How Odiya OTT AAO NXT plans to lead digital entertainment revolution in East market

The OTT video streaming market in India is estimated to reach around $4.06 billion by the end of the year 2024. The exceptional growth rate can be attributed to numerous factors such as cost-friendly data plans, internet penetration, an increasing user base, and the rising demand for on-demand content. Consumers have several content options in front of them, which cover web series, movies, documentaries, and others. The annual growth rate or CAGR in the OTT market in India is nearly 7.43% within the years 2024 – 2029, moving the industry to $5.81 billion by the year 2029. Other factors responsible for this growth are the emergence of economical smartphones, the convenience, and ease of getting access to content at any point in time, at any place, and the growing availability of regional and original content. The OTT industry in India is thus, looking at unprecedented levels of growth in the years to come.

The first independent OTT platform in Odisha is AAO NXT. It caters to the content requirements of around 50 million Odia worldwide, who do not get access to quality content in their native language. It shows feature films, documentaries, and web series covering an extensive range of genres. It is at par with the transitioning international filmmaking scene. AAO NXT offers features such as personalized/customized content as per one's geographical location, flipping through trailers for helping to select what to watch at first, the option for downloading videos for offline viewingon-the-go and 24x7, unlimited HD streaming, personalizing membership plan for suiting one's needs, getting access to content at any place in the world.

In conversation with Adgully as part of the Focus East initiative, Kaushik Das, Founder and CEO, AAO NXT, East India’s premier OTT platform, shares his observations about the present market trends, challenges, opportunities in the OTT industry in the East market and the evolution of consumer behaviour in the same. He also talks about the marketing/media mix strategy, the creative communication process, the way it is catering to the east market, the focus areas of the brand in 2024, the medium in which it is investing more. Besides, he sheds light on the way AAO NXT is leveraging digital media, technology, social media, influencer marketing as well as the performance of the platform in 2023 and the growth projections, expansion plans for 2024.

Current market trends, challenges, opportunities in the OTT industry in the East market, and the evolution of consumer behaviour.

Kaushik Das says, “As someone deeply involved in the digital entertainment sector in Eastern India, I have observed a fascinating evolution in market trends and consumer behaviour over the past few years. The East market, especially regions like Odisha and West Bengal, has shown a significant uptick in digital content consumption.” This shift is driven by several key factors:

• Market Trends: One of the most prominent trends is the increasing demand for regional content. Consumers in the East are showing a growing preference for content that reflects their cultural identity and local narratives. At AAO NXT, we have tapped into this trend by curating a diverse range of Odia movies, web series, and documentaries that resonate deeply with our audience.
• Challenges: However, this market is not without its challenges. The primary challenge is the competition from national and global OTT platforms, which have substantial marketing budgets and extensive content libraries. To counter this, we have focused on creating unique, high-quality regional content that these larger platforms often overlook. Additionally, infrastructure and internet penetration in some parts of Eastern India can be inconsistent, posing a barrier to seamless streaming experiences.
• Opportunities: On the opportunity front, there is an immense potential in leveraging the untapped stories and talents within this region. By nurturing local content creators and providing them with a platform to showcase their work, we can foster a vibrant digital entertainment ecosystem. We have also forged strategic partnerships with major production houses to ensure a steady flow of fresh, engaging content.
• Evolving Consumer Behaviour: There is a marked shift towards mobile-first consumption, with a substantial portion of our audience accessing content via smartphones. This trend has informed our strategy to optimize the AAO NXT app for mobile use, ensuring a user-friendly interface and seamless viewing experience. Moreover, viewers are now more inclined towards binge-watching web series and consuming short-form content, prompting us to adapt our content strategy accordingly.

Das further adds, “Overall, the digital entertainment landscape in the East is vibrant and full of potential. By staying attuned to market trends and consumer preferences, and by overcoming challenges through innovation, AAO NXT is well-positioned to solidify its presence and continue leading the regional OTT revolution.”

Marketing/ media mix strategy of AAO NXT as well as its market share, ad spends in the East market.

Commenting on the marketing/ media mix strategy of AAO NXT, Kaushik Das says, “At AAO NXT, our marketing and media mix strategy is meticulously crafted to resonate with the regional audience while leveraging both traditional and digital channels.” The marketing/ media mix strategy, market share, ad spends, and creative communication process are as follows:

Marketing/ Media Mix Strategy:

In terms of our media mix, we balance between digital marketing, social media engagement, and strategic partnerships. Our ad spends are focused heavily on digital platforms given the increasing shift towards online content consumption. Specifically, we allocate around 70% of our budget to digital channels such as social media ads, search engine marketing, and influencer collaborations. Platforms like Facebook, Instagram, and YouTube are pivotal in our strategy, given their wide reach and engagement rates in regions like West Bengal and Odisha.

Traditional media, such as local television channels, radio, and print media, constitutes about 60% of our budget. These channels are vital for reaching a broader audience, especially in areas with lower internet penetration. The remaining 40% is reserved for on-ground activations and events, which help in creating a direct connection with our audience through cultural festivals and local events.

