- Indian OTT space to reach US$13-15 billion by 2032.
- The share of regional language consumption on OTT platforms expected to cross 50% by 2025 from 30% in 2019.
Mumbai: The pricing innovations, bundling, and the availability of premium original content have driven increased SVOD adoption, especially during COVID-19, according to Deloitte’s 2022 Global TMT (Technology, Media, and Entertainment, Telecom) predictions report.
India currently has about 102 million SVOD subscribers which is estimated to increase at a CAGR of ~17% to reach 224 million by 2026.
However, AVOD is expected to continue to pull in more revenue than SVOD, increasing its current rate of US$1.1 billion in 2021 to US$2.4 billion.
Over the same period, SVOD is expected to grow from its current US$0.8 billion to US$2.1 billion. To succeed, SVOD providers should work to better understand their customers and their lifetime value, develop more options for different audience segments, and offer value across an array of entertainment options.
The OTT Boom
OTT platforms invested an estimated US$665 million in content in 2021, with Netflix, Amazon Prime Video, and Disney+ Hotstar leading the pack with a combined spend of ~US$380 million.
The OTT market currently makes up only 7−9% 25 of India’s entertainment industry. However, the OTT space is expected to grow at a CAGR of more than 20% to reach US$13-15 billion over the next decade. This growth will be driven by heavy investment in original content, pricing innovations, low data costs, and the rise of short-form content.
The country is witnessing a boom in regional content and platforms created to address this demand. The share of regional language consumption on OTT platforms is expected to cross 50% by 2025 from 30% held in 2019, easing past Hindi at 45%.
The broadening of the traditional audience in the streaming space, the popularity of international content (such as Korean or Spanish content) in India, and the ability to attract a wider audience through subtitles and dubbed content have made established streaming service providers revise their strategy for the Indian market.