Do you remember the old days of OTT when it was just in the nascent stage? There were many YouTube channels too that made short video content. But platforms like Prime Video and Hotstar through the use of money completely killed that kind of content from making headlines.
Well, a significant portion of the OTT industry is indeed dependent on YouTube now.
Many media and entertainment companies are using YouTube as a way to boost their revenue, while also offering paid content on their own subscription-based platforms.
For example, Zee Entertainment streamed the Pakistani TV drama Barzakh both on YouTube and its paid service, ZEE5. Similarly, Sony Entertainment makes full episodes of its shows available on YouTube, in addition to its SonyLIV app.
While some worry that free streaming on YouTube could reduce the number of people willing to pay for a subscription, others think that it is a smart strategy.
YouTube as we all know is a massive platform, with a number of users that regular OTTs can’t imagine, and it offers great potential for earning money through advertising.
This helps make up for the lower number of paid subscriptions, especially India, where people generally pay less for streaming services.
OTT platforms, which provide paid subscriptions, earn more per user than YouTube, but have fewer subscribers.
For them, YouTube can be used as a tool to promote content. For example, some platforms may release episodes on YouTube after a delay, using the free platform as a way to attract viewers to their paid services.
But more than anything, it is a reflection of how the OTT industry is performing in India. The condition is bad after a boom of 2-3 years. Given the fact that OTT players are dependent on YouTube, they need some serious changes.