OTT Scene In The Year 2024
- January 10, 2024
- Posted by: Akarias
- Category: Blog Daily Current Affairs
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OTT Outlook in 2024: The 2024 scenario expects cost-effective content strategies with a decline in experimental content. Mergers between major platforms like Zee/Sony and potential collaborations like RIL/Disney may restructure the market dynamics, impacting bargaining power and content costs.
Why in discussion?
The OTT market in India is currently struggling with a trade-off between growth and profitability in a price-sensitive market. In the year 2023, the over-the-top (OTT) market in India experienced significant disruptions and challenges, leading to an imbalance in its growth.
Thank you for reading this post, don't forget to subscribe!What is over-the-top?
Introduction:
OTT stands for “Over-The-Top,” a term that refers to traditional broadcast, cable, or satellite TV. Used to describe content delivery directly to audiences over the Internet, bypassing platforms.
OTT market refers to the industry that provides streaming media services, movies, TV, etc. to users via the Internet. Provides shows, music and other content.
Examples: Netflix, Disney+, Hulu, Amazon Prime Video, Peacock, CuriosityStream, Pluto TV. (Pluto TV) and others.
Benefits of OTT:
- Flexibility and Convenience:
Users can access content anytime, anywhere, across multiple devices, achieving exceptional convenience. - Miscellaneous Materials:
OTT platforms offer movies, TV shows catering to various tastes and interests. Offering a wide range of content including shows, documentaries and original productions. - Personalization:
These platforms use algorithms to recommend content based on viewing habits, user experience, and enhancing content discovery. - Cost effectiveness:
Traditional cable or satellite TV. OTT services often offer more affordable pricing options than subscriptions, offering free content along with advertising options or a subscription. - Global reach:
OTT platform helps in providing content to the users across the world wherever they want by overcoming geographical barriers.
Limitations of OTT:
- Dependence on Internet:
High-speed internet is important for uninterrupted streaming in OTT. You may face disruption in accessing content in areas with poor connectivity. - Variety of Ingredients:
Content privileges on different platforms result in affected viewership, which may require users to have multiple subscriptions to access particular shows or movies. - Data Concerns:
OTT platforms collect user data to tailor content, which can be used inappropriately or shared with third parties without user consent, raising privacy concerns. - Quality and availability of materials:
Although the availability of content is plentiful, the quality of content may vary. Additionally, the widespread availability of content can make it extremely difficult for users to find quality content.
What is the status of OTT in the year 2023 and its outlook for the year 2024?
- In the OTT scenario in 2023, platforms offering free premium content were more affected than others and ultimately faced losses in subscription revenue as a result of offering free content.
- Content monetization challenges remained and no one was at break-even due to high content costs.
- The freemium model was introduced, restricting password sharing and integrating advertisements. Regulatory concerns remained but censorship was not supported, leading to selective data sharing.
- The 2024 scenario expects cost-effective content strategies with a decline in experimental content. Mergers between major platforms like Zee/Sony and potential collaborations like RIL/Disney may restructure the market dynamics, impacting bargaining power and content costs.
- Pricing strategies will continue to evolve with potentially sharp limits on sharing and embedding of ads.
Regulatory compliance may be strict, with an emphasis on sensitivity to religious or minority sentiments. Increasing transparency into audience trends will help advertisers and creators.