Mumbai: At an estimated 1.487 billion people, India’s population soared past China early this year making it the most populous country in the world and virtually is certain to continue to grow over the next several decades.
While this population growth presents numerous challenges for the nation, it also brings forth exciting opportunities for various industries, including the booming Over-The-Top (OTT) platforms. With its massive user base and increasing internet penetration, India's population increase is poised to play a pivotal role in propelling OTT platforms to new heights globally.
“The major OTT companies have been keeping an eye on India for some time,” stated Divya Kaushik Kohli, a director at the Indian Film Festival Los Angeles (IFFLA). “We’re living in exciting times, with critical and commercial successes coming India’s way. While overtaking China as the most populous country in the world may have a plethora of concerning consequences, it does make India one of the largest consumer bases to watch out for,” Kohli said.
The biggest factor behind India’s massive population is its young people: 740 million Indians – nearly half the country’s population are below the age of 25. This stands in contrast to the United States, Asian countries such as Japan and many European countries such as Germany and Italy which are all experiencing a plateau or decline in youth populations.
While aging populations present challenges for the box office, youthful demographics have been a driving force behind the success of OTT platforms. Younger generations, particularly millennials and Generation Z, have embraced streaming services for their flexibility, convenience and access to a wide range of content.
This youth-driven population in India has been quick to adopt digital technologies and smartphones, thereby fueling the growth of OTT platforms. In addition, with more individuals gaining access to affordable internet connectivity, the potential audience for OTT content in India continues to expand exponentially.
Kohli observed that “the French mathematician and philosopher, Auguste Comte first articulated the insight into ‘demography is destiny’ in the 19th century where he theorised that the size and structure of a population will tell you a lot about its future.”
As the youth population continues to expand in many regions, the demand for OTT platforms will likely continue to grow. By the end of 2023, the OTT subscriber base in India is expected to reach 50 million and continue to grow, according to a report by Media Partners Asia (MPA). Along with the youth population, India’s investments in broadband connectivity, the expansion of mobile networks and the rise of affordable smartphones have laid a solid foundation for the growth of OTT.
The Indian entertainment industry has witnessed a surge in partnerships and collaborations between domestic and international OTT platforms. In India, some of the most popular OTT platforms include Netflix, Amazon Prime Video, Zee5 and Disney+ Hotstar. Many of these major global players are joining forces with Indian content creators, production houses and talent to tap into the vast potential of the Indian market. These collaborations not only bring an influx of international content to Indian viewers but also facilitate the global distribution of Indian content through international OTT platforms. In addition, the growing subscriber base from India not only generates substantial revenue but also attracts advertisers and investors looking to capitalize on the immense market potential.
“With saturation peaking in developed markets, providers are turning more and more to growth markets like India, hoping to boost subscription sales with curated original content and high visibility partnerships,” stated Kohli.
It is also important to note that, since India is a culturally diverse nation, consisting of a multitude of languages and traditions, this diversity has created a growing appetite for regional content across OTT platforms, as well. Local players include Voot, Jio TV, Bejod and Alt Balaji.
As India continues to grow and embrace digital entertainment, OTT platforms are witnessing exponential growth, driving innovation, and redefining the entertainment landscape. By leveraging India's population increase and catering to its unique preferences, OTT platforms can cement their position in the global market while providing Indian viewers with a vast array of content choices.
