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Dec 18, 2023·edited Dec 19, 2023

Classic issue: Paid OTT aggregation services, such as OTT Play and Tata Play Binge, often lead to consumers paying for services they never use.

e.g. OTT Play Premium subscription costs Rs. 2,999 annually for 26 OTTs. Except for SonyLiv and Zee5, the others are regional or lesser-known services. Subscribing to Zee5 and SonyLiv separately costs Rs. 1,898. So, with an OTT Play subscription, users pay an extra Rs. 1,101 for OTTs they might not use. E.g. for Telugu customers, subscriptions to Gujarati, Bhojpuri, Punjabi, and Haryanvi OTTs are irrelevant.

From a business perspective, OTT aggregation favors those with an established distribution channel or a sizable existing consumer base. Tata Play, Airtel Xstream, etc., hold an advantage over independent apps as they can convert their current customer base through established channels and inventories.

Creating new OTT aggregation apps faces a chicken-and-egg problem. Established OTT platforms won't join without a significant user base, and users won't subscribe to these aggregators without those OTT platforms. It'll be interesting to see how OTT Play unfolds. With over one million downloads, I'm sure it's challenging for them to add value to major platforms like Hotstar and SonyLiv.

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