There has been a widespread verdict on OTT… has it hijacked the entertainment industry already? Well, there can be differing opinions but data never lies. The COVID-19 pandemic had initially sparked an explosive surge in OTT subscriptions as people sought entertainment from the comfort of their homes. However, as the dust settles, the once feverish growth in this industry has cooled.
According to data, the total audience for OTT platforms in India increased by 13.5% in 2023, reaching 481.1 million, compared to 423.8 million in the previous year. While this growth is significant, it represents a slowdown from the 20% surge seen in the previous year. In a country with a population of 1.4 billion, streaming apps have now reached 34% of the population.
Examining the landscape further, we find that the subscription video-on-demand (SVoD) universe is composed of various segments. Only 7.6% of the population, or 36.4 million people, are considered direct paid subscribers, meaning they have paid for at least one subscription themselves, not through telecom packs. A slightly larger group, 8.2% or 39.5 million people, are indirect consumers, watching content on these platforms through family members’ or friends’ subscriptions but not paying directly. This demonstrates that while a significant portion of the population engages with SVoD platforms, a substantial part relies on shared access or bundled subscriptions.
The regional distribution of paid subscribers is another interesting aspect to consider. Major metropolitan areas like Delhi, Mumbai, and Bengaluru have a significant concentration of paid subscribers, each boasting around 6 million subscribers.
Moreover, the report indicates that the number of apps subscribed to by an average user tends to be higher in metros, with an average of four subscriptions, compared to less than three in smaller towns.
So what is the reason behind such slowed growth? Well, we have to acknowledge that the quality of shows has definitely declined to what it was 3 years back. With redundant concepts and unbuzzy shows, why would people wanna consider buying an OTT subscription?
Another reason could be the sharing factor which contributes massively in the Indian context. People tend to share the OTT subscription with family or friends and it lessens the number of subscribers.
But, the most prominent reason… people were just bored in COVID. They had all the time in the world to binge watch and hence they considered getting an OTT subscription. But, things have changed now and it is almost back to normal. So not a lot of people are buying OTT anymore…thus slowing the OTT growth. What do you think?