SVOD services

Subscription Video on Demand (SVOD) refers to video streaming services that users must subscribe to in order to access. Subscription Video on Demand is a booming industry for many reasons. It empowers consumers to pay for only the content that they want, a major reason why audiences are turning away from cable and other traditional providers. Also, it provides businesses a direct line of revenue from consumers without having to consult or sell to advertisers. This has the added benefit of relieving users from annoying ad interruptions.

The subscription video on demand (SVOD) service revenue in India is expected to grow at a compound annual growth rate of 15.5% from $1.3 billion in 2021 to $2.7 billion in 2026, driven by solid growth in SVOD subscriptions and an increase in unique SVOD household penetration, as per GlobalData.

India Subscription Video on Demand Forecast (Q4-2021)’ reveals that SVOD subscriptions in the country will increase at a CAGR of 16.2% during 2021-2026, driven by the increasing availability of affordable high-speed mobile internet, and a steady rise in household penetration of fixed broadband services, particularly high-speed fiber-to-the-home/building services, which enable the consumption of high-bandwidth OTT video content.

Moreover, the upcoming roll out of 5G networks will further aid in the growth of SVOD streaming services by facilitating a seamless streaming experience for consumers. The Indian SVOD market is on an accelerated growth path thanks to the availability of high-speed broadband services, growing smartphone penetration, and widespread popularity of OTT content among the younger population.

At the same time, the Global SVOD operators such as Disney+ Hotstar, Netflix and Amazon Prime Video, which have gained immense popularity in India, have been adopting innovative pricing plans with multi-device streaming options to expand their user base, and are investing heavily in developing premium original video content, especially in regional languages.

The result shows the Disney+ Hotstar platform is expected to hold the largest share of India’s SVOD services market, in terms of subscriptions, through the 2021-2026 period. The growth can be attributed to the company’s wide, distinct pool of multilingual local and original content library, competitive pricing, and exclusive coverage rights to the Indian Premier League, one of the biggest sporting events in the country.

There has been a remarkable change in the viewing habits of Indian consumers in recent times with traditional pay-TV services losing subscriptions, while binge-watching shows on various OTT platforms is becoming more common. While SVOD services have managed to gain a sizable viewership in urban areas, the rural markets will provide a large untapped market potential for OTT players in the coming years.

Dr. Deepak Kumar Sahu, President & CEO, VARINDIA