India’s premium video-on-demand sector sees significant growth
A booming market for streaming content
India’s premium video-on-demand (VOD) sector has experienced a remarkable surge, with revenues climbing by 38% to reach $1.04 billion in the first half of this year, compared to $760 million in the same period last year. This growth is largely driven by local content, particularly live sports, which dominate the programming landscape across the country’s ad-supported (AVOD), freemium, and paid subscription (SVOD) services.
Streaming habits and platform dominance
According to data from the AMPD passive measurement system, a staggering 8 trillion minutes of content were streamed in India between January and June. YouTube emerged as the dominant player, capturing 92% of all online video consumption. In contrast, premium platforms accounted for the remaining 8%, with freemium platforms leading the charge within this segment, boasting a 92% share of viewing time.
The allure of sports content
Sports content continues to be a major draw for viewers, with nine of the top 15 titles belonging to the sports genre. Cricket stands out as the most popular sport, with events like IPL 2024 and the ICC Men’s T20 World Cup 2024 driving significant viewership. This highlights the importance of the ongoing dispute between Disney India and Zee Entertainment Enterprises over a collapsed cricket rights deal, as well as the regulatory interest in the pending merger between Reliance Industries Limited’s media businesses and those of Disney India.
Leading platforms and revenue generation
Jio Cinema, Netflix, and Disney+ Hotstar are at the forefront of premium VOD monetization, contributing approximately 70% of the total revenues in this category. Jio Cinema led the way in the first half of 2024, capturing a 36% revenue share, while Netflix dominated pure-play SVOD monetization with a 38% share.
Subscriber growth and market expansion
After a challenging 2023, total SVOD subscriptions rebounded from 110 million to 120 million in the first half of 2024. India’s total addressable market of affluent audiences continues to expand, with Netflix and Prime Video capitalizing on this trend through investments in local originals and films. Together, these platforms accounted for nearly 70% of SVOD revenue in the first half of 2024. Meanwhile, Jio Cinema’s launch of an affordable plan has further broadened the SVOD audience, incentivizing more users to pay for streaming content.
Future trends and content strategies
The momentum in subscriber growth is expected to continue in the second half of 2024, driven by aggregation and deeper partnerships with telcos, pay-TV operators, and OEMs. With the festive season approaching, advertising spending is anticipated to be robust in Q4 2024. However, with no major sports events on the horizon, spending is likely to shift towards tentpole non-fiction shows on premium VOD platforms, with a significant portion moving back to high-reach user-generated content (UGC) platforms.
Netflix and Prime Video have a steady stream of content planned for the latter half of 2024. For freemium platforms, entertainment spending has started to return under new advertising-friendly formats like TV++, which are similar to daily TV soap operas with 40-120+ episodes per season. These formats have proven effective in attracting new users and driving engagement with lower budgets.
Personal reflections for cinema, TV series, and music enthusiasts
As a cinema and TV series enthusiast, it’s fascinating to see how the Indian streaming landscape is evolving. The dominance of sports content, particularly cricket, underscores the cultural significance of the sport in India. The strategic investments by platforms like Netflix and Prime Video in local content highlight the importance of catering to regional tastes and preferences.
For music lovers, the integration of streaming services with telcos and pay-TV operators presents exciting opportunities for discovering new content. The shift towards advertising-friendly formats on freemium platforms also indicates a trend towards more accessible and engaging content for a broader audience.
In-depth analysis and distinctive comments
The growth of India’s premium VOD sector is a testament to the country’s increasing digital consumption and the rising demand for diverse content. The success of platforms like Jio Cinema, Netflix, and Disney+ Hotstar in monetizing their offerings reflects the potential of the Indian market. However, the ongoing disputes and regulatory challenges highlight the complexities of navigating this dynamic landscape.
As we look ahead, the focus on local content and innovative formats will be crucial in sustaining growth and engagement. The ability of platforms to adapt to changing viewer preferences and leverage strategic partnerships will determine their success in this competitive market.
For more information on the latest movies and TV series, check out the trailers and information pages for IPL 2024, ICC Men’s T20 World Cup 2024, and other popular titles. For music enthusiasts, explore the latest albums and songs on Music Beep.
By staying informed and engaged with the latest trends and developments, we can continue to enjoy the rich and diverse content that the Indian streaming landscape has to offer.