OTTs focus on ad model as a new dominant player emerges

The party for content creators and writers may be over as commissioning of new original shows slows

- Lata Jha

The video-streaming industry in India continued its slow but steady trajectory in 2024, with the emergence of a brand-new force after the Disney-Jio merger was wrapped up and the latter's OTT service JioCinema introducing premium subscription plans.

Most other services operated robust ad-supported tiers and hybrid models to improve margins. Overall, greenlighting and commissioning decisions remained slow as most platforms tightened their purse strings. Many admitted to OTT being a second screen option as viewers remained glued to mobile phones and short-form content, even if they streamed shows or movies on TV screens.

"Performance metrics for OTT platforms go beyond just paid subscriptions, with metrics such as engagement rates, average watch time, retention, and ad revenue. Apart from SVOD (subscription video-on-demand), AVOD (advertising video-on-demand) has emerged as a significant area of focus, especially in a price-sensitive market like India," said Manish Kalra, chief business officer of ZEE5 India.

Strategies were increasingly focused on a multi-pronged approach to meet evolving goals, Kalra added. Platforms emphasized regional content expansion to tap underserved markets, using AI (artificial intelligence) and machine learning to enhance personalization, and building robust hybrid revenue models with AVOD and SVOD.