86% Indian Internet Users Prefer OTT: Report
According to the 'Internet in India Report 2023,' jointly compiled by the Internet and Mobile Association of India (IAMAI) and Kantar, the primary use-case for the internet in the country is OTT audio and video services, with 86 per cent of internet users in India, equivalent to 707 million people, engaging in these services.
Harsh Jain, Chairman of IAMAI and CEO and Co-founder, Dream Sports, unveiled the report during the inaugural session of the India Digital Summit 2024, held on 27 – 28 February at the Jio World Convention Centre. “‘Internet in India’, which is based on the ICUBE 2023 study, covering over 90,000 households across all states and Union Territories of India (barring Lakshadweep), is the most comprehensive survey of internet usage in the country,” he said.
Puneet Awasthi, Director of Specialist Businesses, Insights, South Asia – Business Development at Kantar India, presented the key findings of the report.
The surge in digital entertainment services is further propelled by the increasing popularity of non-traditional devices such as smart TVs, smart speakers, Firesticks, Chromecasts, Blue-Ray players, etc., which have witnessed a 58 per cent growth between 2021-23 at the all-India level. This adoption is primarily fuelled by the emerging generation of 'cord-cutters,' marking a significant shift as, for the first time, more people are accessing video content through internet-only devices (208 million) than through traditional linear TV (181 million).
Additional prominent uses of the internet in the country include communications, with 621 million users, and social media, with 575 million users. These stand as the second and third most popular services utilised by Indian internet users. The term OTT denotes audio/video streaming from either subscribed services or user-generated content (UGC) platforms, while communication encompasses text/voice/video chat, email, video conferencing, etc., accessed through online websites or apps in the last year.
The report highlights that users from rural India are the primary drivers behind these use-cases, contributing to over 50 per cent of the user base for each use case.
India achieved a significant milestone in internet penetration, surpassing 800 million users, with a total of 820 million Active Internet Users recorded in 2023. This indicates that over 55 per cent of Indians utilized the internet in the past year. The nation experienced a moderate eight per cent YoY growth in internet penetration. Notably, rural India contributed to the majority, with 442 million users, accounting for over approximately 53 per cent of the total user base.
From a gender ratio of 71:29 in favour of males in 2015, the recent statistics indicate a shift to 54:46, bringing it nearly in line with the overall sex ratio of the addressable population in the country. A closer look at the report reveals a deceleration in growth rates in both urban and rural areas. Rural India, a key driver of internet growth in recent years, has experienced a slowdown with an 11 per cent YoY decrease, particularly in the post-pandemic period. This slowdown is contributing to an overall growth rate reduction to eight per cent YoY. Despite the deceleration, the growth rates, given the substantial base of over 800 million users, still represent significant numbers at eight per cent and 11 per cent, respectively.
One potential strategy to accelerate growth is to prioritise Indic languages, which are demonstrating encouraging growth trends in certain states. According to the report, 57 per cent of users prefer accessing content in Indic languages, with languages like Tamil, Telugu, and Malayalam being the most favoured for content consumption.
Furthermore, there is cause for optimism as states with lower internet user bases are exhibiting some of the highest growth rates. For instance, states like Jharkhand (46 per cent penetration) and Bihar (37 per cent penetration) are experiencing growth rates above the average, with increases of 12 per cent and 17 per cent respectively.
