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<ul><li>As we enter a new year, we wanted to understand what to expect from the Over-the-top (<keyword id="1245953" type="General" weightage="20" keywordseo="ott" source="Orion">OTT</keyword>) industry in 2022.</li><li>In today's feature, we speak to industry experts who share their thoughts on what this year has in store for us.</li></ul>After 2020 we had hoped that 2021 would bring us some respite from the pandemic. However, things were challenging for a large part of the year. With many of us stuck within the four walls of our house for the most part of the year, OTT platforms sometimes became the only source of entertainment in our lives. Not only did 2021 see the launch of a lot of big-budget originals on various OTT platforms, a lot of movies like Sardar Udham Singh, Mimi and Shershaah launched on these platforms. Content producing companies put their best foot forward and created award-winning shows that won both commercial and critical acclaim. There has been a visible increase in investments in content production, a trend that is here to stay in 2022 as well. A recent joint report by industry body CII and Boston Consulting Group (BCG) stated that the Indian OTT sector is currently in the scaling stage with strong subscription growth and high investment in premium as well as original content. The Indian OTT sector is one of the most competitive amongst emerging markets with over 40 players. While there have been debates about more and more people moving away from TV, Mandeep Kohli, Managing Director and Partner, Boston Consulting Group India states that we are still some time away from that happening at a large scale in India. “The share of traditional media is slowly declining with increased digital adoption but there is still high headroom for penetration with only 54% of Indian households having a pay TV connection compared to more than 70% in China. For many households, TV continues to be the center of the home and a significant part of family time,” said Kohli, Managing Director and Partner, Boston Consulting Group India. The report further stated that the industry is at a scaling stage currently and has the potential to become a $13-15 billion industry by 2030. To understand what the new year has in store for us, we spoke to a few of the most important voices from India’s OTT industry, along with some of the biggest content production houses. Here is what they had to say about what lies ahead: Manish Kalra, Chief Business Officer, <keyword id="6245082" type="General" weightage="20" keywordseo="zee5" source="Orion">ZEE5</keyword> India The already-growing online media and entertainment business received a major boost with the black swan event that the Covid-19 pandemic was, setting a new growth trajectory in the last year. The audience adopted a more digitally advanced way of entertainment, something that went beyond the conventional mediums, leading to mass adoption of OTT platforms which resulted in a surge in both viewership and watch-time. This pandemic-induced growth in demand for quality content led to an increased focus on storytelling across languages leading to the creation of extensive and expansive content libraries. People also became more open to sampling diverse content from different languages and were keener to opt for the living room experience thanks to the increased adoption of connected devices. This growth of the connected devices ecosystem has made OTT a preferred choice not only for personal but also for family consumption. At ZEE5, we have seen a 3X growth in the viewership on connected devices. The rise in power-packed dynamic storytelling and the rise of connected devices has led to the advent of the ‘Home Box Office’ which is a trend that is here to stay. While we grew 200% this year at the back of an aggressive slate of content line-up and hyper-personalization, we aim to make deeper inroads into Indian homes going into 2022. Sameer Nair, CEO, <keyword id="1322450" type="General" weightage="20" keywordseo="applause-entertainment" source="Orion">Applause Entertainment</keyword> <div type="image" title="IMG_8153 (1)" msid="88694220" hostid="261"></div> I believe the biggest emerging trend for the streaming industry in 2022 and beyond is the increasing flattening of the Earth, with both geographical borders and language barriers breaking down as internet connectivity reaches the remotest audiences. Our audiences, both local and global, have become smarter, more perceptive and way more critical; this requires us as Content Creators and Distributors to significantly improve the quality of our storytelling, of our productions and of the consumer experience we offer. Authentic, rooted stories that have a universal appeal can and will breakout to reach audiences globally. The