Decoding the Rise of Premium VOD in India: Insights from the MPA Online Video Report 2022-23

India's digital landscape has seen monumental changes over the past few years, and one of the most notable shifts has been in the online video industry. A deep dive into the recent MPA's India Online Video Report provides a goldmine of insights into this rapidly evolving sector.

1. The Rise of Premium VOD:

Premium Video On Demand (VOD) platforms have seen a surge in engagement. In the 15-month period between January 2022 and March 2023, Premium VOD occupied 12% of the market, marking a 2% rise from the previous year. Notably, this percentage surpasses figures from other emerging markets like Indonesia, Thailand, and the Philippines. However, India still trails behind developed markets such as Australia but is inching closer to Asian giants like Japan and Korea.

2. Leadership in the VOD Space:

Disney+ Hotstar led the charge in Premium VOD viewership, boasting a 38% share. The platform's success is attributed to its vast Hindi and regional content and sports broadcasts. The combined efforts of the Zee-Sony group followed closely; Disney+ Hotstar's rich content library remained unparalleled.

3. Jio Cinema's IPL Bet Pays Off:

Jio Cinema's strategic decision to live stream the IPL saw its consumption skyrocket in April 2023. Despite initial tech glitches, the streaming service saw more than a 20x growth in consumption, ruling the Premium VOD space. However, questions remain on whether it can maintain this momentum post the IPL season.

4. Content Dynamics:

Local content rules the roost in premium VOD viewership when sports is excluded, highlighting the Indian viewer's preference for indigenous content. However, when it comes to paid tiers, international content takes the lead, with US shows being the primary driver. Notably, Korean content has been seeing a steady rise, carving its niche in the Indian market.

5. Netflix & Prime Video's Dance:

While Prime Video and Netflix collectively captured 10% of the Premium VOD market, their strategies differed. Prime Video, with its diverse range of content across genres and languages, saw over 60% viewership rooted in local content. In contrast, Netflix's local content contribution stood at 24%, with US titles driving sustained viewership.

6. The Road Ahead:

The next half a year is pivotal for the OTT sector. As platforms juggle content investment with monetization, the key will be strategic content curation and viewer engagement. Disney+ Hotstar's stronghold is expected to continue, bolstered by its diverse content range. Amazon Prime Video's innovative strategies, including its mobile edition and regional content, promise growth. On the other hand, Netflix's challenge will be to amplify the impact of its local originals.

The Indian online video landscape is witnessing a beautiful amalgamation of global content trends and local preferences. As the market continues to mature, platforms that can strike the right balance between content curation, user experience, and strategic engagement will lead the way. The MPA report is a testament to this evolving dynamic, and at Sugarbox, we are excited to see how these trends shape the future of digital consumption in India.

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(Note: The numbers and insights have been sourced from the MPA Online Video Report 2022-23).