A recent industry report sheds light on the pervasive adoption of Over The Top (OTT) audio and video services among Internet users in India, particularly in rural areas, marking a significant shift in digital entertainment consumption patterns.
OTT Services: A Top Use-Case
According to the report, a staggering 86% of Internet users engage with OTT services, positioning it as the primary use-case for Internet usage in the country. Notably, over half of these users hail from rural regions, emphasizing the widespread appeal and accessibility of digital entertainment platforms.
Driving Factors Behind OTT Adoption
The surge in digital entertainment services can be attributed to the proliferation of smart devices such as smart TVs, smart speakers, firesticks, and chromecasts. This tech-savvy trend has witnessed a notable 58% growth from 2021 to 2023, with a substantial number of individuals opting for Internet-based video content consumption over traditional linear TV channels.
Rural Users at the Forefront
The report underscores the pivotal role played by rural users, constituting more than 50% of the user base across various Internet use-cases. This demographic shift reflects the increasing digital connectivity and access to online content among rural populations.
Key Findings on Internet Usage
Apart from OTT services, the report highlights communications and social media as the second and third most popular Internet use-cases, with 621 million and 575 million users, respectively. The total active Internet user base stood at over 823 million in 2023, indicating a modest growth of 8% compared to the previous year.
Gender Parity and Language Preferences
Significantly, there has been a notable improvement in gender parity among Internet users, with the male-female ratio reaching 54:46 in 2023, mirroring the overall sex ratio of the country’s population. Additionally, the report reveals a strong preference for accessing content in local languages, with Tamil, Telugu, and Malayalam emerging as top choices.
Challenges and Growth Opportunities
While rural markets have been instrumental in driving Internet growth rates in recent years, the report notes a deceleration in net adoption growth, particularly in rural areas, with a slowdown of 11% in 2023. However, states with lower Internet penetration rates, such as Jharkhand and Bihar, are exhibiting above-average growth rates, signaling untapped growth potential in these regions.
In conclusion, the dominance of OTT services among Internet users, coupled with evolving user demographics and language preferences, underscores the dynamic landscape of digital consumption in India, presenting both challenges and opportunities for continued growth and innovation in the digital entertainment sector.
Jade Simon
Johanna Mayer