more we collaborate with talent from diverse cultures and geographies, the richer we will become as storytellers. The ‘One Planet One Species Shared Cultures’ is an idea whose time is truly upon us. Divya Dixit, SVP, Marketing &amp; Revenue, <keyword id="4241922" type="General" weightage="20" keywordseo="altbalaji" source="Orion">ALTBalaji</keyword> With the traditional marketing budgets on a decline and digital and influencer marketing taking center stage, there are many trends, however interrelated, that we will see emerging in 2022. The digital audiovisual industry will explode; according to Bain and Company, India's online video user base has increased to more than 350 million people, growing 24% in the last three years. Influencer marketing will rapidly move to include micro-influencers and not just be dependent on Celebrity influencers, thereby also promoting UGC. Video marketing, live streaming will give rise to Social commerce and tier 2 and 3 cities will claim the growth chart curve. With all these interrelated events/trends triggering off, Users will expect personalized experiences which will be offset by deeper integration of ML, which will give rise to AI usage; however, the world of marketers will also see a more focused emerging curve towards Organic retention – CRM, surveys, retention tools, recommendation cycles, SEO, UI/UX as Google continues the stance of stopping 3rd party cookies by end of 2023. Manjit Sachdev- Head – Originals, Voot and Voot Select, Viacom18 Digital Ventures <div type="image" title="Manjit Sachdev _Head Content at VOOT AND VOOT Select" msid="88694240" hostid="261"></div> After an unprecedented 2020, with an acceleration in the growth of OTT platforms, 2021 was a year for creating milestones in curating unique and enthralling stories for the audience. Now as we step into 2022 with hope and resilience, the OTT sector will witness an increase in the demand for personalized and purpose-driven content. Given the increasing competition in the OTT space, staying relevant and purposeful is most critical. Considering the changing realities in today's times, having a purpose-driven story telling approach is the way to go. Content with purpose has the power to travel beyond boundaries, spread values, knowledge and positivity and build deeper engagement with subscribers. This trend will act as a key differentiator in changing behaviours. Megha Tata, Managing Director, South Asia, Discovery, Inc As SVOD continues to grow aggressively, we are seeing an increasing number of audiences now willing to pay for good content. I believe a right combination of compelling content and pricing would be the key in attracting a bigger share of consumers into the SVOD world next year. Also, differentiated programming will add to a player’s competitive advantage in the midst of most mainstream players offering similar content. This is a trend familiar to what we saw even broadcast channels go through. I believe some players will be able to carve out a niche for themselves, while most streaming catalogs will end up resembling each other. Rishi Negi, COO, Banijay Asia 2020 was a game changer for the whole world, we strategized a smooth transition to the streaming era and the year 2021 was about sustaining the positive change and envisioning the prospects of growth. With changing narratives and experimental content taking a lead, along with the fact that the data &amp; streaming charges have dropped, has resulted in the content reaching a much bigger audience. I anticipate the year 2022 to be vibrant with original productions, compelling storytelling and some path-breaking performances. Fighting the content inflation with a wide variety of exceptional chronicles intertwined with existing catalog shows in this post-pandemic world, viewers are streaming more than ever. With nominal data plan and streaming charges, content is reaching even the darkest corner of the world. Considering the pace of content transmission, at Banijay Asia, we have become more aggressive towards producing content that delights the heartland of India. We see a hike in demand for stories which are untold, female centric and with CTV on the rise, we anticipate growing interest in regional unscripted content in 2022. While we have seen this trend kickstart already with our Tamil unscripted show The Survivors as it received unparalleled response from the audience and our hinterland drama Matsya Kaand recently crossed a 100M views on <keyword id="2214311" type="General" weightage="20" keywordseo="mx-player" source="Orion">MX Player</keyword> within a month. These numbers affirm that the trendsmap that we're following leads to a sustainable future. Given these past two years have been a real tester, we have pushed through every possible challenge posed by the virus this year and successfully