Significance Of OTT In Promoting And Propelling The Growth Of Regional Content

We Indians love our entertainment and the numbers don’t lie. According to a report by Global Media Insight, India has the highest number of users by country at 467Mn for a free video streaming platform. Indians spent over 25Bn hours streaming entertainment apps in 2022, which is 52% higher than in 2019 (E&Y report).

This growth in popularity of streaming online video services in India has further revolutionized the entertainment ecosystem. Indian consumers have evolved over time and their appetite to consume online content has increased substantially due to better digital infrastructure, affordable data, budget smartphones, greater access to quality content with increased localisation via dubbing, genre diversification and the sheer ease of watching content of choice at any time. This has also resulted in an exponential demand for a variety of titles and genres across regional languages.

The popularity of regional content has given a shot in the arm to local content creators. OTT has opened growth avenues for talent and brought in new formats and genres that have become instant hits. With the growing collaboration within the creator ecosystem across OTTs, the future of storytelling is evolving daily. This has enabled platforms to expand their audiences and engage with talent across languages to provide new and compelling stories.

Growth Of Regional Content

As per Netscribes’ recent OTT Market in India 2022-2027 report, the video OTT market was valued at INR 249.09 Bn in FY 2022 and is expected to reach INR 581.21bn by FY 2027, expanding at a CAGR of ~16.58% during the same period. In tandem, regional content has experienced significant growth over the last few years. As per Ormax data, Indian SVOD viewers on average engage with content in a minimum of four languages, whereas AVOD viewers typically consume content in at least two languages. In fact, according to a recent report by FICCI-EY, regional language content is expected to account for 54% of OTT platforms by 2024. At Zee5, we too have ~40% users who consume content in more than one language beyond their primary choice.

As the space evolves, vernacular content is also connecting with people who do not speak those languages natively. It is now a common phenomenon that explains the nationwide popularity of multiple regional titles across mediums. Regional content also has huge international appeal due to global relatability to Indian stories, and the presence of a substantial Indian diaspora across the world.

The other key factors contributing to the rise of local content factories are powerful storytelling and intriguing narratives. Relatable plots and authentic storytelling has played a crucial role in attracting a dedicated consumer base for vernacular content. We at ZEE5 acquired the digital rights for only regional tracks for RRR, as our audience preferred to watch the same in the original language. Along with RRR, ‘Karthikeya 2’ and others generated immense excitement and enthusiasm amongst non-Telugu audiences, primarily due to gripping story lines and larger-than-life heroes. Such successes have encouraged the talent ecosystem to collaborate and bring forth more compelling stories from the hinterlands of India to across the globe.

Recognizing their immense potential, OTT platforms have explored various models to attract and retain regional audiences. Ad-supported video-on-demand (AVOD) platforms have penetrated the market by providing easy access to content and allowing sampling opportunities for the audience across markets. A considerable portion of first-time viewers from non-metro markets have been onboarded onto OTT platforms, allowing them to watch their favorite shows at their convenience. Zee5 is also exploring an AVOD slate that goes beyond traditional TV content and aids platform sampling.

Transactional video-on-demand (TVOD) models also enable sampling wherein users pay per view for content of their choice, almost like buying a movie ticket for a one-time experience. Additionally, platforms have ventured into curating periodic content and live sports which are dubbed, subtitled, and presented in multiple languages to diversify their offerings, and enhance creativity.

Overall, the growth of regional content in India has been fueled by its ability to provide relatable and captivating storytelling, along with a diversified content palette to attract a wider audience.

Tech As An enabler In OTT

Cheap data plans and low-priced smartphones have acted as a catalyst in the growth of OTT platforms, accelerating the demand for regional entertainment further. Increase in demand is encouraging platforms to experiment with ML based search and recommendation tools to drive consumption and accelerate the process of production and delivery basis consumer insights. Industry players have also started working towards inclusivity and are dubbing titles in sign language for the visually impaired. This has been positively accepted by consumers across cities, highlighting yet another virtue of digital consumption.

Home theatre systems with 5.1 sound and high quality 4K video have elevated the online streaming experience. This, combined with high-quality regional content being launched on OTT platforms, has accelerated consumption at home and has further democratized access to latest titles from across the country and the world.

Riding On Regional Advertising

Regional content has proven to be highly effective in attracting a significant number of new local advertisers to OTT. Digital platforms offer them more cost-effective options, allowing local advertisers to optimize their marketing spends and achieve better returns on investments.

A Robust Future

The OTT ecosystem today has successfully managed to break the norm of conventional storytelling with creativity and authenticity across regions. The industry has also proven beneficial for the creators as it enriches their creative talents. At the same time, Indian consumers are receiving significantly higher value for their time and money. It is a win-win for consumers, creators and platforms alike!

With local talent and established creators joining hands to create the best entertainment for audiences across the country, the lines between national and regional stories will be more blurred than ever. Anyone not equipped to cater to this growing demand is at the risk of getting left behind. Soon, it is the art of storytelling and good quality content that will determine the scale of success and not the geographic limitations of a consumer base from that region.

(Disclaimer: Manish Kalra is the Chief Business Officer, Zee5 India. Views expressed are personal.)