Advanced Television

Analyst: Hybrid models driving Indian VoD market

February 25, 2021

Futuresource Consulting’s latest Video Insights India report maps out the dynamics of this key emerging and increasingly-dynamic video battleground. An already rapidly evolving market, the pandemic has driven further change, with many consumers protecting disposable income by reducing pay-TV subscriptions and topping up viewing with SVoD and AVoD services.

Pay-TV Operators Want Their Slice of The SVoD Pie

The SVoD landscape is rapidly evolving. Over 2019, the market grew from 23 million subscribers to 57 million subscribers at the end of 2020. Furthermore, according to Futuresource Consulting, it is predicted to reach 200 million by 2024.

“Consequently, Pay -TV operators are ramping up efforts in diversifying their offerings. However, the learning curve for those shifting from satellite broadcasting to IP is steep and requires notable investment,” commented David Sidebottom, Principal Analyst at Futuresource Consulting.”

Futuresource Maps out the Tiered Competitive SVoD Landscape

The top 6 Indian SVoD providers are mapped out in this latest market tracker, including Disney+ Hotstar, Amazon Prime Video and Netflix who are all strong forces to be reckoned with, boasting heavy financial backing, marketing budgets and strong content production capabilities. Overall, there are approximately 30 active SVoD providers competing for the national and regional SVoD pie. Part of this mix includes the vibrant content production industry throughout India, with many local studios also launching their own Direct to Consumer (D2C) services.

Disney Plus Hotstar – A Recipe for Success

A real success story in the Indian market has been around the launch of Disney Plus Hotstar, which gained 30 million paying subscribers by the end of 2020. While the pandemic was a key accelerator to this wave of adoption, the wide availability of low-cost mobile data and a tech savvy youth has helped to drive the explosion of mobile video viewing and in turn, been a rapid driver for the proliferation of SVoD in India.

The Mobile First Opportunity

Consequently, these market forces have determined the strategic direction of the latest video services, who are now creating mobile plans to support this behavioural trend. Netflix in 2019 and now Amazon has followed suit at the end of 2020, making it possible to stream directly to your mobile device, without a more expensive subscription.

The Symbiotic Relationship Between SVoD & AVoD

The proliferation of standalone SVoD subscription services in India is also supported by the growing popularity of AVoD service models, a global trend which makes for a highly competitive overall streaming video landscape. A hybrid AVoD/SVoD approach is being undertaken by a number of services in order to drive wider reach, engagement and ultimately, additional subscribers.

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