The subscription video on demand (SVOD) service revenue in India is expected to grow at a compound annual growth rate (CAGR) of 15.5 percent from $1.3 billion in 2021 to $2.7 billion in 2026, driven by solid growth in SVOD subscriptions and an increase in unique SVOD household penetration, according to GlobalData, a leading data and analytics company.
GlobalData’s ‘India Subscription Video on Demand (SVOD) Forecast (Q4-2021)’ reveals that SVOD subscriptions in the country will increase at a CAGR of 16.2 percent during 2021-2026, driven by the increasing availability of affordable high-speed mobile internet, and a steady rise in household penetration of fixed broadband services, particularly high-speed fibre-to-the-home/building (FTTH/B) services, which enable the consumption of high-bandwidth OTT video content.
Moreover, the upcoming roll out of 5G networks will further aid in the growth of SVOD streaming services by facilitating a seamless streaming experience for consumers.
Hrushikesh Mahananda, Telecom Research Analyst at GlobalData, comments: “The Indian SVOD market is on an accelerated growth path thanks to the availability of high-speed broadband services, growing smartphone penetration, and widespread popularity of OTT content among the younger population.”
Global SVOD operators such as Disney+ Hotstar, Netflix and Amazon Prime Video, which have gained immense popularity in India, have been adopting innovative pricing plans with multi-device streaming options to expand their user base, and are investing heavily in developing premium original video content, especially in regional languages.
Mahananda concludes: “The Disney+ Hotstar platform is expected to hold the largest share of India’s SVOD services market, in terms of subscriptions, through the 2021-2026 period. The growth can be attributed to the company’s wide, distinct pool of multilingual local and original content library, competitive pricing, and exclusive coverage rights to the Indian Premier League (IPL), one of the biggest sporting events in the country.
“There has been a remarkable change in the viewing habits of Indian consumers in recent times with traditional pay-TV services losing subscriptions, while binge-watching shows on various OTT platforms is becoming more common. While SVOD services have managed to gain a sizeable viewership in urban areas, the rural markets will provide a large untapped market potential for OTT players in the coming years.”