The Covid-19 pandemic was a game-changer for the OTT platforms, which saw viewership skyrocketing.
However, as the Covid situation abated, paid subscriptions for OTT platforms has plateaued.
According to reports by Livemint, besides penetration of OTTs among the urban elite has reached a saturation point and the platforms are yet to devise a strategy to woo the lower-end of the target audience in a significant way.
The churn has also increased with consumers frequently activating and deactivating subscriptions. At the peak of the covid pandemic, platforms had seen over 100% rise in subscription numbers. With most subscribers opting for annual payment plans, month-on-month growth has slowed, said Vibhu Agarwal, founder of OTT app Atrangii.
Most of the OTT players have been able to gain initial traction from India’s largest cities, where the per capita income is much higher than that in smaller cities or rural areas. Therefore, substantially increasing the paid user base could prove to be a challenge in India.