Netflix, Disney+Hotstar account for half of SVOD subscribers in India | Media Analysis | Business | News | Rapid TV News
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Aggressive pricing models and a pivot to mobile drove Netflix and Disney+ Hotstar to account for as much as 50% of all subscription video-on-demand accounts in India in 2020, according to Omdia’s latest 2021 Online Video Market and Consumer Trends Report.
omdia SVOD INdia 31 March 2021
The study showed that overall online video subscriptions revenue in the sub-continent grew by 142% in India in 2020 primarily due to the global pandemic, with subscription video revenues rising from $265 million in 2019 to $639 million at the end of 2020. Disney+ Hotstar and Netflix accounted for 78% of the total online video subscription market revenues.

Drilling deeper, the survey revealed that over the past year, Disney+ Hotstar tripled its subscriber base from 8 million to 25.6 million subscribers. Omdia attributed the growth partly to the bundling of Disney+ and Hotstar, as well as the postponement of the start of the 13th season of the Indian Premier League (IPL) from April to September and competitive pricing plans and exclusive rights to foreign content such as Game of Thrones. Netflix also grew its subscription base significantly rising to 4.4 million subscribers up from 2.4 million in 2019.

The analyst noted that one of the key factors for the growth of subscriptions for online video was the aggressive pricing models of both the SVOD services, with Netflix launching mobile only subscription packages in 2019, reflecting Indian consumption habits. In the region, 82% of online video services are accessed through smartphones with only 39% accessing content through dedicated TV apps.

By offering affordable streaming plans and partnering with large telcos such as Jio Reliance, Bharti Airtel and Vodafone India, Omdia expects that mobile only subscriptions will continue to grow over the next couple of years. However, mobile only subscriptions will face challenges from traditional pay-TV services as such services aggregate OTT video services with their core pay-TV plans.

Looking at the situation for the rest of 2021, the study showed Amazon Prime and Netflix will continue their large investment in original Indian content, with the two major US services set to invest around $340 million, representing 52% of the total investment in 2021. Omdia expects that close to 400 original titles (mostly series and films) will be produced in 2021 by the global and Indian OTT services.

“The Online Video (OTT) market of India is steadily growing its foothold in every direction. The Covid-19 pandemic accelerated the growth rate of an already dynamic and robust OTT market,” said Constantinos Papavassilopoulos, principal analyst, TV and online video, consumer at Omdia. “The basic elements that will propel the market to further growth in the near future are already there: very affordable mobile broadband prices, high penetration of smart-phones, a population eager to consume more content, an ever-growing investment in Indian originals and a plethora of choices with more than 40 OTT services operating in the country.”