Should You Start a TV Channel or OTT Platform in India? Monetization, ROI, and Launch Strategy Explained

TLDR 

Core Problem: Media companies are grappling with whether to continue traditional TV broadcasting or invest in launching an OTT platform in India.

Key Insights:

• The decline of traditional TV and rise of OTT demand in India.
• Key monetization models (AVOD, SVOD, TVOD) explained.
• Strategic launch roadmap for OTT platforms, including content strategy and local market nuances.

Actionable Solution:

• Build a custom OTT platform to engage digital audiences and diversify revenue.
• Consider the ROI, scalability, and monetization strategies specific to India.

Is your traditional TV channel still bringing in the revenue it once did, or is launching an OTT platform the key to surviving India’s digital transformation?

India is at the forefront of the fast-changing digital landscape in the media distribution industry.

Here’s a surprising fact: 

The IMARC Group predicts that India’s digital video content market, which grew to $19.3 billion in 2024, will reach $46.4 billion by 2033, with a compound annual growth rate (CAGR) of 9.2%. Digital advertising, OTT app development, and short-form video apps are all experiencing rapid growth. The popularity of low-cost smartphones and internet plans has led Indian customers to shift from traditional TV to OTT platforms quickly. 

However, this shift to digital technology presents a new set of challenges: How do you decide whether to enter the Indian OTT market or stick with traditional TV channels?

This blog will provide actionable insights into:

• What are the key limitations of traditional TV in India?
• What are the benefits and opportunities for OTT platforms in India?
• What are the significant strategies to monetize your OTT platform in India?

So, let us get started!

The Shifting Sands: Why Traditional TV in India Faces New Headwinds 

Problem Description: 

Audience migration is one of the main issues that traditional TV in India is currently facing. Customers are spending more time watching content on digital platforms and less time in front of traditional TV sets. 

The introduction of high-speed internet and more reasonably priced data plans has made OTT services a desirable substitute. Additionally, advertising revenue for television networks is declining. 

TV advertising has become less profitable due to the high cost of cable and growing competition from digital and conventional media. On their laptops, tablets, and smartphones, the younger generation of tech-savvy customers is searching for content that they can access at their convenience.

Businesses are increasingly developing OTT platforms as a solution to capitalize successfully on this expanding trend. In addition to serving a wider range of viewers, these platforms are more flexible and provide a more interesting experience than traditional television.

Key Stats:

• Over 45% of TV viewers now consume content on mobile applications or digital platforms.
• India’s internet penetration is growing rapidly, and TV’s dominance is weakening.
• OTT consumption in India has increased by 29% over the past year.

Even if TV has a broad audience, it’s evident that custom OTT solutions provide numerous benefits for connecting with today’s tech-savvy customers. The majority of Indian viewers no longer want to consume content on TV due to its excessive costs and limited flexibility. 

Conversely, OTT app development offers greater ease, an enhanced user experience, and the opportunity to connect with younger, tech-savvy consumers.

Working with an OTT app development company in India can be crucial for media organizations considering this change to effectively navigate the challenges of creating a streaming service. 

Building a dependable, engaging, and scalable platform can be significantly aided by the technical expertise and experience of a skilled development team.

The Rise of OTT in India: Unpacking the Opportunity

Over the past decade, custom OTT platform development in India has experienced rapid expansion, with notable players such as JioCinema, Netflix, Amazon Prime, and Hotstar at the forefront. 

The Indian OTT market is expected to expand at a compound annual growth rate (CAGR) of 17.20%, from USD 322.66 billion in 2025 to USD 1346.38 billion by 2034. This shows enormous promise and opportunity for both established firms and newcomers hoping to capitalize on this expanding market.

Future of OTT in India 

1. Development and Availability

OTT services have emerged as the preferred entertainment option as live video applications increasingly challenge traditional TV. Customers in India are shifting to platforms that offer flexible viewing of video-on-demand platforms, driven by the country’s increasing urban and rural internet and mobile penetration rates. 

The primary factors driving this change are content localization and the ability to access content from any location at any time.

