‘OTT platforms in India spent Rs 3700 crore on original content in 2021’

Over the top (OTT) platforms in India, led by Amazon Prime Video and Netflix, invested roughly $500 million (approximately Rs 3700 crore) in original content in 2021, according to London-based Omdia's 'India: Online Video Trends' report.

For the fifth year in a row, Netflix was the largest investor in Indian original content, spending around $200 million (Rs 1479 crore), followed by Amazon Prime Video with around $140 million (Rs 1035 crore). For Amazon, India is second only to the US in the number of originals produced and in content investment, the report added.

Among the Indian OTT services, Eros Now (a joint venture of Eros Ltd and US producer STX Entertainment) tops the list. Zee, Sony, Viacom 18, and, lately, Disney-Star India are stepping up their investments to compete with the US giants.

The report stated that investment has been growing significantly since 2017, with only 2020 experiencing a decline due to Covid. Further, the lockdowns in 2021 had a much smaller impact than in 2020 because the industry was much better prepared; productions shifted to areas with no restrictions such as Goa or even to neighbouring countries such as Bangladesh.

It also expounded that two other reasons for the big growth in spending in 2021, relative to 2020, were the higher talent costs, as many Bollywood stars turned to OTT as a result of the closure of cinemas, and the top Indian media houses such as Sony, Viacom18, and Disney-owned STAR revamping their content strategy, focusing on originals.

What is driving digital content investments is the fact that OTT platforms need quality content that can attract millions of viewers. The report also highlighted the importance of the Indian Premier League (IPL) on the OTT business. "Few content genres have such power in India but certainly the Indian Premier League (IPL) is one of them. IPL is the most popular cricket tournament in India and the world. Each year, around 400 million Indians watch at least one IPL match."

According to Omdia, the current overcrowding of the Indian OTT market means consolidation in this sector is inevitable. Omdia expects merger and acquisition (M&A) activity among local players in the coming years as the market continues to develop.

"For all online video services, global and national, staying afloat in the competitive environment of the Indian OTT market is a delicate exercise. As content remains the primary differentiator between services, investment in original content takes centre stage. Since 2017, when Netflix and Amazon produced their first Indian originals, all players in that market have been looking at upping their investments in Indian original content," the report noted.