produced shows for the streaming giants and kept the show running. While we have covered grounds with our scripted, non-scripted, international format adaptation, book adaptations, in the upcoming year, we aim to keep up with our pace and keep reinventing our ways. To sum it up, we are thoroughly looking forward to 2022 to be a year full of exciting and enthralling projects to keep our audiences engaged and invested. Rohit Jain, Managing Director, <keyword id="193261" type="General" weightage="20" keywordseo="Lionsgate" source="Orion">Lionsgate</keyword> South Asia and Networks, Emerging Markets Asia 2022 is going to be an exciting year for OTT players as the content pipeline will be stronger than ever. While the pandemic has leapfrogged growth in terms of viewers and subscription we expect 2022 to further amplify the reach and will witness growth not only in the metros but also in tier II &amp; tier III cities. Today’s viewers are constantly looking for edgy and unique stories. We have always said premium content is the ultimate winner. The OTT industry will have to concentrate on quality content over quantity of content. Siddhartha Roy, COO, Hungama Digital Media The media and entertainment industry has been making rapid strides in the interior of India. Regional markets are becoming the industry’s point of convergence as the digital infrastructure expands across the length and breadth of the country. Content houses and creators are going vocal through local, thereby, making homegrown, high-quality content available at the click of a button. Going further, consumption of entertainment, in addition to audio and video, will be extended to varied mediums, such as gaming. As the Indian online gaming sector is witnessing tremendous growth in 2020 it sets a tone that gaming will be the next big thing. The industry will witness a rapid rise in the use of AI and ML to create a customised and personalised experience for audiences. This makes industry consumer friendly; not just that, it helps in massive consumption and double consumer engagement. Hiren Gada, CEO-Shemaroo Entertainment Ltd <div type="image" title="Hiren Gada, CEO, Shemaroo Entertainment Ltd." msid="88726664" hostid="261"></div> With regional internet penetration growing at a rapid pace, localization of content and OTT apps are going to be one of the emerging trends to look out for. Content that was earlier restricted to just Bollywood and Hollywood is getting extended to other native languages and it is going to play a key role in attracting new consumers and in supporting other industries such as dubbing and subtitling that will further boost the content bank. Other than localization, we will also see content being offered across other segments that include devotional, and kids’ categories. As we see new OTT apps being launched almost every month with multiple paying models, the consumers will have more flexibility and power to make their own choices. With increased smartphone adoption along with affordable data, mobile penetration of the OTT will see more focus. Mobile-centric plans have been introduced by most OTTs today to cater to the Millennials and GenZs who have the hunger to consume content but not the deep pockets to pay. This space will continue to grow with the increased bundling of OTT by telecos. Additionally, the arrival of 5G which is most likely to take off this year will be a game-changer not just for the OTTs but also for the consumers. It will enable faster connectivity, accessibility to content and further enhance the viewing experience with reduced buffering issues, and an uninterrupted real-time streaming experience. Shailesh Kapoor, The Founder &amp; CEO, Ormax Media The last two years have been exceptional for the OTT market in India, aided in no small measure by the lockdowns. As things begin to get back to normal, the question that we will hear a lot more in 2022 is: Where is the next level of OTT growth in India going to come from? The category has grown at an estimated 30-35% in its user base and more than 50% in paid subscriptions over the last two years. But these growth rates are not sustainable in the long run. Platforms will have to look for offerings that are both compelling and distinctive, to get new subscribers in a category that will continue to grow, but at more modest levels of 15-20% per annum. Crossover content, be it Indian (such as Jai Bhim) or foreign (such as Squid Game or Money Heist), will play an important role in this regard. The language barrier has been broken considerably by the OTT medium, and with dubbing and subtitles available in many languages for all major shows and films now, platforms cannot stick to single-language, homogenous offerings anymore. We can expect more language-led experimentation, both in content acquisition and presentation."

