Thu Sep 19 05:40:06 UTC 2024: ## Indian Streaming Market Booms: Local Content and Freemium Platforms Drive Revenue Surge
India’s premium video-on-demand (VOD) market experienced a significant surge in the first half of 2024, with revenues jumping 38% to $1.04 billion compared to the same period last year. This growth was fueled by the popularity of local content, especially live sports, across various platforms including ad-supported (AVOD), freemium, and paid subscription (SVOD) services.
According to a new report by Media Partners Asia, a total of 8 trillion minutes of content were streamed in India between January and June. YouTube dominated the market with 92% of online video consumption, while premium platforms captured the remaining 8%. Within the premium segment, freemium platforms led with 92% of viewing time, despite a smaller share of overall streaming minutes.
Despite their small market share in India’s price-sensitive market, premium and SVOD platforms generate significant revenue. Sports content, particularly cricket, attracted a large number of unique viewers, highlighting the importance of the ongoing dispute between Disney India and Zee Entertainment Enterprises over a collapsed cricket rights deal. The pending merger between Reliance Industries Limited’s media businesses and those of Disney India is also attracting regulatory attention.
Jio Cinema, Netflix, and Disney+ Hotstar were the top revenue generators in the premium VOD category, accounting for 70% of total revenue. Jio Cinema led the category with a 36% revenue share in the first half of 2024, while Netflix dominated pure-play SVOD monetization with a 38% share.
SVOD subscriptions rebounded to 120 million in the first half of 2024, driven by investments in local originals and films by platforms like Netflix and Prime Video. Jio Cinema’s introduction of an affordable plan further expanded the SVOD audience.
Looking ahead, subscriber growth is expected to continue in the second half of 2024 due to partnerships with telcos, pay-TV operators, and OEMs. The festive season is expected to boost advertising spending in Q4 2024, with a shift towards tentpole non-fiction shows on premium VOD platforms. Freemium platforms are also exploring advertising-friendly formats, such as TV++, which resemble daily TV soap operas, to attract new users and drive engagement.
First Piper 