Market Share and Ad Spends:

While exact market share figures are dynamic, AAO NXT has established itself as a leading OTT platform in Odisha and is rapidly growing its presence in West Bengal. Our strategic investments in localized content and marketing have led to a significant increase in subscriber base and viewer engagement. Our ad spends in the East market are tailored to maximize reach and impact, with a significant portion dedicated to content promotion and subscriber acquisition.

Creative Communication Process:

The core of our creative communication process is deeply rooted in authenticity and cultural relevance. We emphasize storytelling that resonates with the local audience, drawing from the rich cultural heritage and contemporary issues of the region. Our creative team works closely with local writers, directors, and artists to ensure that our content reflects the true essence of East Indian culture.

Communication strategy:

1. Localized Content: Producing and promoting original Odia and Bengali content that captures the local ethos and narratives.
2. Engaging Campaigns: Creating interactive and engaging social media campaigns that encourage user participation and content sharing.
3. Influencer Collaborations: Partnering with regional influencers who have a strong connection with the local audience to promote our content.
4. Community Building: Using social media to build a community around our brand where viewers can engage, discuss, and share their love for regional content.

Catering to the East Market:

On how AAO NXT is catering to the East market, Kaushik Das says, “To cater effectively to the East market, we focus on delivering high-quality, relatable content that speaks to the heart of the local audience. We invest in research to understand the preferences and trends in content consumption. For instance, we have noticed a growing interest in web series and short films, prompting us to produce more in these formats.”

He adds, “Additionally, we ensure that our platform is user-friendly, with features like personalized recommendations and seamless streaming experiences tailored to the local audience’s needs. Our customer support is also equipped to handle queries in regional languages, further enhancing user satisfaction and loyalty. By continuously adapting our strategies and staying attuned to the evolving preferences of the East market, AAO NXT is dedicated to maintaining its leadership position and continuing to delight its audience with compelling regional content.”

The focus areas of AAO NXT in 2024 in the East market and the investment in traditional and digital mediums.

Kaushik Das shares, “In 2024, AAO NXT will be focusing on several key areas to solidify and expand our presence in the East market, particularly in regions like Odisha and West Bengal.” The focus areas for AAO NXT in 2024 are as follows:

1. Content Expansion:

We will continue to prioritize the creation of high-quality, original regional content. This includes producing more web series, movies, and documentaries that reflect local stories, culture, and contemporary issues.

Expanding our content library to include more genres and formats, such as animation and reality shows, to cater to diverse audience preferences.

2. Technological Enhancements:

Investing in advanced streaming technology to improve user experience, including better video quality, faster loading times, and enhanced personalization features.

Implementing AI-driven recommendations to provide users with more relevant content based on their viewing habits.

3. User Engagement:

Enhancing user interaction through live events, virtual meet-and-greets with content creators, and interactive features on the platform.

Launching loyalty programs and special offers to reward our loyal subscribers and attract new users.

4. Partnerships and Collaborations:

Forming strategic alliances with local production houses, filmmakers, and artists to foster a collaborative ecosystem for content creation.

Collaborating with educational institutions and cultural organizations to promote regional talent and heritage through our platform.

Investment in Mediums:

Kaushik Das says, “In 2024, our investment will be significantly skewed towards digital media, reflecting the growing trend of online content consumption. Approximately 70% of our marketing budget will be allocated to digital channels.” This includes:

• Social Media Advertising: Platforms like Facebook, Instagram, and YouTube will remain key for targeted advertising and audience engagement.
• Influencer Marketing: Partnering with regional influencers to reach a wider audience and create buzz around our content.
• Search Engine Marketing: Investing in SEO and SEM to increase our online visibility and attract organic traffic to our platform.
• Content Marketing: Producing engaging blog posts, videos, and interactive content that highlights our offerings and builds a community around our brand.

He further states, “The remaining 30% of our budget will be dedicated to traditional media, which still plays an important role in reaching broader demographics in the East market.” This involves the following:

• Television and Radio Ads: Leveraging popular local TV channels and radio stations to promote our latest releases and platform features.
• Print Media: Utilizing newspapers and magazines for strategic advertisements and feature stories about our brand and content.
• On-Ground Activations: Participating in cultural festivals, local events, and sponsorships to enhance our brand presence and connect with audiences directly.

He adds, “In summary, while traditional media will continue to be an important part of our strategy, our primary focus in 2024 will be on digital platforms. This approach aligns with the evolving media consumption habits in the East market and allows us to engage more effectively with our target audience.”

Leveraging digital media, technology as well as influencer and social media marketing, and the marketing/ ad campaigns launched in 2024.

