India’s video OTT market will amount to $12.5 billion in the next nine years from the existing $1.5 billion in 2021 according to a report published by RBSA advisors.
By 2025, the market is expected to grow to USD 4 billion. It will grow by 28.6 per cent over the next four years.
The report stated that the expansion and multiplication of the revenue in the industry will take place due to the access to better networks, digital connectivity, and smartphones.
The report also stated that the next wave of growth in the OTT landscape will come from tier II, III, and IV cities and the Indian language-speaking population.
“OTT industry is poised for aggressive growth prospects with access to better networks, digital connectivity, and smartphones. OTT platforms in India have been increasingly attracting subscribers on a daily basis. Apart from top favourites Disney+ Hotstar, Amazon Prime Video, and Netflix, the space is seeing a plethora of local and regional OTT players,” it added.
These include players like SonyLIV, Voot, Zee5, ErosNow, ALTBalaji, Hoichoi, and Adda Times among others.
The audio OTT market – which sees participation from players like Gaana, Jio Saavn, Wynk Music, Spotify, and others – is also poised to grow from USD 0.6 billion in 2021 to USD 1.1 billion in 2025 and further to USD 2.5 billion by 2030, it added.
The report highlighted that the COVID-19 pandemic has been a game-changer and OTT video streaming platforms including Netflix, Amazon Prime Video, Disney+ Hotstar, Voot, SonyLIV and others had gained immense popularity in India.
It added that the OTT landscape is expected to get hyper-competitive in the next 4–5 years, and the OTT service providers will strive to emerge as the preferred platform among the consumers.
The massive investments made by OTT services like Netflix, Amazon, Disney+ Hotstar, and others in originals, as well as acquired content, will help subscription video-on-demand make up 93 per cent of the total OTT revenue (as compared to 87 per cent globally), increasing at a CAGR of 30.7 per cent between 2019-2024, it said.
The report said the ARPU (average revenue per user) in the OTT video segment in India is projected at USD 7.2 (about Rs 537.25) in 2021. Also, the OTT userbase is expected to be at 462.7 million by 2025.
“The viewing habits of Indian consumers have evolved a lot in the last few years. While on the one hand, short-form video content consumption on smartphones and social platforms has been on the rise, binge-watching shows on various OTT platforms have also become more common on the other hand,” it added.