SUMMARY
OTT services have gained popularity in India, with the market expected to reach $5.12 Bn by 2026, driven by increased demand for quality content
To make OTT services more accessible to rural populations, sachet subscription-based models are crucial, allowing people to pay for specific content in the language they want for a limited time
Distribution-as-a-service (DaaS) is filling the gap between streaming platforms and rural consumers, enabling content companies to make their services available to Bharat through local retailers and streamlining the process of consumption at the last mile
Entertainment has had a huge impact on Indian society since time immemorial. From the humble silent-era beginnings of Indian cinema with the release of ‘Raja Harishchandra’ in the year 1913 to the current 3D and 4D films, we have surely come a long way. However, a country of 1.4 Bn has access to only 8.7K screens across the country, including the 3.2K multiplexes.
Entertainment is integral to a healthy lifestyle. It has the power to influence culture and shape opinions. The visibility of the outside world that comes from watching infotainment is crucial. It moulds the way we interact with each other and how we view the world. People in rural areas share the same aspirations as their urban counterparts when it comes to consuming entertainment but have little or no access to it. Plus, entertainment options are often unaffordable for the majority at the last mile.
This is why over-the-top (OTT) services garnered the limelight, as they brought accessible entertainment right to the TVs and smartphones of consumers. From only two OTT platforms in 2012 to 40 platforms today, the country’s OTT revolution has progressed immensely. Interestingly, the OTT video services market in India is likely to reach $5.12 Bn by 2026, driven by rapid developments in online streaming platforms and increased demand for quality content among users.
Digital companies have played a crucial role in driving the OTT revolution in India by making payments easier, offering discounts and cashback, providing seamless subscription management, and integrating with streaming platforms. However, this holds true for the urban population to a great extent. The pricing of these services is still a deterrent for many people in Bharat. While these services offer a range of content in different languages, not all consumers might be willing to pay the same price for content in a language they may not understand.
Here, sachetisation is the key.
Sachetisation Of Services: The Need Of The Hour!
Rural India wants cheaper OTT subscriptions. Because of their limited income sources, they cannot afford the expensive packages offered by leading streaming platforms. To cater to this segment of consumers, a sachet subscription-based OTT service is crucial. These small and affordable subscriptions allow people to pay for specific content in a language they want, for a limited period of time. The sachet model makes entertainment more accessible to a larger audience, including those who may not have access to higher-priced subscriptions. So, customers can pay for these services on a pay-as-you-go basis rather than committing to a long-term subscription.
For instance, a user interested in watching Tamil content can pay for a sachet subscription for one month only for Tamil movies and shows. Similarly, this service can be offered for Hindi, Telugu, Bengali, and other vernacular languages. It will help satiate the increasing demand for regional content in Bharat.
Interestingly, according to a FICCI-EY report, over 50% of the total time spent on OTT platforms by 2025 will be used to consume regional content.
Moreover, selling entertainment has to be as simple as a mobile recharge at a store nearby. Partnering with local retailers is an effective way to drive OTT consumption in Bharat. And distribution-as-a-service (DaaS) helps streamline this whole process.
DaaS: The Outreach Vehicle
DaaS is filling the gap that exists between streaming platforms and rural consumers and helping partners access the last-mile market. It is enabling content companies to make their services available to Bharat with the help of APIs and plug-and-play technology.
This ensures that the interiors of the country are no longer left out of the benefits of modern advancements while guaranteeing a steady stream of revenue for local micro-entrepreneurs and service provider partners. The goal of DaaS is to democratise services and make the advantages of the contemporary world available to everyone by simplifying high-end technology for consumption at the last mile.
With DaaS, retailers can leverage their physical presence and customer relationships to drive sales of sachet-based OTT services by educating, promoting, and inciting customers to try them. Retailers can double up as local entertainment managers to drive customer retention, avoid drop-offs and help customers consume entertainment seamlessly.
Additionally, it can help create strong point-of-sale communication and visibility on the ground, which will aid in the proliferation of entertainment across the country. In short, DaaS is providing an opportunity for online streaming companies to drive the ‘entertainment revolution’ in areas they want, in a language Bharat wants.
