New and innovative technologies are disrupting every space, and the media and entertainment industry is no exception. Big players in the area find themselves outside their comfort zone, for the customer they once knew and were able to attract no longer exists.
This industry is growing exponentially. OTT viewership saw a 30 â 40% growth at the start of the pandemic as people were constrained to their homes. And this trend is expected to continue with an increase of 20%, reaching 500 million users by 2023. As per Counterpoint Research, the country also witnessed a 55% YoY growth in 2021 in the smart TV space.
But this has not resulted in traditional channels losing a significant slice of their viewership. The DTH space also saw a growth of 5%, from 42% in 2019 to 47% in 2021.
So, what trends should industry players watch out for in the coming year?
1. The linear â non-linear conundrum
The direct-to-consumer (D2C) pivot will continue to be the primary strategic priority for the industry. As expected, competition is intensifying. With OTT platforms expected to achieve a market share of 22% â 25% of Indiaâs M&E industry by 2030, production studios are considering a foray into the non-linear OTT space since they own vast IPs. Aware of this emerging threat, OTT players are pouring money into developing content.
Additionally, while the shift to D2C might seem like the only focus for the future, industry players cannot afford to ignore linear channels. Broadcast and cable networks remain cash flow engines. Network owners must continue to direct fresh content to their linear channels to avoid an abrupt drying-up of revenues in this area.
So, for some time, networks will need to engage customers across both linear and non-linear channels, allowing them to choose one over the other.
Some industry leaders are already redefining themselves to beat the uncertainty. Traditionally, media companies had different teams to address…