Indians spent 6.1 trillion minutes consuming online video and most of it is on YouTube

The 12 percent share compares well with other emerging markets like Indonesia, Thailand and Philippines, where the norm for premium video on demand share is below 10 percent. However, developed markets such as Australia with 35 percent have a higher premium video on demand share in the online video sector. Hence, India is not too far behind markets such as Japan and Korea where the norm is 15 to 20 percent. Expensive TV cable connections is one of the reasons for markets like US, UK, Australia to have a high premium video on demand consumption, compared with India where watching TV is one of the cheapest forms of entertainment for a family.

Note: Total viewership measured during Jan 2022-Mar 2023 for India, excluding sports

Of the total online video consumption on OTT apps in India, Disney+Hotstar leads with 38 percent share driven by the depth of its Hindi and regional offerings. This is followed by MX Player with 23 percent share and Zee - Sony combined entity's 13 percent share. Amazon Prime and Netflix, though screens popular content, do not command high share among Indians with just 5 percent share each. This is primarily because regional content is favored in India, while Netflix and Amazon Prime are popular for their large variety of international content.

According to the report, 50 percent of the subscription based content consumed on OTT platforms is Indian made. 36 percent content consumed is American-made with leading studios like Warner Bros., Netflix Studios and Disney’s Marvel Entertainment. Korean content is also gaining immense popularity in India.

Note: Total viewership measured during Jan 2022-Mar 2023 for India, excluding sports for paid tier only

Furthermore, viewers that use 'freemium' platforms like Hotstar and Zee5 consume 'catch-up' TV content the most. 'Freemium' platforms offer paid as well as free content. An example of 'catch up' content is the daily soaps broadcasted on general entrainment TV channels in India daily, which can be viewed on OTT platforms for free. Catch up content is preferred as viewers can watch the same content available on TV at a time and place of his convenience.

In just 5 years, the OTT platforms industry has managed to gain immense popularity amongst Indians. However, the sustainability in a price sensitive and competitive Indian market is a key challenge. Raising subscription costs poses threats of losing viewership and hence is the least preferred option.

The free live streaming of the men’s IPL cricket ensured that Jio Cinema consumption grew substantially in April 2023. However, its sustained viewership levels will remain critical in the absence of IPL cricket during second half of 2023, as the platform has increased its investment in local content and premium international content, setting the stage for the growth of its premium tier.

The next 6 to 12 months will remain critical for the OTT industry as each player strives to balance monetization and profitability against its content investment. Zee5 is an example with revenues growth every quarter, but losses widening at a faster pace. Disney+ Hotstar retains a strong local entertainment platform, powered by Star’s Hindi and regional content depth.