribers.
1. Telecom bundling worked well for OTT video increasing number of subscriptions per year
1. Reasons for increase in paid users
a) New Launches in Video and shift to online
- Users shifting spend to online
- Launch of Hotstar+Disney, Voot Select & multiple regional SVoD platforms like HoiChoi, SunNXT
- Rise in Smart TV users
2. What is working well
a) Bundling Plans
- Telecom Post Paid & Pre-paid users– Bundling options for post paid users (Hotstar, Netflix and Prime Video)
- Broadband bundling – Free Prime Video & Netflix subscriptions for JioFibre users)
b) Higher users opting for annual packs
- Higher discounts & offers are leading to more users opting for annual packs
Many of the post paid users opt for bundling options provided by their telecom operator as it benefits them in varying ways. Even broadband operators like JioFibre provide bundling options. For Free Prime and Netflix subscriptions. Moreover, with discounts and offers on various players, users tend to opt for annual subscription packs. While the unique paid user growth rate has been 35% in February 2021 when compared to April 2020, subscriptions increased by 8% during the same period. Importantly, subscription revenue also increased by 42%.
2.Users spent 188 billion minutes on OTT platforms in February
Compared to last April 2020, there has been a drop of 6% in February 2021 where users spent 188 billion minutes monthly. The drop is mostly because engagement dropped as users started moving out with normalcy returning and their favourite TV soaps starting again. However, the good news is with more releases in the pipeline along with product improvement, the engagement is likely to increase.
3. Daily soaps, new releases across TV and movies drive up consumptions
Note: Mainstream/Licensed movies are not accounted under Originals
Our research shows that out of the 188 billion minutes spent on OTT, users spent the highest that is 69 billion minutes on daily soaps followed by movies with 31 billion minutes and then originals produced by the OTT platforms. Voot dominates the daily soaps genre compared to its players while ‘Others’ together contribute 31% as well. On the other hand, Hotstar dominates movies genre with 33%.
Over the past year, consumer behaviour has largely changed as they now heavily rely on OTT platforms for new content. This will inevitably accelerate the growth trajectory of the industry.