India OTT Market : Growth is being driven by the Low cost of data plans and the rise of short-form content

The “OTT (Over-the-top) Market in India 2022-2027” report has been added to ResearchAndMarkets.com’s offering.

Original premium content is one of the biggest growth drivers and differentiators as OTT platforms compete for consumers’ attention. Industry players are investing heavily to developing content and services, as well as to improve customer experiences. The video OTT market was valued at INR 249.09 Bn in FY 2022 and is expected to reach INR 581.21 Bn by FY 2027, expanding at a CAGR of ~16.58% during the FY 2023 – FY 2027 period.

The growth of the OTT industry, which makes up 7%-9% of the entertainment industry, is being driven by the low cost of data plans and the rise of short-form content. In FY 2021, OTT platforms invested an estimated INR 55.21 Bn, with Netflix, Amazon Prime Video, and Disney+ Hotstar leading the pack with a combined expenditure of INR 31.55 Bn.

Audio OTT market insights:
The flexibility of audio as a medium and its ability to provide aid in a screen-dominated lifestyle makes it an essential medium for consumers. Gaana, Spotify, JioSaavn, Apple Music, Amazon Prime Music, Wynk Music, Google Play, and Hungama Music are some of the major platforms in this market.

The audio OTT market in India was valued at INR 57.48 Bn in FY 2022 and is expected to reach INR 119.11 Bn by FY 2027, expanding at a CAGR of ~15.68% during the FY 2023 – FY 2027 period. According to a survey, about 75% of smartphone users listen to music on their phones, 86% of which use on-demand streaming.

Segment insights:
In 2022, Hotstar (rebranded as Disney+ Hotstar) was the most-subscribed OTT platform, with around 58.4 million subscribers as compared to 44.9 million in 2021.

Its subscriber base increased by three times from 45.9 million in Q1 FY 2022 to around 50.1 million in Q2 FY 2022, driven by the coverage of the Indian Premier League (IPL) and favorable pricing of its annual plan. Audio streaming platforms such as Spotify, JioSaavn, Gaana, and Amazon Music have shown a 12% growth in the number of overall users in June 2022 in comparison to January 2021.

In Q4 of 2021, Spotify’s revenue grew by 14.5% year-on-year to INR 92.4 Bn, while the Premium service revenue grew by 16% YoY to INR 106.5 Bn. The company’s focus is on branding, AI-driven personalization of its app, releasing unique podcasts and playlists, and providing affordable plans. This allowed it to grow significantly within a year of it entering the market.

COVID-19 impact analysis:
The popularity and demand of smart TVs and other connected devices have increased significantly post-lockdown. Partnerships with the content aggregators will help the players to add new content based on audience preferences.

There are several foreign language web series and movies available with these aggregators, which when dubbed or subtitled, can be targeted to speakers of English, Hindi, or any other regional language in the country. Business Wire