OTT is driven by the viewer. Should there be advertising? Advertising in the middle of a show or movie is considered a disruption. Having said this , this is the most difficult dilemma. India has 319 million internet users and 170 million smart phone users which allow them to watch video. At last count, 100 million did watch video. The videos watched are 1/4th of the total digital ad spend. The M & E industry is growing and ad spend and ad revenues too are growing. The Indian online services market will ride piggy back on advertising, although online video advertising is only a fifth of TV advertising today.
The challange are:
- differentiation
- strong regional content
- interesting and varying content.
The future is digital.