The following growth phase's motivators According to the Ormax Report, just 10% of OTT users in India reside in cities.
For the next stage of expansion, OTT providers will need smaller markets and rural areas.
The top six metropolitan areas in the nation account for only 10% of the total OTT audience base but 33% of all paid subscriptions in India. This would imply that a significant portion of the 20% year-over-year growth is coming from small towns and rural areas of India, making it abundantly evident that OTT firms must rely on these areas for the next stage of growth.
423.8 million Users make up the OTT audience base, estimates the Ormax OTT Audience Sizing Report 2022. This results in a penetration of 30%, meaning that three out of ten Indians watched internet movies at least once over the course of the previous month, it was stated.
In India, there are currently 119 million paid OTT subscriptions that are active, and there are 49 million paying subscribers to video-on-demand (SVOD) services. This translates to 2.4 subscriptions on average for each paying audience member. Males make up over 65% of these paid subscribers. There are more than 8.5 million active paid subscribers in just Mumbai, Delhi, and Bengaluru.
"India's OTT viewership universe has risen fast since 2018, with a bump during the epidemic year of 2020," stated Shailesh Kapoor, founder and CEO of Ormax Media. The 20% increase in viewership base has largely come from rural and small towns in India. With an OTT penetration rate of more than 79%, the metro cities have surpassed saturation. For the next stage of expansion, platforms must rely on the smaller markets.
"From an SVOD standpoint, the most important fact is that the average number of subscriptions per paying customer has stayed constant at 2.4. The fact that more people will be paying for subscriptions than more of the same people shows that this data item is of great strategic significance, he continued.