India's OTT universe has grown by 20% over the last year, according to Ormax Media’s “The Ormax OTT Audience Report: 2024,” the fourth edition of its annual report based on data collected from 12,000 respondents across India in June-July 2024. The report also revealed that the AVOD segments have grown faster than the paid segments. AVOD audiences now comprise 69% of India's total digital video universe. The growth from 2023 to 2024 stands at 13.8%, which is comparable to the growth from 2022 to 2023 (13.5%). India's OTT penetration now stands at 38% of the country's population, up from 34% last year.
Speaking about the findings of the report, Keerat Grewal, head of business development (Streaming, TV & Brands), Ormax Media, said: “While the overall expansion rate of the OTT universe has stably been around the 13%-mark post-pandemic, this year’s report highlights the significant role of AVOD segment in expanding the universe. The growth is driven by AVOD audiences, with most of the new entrants into the category watching video content only on YouTube and social media. The stagnation in SVOD audience size is also reflective of the trend whereby free content is driving OTT growth in small town and rural India."
The report divides the 547.3 Million OTT universe into five segments, defined in the chart below, based on free vs. paid usage.
The size of the five segments can be seen in the chart below. SVOD (Subscription Video on Demand) audiences, who have access to paid content, comprise of 150.6 Million people, i.e., 27.5% of India's OTT universe. The remaining 72.5% (396.6 Mn) are accessing only free content, and a sizeable section out of these are watching videos only on YouTube and social media apps. The SVOD audience segment has witnessed a decline this year, and the growth of the OTT universe has been solely driven by the AVOD audience segment, which has grown by 21%.
The SVOD (B2C) segment averages at 2.5 subscriptions per user, leading to a total of 99.6 Million active direct-to-consumer paid subscriptions in India. The report also provided an understanding into the various devices used by the OTT universe in India to consume online videos.
The smartphone is the preferred device for online video consumption, with 97% of the OTT universe using it. In contrast, all other devices are used by less than 20% of the OTT audience. 81% Indian OTT audience use only the smartphone to watch online videos. Audience that use Connected TV to consume online videos stands at 69.7 Mn, constituting 13% of the OTT universe.
“This year’s report highlights the significant role of AVoD segment in expanding the universe,” added Keerat Grewal. "The growth is driven by AVoD audiences, with most of the new entrants into the category watching video content only on YouTube and social media. The stagnation in SVOD audience size is also reflective of the trend whereby free content is driving OTT growth in small town and rural India,” she concluded.