Unravelling the
digital video
consumer
Looking through the viewer lens
Supported by
September 2019
home.kpmg/in
© 2019 KPMG, an Indian Registered Partnership and a member rm of the KPMG network of independent member rms afliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Table of contents
Introduction 01
The online video landscape in India 03
Understanding the Indian online video consumer –
Survey Methodology 09
Online video in India – who is watching, how much are
they watching? 13
Content is the proverbial ‘king’
What are Indians watching on online video platforms? 17
In which languages do Indians prefer online video? 21
Where and when are the consumers watching online video? 25
How is online video content being distributed? 29
31
Understanding the Indian SVOD subscriber 35
Is Cord cutting imminent? 39
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01
India’s online video market is potentially one of the
Introduction
most exciting markets and businesses in the world.
It is estimated that India will have more than 500
million online video subscribers by FY 2023, and this
would make it the second biggest market in the world
behind China alone.
In India, the internet video trafc is projected to reach
13.5 Exabytes (EB) per month by 2022, up from 1.5
EB per month in 2017; with video contributing 77 per
cent of all internet trafc by 2022.
1
The largest gain
in this rising consumption for the viewer is in terms
of the options available of the kind of content to
watch, depth of interactivity available on engagement
with video and many viewers spilling over the line to
become creators.
As India witnesses the change in the denition of
mass general entertainment, movies and sport are
likely to be ‘driver content’ and digital original series
would likely be an important tool in dening this
transition in culture. A déjà vu of what India saw in
the early days of cable television this universe is going
to be divided into ‘the bundled’ and ‘the a-la-carte’
model, with telco/internet service provider (ISP)/
network partners, original equipment manufacturers
(OEMs), broadcasters, movie studios, tech aggregator
platforms all playing a key role in the development of
this universe of audiences. India will continue to be
a challenging market in terms of audience pivots on
language, content genres, access and several million
consumer cohorts to truly exploit the mid to long tail
of online video.
A few of the opportunities to look forward to in this
business from an India lens would be
• Quality Indian narratives traveling beyond the South
Asian audiences around the world
• The true evolution of the technology stack in order
to efciently deliver content to different audience
types, in different languages and genres
• Evolution in the business of ‘Big Data’ resulting in
more qualitative viewing sessions and predictive
viewer behaviour. An ancillary but signicant use
case to also effect consumer purchase patterns
across products and services
• Collaboration would be an important theme
including cross-border and this would have different
shapes and forms that we haven’t seen in the
traditional media business
• Interactive video gets true meaning as now a
viewer doesn’t only ‘watch the video’ but will also
be able to ‘feel the video’
1. Cisco VNI Internet trafc forecast
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Unravelling the digital video consumer 02
There is a signicant probability that in Tier 3+
markets in India, consumers would experience the
internet for the rst time with online video hence
making it a gateway tool for a true ‘Digital India’.
We have compiled this report which provides a
balanced view of online video wherein we break
down and analyse the facets of audiences, content
genres, consumption patterns, device types,
distribution models and globalisation of VOD with
some forward-looking statements based on deep
consumer research, business analysis, real data and
open data of platforms and services. The results
further accentuate the reason of all companies
and colleagues contributing to the growth and
development of this eco-system.
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03
The Online video market in India crosses
300 mn
The growing high speed internet user base in India
has been the catalyst for online video viewer growth
The online
in India, which has reached a critical mass of more
than 300 million users by FY19.
Internet subscribers in India (Mn)
video
% of broadband subscribers
87%
81%
60%
landscape
in India
391
604
446
Dec'16 Dec'17 Dec'18
Source: TRAI performance indicator reports
Online video viewers in India (Mn)
550
300
325
Dec'18E FY19E FY23E
Source: KPMG in India Analysis
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–
Unravelling the digital video consumer 04
Factors inuencing the growth of online video in India
2,3,4,5,6,7
Second highest per capita
consumption of online video in
the world
Growth in
smartphone
users in India to
~340 Mn in 2018
(2015- 200 Mn).
11% growth in
feature phones
shipments, higher
than smartphones
growth in 2018.