2. Diverse Content

One of the primary drivers of OTT growth is the diverse range of content available, encompassing everything from international to region-specific programming. Businesses that offer content in regional languages have a higher chance of engaging a wider audience due to India’s unique cultural landscape. 

By using live video streaming technology to deliver localized content in high-quality formats, Indian audiences’ preferences are catered to, and a wider, more engaged audience is guaranteed.

3. Enhanced Consumer Engagement

By providing direct-to-consumer interaction, OTT platforms build viewer loyalty and deliver personalized experiences. Compared to traditional broadcast TV, this consumer-centric strategy offers a significant advantage. 

Businesses may increase user happiness and engagement by giving users more control over how they consume content by integrating OTT and VOD. 

Using cloud-based transcoding services also makes it easier to deliver video across a range of devices and network conditions, thereby improving the user experience and promoting repeat viewing.

Types of OTT Models in India

India’s OTT platforms have achieved success by implementing several revenue-generating techniques:

• SVOD (Subscription Video On Demand): 

Services that rely on subscription-based revenue models, such as Netflix, Amazon Prime Video, and Hotstar VIP, are appropriate for sustained content engagement. Consistent revenue streams from SVOD promote long-term client commitment.

• AVOD (Advertising Video On Demand): 

AVOD is gaining popularity in India due to the country’s price-conscious consumer base. This strategy is dominated by platforms like YouTube, which offer free content with advertisements. For companies seeking to achieve mass reach and scale rapidly, this is the ideal choice.

• TVOD (Transactional Video On Demand): 

High-demand, unique content, such as live cricket events, concerts, or movie rentals, is frequently offered using the pay-per-view business model. TVOD is used by services like Netflix to provide premium content.

• Hybrid Model:

SVOD and AVOD are used to create the hybrid model. This concept is used by platforms such as Zee5 and ALTBalaji, which provide both free and ad-supported content. This two-pronged strategy maximizes revenue potential while improving accessibility.

Monetization and ROI for Indian Businesses

For Indian businesses, OTT platforms provide a wide range of very flexible monetization opportunities. OTT systems offer viable options to meet business demands, regardless of your preference for pay-per-view, ad-based revenue, or subscription models.

Here are some advantages for businesses:

• Content Personalization: OTT platforms provide users with highly customized content tailored to their individual viewing preferences. Increased engagement and retention lead to more stable revenue streams.
• Advanced Analytics: By offering insights into user behavior, built-in analytics tools help organizations optimize their monetization strategies and content strategies. OTT systems provide actionable data, from tracking user preferences to comprehending viewing trends, which can enhance content and increase profitability.
• Low-Cost Distribution: Compared to traditional TV, OTT platforms may reach a large audience with little expenditure on distribution. Due to the larger margins resulting from this reduced-cost approach, OTT platforms have a distinct edge in terms of revenue and extensibility.

OTT Platform vs. Traditional TV in India: Key Differences

1. Audience Reach: 

Although OTT platforms are quickly catching up, traditional TV still has a sizable audience. TV has a broad audience, while OTT channels engage viewers directly, building stronger relationships with them. 

Businesses can provide a more individualized viewing experience by utilizing a streaming platform. Besides, international players like Netflix have effectively implemented this tactic. 

See our OTT App Development Case Study for additional information.

2. Launch Cost: 

Starting a TV channel in India comes at an expensive price. Traditional TV networks require substantial capital investments for everything from infrastructure setup to acquiring broadcasting rights. 

OTT platforms, on the other hand, enable companies to start with comparatively minimal expenses, particularly when combined with cloud infrastructure and customized OTT solutions. Businesses can now more easily explore new entertainment apps for a broader audience or consider solutions like a Netflix-like website, due to this low-cost entry option.

3. Adaptability: 

Compared to growing traditional TV services, OTT platforms offer greater flexibility, as they enable enterprises to expand their services globally at a comparatively low operational cost. 

You may create a streaming solution that expands with your company if you have the best tech stack. Furthermore, smart TV app development creates new opportunities to grow and diversify platforms, reaching even wider audiences and thereby increasing the return on investment.

