From SVOD decline to pause ads, the rollercoaster ride of OTTs in '24

The year 2024 was eventful for India’s OTT (over-the-top) industry, with notable shifts in viewer behaviour, the rise of new monetisation strategies, and the introduction of a government-backed platform. Let’s rewind and take a closer look at the key developments. 

Decline in SVOD

Even as SVOD (subscription video-on-demand) platforms such as Netflix, Amazon Prime, and Disney+ Hotstar continued to attract attention with fresh content, the AVOD (ad-supported video-on-demand) segment saw faster growth, reshaping the OTT landscape. 

According to an  Ormax report,released in August this year, India’s digital video audience universe stands at 547.3 million, of which 28% are SVOD audiences while the remaining (72%) were AVOD audiences. The SVOD audience base has shown a 2% decline, dropping from 153.0 million in 2023 to 150.6 million in 2024. This shift reflects a growing reluctance among viewers to pay for OTT subscriptions, with total paid subscriptions declining from 101.8 million to 99.6 million. 

Moreover, the consumption of OTT originals has plateaued. The average SVOD subscriber watched 12.3 original titles in 2023, but this number fell to 10.2 in the first half of 2024, a 17% decline in original content viewership compared to the previous year, according to another report released in September 2024. 

Emergence of pause ads

Grappling with declining subscribers and churn rates, OTT platforms turned to innovative monetisation strategies. One of the most significant innovations was the introduction of pause ads. Disney+ Hotstar pioneered this feature on its Connected TV (CTV) feed in 2024, allowing advertisers to display ads when viewers pause content on CTV. 

This non-intrusive format enhances brand engagement by appearing at a moment when users are actively interacting with the platform. Zee5 and YouTube India soon followed suit, incorporating pause ads later in the year.

Launch of Waves

India’s public broadcaster, Prasar Bharati, made a significant entry into the OTT space with the launch of Waves. The platform offers a wide range of live channels, movies, TV shows, and on-demand content, catering to diverse viewer preferences.

Waves currently offers around 40 live channels, including popular ones from broadcasters such as B4U, ABZY, SAB Group, and 9X Media. News channels such as India Today, News Nation, Republic, ABP News, News24, and NDTV India are also available, alongside Doordarshan and Akashvani channels.

Beyond live TV, Waves features a variety of on-demand content, including movies such as Aarakshan, One Day, The Impossible, and Alice Darling. The platform also offers TV shows, games, and a dedicated section for live events, enhancing the overall viewing experience.

Experts believe Waves could be a game changer for free-to-air (FTA) TV channels and stands out in India’s OTT ecosystem by focusing on regional content.

Content regulation

The Indian government also intensified efforts to regulate OTT content in 2024, signalling the evolving challenges the industry faces as it balances creative freedom with compliance to regulations. 

India’s OTT landscape in 2024 witnessed significant shifts in audience preferences and business strategies. With the rise of AVOD, innovative ad formats like pause ads, and the entry of government-backed platforms like Waves, the industry continues to adapt to a rapidly changing environment. However, challenges such as declining SVOD subscriptions indicate that the path ahead remains complex and dynamic.