Where the Indian OTT industry is headed in 2022

<ul><li>The streaming giant <keyword id="128682" type="General" weightage="100" keywordseo="netflix" source="Orion">Netflix</keyword> announced last week that it will start charging extra for users outside their households as a way to prevent password sharing.</li><li>Netflix CEO Reed Hastings had recently said the company was “frustrated” that it couldn’t get subscriber growth momentum going in India.</li><li>So if Netflix were to crack down on password sharing in a price-sensitive market such as India, it could lose its subscriber base to other platforms, experts say.</li></ul>In India, your Netflix account isn’t just yours. Well, mostly. It is a collective account of your friends, their friends and even their ex-partners who are not in touch with them anymore. One person pays for the subscription and three to five other freeloaders mooch off of it; a new-age bond that transcends across religion, age and geography. So, when streaming giant Netflix made an announcement that it wants its users to stop sharing passwords with their friends and family — an update that is currently live across Chile, Costa Rica, and Peru — it riled up many internet users. Shortly after, a meme fest sparked up. <div type="twitter" handle="Shweta_baranwal" handlename="Shweta Baranwal" image="http://pbs.twimg.com/profile_images/1458726529173577729/rtylniVq_normal.jpg" favoritecount="1" retweetcount="0" status="Looks like it's time to giveup few friendships #netflixpassword" createdat="1647604581000" id="1504788798051614727"></div> <div type="twitter" handle="fine_as_wine1" handlename="Mekia ♊" image="http://pbs.twimg.com/profile_images/1501471608233414657/P8aqqFwF_normal.jpg" favoritecount="1" retweetcount="0" status="Went up on the price now trying to dictate people sharing their passwords all without even adding new content 🙄 Car… https://t.co/fBrlc3woIP" createdat="1647723017000" id="1505285553297760265"></div> Should freeloaders be worried in India? In a <a href="https://about.netflix.com/en/news/paying-to-share-netflix-outside-your-household">blog </a>post that went live on Wednesday, Chengyi Long, director of product innovation said, “They [multiple streams] have also created some confusion about when and how Netflix can be shared. As a result, accounts are being shared between households – impacting our ability to invest in great new TV and films for our members.” So, Netflix will now start charging extra for users outside their households as a way to prevent password sharing in these markets, to begin with, and later evaluate whether to bring it to other markets. It is adding two features to curb sharing – ‘Add Extra Member’ and ‘Transfer Profile to New Account.’ While Netflix hasn’t given any indication as to whether it plans to expand this new feature beyond initial test markets, if it does, it could have a negative impact on its rather <a href="https://www.businessinsider.in/tech/news/netflix-added-8-3-million-paid-subscribers-in-last-quarter-its-slowest-growth-since-2015/articleshow/89033252.cms">slow growth</a> trajectory in India. As per data and analytics platform <a href="https://www.data.ai/en/insights/market-data/state-of-mobile-2022-bouyant-economy/">App Annie</a>, Netflix currently has the largest global footprint among video streaming services and is set to surpass 1 million downloads in over 60 countries in 2022. However, the story is different in India. The California-based global streaming platform Netflix is losing its users to homegrown platforms. As per App Annie’s State of Mobile 2022 report -- sorted by total downloads as of 2021, Disney+Hotstar is the most downloaded app, followed by MX Player and ZEE5. <keyword id="3194526" type="General" weightage="20" keywordseo="netflix-india" source="Orion">Netflix India</keyword> didn’t make it to its top 10 list. While Netflix doesn’t reveal its user base for the Indian market, <a href="https://economictimes.indiatimes.com/tech/technology/netflixs-lack-of-success-in-india-frustrating-cofounder-reed-hastings-says/articleshow/89044470.cms">media </a>reports indicate that it is between 4.3 million-4.5 million, which is a small fraction of its competitor Disney+Hotstar (close to 36 million) and Amazon Prime Video (over 17 million). Even Netflix’s co-chief executive (CEO) and cofounder Reed Hastings admitted that the team has been stumped by the lack of success in India. In the company’s post-results webcast for the October-December quarter of 2021, Hastings said, “The thing that frustrates us is why haven’t we been as successful in India. But we are definitely leaning in there.” Business Insider India has reached out to Netflix India for comments on the story, but the company has not responded till the time of filing this report. Before Hastings voiced his frustration publicly, Netflix India had <a href="https://economictimes.indiatimes.com/industry/media/entertainment/netflix-india-cuts-prices-across-its-streaming-plans/articleshow/88267582.cms">slashed </a>its pricing for the mobile-only plan from ₹199/month to ₹149/month in December 2021 to expand its user base and cut through intense rivalry from Disney+Hotstar, Amazon Prime Video and other 60 over-the-top (OTT) platforms. With its choppy growth numbers and slow subscription rate, if Netflix were to restrict password sharing in a price-sensitive market like India, it could slide even further downhill. The streaming platform was launched in India in January 2016 and it is in the initial days of the launch, brand guru and founder of Harish Bijoor Consults Inc., Harish Bijoor, says that a brand or business must set the right practice, and changing it all of a sudden has aspects of ‘negative-peril biting into it.’ “Netflix is watched in India by more people who pay for it. And that is a reality that has its positives and negatives. Password-sharing is today the norm and accepted practice. Something Netflix did not curtail as a practice in its early days. India is a jugaad market. Password-sharing is today a practice that upset the apple cart of many a viewer and many a subscriber. It is going to have quite the effect that a Whatsapp could experience if it became a fee-paid service. Netflix's frustration is really of its own making,” explains Bijoor. As per consulting firm Ormax Media’s OTT sizing <a href="https://www.businessinsider.in/advertising/media/article/india-has-353-million-ott-users-and-96-million-active-paid-subscriptions-which-translates-into-a-penetration-of-25-3-ormax-media-report/articleshow/85791184.cms">report </a>2021, India had a total of 353.2 million OTT users, out of which only 40.7 million i.e., 11.5 % were subscription video-on-demand (SVOD) users and a huge chunk of this market relies on password sharing. Gautam Jain, partner, Ormax Media says, “A large set of OTT users are SVOD Non-paying -- around 19.8 % (69.8 million), i.e., those who watch SVOD content but through password sharing or downloads. While the SVOD subscribers would have shown growth, this non-paying segment would have also grown given the price sensitivity amongst Indian audiences.” In Chile, Peru and Costa Rica, Netflix is charging an extra fee to users who share their accounts outside their household. Subscribers will be charged about $2.98 a month in Chile, $2.99 in Costa Rica and about $2.12 in Peru. As per research firm Trust Research Advisory’s (TRA) CEO, N Chandramouli, the Indian market is so price sensitive that fast moving consumer goods (FMCG) giants are scared to make even a 2 rupee change in their packets of biscuits, shampoo or noodles. Similarly, he says that Netflix’s price-slashing strategy from ₹199 to ₹149 has not attracted new customers. It has allowed its current subscribers to move to an even cheaper plan. And in India, Chandramouli says, pirates are always a step ahead than creators. So, if Netflix were to revise its pricing strategy for the third time in India, it could confuse users, leading to a rise in pirated content. To buy pirated content in Mumbai without having to download an app, all you have to do is walk down the Fort area and you would find 4-5 vendors chasing you — offering the latest releases on a CD or a pen drive, he adds. “There is a huge amount of piracy, which has now climbed onto the OTT bandwagon. Whether it is Telegram or Chinese torrent apps, pirated OTT content is shared there indiscriminately. From the very beginning, from softwares to movies, Indians don't find too much of [sic] qualms about piracy. On top of that, there are about 40 OTT platforms in India. So, the options in entertainment is proliferated [sic] and in this market, a slight price increase could have an impact. Netflix is attempting different strategies in order to attract new subscribers, but nothing has happened. People have downgraded their plans. So, Netflix will suffer a big backlash from existing users if at all it was to renew prices and stop password sharing,” he says. According to a <a href="https://www.thehindubusinessline.com/info-tech/as-digital-piracy-rises-amid-pandemic-original-content-creators-losing-money-ey/article34743362.ece">report </a>by Digital TV Research, the loss of revenue for OTT players on account of piracy in India is expected to hit $3.08 billion by 2022. OTT players are trying to woo consumers with exclusive Bollywood movies and regional content. Chandramouli pointed out that Netflix or Amazon Prime haven’t been able to get their acquisition strategy right in India yet. Citing a recent example, he said that both these streaming services rushed to get Amitabh Bachchan’s movie Sooryavanshi onto their platform for ₹100 crore, which is at least shown once a week on Set Max and other television channels. On television, a viewer can get a minimum of 900 channels in ₹300-350 per month bouquet. It is the only entertainment medium that drives close to <a href="https://www.businessinsider.in/advertising/media/article/how-india-is-cutting-the-cord-to-drive-an-ott-revolution/articleshow/90347924.cms">60%</a> of its revenue from a subscription-based model as compared to other forms of traditional media that are heavily dependent on advertisements. So, if Netflix charges a 10-15% extra for sharing passwords within an Indian household, which is ₹25 to 30, research firm Elara Capital’s senior vice president Karan Taurani also believes that it could have a negative impact. “Indian consumers are very value-centric and they don’t pay for one platform but a bundle of platforms. Netflix has done well in India after reducing its prices and offering a quantity of content. This two-fold strategy has led to the scaling of their subscriber base. If they ask for substituent fee from separate family members, it could work in a negative way because we haven’t been used to it. We pay for one TV set-up box and there are three-four watchers in every household,” says Taurani. When Netflix came to India, it priced its maiden premium plan at ₹500, which Tarurani says was 7X-8X higher than TV bundle plans and other OTT platforms. It was competing with OTT platforms and a huge TV-watching audience in India back then. This challenge led to Netflix’s slow growth and the streaming company has changed pricing as well as introduced a mobile-only plan in the country since then, slashing its price by 60%. “Netflix India revenue has grown 65% YoY in FY21 and it has a market share of almost 35% in India’s SVOD market; we believe Netflix has the first-mover advantage in India, as it was one of the first pay based OTT offerings in the country; it has been able to create a strong brand recall within Indian audience for premium content offerings behind a paywall and this will help it gain more market share as it penetrates deeper in India,” says Taurani. After the October-December quarterly results, Taurani says that Netflix is headed in the right direction. If Netflix now revises its password-sharing policy and price point, it could send the company back to square one.

