India is definitely one of the biggest OTT markets in the world, with 54.73 crore users. But despite the vast user base, one concern that can haunt the industry is the device on which users are streaming.
A couple of days ago, we wrote an article about how Smart TVs can play a determining factor in the near future, where OTT might hit a plateau. Although it’s far from reaching that point, it’s clear how much Indians prefer smartphones and small screens for streaming content.
A whopping 97% of users consume OTT content on their smartphones, and this is a significant number. In comparison, this figure drops to 60% in the USA.
Even when focusing on users who exclusively stream on their phones, the number is as high as 81%. So, how does this affect the OTT industry?
Primarily, it results in a drop in revenue. Smaller mobile screens benefit users, as India’s price-sensitive audience leans towards basic plans that offer lower image quality.
Additionally, a major factor is that a significant number of OTT users come from Tier II and Tier III cities, where Smart TVs are far from being normalized and will take years to penetrate that market. Although people are familiar with computers, OTT is still not widely seen as a group activity in India.