India is home to more than 1.4 billion people and boasts the second-largest digital population in the world – despite just a little over half of the population accessing the internet daily.

Increased internet penetration and affordable smartphones have paved the way for rapid growth in streaming in this market. With this significant opportunity comes huge competition from both regional and international streaming platforms. Indian consumers have choices – lots of them. And they want an experience that looks and feels like it was made just for them, from locally relevant content to in-platform experience.

Streaming platforms that are able to meet this need will have a leg up in the market. Global powerhouses like Netflix, Prime Video, and Warner Brothers Discovery are investing heavily in the local experience, while other global leaders struggle to catch up. 

Whether your brand is established in the region or trying to get a foothold, understanding consumer behavior in India will be critical to making an impact in one of the fastest-growing entertainment hubs in the world.

KEY STREAMING TRENDS IN INDIA

In 2023, 78.94 million users in India were signed up for at least one SVOD service, a number that is expected to increase 21.8% by 2027. These subscriptions are spread across a blend of international and local streaming platforms, from Netflix and Prime Video to Zee5 and Disney+ Hotstar. Similar to other sophisticated entertainment markets, consumer behavior in India indicates a developing preference for binge-watching amid shorter viewing sessions.

Social influence is critical to SVOD users in India, who turn to platforms like YouTube, Facebook, and Instagram for streaming recommendations and user-generated content. A recent report suggests that younger, increasingly tech-savvy Indians are turning to the open internet to actually consume the content, preferring to watch over-the-top (OTT) and connected TV (CTV) beyond walled apps. 

On-the-go viewing is the norm in India, with 81% of viewers exclusively streaming on smartphones. User-friendly mobile interfaces (that don’t take up too much bandwidth) are crucial for winning over this audience. OTT platforms will want to ensure it’s not just easy to use their apps and sites. The experience should also be tailored to specific users with personalized recommendations.

But it isn’t all about video content. Music streaming is also booming among Indian consumers, with more than half of India’s daily internet users visiting music streaming apps and websites. 

VIDEO STREAMING PREFERENCES AND ENGAGEMENT

The appetite for local content remains high in India, where daily internet users spend an average of 2 hours and 54 minutes watching television daily. It comes as no surprise that services that offer regional language programming are preferred in this market. In 2023, local language content constituted nearly 30% of total streaming viewership, a number only expected to grow as consumers continue to seek local entertainment. 

Ad-supported video-on-demand (AVOD) is having a (big) moment among viewers in India. AVOD streaming increased 21% in 2023, far outpacing its SVOD counterpart, which saw a 2% decline. These new AVOD viewers consume most of their video content on YouTube and social media.

With Indian consumers averaging more than 6 hours per day online – nearly half of which is on social media platforms – it’s one of the most effective ways for advertisers to connect. Advertisers are projected to spend $1.47 billion on social media ads in India in 2024 alone.

Active discovery of new and noteworthy content is one element of consumer behavior in India to take into consideration. Platforms that facilitate user-generated content, personalized recommendations, and social sharing tend to see higher engagement levels. 

KEEP IT LOCAL(IZED)

Effective localization is a must in this diverse market. With over 22 official languages and a rich tapestry of cultures, content providers must prioritize regional programming to captivate local audiences. Some streamers – like Netflix and Prime Video – are able to accomplish this through both local content production and acquiring streaming rights for Indian blockbusters. With limited regional content, AppleTV+ – which has struggled to get a foothold in India – recently partnered with a local telecom company to get their (mostly English) content in front of Indian users. 

Disney is making big moves in India as well. Featuring a blend of regional television dramas and sporting matches, Disney+ Hotstar owns the largest market share of the $28B entertainment industry in India. But they haven’t stopped there. In August, the Competition Commission of India (CCI) approved a joint venture of Disney’s media assets and India conglomerate Reliance Industries (including Paramount selling its 13.01% equity stake in Viacom 18 Media to Reliance). This new joint venture is now one of the largest media and entertainment companies in India. Their goal: to “deliver unparalleled content choices at affordable prices to Indian viewers and the Indian diaspora globally.”

A key takeaway for streaming platforms, large and small: Indian consumers’ options for relevant, in-language content are growing. As the market becomes more saturated, their tolerance for English-only or poorly localized content will ebb. If platforms don’t put in the effort to offer a high-quality, in-language experience, Indian audiences will notice. We recently surveyed digital experts in India about their experience with international streaming platforms, and their responses were illuminating:

“There is a lot of content that is consumed which is not originated here. There is a growing audience for Korean films, manga, which require more localization than what is available.”

“Mostly localized content is not available.”

“The languages (particularly Hindi) used by some of these streaming companies are at times too formal and do not sound natural.”

“Localization projects seem to have been handled in a hurry. Post completion checks seem poorly handled.”

With hard-hitting local streaming platforms and international players putting in a concerted effort to grow their footprint in India, the bar for quality content and localization is higher for everyone.

THE FUTURE OF STREAMING IN INDIA

Internet services and affordable smartphones are becoming more widely available. As a result, India has seen an increase in rural connectivity and engagement online and on streaming platforms. The number of OTT subscribers in India is expected to exceed 600 million by 2025. 

As access to streaming continues to grow, so will the desire for original, regional content. A variety of subscription models that include ad-supported options will keep viewers engaged across a range of demographic groups. Here’s how streaming providers can thrive in India: if they can innovate around the preference for both short- and long-form formats and offer entertainment that resonates with the local culture.

FINAL THOUGHT

The key to success for streaming platforms is to prioritize localized (and locally created) content, optimize the user experience, and leverage social media advertising strategies. Understanding consumer behavior in India is only the start. Those able to adapt to these trends quickly will have a leg up on the competition in this vast, lucrative market.

Ready to amplify your presence in the India streaming landscape? Let’s talk.