While battling Linear Cable, OTT has started to resemble it. Although OTT users in India grew substantially, the AVOD (Advertising Video-On-Demand) model came to the rescue. In 2023, there were 48.11 crore users, and 2024 is reporting a significant growth of 13.8% to a staggering 54.73 crore.
Despite the growth in total users, one aspect of OTT is falling behind: SVOD (Subscription Video-On-Demand). SVOD saw a decline of 2%, though it still makes up a significant part of the Indian market. This is a reaction to the price-sensitive market of India.
Currently, 15.06 crore users opt for the SVOD model, about 1 out of 4 OTT users, while AVOD comes out as the winner with 39.66 crore users, holding a 72.5% market share.
So, how concerning is this data?
The situation is not as bad as it might seem. When you hear the term OTT, what comes to mind? Netflix, Prime Video, and Sony LIV sort of platforms? Yes, you would be correct. But do you know who else is considered OTT?
YouTube.
And most users don’t even opt for the premium version, contributing to the AVOD market. Moreover, major social media platforms that provide video entertainment also fall under the AVOD banner, generating revenue through ads.
So, SVOD isn’t dying. It’s true that India reported a dip in SVOD users, but the major reason behind this is that big OTT players are offering AVOD alternatives for the Indian audience, which are more preferable.
The overall audience in India is extremely diverse. Some prefer lower costs, while others prioritize experience value. SVOD will always have its place, and as AVOD leaves a bad taste in the mouth, fans are gradually realizing the value that SVOD models actually provide.