MAM
Entertainment Goes Online – A $5 Billion Opportunity in India
Mumbai: Over-the-top (OTT) content market in India is at an inflection point in India, as per the latest report by The Boston Consulting Group titled ‘Entertainment Goes Online’.
The report pegs the Indian OTT market to reach $5bn in size by 2023. This growth is being driven by rising affluence, increase in penetration of data into rural markets and adoption across demographic segments including women and older generations.
The ‘Entertainment Goes Online’ report is based on a first -of-its-kind consumer survey that seeks to understand consumers’ motivations in adopting OTT content over other conventional modes of content delivery. Survey results showed that there is a room for many types of OTT models such as SVOD (subscription-based platforms), AVOD (advertising-based platforms) and TVOD (transaction-based platforms) to succeed in the market.
“Majority of India has a single TV per household. Affordable data has created an alternate medium where consumers, for the first time, can tap into content basis individual preference at a time and space convenient for them. Whilst the current market operates with a largely advertising paid content paradigm, consumers are not averse to paying for convenient content access that OTT unlocks,” said Kanchan Samtani, Partner & Director, The Boston Consulting Group. Affluence and wide variety of content being developed for OTT market including diversity in genres and language gives OTT market a favorable edge over it traditional counterparts.
The study identified three archetypes of customers in the Indian market, 1) traditionalists – who primarily consume on other than OTT platforms, 2) OTT Experimenter – who has significant consumption on both conventional and OTT platforms 3) Early Adopter – whose primary consumption occurs on OTT platforms. While early adopters are still a more urban phenomenon, going forward it will be more equally distributed.
48% of India’s internet users (~650 million by 2023) are expected to be from rural areas. With development of regional content by various players, the rural market is poised to become a significantly large opportunity for players. OTT is riding the wave of increased data consumption and internet access in rural India, has opened a new distribution channel that is viable for regional and niche content.
Indian content including music, Bollywood content and cricket have large following in the Indian diaspora also. OTT Players with Indian content have potential to tap into this market too. “While the NRI content market is huge and demonstrates willingness to pay, it is not only dominated by cricket – Bollywood music and films are very significant. With their large content libraries, Indian OTT players are sitting on a metaphorical gold mine to serve this increasingly important customer base”, said Gaurav Jindal, Principal, The Boston Consulting Group.
“One of the key insights of our consumer work was that, while OTTs rely on top-notch hero content to attract consumers to the platform, the stickiness of these consumers is not very high unless accompanied by ways in which they engage more deeply with the platform and is associated with strong marketing efforts," said Kanchan Samtani when discussing the subscriber acquisition and retention strategy of various OTT platforms.
While Indian OTT players have taken many steps to capture the market, there is a lot that needs to be done before, Indian OTT market achieves the same penetration and maturity as its western counterparts.
Brands
Raj Cooling Systems launches Agreyas appliances brand
Emraan Hashmi named brand ambassador for consumer appliance push.
MUMBAI: A company known for cooling solutions is now heating up its ambitions in the home appliances market. Raj Cooling Systems Pvt. Ltd. has launched a new consumer appliances brand, Agreyas, marking its entry into India’s rapidly expanding home appliances sector valued at more than Rs 1.5 lakh crore. The move represents a strategic diversification for the company, which has traditionally focused on cooling solutions for residential, commercial and industrial applications. Through Agreyas, the firm plans to tap into growing consumer demand for energy efficient and technology driven household appliances.
To build brand visibility, Agreyas has appointed Emraan Hashmi as its brand ambassador. The campaign has been developed under the banner of Zoommantra Productions, with actor and filmmaker Rohit Roy contributing to the creative direction.
The brand’s initial portfolio will include mid premium air conditioners, washing machines, geysers and other white goods designed to cater to modern Indian households seeking efficient and reliable appliances.
Raj Cooling Systems, founder and chairman Kalpesh Ramoliya said the launch aligns with the company’s broader expansion plans.
“The launch of Agreyas is in line with our vision to build a strong presence in India’s consumer electronics and home appliances market. The brand has been developed as a standalone identity to meet the evolving needs of Indian consumers,” he said.
Hashmi said the collaboration comes at a time when Indian buyers are increasingly looking for innovative and functional home solutions.
“I’m looking forward to working with Agreyas at a time when consumers are seeking more innovative and efficient home products. The brand reflects changing consumer behaviour around functionality, innovation and ease of use,” he said.
Raj Cooling Systems plans to invest around 10 million dollars in developing the brand, with an additional 5 million dollars earmarked over the next three to five years for product development and distribution expansion.
Agreyas will follow a multi channel distribution approach, selling through online platforms, retail outlets and dealer networks aimed at both urban and semi urban markets across India.
With the launch, the company is positioning Agreyas as a standalone consumer facing brand while continuing to leverage its existing manufacturing, engineering and research capabilities built through its core cooling solutions business.
