This industry has grown a lot since the pandemic started, and since 2020, Indian video OTT platforms have enjoyed an enormous hike in views and subscriptions. Exclusive shows, first-day movie launches and a lot more have attracted viewers more than ever!
A report by RBSA Advisors suggests that India’s video OTT market will touch a whopping USD 12.5 billion by 2030 from about USD 1.5 billion in 2021. This report went on to say that the next wave of growth in the OTT landscape will be coming from tier II, III and IV cities as well as the Indian language speaking population.
“OTT industry is poised for aggressive growth prospects with access to better networks, digital connectivity and smartphones. OTT platforms in India have been increasingly attracting subscribers daily. Apart from top favourites Disney+ Hotstar, Amazon Prime Video and Netflix, space is seeing a plethora of local and regional OTT players,” it added.
This includes players like SonyLIV, Voot, Zee5, ErosNow, ALTBalaji, Hoichoi and Adda Times, among others. The Indian video OTT market in India, as per the report, will grow to grow from USD 1.5 billion in 2021 to USD 4 billion in 2025 and finally reach a whopping USD 12.5 billion mark by 2030.
“The OTT market in India is expected to grow at a CAGR of 28.6 per cent over the next four years. RBSA believes that this industry has the potential to grow to be USD 15 billion industry over the next 9 to 10 years,” it said.
These OTT platforms were the medium of entertainment in the pandemic as we shifted away from the outer world abruptly. This pave the way for big players like Netflix, Amazon Prime Video, Disney+ Hotstar, Voot, SonyLIV and others who gained a lot of popularity in a short span of time.
The movies or web series launched on OTT platforms are getting recognition and are being watched by many. Netflix, Amazon, Disney+ Hotstar and others in originals, as well as acquired content, will help subscription video-on-demand make up 93% of the total OTT revenue (as compared to 87 per cent globally), increasing at a CAGR of 30.7 per cent between 2019-2024, it said.
“The viewing habits of Indian consumers have evolved a lot in the last few years. While on the one hand, short-form video content consumption on smartphones and social platforms has been on the rise, binge-watching shows on various OTT platforms have also become more common on the other hand,” it added.
Also, the ARPU (average revenue per user) in the OTT video segment in India is now being projected at USD 7.2 (about Rs 537.25) in 2021, while the OTT user base is to reach 462.7 million by 2025. Not to forget, 5G, Smart TVs, cheap smartphones and attractive plans from these OTT platforms will be the driving pillars of this market.