OTT in India: Mixed pricing likely to work best

While India continues to be price sensitive, value sensitivity is a key factor for OTT platforms existing in and planning to enter the market

In a market study conducted by Brightcove in partnership with YouGov, 9000 participants across nine Asian countries were asked questions about their use and perception of OTT platforms. Of these, 1000 were Indians who led to certain very interesting statistics about the patterns of use among Indian consumers. Here we unravel a few of these numbers to understand the price and value sensitivity that comes to play in the Indian market.

Freebies all the way

There is a demand for the option to customise price plans with ad packages across the countries surveyed, including India.

Of the 1000 persons questioned, 410 said they subscribe to multiple services because of free trial and/or promotional offers. Further, 250 people said they are willing to watch some ads if the subscription amount is less and another 250 said they would watch ads if the content was available for free.

Interestingly, the report states that in India, a strong propensity to pay a reduced fee with the limited advertising model could be seen.

The Indian market has the scope of serving as a testing ground for hybrid ads and the subscription-based model.

Too many advertisements?

OTT service providers seeking to implement an ad strategy should think about designing an ad experience for viewers that is not off-putting, while also providing innovative ad options for advertisers.

About 220 respondents in the survey feel two ads are an acceptable advertising load per break and only 130 were open to three ads at a time. About 160 people in the mix wanted absolutely no ads. In general, lower ad loads are more acceptable to viewers. Personalising ad experiences is key.

An ideal plan

A varied price plan, instead of one fixed plan that fits all, provide users with the flexibility to upgrade or downgrade their plans based on their usage and preference.

“OTT services providers do not need to limit themselves to one fixed plan. They should experiment with different price plans and offer users the flexibility to choose between ad-free and ad-funded packages. Having diverse pricing options can help drive market growth,” the report states.

They could explore and test which ad plans resonate best with their customer base. The report suggests that serving ads during weekday streaming and limited ads or no ads on the weekends, or vice versa are options that can be explored.

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