OTT Services: A Dominant Force in Internet Usage

A recent industry report reveals that the majority of Internet users in India, particularly from rural areas, are avid consumers of Over The Top (OTT) audio and video services. Let’s delve into the key findings of this report and understand how OTT services have become a cornerstone of Internet usage in the country.

OTT Services Dominate Internet Usage

According to the report, a staggering 86 percent of Internet users in India engage with OTT audio and video services. This surge in digital entertainment consumption is attributed to the widespread adoption of smart devices such as smart TVs, smart speakers, firesticks, and chromecasts. The growth rate of OTT usage has surged by 58 percent from 2021 to 2023, with Internet-only devices witnessing higher usage (208 million) compared to traditional linear TV (181 million).

Rural India Driving OTT Adoption

Surprisingly, rural users constitute more than half of the OTT user base, accounting for over 50 percent of the total user demographic. This underscores the significant influence of rural India in driving the adoption of digital entertainment services.

Internet Usage Trends Beyond OTT

While OTT services lead the Internet usage charts, communication services and social media also command substantial user bases. The report highlights that communication services are utilized by 621 million users, followed closely by social media with 575 million users.

Overall Internet User Base and Growth Trends

India boasts an impressive 823 million active Internet users as of 2023, signifying a growth rate of 8 percent compared to the previous year. Rural users constitute a significant portion, with 442 million users, representing over 53 percent of the total user base.

Gender Representation and Language Preferences

From a gender perspective, the male-female ratio among Internet users has improved significantly, nearing parity at 54:46 in 2023. Furthermore, the report notes a strong preference for accessing content in local languages, with Tamil, Telugu, and Malayalam emerging as the top choices.

Regional Internet Adoption and Growth Rates

Interestingly, states with lower Internet penetration are witnessing rapid growth rates. Jharkhand and Bihar, with penetration rates of 46 percent and 37 percent, respectively, are experiencing growth rates above the national average.

Deceleration in Rural Internet Adoption

Despite the overall growth in Internet usage, the report indicates a slowdown in net adoption rates, particularly in rural areas. The rural market, which has been a driving force behind Internet growth, experienced an 11 percent deceleration in 2023, impacting the overall growth rate.

In conclusion, the widespread embrace of OTT services, particularly in rural India, showcases the evolving digital landscape and the integral role of Internet-based entertainment in shaping user preferences and consumption patterns.