Indians' appetite for binge-watching online videos is set to make the country among the top ten OTT (over-the-top) video markets in the world in four years.
With major OTT players, including Netflix, Hotstar and Amazon Prime Video, pushing deeper into people's living rooms, the OTT video market in India is growing at a CAGR of around 23 per cent, revealed data from PwC.
In an earlier interview with TOI, Reed Hastings, co-founder & CEO of California-headquartered Netflix, said Indians are the biggest binge watchers on the platform in the world. OTT video revenue in India has been pegged at Rs 2,019 crore in 2017, according to the PwC report. It is expected to reach Rs 5,595 crore by 2022.
"It is not surprising that India continues to be one of the fastest growing entertainment and media markets globally," said Frank D'Souza, partner & leader — entertainment & media — at PwC India. "However, what is encouraging is how non-linear media is expected to grow on the back of increase in device penetration, lower internet prices, consumer content demand and portability preferences."
The growing rivalry among international and regional Subscription Video on Demand (SVOD) platforms is evident with over 70 per cent of revenue in 2017 attributable to subscription services. An example of stand-alone Subscription Video on demand (SVOD) services delivered over the open internet is Netflix. In contrast, Hotstar follows a hybrid subscription model where some programmes are free, while to watch others, consumers need to pay subscription charges.
PwC said this trend will grow and by 2022, 79.4 per cent of total market revenue is expected to be from SVOD. "With the Indian economy surging forward at a rapid pace, our customers' personal and professional lives are getting busier, travel is getting longer and technology is becoming simpler," said Vijay Subramaniam, director, content, at Amazon Prime Video India. "There is, most definitely, a shift in the way people are watching movies and TV shows; especially supplemented by improvements in streaming infrastructure."
India did not feature among the top 10 global SVOD countries by revenue in 2017. US topped the list, followed by China, Japan, UK and Canada. However, among the countries with the highest SVOD CAGR in 2017, India stood third after Indonesia and Philippines. – Times Of India