In 2024, the premium video-on-demand (VOD) market in India has witnessed a substantial growth trajectory, with revenues reaching an impressive US$ 1.04 billion in the first half of the year. This marks a significant 38% increase from US$ 760 million in the same period in 2023, driven primarily by the rise in local content consumption and the widespread appeal of sports.

Local Content Dominates Engagement

Local content accounted for a staggering 86% of premium VOD engagement, solidifying the importance of regional programming in the Indian entertainment landscape. Among the most-watched categories were drama, romance, and live sports, with sports content dominating the charts.

Sports Viewership Soars

In particular, sports content led the viewership race, with 9 of the top 15 sports-related titles gaining widespread popularity. Of these, 6 were BCCI events, reflecting the Indian audience's continued passion for cricket. The IPL 2024 and the ICC Men's T20 World Cup emerged as the two most-watched sports properties, reaffirming cricket's dominance in the Indian market.

Video Streaming Insights

According to ampd, a platform by Media Partners Asia (MPA), India saw a staggering 8 trillion minutes of streaming on online video platforms during the first half of 2024. YouTube maintained its position as the leader, accounting for 92% of total consumption. The remaining 8% came from premium platforms, including AVOD, freemium, and SVOD services.

Freemium services accounted for 92% of the 645 billion minutes streamed on premium platforms, highlighting the growing popularity of this model among budget-conscious viewers. Platforms such as Jio Cinema, Netflix, and Disney+ Hotstar played a crucial role in this segment, contributing nearly 70% of premium VOD revenue.

SVOD Rebounds with Growth

After a challenging 2023, the SVOD segment rebounded strongly, with subscriptions rising from 110 million to 120 million in the first half of 2024. Both Netflix and Prime Video capitalized on India's growing affluent audience by investing heavily in local content. These two platforms accounted for nearly 70% of total SVOD revenue, further consolidating their leadership in the Indian market.

Jio Cinema's introduction of affordable plans also played a pivotal role in expanding the SVOD audience. By lowering the entry barrier, the platform has encouraged more users to opt for subscription-based services, thereby contributing to the overall growth of the sector.

Market Outlook for H2 2024

Mihir Shah, Vice President at MPA India, expects subscriber growth to continue in the second half of 2024, fueled by strategic partnerships with telcos, pay-TV operators, and OEMs. Additionally, advertising spending is projected to rise in the fourth quarter of 2024, driven by the festive season. However, ad budgets will primarily target non-fiction shows on premium VOD platforms, with some investment returning to high-reach user-generated content (UGC) platforms like YouTube.

Both Netflix and Prime Video are poised to benefit from their robust content lineups for the remainder of 2024, while freemium platforms are increasingly adopting advertising-friendly formats like TV++ to cater to users with lower budgets.

Conclusion

The premium VOD market in India is witnessing rapid growth, driven by local content, cricket viewership, and a rise in SVOD subscriptions. Platforms like Jio Cinema, Netflix, and Disney+ Hotstar are leading the charge in revenue generation, while freemium services continue to attract a broad audience base. The second half of 2024 promises further growth, with strong subscriber additions and increased advertising spend on premium content.

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