Indian users like telecom carrier-bundled OTT services, says study

As over-the-top (OTT) or video and audio streaming services gain traction in India, they have also spelt opportunity for telecom services companies.

According to a study by software services provider to telecom firms, Amdocs, and consultancy firm Ovum, it turns out that as many as 47 per cent respondents said they wouldn’t change their service provider.  

According to the study,  carrier-bundled media services drive consumers to spend more and maintain loyalty to service providers, with 44 per cent Indian respondents saying 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.

The study surveyed almost 4,000 consumers in five emerging and developed countries in the Asia Pacific (APAC), with over half the respondents coming from India.

As many as 56 per cent of Indian consumers already subscribe to more than one paid online video service, and more than half of these consumers said they subscribe to more than one service to meet the needs of different household members.

“Indian consumers have demonstrated a healthy appetite for premium OTT media services, with most already paying for multiple OTT online video streaming services,” said Pankaj Lamba, customer business executive, APAC, Amdocs.

Lamba added that the Indian market was found willing to spend even more on the monthly telecom bill in exchange for the right bundle, with the right offer, and at the right price point.

However, the pay-per-use model is more popular among Indians than monthly subscriptions, with 69 per cent respondents saying they would pay one-time passes for specific content, or short-term access to content, to avoid paying the full subscription.

The average online video subscription of Rs 306 is too expensive for nearly 60 per cent of
the respondents.

While 22 per cent of those surveyed said the maximum they would willingly pay for a monthly online video subscription was Rs 50-200, 30 per cent said they would be willing to pay Rs 201-400, another 22 per cent said Rs 401-600, 12 per cent said Rs 600-800, and only 7 per cent said they would be willing to pay Rs 800.

Discounts and free service still rule the roost, and 70 per cent said they would share personal data and accept targeted advertisements in exchange for a discounted or free service.

While 81 per cent rural respondents expressed a higher willingness, 76 per cent of their urban peers said they were willing to share personal data for this benefit.

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

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