Do you want to know the benefits of getting an OTT Platform like Netflix developed in 2024? In 2024, the Over-The-Top (OTT) streaming industry has seen unprecedented growth, particularly in India, where digital content consumption is soaring. With 547 million users and 99.6 million active subscribers, the Indian OTT market has grown by 13.8% since 2023. This surge is largely driven by a 21% increase in the AVoD (advertising video-on-demand) audience, while the SVoD (subscription video-on-demand) segment has seen a slight dip of 2%. These numbers indicate a golden opportunity for businesses to invest in OTT platforms, capitalizing on the evolving content consumption habits.
Advantages of Custom App Development for Businesses
The Explosive Growth of OTT Platforms
AVoD and SVoD Market Dynamics
The OTT Platform landscape in 2024 is marked by dynamic shifts in how audiences consume content. Hence, the AVoD segment has experienced a significant 21% rise, driven by users who prefer free content supported by ads. Moreover, the SVoD segment, though still robust, has seen a minor 2% decline. Therefore, these trends reflect a shift towards diversified revenue models, providing businesses with various monetization avenues.
Why are we seeing the rise of Ad-Supported Content on OTT Platform. Explore!
#1. 21% Increase in AVoD:
The 21% rise in the AVoD (Advertising Video on Demand) segment highlights a significant shift in consumer behavior. Many users are opting for free content that is supported by advertisements rather than paying for a subscription. Moreover, this trend is particularly prominent in markets like India, where cost-sensitive users prefer accessing content without a direct financial commitment.
#2. Affordability:
For many users, especially in emerging markets, the appeal of free content is strong. AVoD platforms allow users to access a vast library of shows, movies, and other media without the need for a subscription fee. Hence, the only trade-off is that they watch ads on OTT platform like Netflix during their viewing experience.
#3. Diverse Audience Reach:
AVoD platforms can attract a broader audience. For instance, it includes those who may not have disposable income for subscriptions. Therefore this inclusivity expands the potential user base significantly.
#4. Advertiser Interest:
With more users flocking to AVoD platforms. The advertisers are increasingly interested in these platforms as a way to reach a large and engaged audience. Hence, this drives up ad revenue for OTT providers, making AVoD a lucrative model
SVoD: The Shift in Subscription Dynamics
2% Decline in SVoD:
While the SVoD (Subscription Video on Demand) segment remains robust. It has seen a minor 2% decline. This shift could be attributed to several factors for instance, market saturation, competition from free content models, and the rising cost of subscriptions.
Understanding the Decline:
- Market Saturation:
In mature markets, where most users who are willing to pay for content already have subscriptions, the growth rate naturally slows down. However, this leads to a slight decline as some users might cancel subscriptions due to a variety of reasons, including financial constraints or the availability of compelling free content.
- Competition from AVoD:
As AVoD platforms become more popular, some users are switching from paid subscriptions to free i.e. ad-supported models. Therefore, this migration is particularly noticeable in price-sensitive markets.
- Content Overload:
With multiple OTT platforms offering similar content. However, some users may find it unnecessary to subscribe to multiple services, leading to a decline in SVoD subscriptions on OTT platform as users consolidate their choices.
Diversified Revenue Models: The New Norm
Shift Towards Hybrid Models: These trends indicate that OTT platforms are increasingly adopting diversified revenue models. While SVoD relies solely on subscription fees, AVoD generates revenue through advertisements. However, the real opportunity lies in hybrid models that combine both.
Benefits of Hybrid Models for OTT Platform.
- Maximizing Revenue:
By offering both subscription and ad-supported tiers, OTT platforms can cater to different segments of the market. However, the users who are willing to pay can enjoy an ad-free experience, while those who prefer not to pay can still access content with ads. This approach maximizes revenue from both user segments.
- Flexibility for Consumers:
Hybrid models give consumers more choice. They can opt for a subscription if they prefer uninterrupted viewing or choose the free tier if they are more price-conscious. Hence, this flexibility can lead to higher user retention and satisfaction.
- Adaptive Strategies:
As market dynamics continue to evolve, OTT platform with hybrid models can easily adapt. For instance, they can adjust the balance between ad load and subscription benefits to respond to user preferences and market conditions.
Wrapping Up!
The OTT landscape in 2024 is characterized by these dynamic shifts. Hence, the focus is clearly towards diversified revenue streams. The rise of AVoD and the slight decline in SVoD suggest that consumers are looking for more flexibility in how they access content. However, for businesses, this means there are multiple avenues to explore when developing an OTT platform. For instance, from purely ad-supported models to subscription-based services, or a combination of both. Therefore, by understanding and leveraging these trends, businesses can position themselves to capture a larger share of the growing OTT market.