Cheapest mobile data in the
world (INR18.5/GB)
(2015- INR313/GB)
Growth in
average data
usage per
subscriber per
month to 8.7 GB
in 2018 (2016-
0.88 GB)
Growth in rural internet
penetration to 24 per cent in
2018 (2016- 13 per cent)
Growth in average
mobile data
download speed
to 9.93 Mbps in
Nov’18 (Nov’17
8.88Mbps)
Number of OTT players in India
9
2012
30+
2018
Source: KPMG in India Analysis
2. The state of online video 2018, Limelight Networks ; accessed on 04 April 2019
6. TRAI performance indicator reports
3. India’s mobile data is cheapest globally, Times of India ,March 2019; accessed on 04
7. India ranked 111th in mobile internet and 65th in xed line broadband speeds: Ookla,
April 2019; How low-cost data is powering India, Fortune India, Dec 2018; accessed
Times of India ,December 2018; accessed on 04 April 2019
on 04 April 2019
4. TRAI performance indicator reports
5. Smartphone Penetration In India Is On The Rise, Set To Reach 37.3 Crore Users In
2019, India Times, January 2019; accessed on 04 April 2019; Feature phones still
outselling smartphones in India as market grows by 10 percent: Counterpoint,91
mobiles, January 2019, accessed on 04 April 2019
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05
Monetisation models prevalent in the Indian market
Monetization models of OTT players in India
Monetization Model Details Key Players
Advertising video on demand
(AVOD)
Users have completely free access
to content and platform earns all
revenues through advertisement
Youtube, VOOT, MX Player, TVF
Play, Arre
Subscription video on demand
(SVOD)
Users pay subscription charges
and get access to the entire
catalogue of content, which is
behind the paywall
Amazon Prime Video, Netix, Eros
Now, Yupp TV, Sun Nxt, HOOQ
Freemium Hybrid OTT business model that
combines various features of
AVOD and SVOD models. Catch
up TV is usually available for free
across such broadcaster backed
Freemium platforms
Hotstar, Sony Liv, Zee5 , ALT Balaji
Transactional video on demand
(TVOD)
Users pay one-time payment per
view on live events, series or
movies instead of subscribing to a
large library and costlier packages
Veqta
The above monetisation models are distinct from platforms, and provide bundled services to their
telco-backed OTT platforms such as Jio Cinema, Jio subscribers with the cost of content packaged with
TV, Airtel TV etc., which are largely aggregators of the cost of data, voice and text messages for each
content from other broadcasters and online video pre-paid or post-paid plan.
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Unravelling the digital video consumer 06
Distribution strategy and depth
with telecom operators, cable TV / DTH operators,
original equipment manufacturers (OEMs) and others
OTT players across the board have been focusing on
are being actively forged to ensure an optimum
developing a robust distribution strategy to have a
distribution depth.
widespread presence across their target audiences
and across various device ecosystems. Thus, alliances
Key distribution partnerships of OTT players in India
Player Telcos
OEM Others
including
platforms and
channels
International
partnerships
Smart TV
Streaming
device
Eros Now Airtel, BSNL,
Jio, Vodafone
Idea
Android TV,
LG smart TVs
(World-wide),
Xiaomi Mi
TV (India) ,
Cloudwalker,
TCL, Samsung
Apple TV+,
Amazon
Fire Stick,
Chromecast,
Roku, Jadoo TV,
Tata Sky Binge
Inmobi, Paytm,
Amazon
Channels,
Etisalat Arena
Virgin Media,
Apple TV+,
Wasu Media,
Vodafone Qatar,
Comcast,
Maxis, Dialog,
XL Axiata,
Etisalat, Iqiyi,
Freesat,
Netrange,
Vewd, Foxxum
Netix Airtel, Vodafone
Idea
Hisense, LG,
Panasonic,
Philips,
Samsung,Vu
Chromecast,
Amazon Fire
Stick, Roku
Comcast,
Hilton, Sky TV
Amazon Airtel, BSNL, LG, Samsung, Amazon Comcast
Prime Video Vodafone Idea Sony, Fire Stick,
Panasonic, Chromecast,
Philips, Sharp Apple TV Roku,
Nvidia Shield
Hotstar Airtel, Jio CloudWalker,
Vu, Android
TVs, Apple TV
Chromecast,
Amazon re
stick, Tata Sky
Binge
Hooq
Sony LIV Vodafone Idea Android TV,
Sony Bravia TV
Chromecast,
Amazon Fire
Stick
Lionsgate,
Amagi,Paytm
Comcast,
Hilton, Sky TV
Zee5 Airtel, Jio,
Vodafone Idea
Samsung, Apple
TV, Android TVs
Chromecast
,Amazon Fire
Stick
Gaana,
Nestaway
ALT Balaji Airtel, Jio,
Vodafone
Vu, Apple TV,
Android TV
Chromecast,
Amazon re
stick
Yupp TV
Source: KPMG in India Analysis based on primary and secondary research
Note: The above list is indicative of distribution depth and does not exhaustively capture all partnerships
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Partnership with telcos - Content partnerships
with telecom companies have emerged as the
preferred distribution channel for OTT players.
