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The latest report on over-the-top entertainment platforms revealed a shift of users from scheduled viewing on television to an internet-based on-demand entertainment.
Communications institute, MICA Ahmedabad, in association with Ahmedabad-based startup Communication Crafts released an 'Indian OTT Platforms Report, 2018,' indicating the transformation taking place in the entertainment consumption in the country.
As per the report, by 2020 India is expected to become the second largest video viewing audience globally. Digital subscription in India grew 50 per cent in 2017 from Rs 260 crore in 2016 to Rs 390 crore in 2017 and is estimated to reach Rs 2,010 crore by 2020.
The rapid growth of video consumption has created an opportunity for international studios and content owners to generate additional revenue.
"We are seeing more viewers moving away from scheduled viewing to on-demand entertainment. This is seen as a result of a Jio-effect, which increased the data use and reach of the internet. We see this trend to increase going further," said Chirag Dagli, director, Creatives, Communication Crafts.
The findings of the report, to be released annually, revealed that Uttar Pradesh had the highest number of internet subscriber base with 19.46 million users in rural and 32.68 million in urban areas.
In March 2018, the total unique visitors across digital platforms were 273.3 million. The highest unique visitors are from the age group 15-24 years.
It is revealed that India is a more engaged market compared to the rest of the world. More than 65 per cent of the viewers subscribe to channels, and 7 out of 10 viewers watch ads with the audio turned on. It also revealed that 60 per cent of the viewership is clocked by nonmetros, and almost 90 per cent of all video consumption happens in local languages.
Currently 45 per cent of the users consume regional language content and this percentage is expected to increase with the growth of internet users. Global players like Netflix and Amazon have started investing in regions with low per capita income with curated local content.
The growth of OTT platforms in India will be supplemented with low-cost smartphones, low rates of data plans, rising penetration and increased adoption and awareness in rural India. Smartphone penetration in India has increased from 13 per cent in 2015 to 38 per cent in 2018 and expected to reach 58 per cent by 2020.
The study also found that 70 per cent of the consumers now watch TV content and videos on a smartphone, which is double the percentage from just five years ago.
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