Could the days of mooching off Netflix accounts come to an end in India? Here’s what experts say

<a href="http://www.businessinsider.in/searchresult.cms?query=chinese+smartphone+markers&amp;sortorder=effectivedate">Chinese smartphone makers</a> are advertising and marketing their brands in India like never before, giving Indian counterparts new goals for re-strategising and re-branding. 
 
Brands such as <a href="http://www.businessinsider.in/searchresult.cms?query=vivo&amp;sortorder=effectivedate">Vivo</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=gionee&amp;sortorder=effectivedate">Gionee</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=oppo&amp;sortorder=effectivedate">Oppo</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=leeco&amp;sortorder=effectivedate">LeEco</a> have increased their brand presence, majorly in offline medium than online and are even doubling the commission by 10 per cent. 
 
"Indian players, which usually operate on 2-3 per cent margins, are facing tough competition from Chinese players. Further, online-only Chinese players are willing to sacrifice margins, even go into negative margins," Counterpoint Research senior analyst Tarun Pathak, told ET. 
 
Not only this, the smartphone makers also paying charges between Rs 30,000 and Rs 31 lakh to mom-n-pop stores for redesigning their shop fronts and carrying the brand's name, which was done for free earlier. 
 "Tapping the retailers for a branding opportunity is a great idea which is proving to be effective for us," Vivek Zhang, chief marketing officer at <keyword id="215177" type="COMPANY" weightage="20" keywordseo="Vivo">Vivo</keyword> India, told ET. 
 
The Chinese presence has made Indian smartphone makers increase their budget for marketing and advertising as they have to match to survive the competition. 
 
Indian players such as <a href="http://www.businessinsider.in/searchresult.cms?query=micromax&amp;sortorder=effectivedate">Micromax</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=intex&amp;sortorder=effectivedate">Intex</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=lava&amp;sortorder=effectivedate">Lava</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=karbonn&amp;sortorder=effectivedate">Karbonn Mobiles</a> have to compete aggressively. 
 "We've always maintained that significantly high advertising spends and trade margins to gain short-term market share is unsustainable - especially true in the current scenario where overall industry margins are under pressure," Shubhajit Sen, chief marketing officer at <keyword id="71696" type="COMPANY" weightage="20" keywordseo="Micromax">Micromax</keyword> Informatics, told ET. 
 
As of the quarter ended March 31, Chinese players had a 22 per cent share of smartphone sales, which is expected to increase to 25 per cent, said analyst Pathak. 
 
"We have spent about $10 million (about Rs 67 crore) on marketing online and print in the first quarter this year, and we will spend similar amounts for quarters to come," LeEco's COO Atul Jain told ET. 
 
(Image: Thinkstock)

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