Such partnerships not only help to expand the
reach but also helps boost subscription income
for these players
Partnership with OEMs - OTT players have
partnered with different hardware manufacturers
including smartphones, smart TVs, streaming
devices, gaming consoles etc. to allow users
to easily access these apps on their preferred
devices
Partnership with TV/broadband players -
Various OTT players have partnered with DTH
operators through integration of apps into the set
top boxes, allowing the user to access the services
with a dedicated remote button. Services like
Tata Sky Binge provide the user with a dedicated
hardware to access the OTT apps on their
television sets, irrespective of whether
the TV has a ‘smart’ functionality or not
Cross-platform partnerships - Some players
have also forged partnerships among themselves
to mutually benet and leverage each other’s
strength. For example, ‘Zee5’ and ‘Alt Balaji’ have
forged a content sharing arrangement to
co-create original content in Hindi, which
will be available exclusively on both
the platforms.
07
Strategic initiatives by SVOD players in
India
Innovations in pricing to boost subscriptions
• Pack durations and sachet pricing - While monthly
packs are a part of the subscription offerings by
most players, sachet pricing by players like Zee5
and Sony Liv, and mobile only packs by the likes of
Netix are recent innovations to drive subscriptions
• Also, Eros Now has partnered with Veriown to
distribute content to partly connected/disconnected
Tier 3-4 villages at subsidised pricing
8
.
• Regional packs – Players like Zee5 are starting to
addressing the needs of regional only audiences
through customised regional packs
• Ofine payments – To tap the large Indian cash
economy, players like Hoichoi and Hotstar are trying
to leverage top-up cards and cash payments to
grow their subscriptions
Fostering consumption and engagement
• In a bid to create highly engaging experiences for
users, OTT platforms have tried to experiment with
different types of interactive elements ranging
from contests / games that can be played in parallel
while viewing live video content. For example,
the ‘Watch N’Play’ initiative by Hotstar across IPL
2019; the ‘Sing-Along’ initiative on Sony Liv for the
latest season of Indian Idol are some examples
of platforms trying to foster continued user
engagement.
• Eros Now has launched ‘TV Se Pehle’, wherein
movies premiere on the platform prior to their
satellite broadcast; another initiative aimed at
engaging the audiences with popular movie
content.
Original content as a differentiator
In a highly competitive environment with more
than 30 VOD platforms in India, as players look
to differentiate themselves, massive capital
commitments have been made by SVOD players for
building libraries of diverse original content over the
last couple of years. Some of the key investments
announced by leading players include
• Hotstar has earmarked INR120 crore in early 2019
to make special shows in 7 different languages for
the Indian market
9
.
• Eros Now is investing USD50 million to create 100
new original shows for their platform
10
.
• Netix plans to come out with 4 web-series in 2019
and 15 Indian original feature lms by 2020
11
.
• Amazon Prime Video has announced that it plans to
double it’s original content offerings for India in 2019
with at least 7 shows scheduled for launch
12
.
• Zee5 intends to release 72 new originals in 6
languages over a period of time till March-2020
13
.
8. Eros Now enters into partnership with Veriown Global, Inc,exchange4media, April
2019, accessed on 05 May 2019
9. Hotstar to invest Rs 120 crore in generating original content, The Economic Times,
January 2019, accessed on 05 April 2019
10. Eros Now launches mini-series, to spend $50-70 million annually on originals,
Livemint, December 2018, accessed on 05 April 2019
11. Hotstar adds to streaming drama with originals, Livemint, January 2019, accessed on
05 April 2019
12. Soon, Amazon may add cable channels to Prime Video in India, Business Line, March
2019, accessed on 05 April 2019
13. Indian Streamers Ramp up Original Productions, Variety, March 2019, accessed on
06 April 2019
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Regional content getting the deserved attention
As nine out of 10 new internet users in India are likely
to be Indian language users it is vital for VOD players
to cater to this audience in their native language. As
a result, SVOD platforms have started to focus on
building a library of regional content that includes
movies and originals over the past 12-18 months.
