Evolution of viewership on OTT platforms: Shifting from niche to necessity

India’s OTT video market is experiencing rapid growth as consumers increasingly favour localized content and diverse genres over traditional television programming. Over the past few years, the perception of OTT platforms has evolved from secondary entertainment options to primary sources of content for a vast and diverse audience.

According to Statista, the number of users in the OTT Video market in India is expected to amount to 634.3 million users by 2029. User penetration in India is pegged to reach 34.1% in 2024 and is expected to hit 42.2% by 2029.

‘The Ormax OTT Audience Report: 2024’ reveals that the Indian OTT audience universe is currently pegged at 547.3 million (or 54.73 crore) people. This translates to a penetration of 38.4%. The 13.8% growth in the universe vis-à-vis 2023 is entirely driven by the AVOD audience, which grew by 21%, while the SVOD segment witnessed a degrowth of 2%.

The Ormax report further reveals that India has 99.6 million active paid (B2C) OTT subscriptions, a number very similar to last year. The average number of platforms subscribed to per paying audience member has come down from 2.8 to 2.5 in 2024, highlighting the waning need among audiences to subscribe to too many platforms.

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Saurabh Srivastava, Chief Operating Officer - Digital Business, Shemaroo Entertainment, emphasized the shifts in OTT content consumption patterns, stating, “For an increasing segment of the population, OTTs are now the primary destinations for entertainment, not linear television. Content consumption has seen three main shifts: a surge in non-Hindi language consumption, a rise in female viewership which influences subscription decisions, and increased co-viewing through connected TVs.” These changes have necessitated adaptations in content strategy, reflecting the growing mainstream appeal of OTT platforms.

AV Anoop, Film Producer and Managing Director of AVA Group of Companies, pointed out the significant increase in subscriptions as a sign of OTT’s mainstream acceptance. He predicted that platforms might even begin offering new films on release day with a one-time premium viewing option. This could be a response to increasing competition, as low-cost models attract users who might traditionally be outside the typical subscriber base.

Speaking about the transformation in viewer engagement and demographics, Mayur Joshi, Associate Account Director, BC Web Wise, noted, “OTT platforms have shifted from niche services to mainstream entertainment, especially post-pandemic. Viewers now associate them with high-quality original programming and an increased range of regional content, allowing for a more personalized, on-demand viewing experience.” These changes have increased screen time and strengthened community engagement, as audiences discuss and share content recommendations on social media.

Parth Arora of The Salt Inc., highlighted the change in viewing habits and content diversity, and said, “People’s perceptions have changed drastically in the recent years, with viewers shifting away from scheduled viewing to on-demand binge-watching. The accessibility of affordable data and smart devices has brought OTT content to a broader demographic, including varied age groups and regions.” This accessibility has made OTT a preferred option for many, who now enjoy customized recommendations and interactive features, enhancing the overall experience.

Producer Anand Pandit pointed out the role of convenience in changing viewer behaviours. He remarked, “During the pandemic, OTT content consumption surged. Today’s audience can switch from a crime documentary to a reality show, or from an Oscar-nominated film to a regional drama with ease. This accessibility means audiences are less inclined to pay for cinema tickets unless it’s an unmissable experience.” He noted that OTT platforms now provide a more versatile alternative to traditional movie going.

Describing the widespread acceptance of OTT platforms, Ritesh Bhatnagar, MD, Green Giraffe, said, “A few years ago, OTT was an alternative, primarily for niche audiences. Today, it’s mainstream, offering convenience, variety, and original content that reflects diverse tastes. Content consumption patterns have also shifted significantly, with a stronger demand for regional and original series.” The demographic expansion to include older adults and audiences from smaller towns has been supported by smartphone penetration, enabling more inclusive viewership.

Janaki Amrite, Associate Vice President, Pocket Aces, pointed out the evolution of consumer expectations and content consolidation. “OTT platforms met the anticipated demand for on-demand content, consolidating from an initial 20+ platforms to a handful of key players. Today, sports and catch-up TV are also heavily consumed on OTT, with platforms focusing on growth in tier-two and tier-three cities,” she explained. The emphasis on ad-supported (AVOD) models reflects this shift, as new audiences are receptive to free or low-cost options.

In conclusion, as OTT platforms continue to evolve, they must navigate a complex landscape of regulatory challenges, consumer preferences, and technological advancements. The industry’s success will depend on how effectively platforms can balance these factors while continuing to innovate and deliver value to viewers.