OTT Leads India’s Rs 63,200 Crore Digital Media Boom

The media and entertainment landscape is rapidly evolving, with digital platforms becoming increasingly dominant.

A recent report highlighted that digital media revenue reached Rs 63,200 crore in the fiscal year 2023-24, with OTT video platforms contributing Rs 31,800 crore.

Of this, AVOD (Advertising Video on Demand) platforms like YouTube earned Rs 21,900 crore, while SVOD (Subscription Video on Demand) platforms generated Rs 9,900 crore.

Additionally, Meta earned Rs 16,500 crore, digital audio platforms Rs 7,500 crore, and the remainder was spread across other digital sites.

JioCinema emerged as the leading revenue generator among OTT video platforms, capturing 29.6% of the total revenue in FY 2023-24, aided by its new Rs 29 per month subscription plan.

Prime Video and Mini TV followed with 18.9%, Disney+ Hotstar with 12.8%, Netflix with 6.5%, and Aha Video with 2.4%. Zee5 and SonyLIV each accounted for 1.8% of the revenue share.

The report underscores the significant role of digital media in India’s entertainment sector, driven by a substantial user base and a preference for ad-supported content.

India currently has 88.8 crore internet users, with 50.4 crore of them being OTT viewers.

As of January 2024, there were 13.3 crore unique AVOD viewers, a figure expected to grow to 20.5 crore by January 2025. SVOD’s unique viewers are projected to rise from 8.8 crore to 11 crore in the same period.

Disney+ Hotstar leads with 13.5 crore unique viewers, closely followed by JioCinema with 12.5 crore.

Pankaj Krishna, Founder & CEO of Chrome DM, emphasized India’s preference for AVOD, highlighting that 70% of VOD revenue comes from ad-supported models.

He noted that the digital top lines nearing Rs 65 billion are significantly bolstered by AVOD, demonstrating India’s inclination towards free content interspersed with advertisements.

This trend is likely to shape the future strategies of digital content providers in the country.