Indian OTT Business Success Stories

For example:

• Millions of consumers were effectively engaged by JioCinema, a relatively new OTT platform, through its utilization of its telecom network. It swiftly grew and started to compete with industry titans like Netflix and Hotstar by providing high-quality live sports and reasonably priced content in regional languages.
• ALTBalaji has also effectively entered the regional content industry in India, offering a hybrid monetization approach to cater to the diverse needs of its audiences.

How to Monetize Your OTT Platform in India: The Right Strategy 

AVOD, SVOD, and TVOD in India: Key Pros & Cons

Cost-effective Monetization Strategies: Key ROI Drivers

For an OTT platform to grow rapidly after launch in India, cost-effective monetization strategies are crucial.

The following measures can increase ROI while maintaining controllable expenses:

• Decreased Distribution Costs: Compared to traditional TV, OTT platforms offer significantly lower distribution expenses. By distributing content digitally across multiple devices, the excessive costs of satellite transmission can be avoided.
• Greater Control Over Audience Data: OTT platforms enable the collection and analysis of user data, which can be leveraged to refine content recommendations and marketing strategies. Higher rates of engagement and retention follow from this.
• Enhanced Brand Equity: By providing high-quality content and facilitating consistent user interaction, digital-first techniques not only help you engage viewers but also strengthen your brand equity.
• Increased ARPU with Targeted Content: By utilizing OTT platforms to segment their audience and display targeted advertisements, companies can improve their overall income per user by providing personalized content.

Launching Your OTT Platform in India: A Strategic Roadmap 

Although launching an OTT platform in India offers considerable potential, it can be challenging to navigate the complex landscape of regional tastes, legal requirements, and expanding infrastructure. India has emerged as a hub for OTT services due to their immense popularity and rising internet penetration. However, how can you make sure your platform is unique? 

Let’s go over a strategic approach for establishing an effective OTT platform in India.

1. Content Strategy: Prioritize Content Localization

The secret to connecting with the Indian audience is localized content. Content that directly addresses local concerns is crucial in India, given its unique culture, diverse languages, and regional preferences. 

Offering region-specific content enhances viewer retention, regardless of whether it is in Telugu, Tamil, Hindi, or another language.

Key Steps:

• Target regional languages: To accommodate India’s multilingual audience, ensure your OTT platform offers subtitles, dubbed versions, or content tailored to specific regions. Adapting content to local tastes increases user engagement.
• Collaborate with local producers: To provide distinctive, relatable content, collaborate with local producers, filmmakers, and content studios. This enables you to develop a custom OTT solution using content that isn’t available on global platforms like Netflix or Hotstar.

2. Infrastructure & Technology: Versatility Is Essential

Expandable architecture is crucial for OTT platform launches, enabling the management of millions of users, particularly during busy periods such as festivals or live events. Given the rapid growth of internet users, you need a solid platform that can scale with you.

Key Steps:

• Cloud-based infrastructure: For simple scaling, utilize cloud-based transcoding services. The platform will function properly even during peak hours, due to the cloud infrastructure’s ability to manage large traffic volumes without taxing your resources.
• Regional data centers: To provide improved performance and reduced latency, ensure you have data centers in India. Utilizing local data centers to build an OTT platform enhances user experience and accelerates content delivery.
• Low-latency streaming: Maintaining a fluid user experience in India, where mobile data usage is common, requires low-latency streaming. Invest in live streaming app development companies to ensure that viewers receive uninterrupted videos.

3. User Experience (UX) & Design: Intuitive and Mobile-First

An intuitive interface that functions flawlessly on desktop, tablet, and mobile apps is essential for India’s mobile-first audience. Providing an intuitive user experience (UX) is crucial in maintaining user engagement with a diverse user base that encompasses both novice digital users and tech-savvy millennials.

Key Steps:

• Mobile-optimized design: Ensure your OTT app or website is optimized for mobile viewing by making it mobile-first. A streaming platform that functions well on both high-end and low-end devices will reach a wider audience.
• Easy navigation: Designs that are straightforward, understandable, and simple to operate will keep consumers interested. Offer functions like “Recommendations” and “Continue Watching” to improve the overall user experience of the OTT app.
• Individualized content recommendations: Increase user engagement by using data analytics to suggest content based on watching patterns and preferences. Data-driven suggestions can be seamlessly integrated with custom OTT solutions.

