One in three Indian binge watchers actually pays for content

• India’s fast expanding OTT universe still has just over a 100 million paid subscribers, as per an Ormax report.
• In the last one year, OTT subscriptions have grown 13.5%.
• During the pandemic years, when OTT subscriptions saw a boom, the growth rate was approximately 20%.
  

Almost half a billion Indians (481 million, to be precise) are streaming shows on over the top (OTT) platforms like Netflix, Amazon Prime among others. However, as per Ormax Audience Report 2023, only one in three people are paying for it, as the OTT universe currently has 102 million paid subscribers.

OTT penetration in India is at 34% across the country, the report says. It defines an OTT audience as the one who watched at least one online video either paid or free in the last one month. As many as 2.8 people watch an OTT subscription, it reveals.

In spite of its good show during the pandemic, the OTT growth might have peaked, believes Keerat Grewal, head of business development (streaming, TV & brands), Ormax Media.

“After the upsurge in the Indian OTT market during the pandemic years of 2020 and 2021, the growth has settled down at more moderate levels. The Indian OTT audience base grew 20% from 2021 to 2022, but has grown only 13.5% over the last one year, highlighting that the category is now past the peak growth phase it witnessed in the two preceding years," said Grewal.

Fair share charges?

As per Ormax, 102 million Indians are B2C subscribers, who take a membership directly with the OTT platform unlike B2B subscriptions are taken via telecom packs offered by various operators.

The substantial number of B2C subscribers throws light on the ongoing feud between OTTs and telecom players on fair-share charges that the latter is demanding from the former. The report does not reveal the number of B2B subscribers of OTTs.

Telecom service providers via the industry body Cellular Operators Association of India (COAI) have been asking Late Traffic Generators (LTGs) or the bigger OTTs to make a ‘contribution’ to telcos. They argue that LTGs are responsible for 70% of the total internet traffic.

“LTGs are using TSP networks to deliver their services, but making no contribution to the development, upkeep and sustenance of robust and quality telecom networks across the country – that’s required for catering to the huge traffic being loaded on the networks,” said Lt Gen Dr S P Kochhar, director general of COAI.

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