Streaming in India: A deep dive into the evolving landscape
The latest research from Ormax Media unveils a fascinating shift in India’s streaming habits, highlighting a significant surge in ad-supported viewership. This trend is reshaping the digital content consumption landscape across the country.
A growing audience
The Ormax OTT Audience Report: 2024 offers a comprehensive look at the current state of streaming in India. With a sample size of 12,000 respondents from both urban and rural areas, the study estimates that the OTT (over-the-top) audience has reached 547 million users. This represents a penetration rate of 38%, up from 34% in 2023. This 14% increase from last year’s 481 million users is driven entirely by the growth in the ad-supported video-on-demand (AVOD) segment, which saw a 21% rise. In contrast, the subscription video-on-demand (SVOD) segment experienced a slight decline of 2%.
The AVOD boom
The report underscores the pivotal role of the AVOD segment in this growth. Keerat Grewal, head of business development at Ormax Media, emphasized the importance of AVOD in expanding the streaming universe. “The growth is driven by AVOD audiences, with most of the new entrants into the category watching video content only on YouTube and social media,” Grewal noted.
Subscription trends
Despite the overall growth in the streaming audience, the number of active paid streaming subscriptions in India remains relatively unchanged at 99.6 million. Interestingly, the average number of platforms subscribed to per paying audience member has decreased from 2.8 to 2.5 in 2024. This suggests a consolidation of preferences among paying users, who may be focusing on fewer platforms that offer the most value.
Device preferences
Smartphones continue to dominate as the preferred device for streaming content, with 97% of the Indian audience using them and 81% exclusively watching on smartphones. The connected TV audience base is estimated at 69.7 million, indicating a growing but still relatively small segment of the market.
The cost conundrum
Shailesh Kapoor, chief of Ormax Media, highlighted the cost barrier as a significant challenge for the Indian streaming market. “Indians are not used to paying for content. In general, TV has been very low cost in India for years now. And in streaming, there are two costs, the data cost, and then there is a subscription cost. So, it is a double cost structure. Many Indians do not fully understand why they should be paying for content when so much content is available for free on TV and on YouTube,” Kapoor explained.
Personal reflections for cinema and TV series enthusiasts
For those passionate about cinema and TV series, this shift towards ad-supported content offers both opportunities and challenges. On one hand, the availability of free content on platforms like YouTube and social media means that more people can access a diverse range of shows and movies. On the other hand, the reliance on ad-supported models may impact the quality and variety of content available, as creators and platforms may prioritize content that attracts the most ad revenue.
For instance, if you’re a fan of the latest blockbuster movies or critically acclaimed TV series, you might find that some of the best content is still behind a paywall. However, platforms like Netflix and Amazon Prime Video continue to offer a wide range of high-quality content for subscribers.
In-depth analysis for music enthusiasts
The streaming landscape for music is also evolving, with platforms like Spotify playing a crucial role. The shift towards ad-supported models in video streaming could have parallels in the music industry, where free, ad-supported tiers coexist with premium subscription options. For music lovers, this means access to a vast library of songs and albums, but with the occasional interruption of ads.
Distinctive comments
The growth of the AVOD segment in India reflects broader global trends, where consumers are increasingly seeking out free content. This shift has significant implications for content creators, advertisers, and platforms. For creators, the challenge will be to produce engaging content that can attract ad revenue while maintaining quality. Advertisers will need to find innovative ways to reach audiences without disrupting the viewing experience. Platforms, meanwhile, will need to balance the demands of both free and paying users, ensuring that they can continue to grow their audience while also generating revenue.
Final thoughts
The streaming landscape in India is undergoing a significant transformation, driven by the rise of ad-supported content. This shift presents both opportunities and challenges for all stakeholders involved. As the market continues to evolve, it will be fascinating to see how these trends develop and what new innovations emerge in the world of digital content consumption.