The adoption of subscription video-on-demand (SVoD) services picked up in 2020 as consumers spent more time at home in the wake of the COVID-19 pandemic-induced lockdown.
The consumption surged in both smartphones and TV.
In 2020, the the number of paid OTT subscriptions (also known as SVoD) increased to about 100-125 million, up by nearly 55-60 per cent from 49 million subscriptions in 2018, said a CII-BCG report.
The report also claimed that the rise in the number of paid OTT subscriptions could be attributed to the low-ticket size plans by OTT players and enhanced ease of payments.
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With an aim to grab the Indian market, global OTT players are offering specific price points which has helped them to increase their presence in tier 2-tier 4 towns. Also, the growth rate of new users in tier-2, 3, 4 regions is estimated to be 1.5 times of that of the growth rate in metro and tier 1 cities this year, the report added.
Meanwhile, TV subscriptions grew by 3 percent due to the growth in DTH subscribers. Currently, DTH subscribers' share stood at 36 per cent in 2020 in India in comparison to 35 per cent in 2019.
"DTH subscribers surged initially during the lockdown, but over time consumers started optimising channel subscriptions due to limited fresh content. Subscribers are expected to increase by 6-7 per cent as fresh content has returned to TV and cable TV subscribers move to DTH," Hindu BusinessLine quoted CII-BCG report.
The report noted that digital video emerged as the fastest growing medium at 14.5 percent compound annual growth rate (CAGR) during 2018-20, while television and print increased by just 6.7 percent and 0.3 percent.
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