Indians likely to subscribe multiple OTT service

Indians are most likely to subscribe multiple paid OTT video streaming service says the findings of a study of over-the-top (OTT) media service markets in Asia Pacific by Ovum-Amdocs.

Among Indian respondents, the research found that carrier-bundled OTT media services make users spend more on their mobile and home broadband bills. They are also among the most likely to remain loyal to a carrier if provided with the right media offer.

44% of Indian respondents said that bundling media services with their telecom plan was the main reason they were willing to spend more on their mobile and fixed broadband bills and 47% said access to such a service made them less likely to switch providers, while 30% said they might switch in the absence of bundled offers by their current provider.

The pay-per-use model looks more promising for India than monthly subscriptions: 69% of Indians would pay one-time passes for specific content, or short-term access to content, to avoid paying a full subscription. In fact, the average online video subscription (Rs. 306) is too expensive for nearly 60% of consumers. The maximum consumers would willingly pay for a monthly online video subscription is: Rs. 50-200 (22%); Rs. 201-400 (30%); Rs. 401-600 (22%); Rs 600-800 (12%); and Rs 800 (7%).

70% would share personal data and accept targeted ads in exchange for a discounted or free service. Not surprisingly, rural respondents (81%) expressed a higher willingness than their urban peers (76%) to share personal data for this benefit. Discounting and free trials can hook more consumers: 50% are willing to pay for premium media services via their carrier bill if offered at a discount or with an extended free trial – but only if offered by their existing provider.

“Service providers who can quickly integrate and on-board multiple OTT media partners, offer innovative bundled plans to meet different consumer segments’ needs and deliver a seamless billing and user experience will be the ones who are most likely to reduce churn and grow profitably,” said Guillermo Escofet, Principal Analyst, Ovum.

“Indian consumers have demonstrated a healthy appetite for premium over-the-top media services, with most already paying for multiple OTT online video streaming services,” said Pankaj Lamba, Customer Business Executive, APAC, Amdocs.

“Our research shows that this market is willing to spend even more on their monthly telecom bill in exchange for the right bundle, with the right offer, at the right price point. To deliver this, communications service providers must address OTT partner onboarding and integration challenges while rapidly scale, devise new pricing models for different user segments, and ensure a frictionless end-user experience to ensure successful OTT monetization,” added Lamba.

Conducted by analyst and consultancy firm Ovum on behalf of Amdocs, the study surveyed almost 4,000 consumers in five emerging and developed countries in Asia Pacific, with over half of respondents coming from India. Other countries surveyed included the Philippines, Thailand, Australia and Singapore. The research also included qualitative conversations with 13 communications service providers and 12 OTT media players in the region.

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