India is expected to be among the top-10 entertainment and media markets globally by 2021 in terms of absolute numbers, according to a joint study by ASSOCHAM-PwC.
The country's per capita media and entertainment spending islikely to be capped at USD 32 or Rs 2,080 by 2021, the study noted.
By some estimates, India is among the fastest growing OTTmarkets in the world and will be one of the top-10 by 2022, it said.
The market size is expected to reach USD 52.68 billion in2022 from USD 30.36 billion in 2017, it claimed.
"It (India) is set to be in the top 10 entertainmentand media markets globally by 2021 in terms of absolute numbers," thestudy said.
It attributed growth of OTT content to increasingpenetration of smartphones in the country and continuous rise in dataconsumption.
The OTT market (transactional video on demand andsubscription video on demand) is set to grow at a compounded annual growth rate(CAGR) of 10.1 per cent during the period 2017-2022.
"During the same period in India, the segment isexpected to grow from USD 297 million to USD 823 million in 2022 at a CAGR of22.6 per cent. With increasing smartphone penetration and lower data tariffs,VoD is showing promising growth," the report said.
Globally, the industry has recently witnessed a shift infocus from content and distribution to user experience.
"India's per capita media and entertainment spend willbe capped at USD 32 (about Rs 2,080 ) by 2021. The spend is much lower thanthat of China, which will stand at USD 222 (Rs 14,430 ) for the same period,and that of the USA, which will have the highest spend at USD 2,260 USD (Rs1.46 lakh)," the study said.
The large number of choices in the video-on-demand segmenthas spoilt consumers in India, the study noted.
"Hotstar has had a first-mover advantage in the OTTspace in India. Other top players in the OTT ecosystem include Voot, SonyLIV,Netflix, Amazon Prime, Eros Now and ALTBalaji. Start-ups such as Arre andYuppTV are an additional presence," it added.
In India OTT players, including Hotstar, Amazon Prime andEros Now, are not only competing among themselves but also also with DTHplayers and other means.
"With increasing traffic in metro cities, the time spent on viewing videos is also on the rise. Cab aggregators, such as Ola, have installed tablets inside their cabs with a wide range of curated content for passengers at no additional cost," the report said.