OTT Market in India is Estimated to Have Around 40-50 Million Paying Subscribers by 2023

The country’s over-the-top (OTT) market is estimated to reach USD 5 billion by 2023, driven by rising affluence, increasing data penetration in rural markets and adoption across demographic segments including women and older generations, a BCG report said Tuesday. The report named ‘Entertainment Goes Online’ expects the advertising-based video on demand to be 43% of the OTT market, subscription video on demand and transactional video on demand to constitute 32%, while international market to account for 25%.

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“We expect around 40-50 million paying subscribers in India by 2023, while about 600 million users will be users of advertising-based video on demand,” the global management consulting firm said in its report.

OTT is the delivery of film and TV content through the Internet, without requiring users to subscribe to a traditional cable or satellite. The report found that the number of players in the Indian OTT market has seen a 3.5x increase in the last six years, growing from just nine players in 2012 to 32 in 2018.

It noted that 48% of the country’s Internet users or around 650 million by 2023, are expected to be from rural areas. “With the development of regional content by various players, the rural market is poised to become a significantly large opportunity for players. OTT is riding the wave of increased data consumption and Internet access in rural India, has opened a new distribution channel that is viable for regional and niche content,” it said.