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The premium OTT content fell by 12 per cent in 2024 as streaming platforms cut back on expensive productions in a bid to become profitable, according to a new report by EY and FICCI.
The report also highlighted that 2025 is likely to see significant cost pressures on OTT content, as Pay TV homes continue to decline and platforms struggle to manage their business models sustainably. It said, "2024 saw a 12 per cent fall in premium OTT content, and 2025 is expected to see significant pressure on costs as well, as Pay TV homes continue to decline, and OTT platforms struggle for profitability." It also noted that the premium OTT content volumes declined as platforms reduced their budgets, focusing more on efficiency than scale. Only 60 films were released directly on digital platforms during the year, even though around 500 films were eventually released on OTT platforms. This suggests that most films still prefer theatrical releases before moving online. In total, more than 1,600 films were released in 2024, excluding around 200 dubbed versions. This marks an increase of 64 films compared to 2023, reflecting a slight recovery in the film industry. The report also pointed out that 48 per cent of the content released on OTT platforms was in regional languages, showing a rising trend of dubbed and sub-titled content to reach wider audiences. General Entertainment Channels (GECs) continued to dominate television content consumption, contributing 65 per cent of total hours watched on TV in 2024, excluding news bulletins. Looking ahead, the report projects that while OTT content volumes are expected to grow in 2025, they will likely come at a lower average cost of production. Streaming platforms are expected to focus on cost-effective content as they aim to balance growth with financial viability. It said, "In 2025, we expect OTT content volumes to increase, but at a lower average cost of production." The report also highlighted the opportunity for video consumption remains strong, with the number of screens in the country expected to rise significantly. By 2030, large screens are expected to cross 200 million, while small screens like smartphones are projected to reach almost 700 million. This expanding digital infrastructure is expected to support a growing base of content consumers. The report outlined that the subscribing households are likely to grow from 47 million to over 65 million by 2027, driven by rising per capita income, greater smart TV penetration, and availability of low-cost broadband. (ANI)
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