According to PwC’s most recent report, titled “Global Entertainment & Media Outlook 2023-2027: India perspective,” the revenue of the Indian over-the-top (OTT) video market, which is dominated by players like Amazon Prime Video, Netflix, and Disney+ Hotstar, is expected to double from $1.8 billion in 2022 to $3.5 billion by 2027.
In-depth details about Revenue from Indian OTT platforms is expected to treble to $3.5 billion by 2027
In addition, the Indian market is expanding significantly more quickly than the global average for the OTT segment, which is 8.4% CAGR over a five-year period, according to the report.
This news coincides with Disney apparently considering selling its Indian operations, which include the OTT service Disney+ Hotstar and the Star television networks.
“With new releases from international players and an increase in ‘pay-lite’ choices, OTT revenue in India increased to reach USD 1.8 billion in 2022 – over six times the revenue of 2018 and a 25.1% increase from USD 1.4 billion in 2021. According to a survey released on Tuesday, the market in India would grow at an amazing 14.3% annual rate and generate USD 3.5 billion in sales by 2027.
According to the report, which singled out OTTs as one of the chosen growth hotspots in the Indian media and entertainment industry, the size and variety of the population in India present enormous long-term potential for the OTT and connected TV (CTV) markets. “Regional play will continue to give OTT video a boost. If the nation’s 5G and broadband infrastructure is progressively developed, it will create a larger market for OTT players.
In the background, OTT players are having difficulty convincing Indians to pay for content after experiencing a surge for the last several years. The 60 or so OTT platforms in India now confront a challenge: how to build up their expensive content business in the entertainment-obsessed but price-conscious Indian market, especially when the viewers are spoilt for choice.
The standard monthly subscription fee for cable or direct-to-home (DTH) services in India is about Rs 300. However, even the most expensive bundled pack of OTT apps—10–12—costs Rs 1,000–1,200 a month. Additionally, even the top two or three OTT services require a yearly subscription fee of more than Rs 3,000. Additionally, there are now about 60 platforms available.
According to the PwC analysis, ad-supported streaming will take over as the standard. Revenue growth will be fueled by the aggressive subscription video on demand (SVOD) market both in India and internationally. The percentage of video on demand (AVOD) revenue supported by advertising, however, is anticipated to continuously increase. By 2027, AVOD will generate 22.3% of OTT revenue, primarily from local and regional broadcasters, while SVOD will hold a 73.8% share. According to the research, SVOD made up 78.1% of the market’s income in India in 2022, while AVOD made up 15%.
