OTTs set to launch more shows in 2021, invest more in regional content

Over-the-top (OTT) platforms are expected to launch more than 400 originals in 2021 as compared to less than 200 titles last year.

Maryam Farooqui
January 10, 2021 / 01:19 PM IST

From Priyanka Chopra's The White Tiger on Netflix to Saif Ali Khan's Tandav on Amazon Prime Video, video streaming platforms are set to launch more shows this year.

While over-the-top (OTT) players have a strong content lineup for 2021, theatres continue to struggle for films due to factors like cinemas operating at 50 percent capacity and low footfalls.

OTTs are expected to launch more than 400 originals this year as compared to less than 200 titles in 2020, according to a report by Omdia, an independent analyst and consultancy firm headquartered in London. After all, original titles like Scam 1992 on Sony LIV found strong traction.

Karan Taurani, Analyst and Vice President at Elara Capital, pointed out in a research note that SonyLIV saw 5x growth in terms of viewership, more users post the launch of Scam 1992 starring Pratik Gandhi. The platform will launch six originals this year.

Theatres which were pitted against OTTs last year saw limited traction for film releases, especially from Bollywood, like Suraj Pe Mangal Bhari, Indoo ki Jawani.

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Many single screen cinemas have shut shop citing dearth of content, and many others are on the verge of shutting down permanently until producers of big ventures like Akshay Kumar's Sooryavanshi and Ranveer Singh's 83 announce their release dates.

While theatres saw limited film release in 2020, video streaming platforms increased their count of new shows last year despite the impact of COVID-19 pandemic.

In 2020, Netflix had launched as many as 90 Indian originals, up from 80 in 2019 and 30 in 2018. Its rival Amazon Prime Video had increased its count of originals to 110 in 2020 from from 100 from 2019 and 90 in 2018, according to a recent report by the Boston Consulting Group (BCG).

Additionally, OTT platforms are expected to spend Rs 4,905 crore on content this year. The budget for content will also increase by 15-20 percent.

"Content cost on digital will continue to be much higher than TV, as regional content cost may grow sharply, given the entry of global over-the-top giants to make large-scale regional content," Taurani said.

While content cost on television in the range of Rs 30,000 to Rs 2.5 lakh per episode, OTTs spend around Rs 50 lakh to Rs 1 crore per episode for their shows.

More languages, more content

As for regional content, it is expected that OTTs will spend Rs 150 crore this year.

If we look at regional content on OTT platforms in the last few years, Amazon Prime Video had acquired three new languages to reach a total of 10 languages in 2019. Malayalam, Punjabi and Marathi content was added on the platform in 2019.

In 2019, another OTT platform, ZEE5, added two originals per month in Tamil, Telugu, Marathi, Bengali and Kannada. Sony LIV also added 15 to 20 originals in Tamil and Telugu that year.

In addition to national players adding more regional content on their platforms, language-specific content platforms like Hoichoi and recently-launched Aha will also be strengthening their content portfolio.

Aha, the Telugu platform plans to launch around 52 originals this year.

More Indians on OTTs

Taurani estimates that around 1 crore Indians cut chords and opted for OTT platforms during the lockdown, largely due to a greater content variety.

Thus, it would not be surprising if more Indians shift completely to digital this year considering the continued focus of OTTs on originals and regional content.
Maryam Farooqui
TAGS: #Business #coronavirus #Entertainment #OTT
first published: Jan 10, 2021 01:19 pm