Although the existing regional lineup largely consists
of movies with a handful of originals, dubbing has
emerged as an effective tool for players to quickly
expand the breadth of original and movie content
available across multiple regional languages
Unravelling the digital video consumer 08
Online video – Transcending geographies
After making inroads in the Indian market, many
SVOD players have started to expand internationally
by launch geography specic offerings to increase
monetisation for their content. For example, Star India
has discontinued the distribution of its TV channels in
the U.S.A. and Canada and offers content only through
its VOD service in the two geographies
14
.
Eros Now has presence in more than 135 countries
across the globe with multiple international
partnerships driving subscription growth. The
extensive list of international partnerships include
telcos/partners like Virgin Media, Apple+, Wasu
Media, Maxis, Dialog, XL Axiata, Etisalat, etc. and
streaming platforms like Amazon Prime Video, iQiyi
and others
15
.
14. Hotstar Launches Its Premium Service in US and Canada, Gadgets 360, , September
2017, accessed on 06 April 2019
15. KPMG in India analysis, 2019, based on secondary research
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09
Survey Methodology
Understanding
the Indian
online video
consumer-
Survey
Methodology
For the purpose of this report, a survey was
commissioned across 1,458 OTT users in 16 cities
of India, to ascertain the usage of OTT platforms by
consumers. The cities chosen were across different
tiers as outlined below
• Metros – Delhi, Mumbai, Kolkata
• Tier 1 – Bengaluru, Hyderabad, Pune, Ahmedabad,
Jaipur
• Tier 2 - Ludhiana, Panipat, Nagpur, Madurai,
Coimbatore, Bhubaneshwar, Jamshedpur, Patna
The survey was based on a questionnaire which was
conducted in person at each of the centres. The
questionnaire was designed to gain insights around
the OTT usage behaviour of the respondents across
the following key aspects
• Duration and frequency of content consumption
• Content categories and genres consumed
• Preferences of users in terms of language of
content consumed
• Long form vs. short form content consumption
• Movie consumption behaviour
• Day and time band analysis of content consumption
• Number of platforms used by respondents and
subscribed to
• Reasons for subscription and non-subscription
• Propensity for cord cutting and reasons governing
the same
• Consumption across distribution modes such as
direct vs. telco-based
• Brand perception of key OTT apps
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Unravelling the digital video consumer 10
Summary of the key insights from the survey
Online video platforms are truly going mass in terms of frequency and duration of consumption.
While the customer sets are fairly heterogeneous, there is a trend of homogeneity that was
observed in terms of consumption frequency and duration across consumer categories
~70 12.5 ~40
min /day per week minutes
Avg. time spent on Avg. frequency of Avg. single session
OTT platforms access duration
Indians continue to love their movies and movie related content. Original content is also emerging
in a big way with a reasonable preference by respondents as compared to the supply of original
content on platforms currently.
30% 10%
of the respondents prefer of respondents prefer
watching movies on OTT watching ‘Originals’ on OTT
platforms, with a further 20% platforms. Given the current
Movie related content such supply of originals at <1%
as ‘Music Videos’ of overall content, this is a
signicant preference.
Long form content is gaining traction, while short form content continues to remain relevant,
especially to cater to the millennial audience
of average session duration >45 minutes, signifying the growing importance of
long form content. However, short form content also remains highly relevant,
with 25-30% respondents across age groups having single session durations of
30%
<20 minutes
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11
The preference for content consumption is signicant in the native languages across large parts of
the country, with south India observed to be the most loyal to their native tongue
30%
of respondents prefer watching content in languages other than Hindi
and English. Native language preference highest in South India with
Tamil, Telugu, Kannada and Malayalam the most preferred languages
in the respective centres
Non Hindi &
English
The mobile rst nature of online video in India makes it a truly ‘Anytime, Anywhere’ phenomenon
~87%
Of the respondents consumed
10 AM –
6 PM
29% of the respondents
content on their mobile watched online video even
phones. Although small, an during ofce hours, outlining
interesting 5% of respondents the ‘Anytime, Anywhere’
consumed content on their nature of online video
Internet-enabled smart TVs,
which could be an important
growth avenue in the future
Telecom platforms
have emerged as a key
distribution medium for
OTT platforms, with a
reasonable number of
respondents accessing
content through the telco
apps on their phones
3 out of 10
respondents consume
OTT content through
telco platforms, outlining
the importance of this
distribution medium
Viewers are increasingly
discerning in terms of the
quality of content, when
it comes to choosing or
uninstalling OTT platforms
87%
of the respondents install a
app considering the quality
of content. Freshness and
uniqueness of content
the key determining
factors for installation and
uninstallation of apps, as well
as respondents subscribing
to platforms.
