YouTube is indubitably the largest video streaming platform in India with a staggering 467 million user base and a reach as high as 90 percent. Moreover, YouTube is steadily overtaking traditional TV in certain regions like Bihar, Jharkhand, and the North-East, and is already on par with TV in Uttar Pradesh, Uttarakhand, and Delhi. This goes on to show how YouTube is a dominant player in India’s entertainment ecosystem.
Well there are solid and valid reasons for this dominance. For starters, YouTube does not discriminate and is free for all. It gives access to high-quality content without paying subscription fees, to people from any and all socio -economic backgrounds.
Then there’s the fact that YouTube is very democratic and has something for everyone. Ranging from user-generated videos to high-quality niche content, it caters to both the masses and the niche audience. Also, it’s easy to use and understand interface makes it an approachable streaming service for even those who aren’t so tech savvy.
On the other hand, streaming services like Netflix and Prime Video lack on most of these fronts. Their content requires high production costs and thus is not for everyone and is available to only those who pay for it. This subscription fee criteria potentially alienates price-sensitive Indian users.
Additionally, YouTube has also emerged as an income source for many, specially since the lockdown. Many took to vlogging and creating a variety of content when they had nothing else to do and now it has turned into a stable and high paying full time profession for them. This has further created a sense of community for the users of YouTube, both creators and consumers, in turn increasing its reach to remotest of places.
And that brings us to our next point about YouTube’s regional penetration that serves as another strong factor driving its growth. The local creators creating content in vernacular languages and catering to regional preferences, specially in rural and semi-urban regions of India, has helped YouTube capture a very essential market. This gives it an edge over its paid competitors, who still largely focus on more urban-centric content.
Amongst other reasons, YouTube’s growth across the nation is also attributed to its rapid adoption on connected TVs, particularly in metropolitan regions. As smart TVs, which are mostly pre integrated with YouTube these days, reach more and more Indian household, its spread and popularity is bound to increase.
But until then, TV will continue dominate for some time to come. Take for instance states like Maharashtra, Andhra Pradesh, Tamil Nadu, and Karnataka, where TV remains the go-to platform for entertainment. YouTube is currently at 61% of TV’s reach across India and is rapidly growing and simultaneously reducing traditional viewership.
As far as YouTube’s affect on subscription based platforms is concerned it definitely serves as a barrier in their growth. Transition from TV to YouTube felt almost seamless due to their similarity in free, ad supported viewing. But it’s not the same with SVOD model based platforms like Netflix and Prime Video, thus making Indians a bit hesitant to make the shift.
This nowhere means that Netflix, Prime Video and other such streamers don’t have a future in India. In fact these OTT players are now actively and aggressively growing investments in regional content, going local, and building smart partnerships, and have that potential to build a distinct audience base.
YouTube might not be a direct threat to the growth of paid streaming platforms like Netflix and Prime Video, but its massive user base and free content model certainly present significant challenges to them in capturing a larger share of the Indian market.