OTT Market In India: $5 Billion By 2023, AVOD To Drive The Growth

Must Read

WhatsApp Might Lose 60 Million Indian Users Post Updated Policy Changes, New Survey Reveals!

The Facebook-owned instant messaging platform’s decision to update their privacy and terms of service brought about a...

Uber and Ola In Hot Water: India Authorities Launch Fresh Probe!

The Directorate General of Goods and Services Tax Intelligence (DGGI) sent a summons to Uber and Ola...

Trump Administration Has Landed Its Final Blow On Chinese Companies: Xiaomi Blacklisted!

In its recent move to safeguard national security, the United States’ Trump Administration has decided to go...

The over-the-top (OTT) platforms that India has had at its disposal in the recent times has been insane. Other than the usual suspects in Netflix and Amazon Prime Video, its great to see India developing its own OTT subscription service through Hotstar, VOOT, etc. But all of these points in one direction – the flourishing scenario of OTT market and a big window of opportunity for all the players in India. A report by Boston Consulting Group points towards the growing Indian OTT market and the reasons why the Indian consumers prefer the OTT form of content delivery over the other forms of content delivery. Let us look at what the report has to say.

Indian OTT Market In Next 5 Years

The Boston Consulting Group stated that the OTT content market in India is “at an infection point“. BCG then went on to describe the potential scope that the other OTT business models might have in this country, like that of  SVOD (subscription-based platforms), AVOD (advertising-based platforms) and TVOD (transaction-based platforms).

In 2018, the revenue contribution of the Indian video OTT market was $500 million. A whopping 82% of the revenue was from AVOD, while the rest of the 18% was from consumer pay (SVOD, TVOD). However, by the end of 2023, this number is expected to increase tenfold! Yes, you read that right. The Indian OTT market is expected to generate $5 billion in revenue in the next 5 years. That too, with much more of an equal distribution. The predicted share is – 43% from AVOD, 32% from SVOD & TVOD and rest 25% from the global market.


Indian Video OTT Market

After that, the report goes on to point towards the fact that there is one television in every Indian household. Hence, coordinating times so that the whole family gets to watch their favourite shows might be difficult. The OTT provides an escape to this by allowing the user to access content from an extremely diverse range as and when is convenient for the user.

Interestingly, the numbers of players in the Indian OTT market have witnessed a 3.5x increase in the last six years, growing from just nine players in 2012 to 32 in 2018.

The Types of Media Consumers In India

The people consuming the media in India has been categorized in the report to be roughly of three types. They are:- Traditionalists, OTT Experimenter and Early Adopter.

Types of Media Consumers

The traditionalists are used to refer to the people who consume media other than that of the OTT platform. The OTT Experimenter is similar to the traditionalists in the sense that it does have media consumption from the other platforms. However, in addition to that, it also has media consumption from the OTT platform as well. The Early Adopter refers to those people who are primarily dependent on OTT platforms for content consumption. Now, the early adopters are the ones which will drive the OTT platform forward. Still much of an urban phenomenon, it is expected to be more distributed in the years to come.

Surprisingly, a majority of consumers (81%) do not have more than 3 video or OTT apps on their phones. Probably that’s the reason every OTT player is trying too hard to be among the top 3 of the consumers’ attention.


The Untapped Rural Market

According to BCG, nearly 50% of total Internet users in India by 2020 (650+ million) will come from rural India. Interestingly, the OTT players are now beginning to target this market with the production of regional shows. This added with the boom in data consumption in the rural areas provides a great opportunity for the OTT players to profit from.

In A Nutshell

In a nutshell, the above report by Boston Consultancy Group throws light on the types of media consumers in our country, as well as the total amount of content consumed in terms of money. It identifies the potential of having such a huge consumer base and it being able to drive a $5 billion dollar Indian OTT industry in the future. In all fairness, none of the analysis seems to be out of place. People are taking to the OTT platforms in a much better manner than what they used to. Will it grow at the rate predicted in the report? With life getting busier and busier, it is very possible to imagine people preferring an OTT subscription over a normal TV subscription. Hence, the possibilities are, indeed, endless.


Please enter your comment!
Please enter your name here

Latest News

Snapchat Spotlight: A New Way for Creators to Earn Money

Short-form video applications have increased overwhelmingly in popularity in recent times. The surge in this format of...

COVID-19 Unemployment Leading To Ageing Indian Workforce, CMIE Reports

The latest data shared by the CMIE aka Centre for Monitoring Indian Economy has highlighted a huge red flag.

The Slip-Ups Keep On Coming: WhatsApp Web Users’ Mobile Data Leaked On Google

As the developments have unfolded over the past week, the clock for WhatsApp seems to be ticking with every passing minute and...

Trump Administration Has Landed Its Final Blow On Chinese Companies: Xiaomi Blacklisted!

In its recent move to safeguard national security, the United States’ Trump Administration has decided to go after China’s second-biggest smartphone marker...

Huawei Is Gunning For Acquiring A Fifth Of Android’s Userbase With Its Own HarmonyOS!

After Google’s ban on Huawei in 2019, the Chinese-origin tech company is all set to roll out HarmonyOS later in 2021 as...

Battle Lines Are Drawn: Qualcomm’s Latest Acquisition to Challenge Apple, Intel

The quest to gain supremacy creates a butterfly effect for sure. With the challengers and the champion pulling out all stops to...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This