The Indian OTT (Over-the-Top) market is witnessing a significant transformation, driven by the integration of Artificial Intelligence (AI). This convergence is reshaping content production, delivery dynamics, and user engagement, heralding a new era in digital media.
AI's Impact on OTT in India
Personalization and User Engagement: AI-driven personalization is becoming a critical tool for OTT services. It involves leveraging customer data to understand and predict viewer behavior, enabling platforms to offer content tailored to individual preferences. This approach not only enhances user experience but also boosts customer loyalty and retention.
Content Production: AI and machine learning technologies are automating aspects of content creation, reducing the time and effort required for production. For example, IBM's collaboration with 20th Century Fox to produce a cognitive movie trailer using Watson APIs marked a significant milestone in film post-production. Today, AI/ML platforms have advanced significantly, offering new possibilities in automating content creation and real-time development of videos from content libraries.
Addressing Technical Issues: AI is instrumental in resolving challenges like video buffering and data loss, thereby enhancing the overall viewing experience.
Emergence of Integrated Platforms: With the evolution of technology, OTT platforms are increasingly integrating additional features and functionalities. This includes e-commerce integrations and live commerce, combining entertainment with instantaneous purchasing.
Market Trends and Statistics
The Indian OTT market is set to become a ₹12,000-crore industry by 2023, growing at a CAGR of 36% from ₹2,590 crore in 2018. This growth is attributed to the rapid adoption of internet infrastructure and changing viewer preferences, particularly during the Covid-19 pandemic.
In 2023, India's OTT audience reached 481 million, with only 7.6% directly paying for streaming content. The majority of viewers engage with free content, highlighting the challenge of converting these users into paid subscribers in a price-sensitive market.
The audio OTT market in India is also growing, valued at INR 57.48 Billion in FY 2022 and expected to reach INR 119.11 Billion by FY 2027, expanding at a CAGR of approximately 15.68%.
Challenges and the Road Ahead
The OTT industry in India faces challenges including content security and privacy concerns, the lack of censorship leading to exposure to inappropriate content, and the impact of piracy. Additionally, the shift towards ad-supported models in platforms that traditionally offered ad-free content could affect user experience.
In conclusion, AI is playing a pivotal role in shaping the future of the OTT industry in India. Its ability to personalize content, streamline production, and improve technical aspects of streaming services is crucial. However, addressing challenges like content security, privacy, and evolving consumer preferences will be key to sustaining growth in this dynamic market.
Sources: IndiaAI, GlobeNewswire, NASSCOM, Dazeinfo, Fortune India, Marketfeed.