India's OTT growth fueled by a surge in AVOD viewership
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4 months ago 01:45:52pm Television

India’s OTT growth fueled by a surge in AVOD viewership

New Delhi, 22-August-2024, By IBW Team

AVOD

India’s OTT (Over-The-Top) market continues to grow rapidly in 2024, fueled by an expanding AVOD (Advertising-based Video on Demand) audience.

According to The Ormax OTT Audience Report: 2024, the number of people who have watched online videos at least once in the past month has reached 547.3 million, representing a growth of 13.8 percent compared to 2023. This surge, on par with last year’s growth rate of 13.5 percent, signals a post-pandemic stabilization of the digital entertainment sector.

The significant rise in India’s OTT audience is primarily driven by the AVOD segment, which saw an impressive 21 percent growth over the past year. This stands in contrast to the stagnant SVOD (Subscription Video on Demand) segment, which has plateaued at around 150.6 million viewers. The AVOD audience now makes up 72.5 percent of India’s OTT viewership, with a large portion accessing free content on platforms like YouTube and social media apps.

This rapid expansion of AVOD highlights the evolving dynamics in India’s OTT ecosystem. While premium paid content remains a key part of the industry, it is the accessibility and wide reach of free content that is pushing growth across the country. As advertisers take notice, the AVOD market is expected to become a critical component of the overall OTT revenue stream in the coming years.

In contrast, the SVOD market has shown signs of saturation, with the number of subscribers remaining stable at 150.6 million. The report notes that on average, Indian SVOD users subscribe to 2.5 streaming services, leading to a total of 99.6 million direct-to-consumer paid subscriptions in 2024. This indicates that while the paid content segment remains substantial, its growth has slowed as more users turn towards free alternatives.

The stagnation in SVOD growth presents challenges for streaming platforms, which now need to focus on content differentiation and pricing strategies to retain and attract new subscribers. However, despite the slower growth, the SVOD segment remains an essential part of India’s OTT landscape, particularly for premium content and niche genres that attract loyal audiences.

When it comes to device preferences, smartphones continue to dominate online video consumption in India. A staggering 97 percent of the OTT audience relies on smartphones to watch content, with 81% exclusively using these devices. This preference for mobile consumption aligns with India’s broader digital trends, where affordable data and widespread smartphone penetration have driven the growth of digital entertainment.

Interestingly, Connected TV (CTV) usage is also on the rise, with 13 percent of the OTT audience (69.7 million people) opting to consume online videos through their televisions. This shift indicates that a growing number of viewers are seeking a more immersive experience at home, particularly for long-form content such as movies and premium shows.
India’s OTT penetration now stands at 38 percent of the country’s population, up from 34 percent in 2023. This demonstrates the growing importance of online video consumption in the Indian entertainment industry.

The Ormax OTT Audience Report: 2024 highlights that India’s digital entertainment landscape is evolving, with free content playing a significant role in driving viewership growth. As the AVOD segment continues to expand, content creators, platforms, and advertisers will need to adapt to the changing demands of India’s increasingly diverse and digital-first audience.

The ongoing competition between AVOD and SVOD models will likely shape the future of India’s OTT industry, with both segments catering to different audience preferences and consumption habits. The rise in AVOD viewership signals a shift towards accessible, ad-supported content, while SVOD platforms focus on premium, exclusive offerings to retain their subscriber base.

As India’s OTT market continues to mature, the industry must navigate this complex landscape, balancing content accessibility with monetization strategies to sustain long-term growth.


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