India’s SVOD market to add 25MN subs in five years | VOD | News | Rapid TV News
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Three quarters of connected consumers in India believe localised content is as important as the price of video streaming services, according to new research from IHS Markit.
Netflix Sacred Games 18 Dec 2018
Of those surveyed, 74% cited the importance of quality subtitling and dubbing of foreign video content across India’s wide ranging and increasingly popular video-on-demand (VOD) platforms.

Pay-TV subscriptions in India are expected to reach 166 million home by the end of 2018 and with a further 22 million expected over the next five years. In comparison, online video services will add 25 million subscriptions over the same period, exceeding 35 million subscriptions by the end of 2022.

US subscription video-on-demand (SVOD) giants Netflix and Amazon Prime Video are increasingly investing in local content for an Indian audience. However, they face strong competition from well established domestic over-the-top (OTT) players such as Star India’s digital platform Hotstar – which continues to lead the market. India’s successful domestic film and network TV markets pose challenges for newcomers, IHS Markit found.

In 2018, Hotstar Premium is forecast to grow its Indian subscriber base by 60%, accounting for 25% of all online video subscriptions in the market. Investment in content including premium sports such as the IPL, local language content, and international series and films from HBO, Disney and Fox have all aided its success.

Netflix launched Indian original series Sacred Games in 2018 featuring Bollywood star Saif Ali Khan, however IHS Market believes it “still has a long way to grow its subscriber base” in the large and diverse Indian market.

“Although pricing is the most important factor in a video service across all country markets surveyed by IHS Markit, Indian consumers were most likely to cite price as an important factor in their video service decisions. Pay-TV ARPU reached an average of US$4 in the satellite heavy market, while local OTT subscription services cost less than $1 per month on average. In comparison, the basic monthly Netflix package in India is currently priced at around $7,” said Fateha Begum, associate director, connected devices and media consumption, IHS Markit.

“Excluding pricing, the second-most important factor varies by market. For example, in Australia, which is a mature pay TV market, the range of content falls 20 percentage points below pricing. In Japan, the availability of local content, quality of subtitling and dubbing were only half as important as pricing.”

The data was based on a nationally representative sample of 19,208 internet users, aged 18 to 64, across eight markets including India, Australia and Japan, which was conducted by IHS Markit analysts in November 2018. Survey samples for India are for English speaking respondents only.