How Amazon is intensifying the OTT game in India
Amazon Prime Video has doubled its investment in original content, especially in Hindi, Telugu and Tamil films
American OTT streaming and production companies Amazon Prime Video and Netflix are betting big on India and are riding on the huge growth potential offered by a whopping 1.3 billion population.
While Netflix slashed its subscription prices by up to 60% last December to expand its base in India, Amazon Prime Video (APV) on Thursday announced to double its investment in content in the country, mostly in original movies and web series in Hindi, Telugu and Tamil.
The company’s Vice President Kelly Day made an announcement in this regard at Amazon's First Prime Video gala event at JW Marriott hotel in Mumbai on Thursday. Over 40 original films and series, in Hindi, Telugu and Tamil, are lined up to suit a multilingual, multicultural nation.
India’s top movie stars including Madhuri Dixit Nene, Kangana Ranaut, Shahid Kapoor, Vidya Balan, Sonakshi Sinha, Siddharth Malhotra have been roped in for original movies. While Kangana will debut in film production with “Tikku weds Sheru”, Madhuri has been signed for “Maja Maa” for her first web-film.
Experts opine that the move has the potential to disrupt the OTT market and also the Indian film industry, the media and the advertising sector.
The announcement has come at a time when India’s video streaming market is projected to record a compounded annual growth rate of more than 20% to touch $13 billion–$15 billion over the next decade, riding on original content and pricing innovations, as per a report by Deloitte.
In March this year, the APV introduced its Mobile Edition – a mobile-only plan at Rs 89 per month to expand its base among youth and those living across small towns. India becomes the first Amazon Prime country in the world to offer customers a mobile-only Prime Video plan.
Amazon Prime Video tapped the opportunity realising that smartphones have become the country’s preferred screen for entertainment.
A 2021 market report from research firm Media Partners Asia says Disney+Hotstar is India's largest OTT provider which leads the pack with 51 million, thanks to its cricket offerings. Amazon Prime is the second-largest player with 22.3 million subscribers in India while Netflix has approximately 6.1 million.
Aparna Purohit, Head of India Originals, Amazon Prime Video, who developed and launched blockbuster Indian content such as ‘Mirzapur’, ‘Made In Heaven’ and ‘Paatal Lok’, says, “India is a land of stories. This era is the renaissance of Indian entertainment. We are story chasers. We will go across the length and breadth of the country to chase stories and empower creators.”
During the pandemic, Amazon became a pioneer in taking made-for-theatrical release Indian films and debuting them directly on the service. Amazon Prime Video India Director and Country General Manager Gaurav Gandhi said, “India is amongst the fastest-growing markets for Prime and APV. Our investments in content across 10 languages, both originals and films, have helped us grow in the country”.
India’s media and entertainment industry is estimated to be $30 billion. India's video-streaming market alone is expected to grow to $12.5 billion in 2030 from $1.5 billion in 2021, RBSA Advisors speculates.
"With access to better networks, digital connectivity and smartphones, OTT platforms in India have been increasingly attracting subscribers on a concurrent basis," RBSA said in its July report, pointing out that adoption of digital streamers increased manyfold after the coronavirus pandemic struck at the beginning of 2020.
“Movies made in Indian languages are being watched in about 150 countries, with international viewers accounting for 15% to 20% of their total audiences. That means APV’s India outreach will have a global impact and help it to expand its subscribers base globally,” an industry expert said.
A few months ago, APV launched Prime Video Store, its transactional video-on-demand (TVOD) movie rental service in India.