OTT video could usher in
cord cutting sooner than
expected
~38%
Of the respondents could
consider cord cutting in the
future as they responded to
their entertainment needs
being fully met online
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Unravelling the digital video consumer 12
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13
The ‘mass’ication of online video platforms in
Online
video in
India – who
is watching,
how much
are they
watching?
India – close to 70 minutes being spent per day by
respondents
The online video market in India has evolved into
a mainstream entertainment destination for Indian
masses. The survey revealed that the respondents
spent approximately 70 minutes per day or 8.2 hours
per week on online video platforms on an average,
with a viewing frequency of 12.5 times per week and
a session duration of nearly 40 minutes per session.
min /day
~70
Time spent on OTT
platforms
per week
12.5
Viewing frequency
(times)
minutes
~40
Single session
duration
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Number of platforms
used/respondent
Number of platforms
subscribed/paying
respondent
2.37 1.05
It was also observed that number of OTT platforms used
per respondent was 2.37, whereas number of platforms
subscribed per paying respondent was 1.05 on an average.
Unravelling the digital video consumer 14
Homogeneous consumption patterns across heterogeneous consumer groups
Viewing frequency, session durations and app usage, when analysed across city tier, age groups and income
brackets, revealed the following:-
Audiences from all parts of the country are experiencing the online video phenomenon
Metro Tier 1 Tier 2
2.45
9.8 7.5 7.9
14.4 10.8 12.5
40.6 41.4 38.0
2.3 2.3
Time spent
(hours/week)
1.06
1.04 1.04
Viewing
frequency
Metro Tier 1 Tier 2
Session
No. of platforms used/user
duration
No. of platforms subscribed/paying user
Respondents from Tier 2 cities
were close to the overall average
when it came to viewing frequency
and session duration, pointing
to the deep penetration of online
video in these cities
Respondents from Tier 2 cities showed a
higher penchant for online video apps and
seemingly don’t mind paying for these
apps, outlining the democratisation of
this medium across the masses
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Digital video is no longer restricted to young audiences
15
15-24 25-36 37-50 50+
2.5
8.2 8.3 8.2 8.1
12.5 12.6 12.4 11.6
39.5 39.6 39.6 41.6
2.35
2.33
Time spent
(hours/week)
Viewing
frequency
Session
No. of platforms used/user
duration
No. of platforms subscribed/paying user
2
1.03
1.05 1.05
1.08
15-24 25-36 37-50 50+
With age groups of 37+ years also
spending a considerable amount of
time on online video, it’s appeal cuts
across age groups, implying that
online video is no longer a millennial
phenomenon
Platforms used/user declines with
increase in age highlighting the sampling
behaviour of younger audiences whereas
higher age groups display an increasing
propensity to subscribe
Choices across income groups are consistent
<3 lakhs 3-5 lakhs 5-10 lakhs >10 lakhs
2.52
Time spent
(hours/week)
Viewing
frequency
Session
8.2 8.3 8.2 8.1
11.8 12.9 12.6 13.0
37.7 41.9 39.0 41.7
No. of platforms used/user
duration
No. of platforms subscribed/paying user
2.36
2.31
2.26
0.99
1.07
1.01
1.15
<3 lakhs 3-5 lakhs 5-10 lakhs >10 lakhs
The presence of a large volume of apps
which provide free/freemium content
to users has meant that online video
isn’t restricted to the urban, upwardly
mobile audience. The same was
illustrated by minimal differences in
viewing frequency and session times
across income groups
Respondents in the higher income groups
subscribe to the maximum number of
platforms owing to higher disposable
incomes, which also corroborates with
increasing subscription propensity with
age
The online video consumption behaviour amongst the female respondents also showed encouraging signs. With
the gap in viewing frequency and session durations between male and female respondents at only around 10
per cent, the same outlines the ubiquitous reach of the online video platforms across both the genders. This
reach across genders is further reinforced by the average number of OTT platforms used by male and female
respondents, which were found to be nearly equal.
