The subscription video on demand (SVoD) service revenue in India is expected to grow at a compound annual growth rate (CAGR) of 6.7 percent from $1.5 billion in 2023 to $2.1 billion in 2028, driven by healthy growth in SVoD subscriptions and increase in unique SVoD household penetration, according to a new market research by GlobalData, a UK-based leading data and analytics company.

An analysis of India SVoD forecast (Q1-2024) reveals that the SVoD subscriptions in the country will increase at a CAGR of 5.2 percent during 2023-2028, driven by the increasing availability and affordability of high-speed internet, and steady rise in household penetration of fixed broadband services, particularly high-speed fiber-to-the-home/building (FTTH/B) services, which enable consumption of high-bandwidth OTT video content, GkobalData said yesterday in a statement.

Growing investments in local original content and subsidised telco bundles are also driving SVoD penetration.

Hrushikesh Mahananda, Telecom Analyst at GlobalData, was quoted as saying, “Indian SVoD market is on an accelerated growth path thanks to the availability of high-speed broadband services, growing smartphone penetration, and widespread popularity of OTT content among the younger population.

“Moreover, 5G network expansion will further aid in the growth of SVoD streaming services by facilitating a seamless streaming experience to the consumers.

Global SVoD operators such as Disney+ Hotstar, Netflix and Amazon Prime Video, which have gained immense popularity in India, have been adopting innovative pricing plans with multi-device streaming options to expand their user base, and are investing heavily in developing premium original video content, especially in regional languages.”

According to Mahananda, Disney+ Hotstar platform will hold the largest share of India’s SVoD services market, in terms of subscriptions through the 2023-2028 period. This can be attributed to the company’s wide, distinct pool of multilingual, localized and original content library, competitive pricing and exclusive coverage rights to live sports events.

Additionally, it has tied up with telecom providers to extend the reach of its services as a part of telco bundled offers and thereby grow its user base and stay ahead of its competitors. For instance, Vodafone Idea offers its prepaid customers free Disney+ Hotstar mobile subscription at no additional cost for 90 days at INR169, Mahananda added.