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Indians want telecom carrier bundled OTT services: Ovum-Amdocs

Indians want telecom carrier bundled OTT services: Ovum-Amdocs
Photo Credit: VCCircle
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Bundled OTT (over the top) services can help telecom players expand their market presence. Nearly half or about 47% respondents in a recent survey said access to a bundled service would make them less likely to switch providers. On the flip side, some 30% believed they might change telecom providers if they failed to deliver such offers.  

Also, about 44% of Indian telecom users believe that bundling media services with their telecom plan is the prime reason behind spending more on their mobile and fixed broadband bills, according to a study by analyst and consultancy firm Ovum on behalf of US-based software services provider Amdocs.

The study surveyed around 4,000 consumers in five emerging and developed countries in the Asia Pacific. 

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It found that 56% of Indian digital consumers have already subscribed to over one paid online video service. Over half of these consumers have subscribed to more than one service to meet the needs of different household members, while 42% say that no single service provider offers all the content they want.

Read: India’s OTT video consumption rides mobile wave

“India is one of the hottest markets for OTT media services and carrier-OTT partnerships in the region, registering the strongest retention and user acquisition potential from bundling,” Guillermo Escofet, principal analyst, Ovum, said.

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The study revealed that 69% of Indian users pay one-time passes for specific content, or short-term access to content, just to avoid paying a full subscription.  Pay per use is popular in India, with nearly 60% of users finding average online video subscription, which is Rs 306 a month, to be too expensive.

Read: Netflix, Hotstar are on a spending spree in bid to win India’s OTT sweepstakes

“Service providers who can quickly integrate and onboard 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,” added Escofet.

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Around 70% of users share personal data and accept targeted ads in exchange for a discounted or free service. 50% of users are willing to pay for premium media services via their carrier bill if offered at a discount or with an extended free trial, the study added.

In recent times, OTT media services have picked up pace in the Indian market. An aggressive focus on original and localised content seems to have increased expenses at Netflix India, the local arm of the Los Gatos, California headquartered video streaming major. In the financial year ended March 31, 2019, the India-based entity reported an over 700% increase in expenses at Rs 461 crore. 

Read: Small towns, regional content trump metros in 2019 OTT viewership: Hotstar

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Last year in October, ecommerce major Flipkart launched Flipkart Video Originals, an original video content offering produced by popular names from the Indian entertainment industry. Restaurant aggregator Zomato also joined the ranks of video streaming services with the launch of original video offerings on its app, in September.

Video-based content is becoming the most preferred type in India, with more than 68% choosing it over text-based content. Also, in September 2019, a report by global management consulting firm Zinnov spotted vernacular content to be a key ask by the Indian consumer, with more than 70% of them preferring content in regional language over Hindi and English.


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