OTT Performance Overview 2024: When robust growth met regulatory road bumps

The Indian streaming ecosystem continued its meteoric rise in 2024, solidifying its position as a global leader in content consumption. The industry witnessed significant growth in 2024, driven by increasing internet penetration, affordable data plans, and a surge in local content production. The Indian OTT market is expected to reach $12.5 billion by 2030, growing at a CAGR of 28.6% from 2021 to 2030.

India’s OTT landscape has expanded significantly, with 547 million users and 99.6 million active paid subscriptions in 2024, according to the Ormax OTT report. A 13.8% audience growth compared to 2023 is driven entirely by AVOD (advertising-based video-on-demand), which saw a 21% rise, while SVOD (subscription-based video-on-demand) declined by 2%.

Indian audiences demonstrate a clear preference for free content, as highlighted by an EY report. The study reveals that most viewers are open to watching authorized channels with advertisements if the content is free. This indicates that while quality content is appreciated, accessibility and affordability remain the primary motivators for consumption. Supporting this trend, 84% of media consumers prefer to skip purchasing movie tickets, and 70% show a reluctance to pay for OTT subscriptions.

Smartphones dominate as the preferred viewing device, with 97% of users accessing content on them. The Ormax report highlights the critical role of AVOD in rural and small-town India and provides insights to shape strategies for platforms and agencies in this dynamic market.

Here are the key developments and milestones:

Major Industry Consolidation:A landmark $8.5 billion merger between Reliance Industries’ Viacom18 and Disney Star was finalized in November 2024, creating India’s largest entertainment conglomerate. This merger integrated 120 television channels and two streaming platforms, significantly reshaping the competitive landscape of India’s $28 billion media sector.
Rise of Regional Content:Regional content has become a significant growth driver for OTT platforms in India, with Hindi and regional language content accounting for around 70-75% of total content consumption.
Apple’s foray:Apple Inc. entered the Indian streaming market through a partnership with Bharti Airtel, the country’s second-largest telecom operator. This collaboration offers Airtel’s 281 million customers access to Apple Music and Apple TV+, aiming to challenge established players like Spotify and Disney+ Hotstar.
Innovations and User Experience:The industry saw a surge in AI-driven personalization, enhancing user experiences by tailoring content recommendations. Additionally, there was a notable rise in short-form video applications and CTV innovations, reflecting evolving consumer preferences and technological advancements.

In 2024 June, Disney+ Hotstar became the first OTT platform in India to unveil Pause Ads exclusively for its CTV platform. This innovative ad format is designed to provide a seamless and non-intrusive user experience. Pause Ads displays advertisements during natural breaks when users pause content. With viewers pausing an average of 4-5 times daily, and most pauses lasting under 10 seconds, this feature integrates ads into user behaviour without disrupting content consumption.

The Indian ‘Waves’

Prasar Bharati launched ‘Waves’, a family-friendly OTT platform, emphasizing the delivery of “clean” content. The entry into the highly competitive OTT space with WAVES is designed to cater to India’s evolving digital audience. Doordarshan, long associated with iconic programming, seeks to reimagine its legacy with WAVES, offering a comprehensive mix of classic shows such as Ramayan, Mahabharat, Shaktimaan, and Hum Log, alongside contemporary productions. The platform stands out with features such as:

Content Diversity: Programming in 12+ languages, covering over 10 genres of infotainment.
Interactive Offerings: Video-on-demand, live TV streaming with 65+ channels, free-to-play gaming, radio streaming, and e-commerce via ONDC.
Inclusivity for Creators: A space for emerging talents, including National Creator Awardees and student filmmakers.

These developments highlight the dynamic nature of India’s OTT ecosystem in 2024, characterized by audience growth, strategic mergers, technological innovations, and regulatory initiatives.

However, the rapid growth of the OTT ecosystem also brought challenges, including concerns about content regulation and piracy. The government took steps to regulate the sector, introducing guidelines for content classification and self-regulation by platforms. The issue of piracy remained a concern, with platforms implementing measures to combat illegal content sharing. While India lacks specific legislation solely addressing copyright infringement on OTT platforms, existing legal frameworks, primarily the Copyright Act, 1957, provide sufficient grounds for legal action against such violations.

Also Read: Parliamentary panel meets industry stakeholders on regulating OTT content