India Over the Top (OTT) Market Outlook to 2030

India Over the Top (OTT) Market Overview

• The India OTT Market was valued at USD 3.5 billion, reflecting a robust expansion driven by increasing internet penetration, smartphone adoption, and shifting consumer preferences towards on-demand content. This growth is further supported by the proliferation of 4G and upcoming 5G networks, which enhance streaming quality and accessibility.

• Major players in the Indian OTT market include Netflix, Amazon Prime Video, Disney+ Hotstar, Zee5, and Sony Liv. These platforms offer a wide range of content, including movies, TV shows, and original programming, catering to diverse audience preferences across the country.
• In 2023, Disney+ Hotstar announced its partnership with major Indian film studios to enhance its content library, including exclusive rights to upcoming blockbuster releases. This strategic move aims to attract and retain subscribers amid growing competition, further consolidating its position in the market. This development underscores the platform's commitment to delivering premium content and maintaining a competitive edge.
• Mumbai dominates the OTT market in 2023, due to their high population density, internet penetration, and disposable income levels. And the stands out with its significant media and entertainment industry presence, contributing to a higher adoption rate of OTT services. These cities also have a higher concentration of affluent consumers who are more likely to invest in subscription-based services.

India Over the Top (OTT) Market Segmentation

The India Over the Top (OTT) Market is segmented into different factors like by content type, by revenue model and region.

By Content Type: The market is segmented by content type into video-on-demand (VoD), live streaming, and others. In 2023, video-on-demand held the largest market share due to its convenience and diverse content offerings. The popularity of VoD platforms like Netflix and Amazon Prime Video has driven this segment's dominance. The ability to watch content at any time and the availability of original programming have made VoD a preferred choice for consumers.

By Revenue Model: The market is segmented by revenue model into subscription-based, advertisement-based, and transactional-based models. In 2023, subscription-based models accounted for the majority of market share due to their steady revenue stream and the consumer preference for ad-free, high-quality content. Major platforms like Netflix and Disney+ Hotstar have successfully implemented this model to attract and retain subscribers.

By Region: The OTT market in India is segmented into North, South, East, and West regions. In 2023, the North region held the largest market share due high population density, advanced digital infrastructure, and greater disposable incomes. The large number of internet users and the presence of major OTT platforms contribute to the North region's leading market share. Additionally, the region's high concentration of media and entertainment industries, along with a significant urban population that prefers digital content consumption, enhances its market position.

India Over the Top (OTT) Market Competitive Landscape

• Amazon Prime Video: In 2024, Amazon Prime Video has expanded its regional content offerings, launching new original series in Tamil, Telugu, and Kannada. The platforms investment in regional content aims to cater to diverse linguistic audiences and enhance its appeal across different regions of India.
• Sony Liv: By the end of 2024, SonyLiv plans to enhance its presence in South India by expanding its regional content offerings. The platform is investing in local language content and partnering with regional creators to attract more subscribers. This strategy aims to strengthen SonyLivs market share in the South and cater to the growing demand for vernacular content.

India Over the Top (OTT) Market Analysis

India Over the Top (OTT) Market Growth Drivers

• Increasing Internet Penetration: As of 2024, India has 821 million internet users and the Internet penetration rate in India was 55% of the total population in early 2024. This growth in internet penetration is driven by the expansion of 4G and 5G networks, facilitating greater access to OTT services. The rise in digital connectivity supports the increasing consumption of online content, with more consumers accessing OTT platforms from various devices. Enhanced network infrastructure, including the rollout of 5G technology, is expected to further boost online video consumption, providing high-speed connectivity and improving user experience.
• Rising Mobile Device Usage: A total of 1.12 billion cellular mobile connections were active in India in early 2024, with this figure equivalent to 78.0 percent of the total population. This trend significantly impacts the OTT market as mobile devices are a primary medium for accessing streaming content. The proliferation of affordable smartphones and improved data plans has led to a rise in mobile streaming, with users consuming content on-the-go. The shift towards mobile consumption is evident as mobile internet traffic is expected to constitute a significant portion of overall internet traffic, driving OTT viewership.
• Expansion of Local Content Production: The market has seen a substantial increase in local content production, new original series and movies produced in 2023. The emphasis on local content caters to diverse regional preferences, driving subscriber growth. Platforms like Netflix and Amazon Prime Video have significantly invested in regional content, including Bollywood and regional language films. This focus on localized content enhances market appeal and attracts a broader audience, contributing to the growth of the OTT sector.

India Over the Top (OTT) Market Challenges

• Regulatory Hurdles: The OTT industry faces regulatory challenges, with the Indian government considering stricter content regulations and compliance requirements. Proposed regulations include content censorship and additional taxation measures, which could increase operational costs for OTT platforms. These regulatory uncertainties create challenges for market participants in maintaining compliance while navigating the evolving legal landscape.
• Data Privacy Concerns: Data privacy concerns are growing as OTT platforms collect vast amounts of user data. In 2024, regulatory scrutiny over data protection has intensified, with new privacy regulations being implemented. Platforms must invest in robust data security measures to protect user information and comply with legal requirements. Failure to address data privacy issues could lead to legal repercussions and loss of consumer trust.

India Over the Top (OTT) Market Government Initiatives

• Information Technology Rules: In February 2022, the government notified the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021 to regulate OTT platforms. The rules establish a soft-touch self-regulatory architecture with a Code of Ethics and three-tier grievance redressal mechanism for OTT platforms.
• M&E Sector: A 2024 EY report projects India's media & entertainment sector to cross INR3 trillion ($37.1 billion) by 2026, driven by robust digital infrastructure, widespread OTT adoption, gaming growth, and affordable options for consumers. Despite the digital boom, traditional media is also experiencing steady growth, making India a "Linear and Digital Market".

India Over the Top (OTT) Market Future Outlook

The Indian OTT Market is expected to grow exponentially by 2028. The growth will be driven by advancements in technology, increased content localization, and the expansion of 5G networks, which will enable seamless streaming experiences. Additionally, the rise of regional content and niche genres is anticipated to attract a broader audience base, further enhancing market dynamics.

Market Trends

• Enhanced Regional Content and Localization: Over the next five years, the India OTT market will increasingly focus on regional content and localization to cater to diverse linguistic demographics. By 2028, investments in regional content are expected to exceed 5,000 crore annually, driven by the rising demand for localized programming. This trend will be propelled by OTT platforms expanding their libraries with more content in languages like Tamil, Telugu, Kannada, and Bengali, aiming to attract and retain regional audiences.
• Integration of Advanced Technologies: The integration of advanced technologies such as AI and machine learning will significantly shape the OTT market. By 2028, the OTT platforms are projected to leverage AI for personalized content recommendations and content creation. This will enhance user experience and engagement, as AI-driven algorithms will provide more tailored content suggestions and optimize streaming quality. Additionally, advancements in 5G technology will further improve streaming speeds and quality, contributing to a better user experience.