NewKerala.com

Key Points

Premium OTT content fell 12% in 2024 as platforms tightened budgets. The report predicts further cost pressures in 2025 amid declining Pay TV homes. Regional language content now makes up nearly half of OTT releases. Subscribing households are expected to grow to 65 million by 2027.

Key Points: Premium OTT Content Drops 12% as Platforms Cut Costs for Profitability

  • OTT platforms cut budgets amid profitability concerns
  • Pay TV homes continue declining
  • Regional content dominates 48% of OTT releases
  • Subscribing households to hit 65M by 2027
2 min read

Premium OTT content declined 12% in 2024; cost pressures likely in 2025 as OTT platforms struggle for profitability: EY-FICCI Report

EY-FICCI report reveals OTT platforms reduced premium content by 12% in 2024, with cost pressures expected in 2025 amid profitability struggles.

"2024 saw a 12% fall in premium OTT content, and 2025 is expected to see significant pressure on costs. – EY-FICCI Report"

New Delhi, May 15

The premium OTT content fell by 12 per cent in 2024 as streaming platforms cut back on expensive productions in a bid to become profitable, according to a new report by EY and FICCI.

The report also highlighted that 2025 is likely to see significant cost pressures on OTT content, as Pay TV homes continue to decline and platforms struggle to manage their business models sustainably.

It said, "2024 saw a 12 per cent fall in premium OTT content, and 2025 is expected to see significant pressure on costs as well, as Pay TV homes continue to decline, and OTT platforms struggle for profitability."

It also noted that the premium OTT content volumes declined as platforms reduced their budgets, focusing more on efficiency than scale. Only 60 films were released directly on digital platforms during the year, even though around 500 films were eventually released on OTT platforms.

This suggests that most films still prefer theatrical releases before moving online.

In total, more than 1,600 films were released in 2024, excluding around 200 dubbed versions. This marks an increase of 64 films compared to 2023, reflecting a slight recovery in the film industry.

The report also pointed out that 48 per cent of the content released on OTT platforms was in regional languages, showing a rising trend of dubbed and sub-titled content to reach wider audiences.

General Entertainment Channels (GECs) continued to dominate television content consumption, contributing 65 per cent of total hours watched on TV in 2024, excluding news bulletins.

Looking ahead, the report projects that while OTT content volumes are expected to grow in 2025, they will likely come at a lower average cost of production. Streaming platforms are expected to focus on cost-effective content as they aim to balance growth with financial viability.

It said, "In 2025, we expect OTT content volumes to increase, but at a lower average cost of production."

The report also highlighted the opportunity for video consumption remains strong, with the number of screens in the country expected to rise significantly.

By 2030, large screens are expected to cross 200 million, while small screens like smartphones are projected to reach almost 700 million. This expanding digital infrastructure is expected to support a growing base of content consumers.

The report outlined that the subscribing households are likely to grow from 47 million to over 65 million by 2027, driven by rising per capita income, greater smart TV penetration, and availability of low-cost broadband.

- ANI

Share this article:

Reader Comments

R
Rajesh K.
Not surprised by this trend. Many OTT platforms were burning cash with expensive shows that didn't even have good stories. Quality over quantity is better - we don't need 10 average shows when we can have 5 excellent ones. Hope this leads to better content!
P
Priya M.
As someone who watches both Hindi and Tamil content, I'm happy to see regional languages getting more focus (48% share!). Many OTT platforms were too Mumbai-centric earlier. India has so many amazing stories to tell from different states and cultures 🎭
A
Amit S.
The subscription fatigue is real! I was paying for 4 OTT platforms but cut down to 2 this year. Prices keep increasing while content quality is inconsistent. Platforms need to find balance between profitability and keeping customers happy.
S
Sunita R.
Interesting that theaters are still preferred over direct OTT releases. The big screen experience can't be replaced! But OTT is great for regional films that don't get theater space. Hope this balance continues.
V
Vikram J.
The report misses one key point - too many OTT platforms are making the same type of content (crime thrillers, urban dramas). We need more variety! Where are the good sci-fi or historical shows? Cost cutting shouldn't mean less creativity.
N
Neha P.
With 700 million smartphones coming, OTT has huge potential in small towns and villages. But platforms need to optimize for mobile viewing and offer cheaper data packs. Not everyone has WiFi or 5G! 📱 The next wave of growth will come from Bharat, not just metros.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50