Elaborating on the way AAO NXT is leveraging digital media, technology as well as influencer, and social media marketing, Kaushik Das says, “In 2024, AAO NXT is leveraging digital media, technology, and influencer and social media marketing to strengthen our brand presence and engage with our audience more effectively.” He mentions the following techniques for leveraging digital media and technology:

1. Advanced Streaming Technology:

We have invested in state-of-the-art streaming technology to enhance the viewing experience. This includes high-definition streaming, adaptive bitrate streaming to ensure smooth playback even with varying internet speeds, and a user-friendly interface that is easy to navigate.

Our platform uses AI-driven recommendation engines that provide personalized content suggestions based on user preferences and viewing history, ensuring that our audience always finds something interesting to watch.

2. Data Analytics:

Utilizing data analytics to gain insights into user behavior, content preferences, and engagement patterns. This helps us tailor our content offerings and marketing strategies to better meet the needs and interests of our audience.

Real-time analytics allow us to monitor the performance of our content and marketing campaigns, enabling us to make data-driven decisions for continuous improvement.

3. App Enhancements:

Our mobile app is continuously updated to include new features such as offline viewing, multi-device synchronization, and interactive content options like polls and quizzes to engage users actively.

Integration of voice search and multi-language support to cater to a broader audience within the East market.

Influencer and Social Media Marketing by AAO NXT

Influencer Collaborations:

Partnering with popular regional influencers and content creators who resonate with our target audience. These influencers help us promote our content, share behind-the-scenes insights, and engage with viewers on a personal level.

Hosting live sessions, Q&As, and collaborative content with influencers to create buzz around new releases and special events on our platform.

Social Media Campaigns:

The social media strategy of AAO NXT focuses on creating engaging and interactive content across platforms like Facebook, Instagram, YouTube, and Twitter. We share trailers, teasers, behind-the-scenes footage, and user-generated content to keep our audience excited and engaged.

Running hashtag campaigns, contests, and challenges to encourage user participation and increase brand visibility

By strategically leveraging digital media, advanced technology, and dynamic influencer and social media marketing, AAO NXT continues to strengthen its position as the leading OTT platform in Eastern India, delivering exceptional content and experiences to our audience.

The performance of AAO NXT in 2023 in the East market and the growth projections, and expansion plans for 2024.

Speaking about the performance of AAO NXT in 2023, Kaushik Das says, “In 2023, AAONXT experienced remarkable growth and success in the East market, particularly in Odisha and West Bengal.” Here are some highlights of their performance:

1. Subscriber Growth:

We saw a significant increase in our subscriber base, with a year-over-year growth of 40%. Thiswas driven by the release of several high-quality original web series and movies that resonated with our audience.

Our mobile app downloads also surged, reflecting the growing popularity of our platform among mobile users.

2. Content Engagement:

Engagement metrics such as watch time, user ratings, and social media interactions indicated strong viewer satisfaction. Our most popular shows and movies consistently received high ratings and positive reviews.

User retention rates improved due to our personalized content recommendations and enhanced user experience.

3. Strategic Partnerships:

We secured several strategic partnerships with regional production houses and filmmakers, which helped us expand our content library and ensure a steady flow of new, high-quality content.

Collaborations with local influencers and cultural organizations boosted our brand visibility and credibility in the East market.

4. Revenue Growth:

Our revenue grew by 40% compared to the previous year, driven by increased subscription revenue. The introduction of premium subscription tiers with additional features and exclusive content contributed significantly to this growth.

Growth Projections and Expansion Plans of AAO NXT for 2024:

1. Subscriber Base:

We project a 50% increase in our subscriber base in 2024, driven by our continued focus on high-quality, region-specific content and enhanced user experience.

We aim to reach a milestone of half a million active subscribers by the end of 2024.

2. Revenue Growth:

We expect our revenue to grow by 75% in 2024, supported by new subscription models, increased advertising revenue, and strategic partnerships.

Expansion plans of AAO NXT in 2024:

1. Content Expansion:

AAO NXT will continue to invest heavily in original content, with plans to produce 2 new web series, 4 movies, and several documentaries in 2024. Our focus will remain on content that reflects the rich cultural heritage and contemporary issues of the East market

Expanding our genre offerings to include more comedy, thriller, and historical content, as well as exploring animation and reality shows

2. Geographic Expansion:

Launching regional language support for Assamese, Maithili, and other local languages to cater to a broader audience.

3. Technology Enhancements:

Investing in further advancements in streaming technology to ensure a seamless viewing experience, even in areas with lower internet speeds.

Enhancing our mobile app with new features such as offline downloads, multi-language support, and improved user interface based on user feedback.

4. Marketing and Promotions:

Increasing our marketing budget to focus on digital and social media campaigns that drive brand awareness and subscriber growth. We will also continue leveraging influencer partnerships to enhance our reach.

5. Community Engagement:

Strengthening AAO NXT’s community engagement initiatives by sponsoring local cultural events, film festivals, and talent hunts. These efforts aim to build a deeper connection with our audience and support the local creative community.

Kaushik Das concludes by saying, “By focusing on these strategic areas, we are confident that AAO NXT will continue to lead the digital entertainment revolution in the East market, delivering exceptional value to our subscribers and contributing to the growth of regional content creation.”