4. Legal and Regulatory Compliance: Follow Indian Regulations

Navigating India’s regulatory environment can be challenging. India has stringent laws governing payment methods, data privacy, and content control. Respecting local regulations is crucial for avoiding fines and ensuring efficient operations.

Key Steps:

• Content licensing and censorship: Obtain the required licensing rights for all content and ensure compliance with TV channel license fees in India. Ensure that your platform complies with the content filtering criteria set forth by the Ministry of Information & Broadcasting.
• Data Privacy: Ensure that user data processing complies with the Data Privacy Act and other relevant laws, such as the Personal Data Protection Bill.
• Payment systems: Incorporate regional payment gateways that enable users to make payments in Indian rupees and use payment methods unique to India, such as bank transfers, UPI, and wallets.

5. Marketing Plan: Campaigns Focused on Digital

Digital-first campaigns are the most common in India. Traditional TV advertising remains widely used, however. To reach as many customers as possible, your marketing strategy should include the finest aspects of both approaches.

Key Steps:

• Social media interaction: Utilize platforms like YouTube, Facebook, and Instagram to promote your content. Collaborate with content producers and influencers to target specific geographic audiences.
• Regional targeting: Utilize regionally relevant ads and campaigns that cater to specific Indian regions and cultures.
• Digital-first tactics: Investing in OTT app development that incorporates social media sharing capabilities and uses apps like WhatsApp, which is popular in India, to engage viewers.

TV Channel vs. OTT Platform in India: Which Is Better?

Final Thoughts 

The trend towards OTT platforms in India has been more noticeable as the country continues to embrace the digital era. OTT platforms offer greater control, scalability, and flexibility compared to traditional TV, particularly in the ever-changing digital landscape. 

Even while traditional TV channels continue to reach a large audience, OTT content is a better option for companies looking to expand over the long run. This is because it can engage people, provide on-demand content, and scale without the high infrastructure costs associated with TV.

In light of this, selecting the appropriate development partner is essential for creating a successful OTT platform in India. Leading the way in OTT platform development, Scalevista provides comprehensive solutions tailored to the specific needs of Indian companies. By offering end-to-end development services, Scalevista helps businesses navigate the challenges of developing and scaling OTT platforms, leveraging its extensive knowledge of the Indian industry.

Are you prepared to realize your content’s full potential? To discover how we can help you develop an OTT platform that evolves with your company’s changing needs, schedule a free consultation with Scalevista today.

FAQs

1. What are the main differences between OTT platforms and traditional TV?

OTT platforms offer versatile viewing options across devices for on-demand, internet-based entertainment. Traditional TV limits user control and material accessibility by relying on pre-planned cable or satellite broadcasts. When compared to traditional TV, OTT offers greater cost efficiency, accessibility, and customization.

2. Is launching an OTT platform profitable in India?

Yes, building an OTT platform in India can be beneficial, particularly given the country’s growing internet penetration and increasing trend toward digital consumption. Profitability can be improved by targeting a mobile-first audience, providing region-specific content, and utilizing adaptable monetization models like AVOD, SVOD, and TVOD.

3. Which is easier to launch in India: a TV channel or an OTT platform?

In India, launching an OTT platform is typically simpler and less expensive than launching a TV station. Compared to the significant investment required for traditional TV transmission, over-the-top (OTT) platforms have lower operating costs, need less infrastructure, and offer more flexibility in content delivery.

4. What’s the ROI difference between launching a TV channel vs an OTT platform in India?

Due to their adaptability, flexible monetization strategies, and lower upfront expenses, OTT platforms typically yield higher returns on investment. TV channels, on the other hand, have greater infrastructure, licensing, and distribution costs, which result in a slower return on investment even though their audience is larger. OTT platforms enable improved audience engagement and faster scalability.

5. Is it possible to start a hybrid TV + OTT platform in India?

It is possible to launch a hybrid TV + OTT platform in India. This concept offers a broader audience reach and multiple revenue streams by combining the flexibility of OTT with traditional broadcast TV. Businesses may efficiently serve both digital and traditional media consumers by using a hybrid approach.