sign in sign up
<<
Home , Eros Now, MX Player, Voot, ZEE5

REPORT: OTT MARKET

TOP OTT PLAYERS AND THE THEIR FINANCIAL RESURGENCE IN THE PANDEMIC

The year gone by i.e., 2020 has hit the 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 faces tough competition (OTT) platforms have become quite with other OTT platforms in such popular in India since last few years. as Amazon Prime, , and An over-the-top (OTT) media service Eros , each of which charge lower is a 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 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

BROADCAST AND FILM20 MARCH - APRIL 2021 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 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 and to ` 40 crore. Now '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 (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 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 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

BROADCAST AND FILM21 MARCH - APRIL 2021 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 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 , available absolutely free of cost for our Sembaruthi in Tamil, Jothe Jotheyali users to explore. in Kannada and Mazya Navryachi In 2018, 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 , , 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” Entertainment Network channels in to add users was TV catchup ALT Balaji India: Sony TV, Sony SAB, Sony Ten, content. ALTBalaji is an Indian Sony Max, Sony MAX 2, Sony PIX The company will not invest subscription based video on demand and Sony Six. any capital in MAU-DAU conversion platform which is a wholly owned Sony Liv is the first Indian and it is going to be largely based on subsidiary of Balaji Telefilms Ltd. Over-the-top media service platform the catch-up TV portfolio. Zee5 will ALTBalaji is available across 32 to produce music content for a target 15-18 per cent conversion of different interfaces for its viewers. The Hollywood feature - producing MAU to DAU in the next fiscal. content has been made available on music for the Hindi version of the The video streaming service mobile and Tablet Devices (Apple blockbuster titled Passengers, released 18 original shows and two phone, Apple iPad, Android phone,

BROADCAST AND FILM22 MARCH - APRIL 2021 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 , , and romance, to thriller, Rockstar, Shubh Mangal Savdhan and pandemic and looking for crime, and mystery. The content bank more. 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 Arre 2020, while advertising and 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.

BROADCAST AND FILM23 MARCH - APRIL 2021 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 Giga (AVoD) 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. 

BROADCAST AND FILM24 MARCH - APRIL 2021