As we all know consumers nowadays get an inundate of content in a variety of formats- audio, video, visual, text- from the very minute they wake up until they retire at night without any restrictions. These days brand content is delivered via internet across the globe to netizens as they want to be courted, entertained, educated and positively wooed by it. The content is anything authenticated and something that the audience can consume, engage or understand and enjoy.
For example, Balaji Telefilms had announced the launch of their OTT service ALT Balaji. The platform went live on April 6, 2017. But why did they venture into this space. Why? The answer lies in India being the world’s fastest growing smartphone market, with 300 million users currently. As internet becomes faster and cheaper in the country, all thanks to Jio, the smartphone is going to be dominant and the most watched screen for netizen in India. A survey of 1,000 Reliance Jio customers by Bank of America Merrill Lynch showed that nearly 75% of the users used the free and fast data to download video of their interest.
Users have shown willingness to pay for premium services / content and convenience to use that make better value proposition for them. Players are coming up with hybrid models that provide access to large content catalogue for free and some of the premium content and services are provided only to subscription users. The traction generated by free content is monetized through ad supported models while subscription fees are levied for premium services.
The key differentiator and overall value proposition for consumer is derived from the balance of services and features that are offered to free user viz a viz premium user for the service. Global examples in digital online music category are Spotify and Pandora. Spotify has than 90% of its revenue from subscription fees. Spotify has acquired 15 million paying subs out of its 60 million total user base. 17 Pandora on the other hand generates most of its revenue through ads and most of its user base uses the service for free.
In India as well, various models are being tried by on-demand content providers. While currently, most of the OTT players are generating revenue through ad supported models. Players are devising product and service offerings that lure free users to become paid subscribers. To provide experience of premium value
proposition many of the players are coming up with trial premium packs. Both Gaana and Saavn which are the leading online music service providers in India, have adopted hybrid monetization models and offer limited period trial premium pack experience to their first-time users. Mobile TV and on-demand video services in India that are offered by incumbent DTH players in India use subscription models bundled with DTH subscription. Bharti Airtel launched an OTT online music service that is based on subscription only model and boast the value proposition of bundled data packs for downloading up to 500 songs.
There is a marked shift in consumer preferences towards digital media consumption as compared to traditional forms of media which include TV, print press, and radio. People are spending more time each day on digital rather than traditional forms of media. Data from the US and the UK have shown that in last 4 years, there has been a significant increase in the time that people spend on digital media. The increasing popularity of digital media has provided for a paradigm shift in the global advertising spends.
The advent of OTT players, both domestic and international, is providing consumers with multiple choices around content consumption. We are seeing a shift in consumer’s attitude from content ownership to having easy access to a vast library at any time and place.
Corpus is a one stop OTT Solution Provider that delivers on multi screens and also focuses on smart monetization. With reputed content providers/creators as our partners, we put maximum efforts to cater unlimited digital entertainment experience. Our video platforms have given content creators/providers better returns on their quality content which further helps them in creating an engaged community of users. Content is streamed and accessed by numerous eyeballs and that’s the value added to your content by Corpus.