Financial Implications and Profitability of Hybrid Revenue Models: a Study of Selected Ott Platforms in India
Year: 2024
Type: article
Abstract: Indias Over The Top (OTT) platforms are growing at an exponential rate, from USD 1.3 billion in 2016 to USD 10 billion by 2026, primarily due to the growing penetration of the Internet and consumer preference for on-demand content. However, strategies such as hybrid revenue models that combine subscriber fees, advertising and transactional revenues contribute to their financial sustainability. In this light, this study critically analyses the financial implications and profitability of the hybrid revenue model in Indias OTT Market that fills the gap in empirical evidence. Strategic benefits and challenges in terms of revenue diversification are found through 57.9% of platforms adopting subscription+advertising models, yet challenges with subscription pricing (52.9%) and balancing costs persist. These insights also present actionable strategies for stakeholders and guide sustainable growth applications in emerging markets.
Authors: Abhishek Vora, Kinnarry Thakkar
Institution: University of Mumbai
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4406548362