Of all the different types of content available for internet users today, video reigns supreme. The medium owes its massive popularity to a number of factors: it has a huge reach, it’s easy to consume on mobile devices, and it appeals to people of all facets of life and ages. A recent study conducted by Google discovered that approximately 40% of millennials find video to be a trusted source.
New markets are emerging where the adoption of video is exceptionally fast. By 2030 it will be home to more than one billion internet users resulting in 400% growth in consumer spend.
The Drivers of Indian Connectivity Revolution
- The Indian consumer is getting richer and ready to spend more. This coincides with the growth in internet availability and an increase in the number of internet users in India – the number is estimated to reach 829m by 2021. Try this one for size: as of 1 January 2018, the population of the EU is about 512.6 million people.
- In just two to three years, the availability of broadband internet in India has increased two-fold (up to 480 million mobile and fixed users) and data consumption has increased 10-fold (to 10 GB per month per user).
- The entry of affordable Chinese smartphone brands: Xiaomi, Vivo and OPPO into the market has ushered more Indians to the Internet.
With low levels of literacy holding back print and online written content, Indian digital revolution is even more conducive to the popularity of video, and the stronger is the impact on the medium.
Indian Video on the Rise
Today, India is one of the fastest-growing economies. At the same time, it is expected to become the second-largest online video-viewing audience. These numbers are to be reckoned with – video consumers are estimated to reach 500 million by 2020, creating massive market, with great buying power and opportunities.
According to a report by the media agency Zenith, on top of the size of the audience, Indians are spending more and more time watching online videos. The statistics grew from only two minutes in 2012 to as much as 52 minutes per day in 2018. At the pace, the number is projected to exceed 67 minutes per day in 2019.
A report conducted by SonyLiv (a leading Indian entertainment VOD service operated by Sony Pictures) says their monthly active users grew threefold in 2018. At the same time, it states that by 2020 India is expected to be the second largest video-viewing audience in the world.
Online Video Alongside Traditional TV
Among the triggers of the growth in the consumption of video and other media in India is the availability of the internet and more affordable data tariffs. Online media offer Indian consumers great flexibility – completely unlike linear TV. The viewers can now enjoy access to a myriad of media content from movies to sports, infotainment and TV series. Indians mainly watch movies, news, TV shows and sports.
The entry of OTT platforms and the rise of YouTube stars has resulted in more quality content the under-served Indian youth and millennial population.
Interestingly, however, India is quite unique in terms of video consumption. Most Indian mediums grow hand in hand, and video consumption on OTT streaming devices is not cannibalising traditional TV, but only supplementing it.
The Future of Indian Video Revolution
India is steadily becoming more affluent. It is estimated that by 2030, India‘s economy will not be driven by the bottom of the social pyramid, but by the middle class, driving 75% of consumer spending. By 2030, nearly 80% of households will be middle-income, up from just 50% today.
This will translate into bigger on-demand video viewership. A quarter of the more affluent, middle-class, internet-enabled consumers are already spending more on subscription-based video-streaming entertainment services. New affordable options will unlock further massive incremental spend and establish new variants of consumption for many existing categories.
Europe-Middle East-Africa (EMEA)
In Europe, mobile video is on the rise. It is estimated that 54% of all video starts will be done on smartphones, up from 49% a year ago. This only follows global trends: increasing mobile speeds make it easier and cheaper to consume video content on mobiles. Compared to just 59% in 2017, nearly four-fifths (79%) of the world’s mobile data traffic will be video by 2022.
European audiences want variety, but they won’t sacrifice convenience, which means that a lot of different media owners will soon be forced to collaborate.
Also, European viewers want sports. No European service has risen to the top in the way Netflix has in the U.S., however, with easy access to turnkey OTT technology, there’s the possibility that everyone can engage a significant number of viewers – and the ad revenue that goes along with them.
Europeans love football. Broadcasters’ competition over the rights for certain top leagues has been going on for some time now, driving prices for rights packages through the roof. Revenue for major football clubs in Europe increased 9% this year mostly thanks to higher TV earnings.
Why This Matters
European video consumption is slowly showing symptoms of plateau. Conversely, as more Indians continue to go online, India will move to become the key player, driving more advertisers and publishers’ money than all European countries combined.
As mobile and video consumption increase foothold in India, video content will be an intrinsic part of the social media strategy embraced by various brands and internet businesses, the future looks promising.
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