How do OTT platforms like Netflix and Hotstar earn? 

In India, OTT platforms like Netflix, Hotstar and Prime Video have reached every household. These OTT platforms have been around for years but this market got a big boom during Corona. people sitting at home watched a lot of movies and series during the lockdown. There are many such platforms which entertain the public for free without charging any money. Have you ever wondered how these OTT platforms make money? What is their business model? How do they benefit by showing content for free? How does OTT earn?

OTT platforms earn from direct advertising as well as subscription fees. The advertisement that you see on any OTT platform, the OTT company decides which advertisement to show and when. OTT has a partnership with advertisers and the OTT company delivers those advertisements to the viewers. If you click on an ad of an OTT platform, then one revenue is generated from here, while the other revenue is generated from those advertisements which you cannot skip. Apart from this, fees received from subscribers are also a source of income. Apart from this, affiliate marketing and sponsorship are also a source of earning.

How many OTT subscribers are there in India?

According to Ormax's 2023 report, there are 481 million OTT users in India. At the same time, there are 101.8 million active paid (B2C) OTT subscriptions. OTT companies generate revenue of Rs 22.62 billion from these. According to Stock Grow, OTT is expected to generate Rs 93.67 billion revenue by 2025. advertisement on OTT reaches the viewers directly and there is no middleman involved, so the revenue goes directly to the OTT company. During a film or series, advertisements come in the form of videos and some banners also keep running along with them. If understood in common language, money comes from generating revenue on OTT and this revenue comes from advertisements coming directly on OTT. According to the makers, OTT companies buy content from the makers of films, web series or any shows and earn a lot of money through their business model.

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