When the pandemic locked everyone indoors and people started exploring new avenues of entertainment, OTT platforms emerged as a saviour for people to kill boredom. OTT refers to streaming services that deliver content over the internet. With OTT consumption witnessing massive spikes, the demand for animated content also has substantially increased. The rise of OTT has positively influenced the animation industry with a growth in viewership recorded especially for children’s content. Animation as an industry has significantly evolved over the last decade and OTT has now opened a new gate for animation.
Realizing the demand for animated content, streaming services are now focused on publishing more value-driven content under the animation category. With subscriptions for OTT platforms skyrocketing, production houses are distributing animated content to meet the insatiable demand for this genre. The pandemic especially redefined the way stories are told, and OTT has played a major role in this. The animation industry has adapted to the changed circumstances by leveraging the latest technologies to produce quality content at lower costs. Plus, advancements in VFX and virtual production technologies have boosted the animation industry in many ways.
Let’s dive in to understand how OTT platforms have played a role in the growth of animation:
OTT spurs demand for regional animated content
Regional content is gaining wide popularity and there is a growing interest among kids and adults for regional animated content. As cheaper internet penetrates tier 2 and tier 3 cities, a new market for regional content has emerged. OTT platforms have played a crucial role in bringing regional content from across countries. This has naturally spurred the demand for animated content that reflects different cultures and backgrounds. India is no longer an outsourcing hub and locally produced animated content is witnessing tremendous growth. Indian animation studios are investing in original content today rather than licensing library content.
Repeat consumption and parental controls in OTT increase viewership of animated content
OTT platforms allow for repeat consumption of content. Plus, parents have the flexibility to decide what content they want their children to watch. As OTT platforms are more kid-friendly, kids are turning to OTT for consuming animated content. With the rising penetration of streaming services, production houses are making the most of this opportunity to produce diverse animated content.
Demand for high-quality kids’ content increases
Kids today want to access content on the go and OTT platforms have emerged as an answer to that. As the OTT market grows exponentially, the animation industry will have to focus on producing more content tailored to modern-day demands. Kids need informative, entertaining content and OTT platforms are looking to invest in high-quality animated content that appeals to today’s tech-savvy kids.
OTT delivers higher ROI
Producing animated content for TV has always been a costly affair. The advent of OTT platforms has provided a major boost to the animation industry as content is now perceived as a cross-platform Intellectual Property (IP). Animated content delivered over OTT platforms fetches higher ROIs over longer shelf life. This will be a key driver of growth for the animation industry.
OTT offers a better viewing experience
Yet another reason why OTT platforms have bolstered the growth of animated content with original IPs is that it offers a better viewing experience. Advertisements detract from the watching experience on television. Because commercials do not interfere from the watching experience in OTT, children are more likely to consume animated video there. But OTT has also started ad supporting streaming for example Disney+Hotstar has already started ad support streaming with its Super subscription pack and Netflix is too planning to launch ad supporting streaming. Plus, the content is categorized under different age groups such as 2-5, 5-10, and teenagers on OTT which again makes it a convenient and reliable source of entertainment for both parents and kids. This has encouraged animation studios to invest in good quality content as there is a growing appetite for animation on OTT networks.
The Indian animation market is expected to reach INR 180 billion by 2024 at a growth rate of 29%. Animated content has audiences across different age groups and the industry has been growing exponentially given the shift in consumption patterns. With cheaper data increasing access to OTT platforms, the demand for regional animated content has skyrocketed. OTT platforms are therefore investing in Indian animated IP to deliver fresh and diverse content that appeals to the taste and preferences of modern-day consumers.
Article is authored by Hansa Mondal, COO, Ssoftoons.
