As 2023 concludes and we enter into a new year, we explore the OTT space and feedback from viewers. India's OTT market is a battleground where domestic and international giants, including Netflix, Disney+ Hotstar, Amazon Prime Video, SonyLIV, and Jio Cinema, compete fiercely for market supremacy. The COVID-19 pandemic acted as a catalyst, propelling the growth of the OTT market as people sought entertainment during lockdowns. The OTT video market is projected to reach 528.9 million users by 2027.
Despite boasting 40+ OTT platforms, India's subscriber base stands at 53.1 million, indicating the untapped potential for further growth. The Indian OTT market is on a trajectory of rapid expansion, with a CAGR of 14.32% from 2023-27, outpacing the global growth rate of 8.4% in the OTT segment.
[Source: www.statista.com]]
Dhruv Research conducted extensive online surveys with over 10,000 respondents nationwide in the last eight months to understand the dynamic OTT landscape. Entertainment consumption in India revolves around cinema halls, OTT platforms, and television, with cinema halls leading at 47.6%, followed by OTT platforms at 34.2%, and television at 15.9%. Younger audiences favor cinemas, while older viewers lean towards television.
Regional language OTT platforms gain popularity for diverse content, contributing to the evolving entertainment landscape. Factors driving this change include the convenience of OTT, improved rural internet access, affordable smartphones, and increased production of quality regional content. The rise of regional language OTT platforms adds a new dimension, catering to diverse linguistic preferences.
| Place | Cinema halls | TV | OTT platforms/online | Others |
|---|---|---|---|---|
| % | 47.6% | 15.9% | 34.2% | 2.1% |
Netflix dominates the streaming landscape, particularly popular among the 18-20 age group, followed by Amazon Prime (21%) and Disney+ Hotstar (13.9%). Netflix's supremacy in India is attributed to a well-crafted strategy involving regional content, affordable subscription options, and tapping into audience trends, such as a growing follower base. However, the platform faces a dilemma concerning multiple screens. To address this, Netflix engages extensively with influencers to promote its content, leveraging their reach and influence to strengthen its position.
Despite Netflix's global subscriber count surpassing 182 million, its penetration in India, a country with over 1.3 billion people, is notably lower, at an estimated 3 million viewers, highlighting the challenges in navigating the vast yet price-sensitive Indian market. The prevalent sharing of streaming accounts within families and social circles further contributes to the lower average ticket size in India's streaming landscape.
Key metrics reveal JioCinema leading with an estimated 100 million subscribers, followed by Disney+ Hotstar (50 million), Amazon Prime Video (40 million), and Netflix (6.5 million). JioCinema boasts a staggering 200% year-over-year growth. Hotstar's transformation into Disney+ Hotstar has propelled its content library, captivating viewers with Disney classics and Marvel epics. Netflix, with a global subscriber base exceeding 182 million, faces challenges in penetrating the price-sensitive Indian market.
Amazon Prime is strategically experimenting with regional content, acknowledging diverse preferences in India. Additionally, the introduction of Amazon Mini features short-form content. Hotstar's evolution into Disney+ Hotstar, beyond its 8 million strong subscriber base, has unleashed a content tsunami, catering to various viewer tastes, from classic Disney animations to Marvel epics.
The Indian sports streaming market is anticipated to surpass ₹10,000 crore by 2025. Hotstar and Jio are fiercely competing in the Indian streaming landscape, engaging in a sports rights war, with Sony's entry adding another layer to the battle for exclusive sports broadcasting rights. The heightened competition not only underscores the increasing importance of sports content but also benefits consumers by fostering competition and potentially leading to improved offerings and lower prices in the sports streaming market.
The significance of sports content in streaming was evident as Disney+ Hotstar lost 3.8 million subscribers after losing IPL rights. JioCinema's free 4K IPL stream in 2023 garnered over 1.47 billion views, generating revenue through ads and establishing a niche in live sports streaming.
Disney+ Hotstar later broke its viewership record during the India vs. New Zealand match, reaching a peak concurrency of 4.3 crore viewers on October 22nd. Hotstar's strategic focus on sports content, especially cricket, and securing IPL streaming rights until 2027 at ₹23,758 crore, has propelled its viewership share to 38%.
Jio continues to make bold moves, the industry experiences a dynamic landscape, with shifts in ownership, exits of key players, and the resulting ambiguity about the future direction of the market. Jio's disruptive approach influences not only its trajectory but also contributes to the broader evolution of the sector, creating a climate of change and adaptation.
In India, regional language OTT platforms are gaining popularity due to their diverse local content, creating a rich tapestry of offerings. Netflix strategically expands its reach by leveraging influencer marketing and partnering with Indian celebrities such as Bhuvan Bam. However, Netflix encounters challenges with multiple screen sharing. To establish a stronger foothold in the Indian market, Netflix emphasizes regional content and affordability, offering subscriptions at ₹149/pm.
On the other hand, JioCinema disrupts the Indian OTT landscape with its disruptive features, including a free subscription, an extensive content library, live TV streaming, and robust regional content in various languages.
| Content Quality | Cost-friendly and multiple plan options | Multiple shared windows and device options | Functionalities and User-Friendly Interface | Bundled services | Ease of payment and payment options | Data Security | Others | Ease Of Payment |
|---|---|---|---|---|---|---|---|---|
| 36.7% | 20.3% | 11.5% | 9.7% | 8.3% | 5.2% | 5.1% | 2.1% | 1.2% |
User preferences revolve around content quality (36.72%) and cost-friendly pricing with multiple plan options (20.25%). Ease of payment, though not a significant factor, doesn't sway user decision-making.
The Indian OTT market shows signs of maturity, with a measured audience expansion of 13.5% compared to the robust 20% growth in 2022. Despite overall growth, a decrease in users and subscribers has been observed in recent years. Web series steal the limelight, with shows like "Farzi" and "Guns and Gulaabs" gaining millions of views and being the top-rated in Dream Rating 2023.
In conclusion, the Indian entertainment industry remains dynamic,
shaped by technology, evolving consumer habits, and the
coexistence of traditional and digital media. The surge in
regional language OTT platforms reflects positive trends,
fostering linguistic diversity and creating opportunities for
local creators. The Indian OTT market, having experienced
heightened viewership during the pandemic, continues its growth
phase, engaging audiences across demographics. Industry
stakeholders must adapt to these evolving trends to captivate the
diverse Indian audience in this ever-changing landscape.
Check out our previous work
here.
Reach out to us to know more about India’s willingness to pay
for an OTT subscription.
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