© 2019 KPMG, an Indian Registered Partnership and a member rm of the KPMG network of independent member rms afliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
37.3
40.9
7.3
8.7
Unravelling the digital video consumer 16
2.38
11.8
Session
duration
Time spent
(hours/week)
Avg. OTT
platform usage
2.37
12.8
Viewing
frequency
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17
Indians love their movies
Traditional content categories have dominated
consumption preferences on online video platforms.
The results from our survey revealed that movies
and related content (such as music videos) were
What are
Indians
watching
on online
video
platforms?
preferred by nearly half of the respondents, with
catch up TV content following suit with 22 per cent
of respondents preferring the same. Sports was
signicant at 16 per cent in terms of preferences as
well.
While platforms have been investing heavily in
creation of original content designed for digital
audiences, the survey revealed that library content
still dictates current consumption trends. This could
potentially be due to the limited supply of originals
(less than 1 per cent of overall content available
on most broadcaster driven and global platforms)
in contrast to library content that forms a bulk of
the content available on online video platforms. For
example, Eros Now has one of the biggest libraries
of movies (more than 12,000 movie titles) and Zee5
has great depth of TV content (more than 50,000
hours). Considering this skew in availability of original
content, user preference at 10 per cent for such
online originals was observed to be signicantly high.
Most preferred content category
30%
22%
20%
16%
10%
2%
Full length TV Music Sports Online Any other
films/ content videos original category
Movies available series
as catch-up
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Preference for originals
was consistently
between 10-11% across
all age groups. This
highlights the original
content is no longer a
millennial phenomenon
and has found
acceptance across all
age groups.
Originals
Music videos are most
popular among the
younger generation
(15-24 age group)
Music videos
The preference for
TV content was the
lowest in 18-24 year
age group, and was
found to be increasing
progressively with
increase in age groups
TV content
Unravelling the digital video consumer 18
Movie viewing experience is now more exibile
The duration of most content categories except
movies tends to be short enough for consuming it
over a single session. OTT platforms, by providing
anytime and anywhere access, have empowered
exible viewing for longer forms of content like
movies.
Our survey results revealed that users have started to
use their discretion more often when viewing movies
on OTT platforms. More than half (about 58 per cent)
the respondents who preferred movies (among top
3 content categories preferred) watched it more than
one session. This percentage was signicantly higher
for respondents in metros (~85 per cent) as compared
to those in Tier1/2 cities, potentially highlight the
relatively lesser disposable time on hand in metros.
There was a signicant preferrence for exibility in the
East with nearly 4 out of 5 users preferring multiple
sessions compared to the South where majority
(~60 per cent) preferred to watch movies in a single
session.
Long form content gaining traction, short
form content vital to capture attention span of
millennials
The average session durations captured through our
survey gave insights into the trends around long form
and short form content consumption across online
video platforms. While nearly 40-45 per cent of the
respondents preferred the 20-45 minute session
duration, the >20 minute (short form) and <45 minute
(long form) session durations were also signicant.
The age-wise analysis pointed to the fact that shorter
session durations were more popular with the
younger audiences, potentially due to lower attention
spans. Online video platforms need to be
cognizant
of these trends, and adopt content strategies which
have a healthy mix of both short form and long form
content to cater to various audience niches.
78%
Respondents
with movie
in the top
3 content
preferences
58%
Respondents
completing
a movie in
multiple
sessions
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19
In order to cater to these multi-format needs, OTT less than 10 minutes. Eros Now plans to launch over
platforms like Eros Now and SonyLiv have started 50 short form original series, known as ‘Eros Now
to create original content with episode durations of Quickies’.
Average session durations
47%
45%
44%
41%
33%
31%
30%
29%
29%
24%
24%
23%
15-24 25-36 37-50 50+
Less than 20 minutes 20 to 45 minutes More than 45 minutes
Comedy, drama and action are the trending Survey results also revealed that viewers in metros
content genres had a higher penchant for action and horror compared
to the others. Age-wise analysis of genre preferences
When the survey respondents were asked about
also indicated that the proclivity for devotional and
their genre preferences, it was observed that comedy
drama genres was increasing with age.
dominated across age groups and geographies.
Genres of content watched (% of total respondents)
84%
62%
51%
44%
32%
28%
15%
2%
Comedy Drama Action Thriller Horror Devotional Adult Any other
category
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Unravelling the digital video consumer 20
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21
30% of the respondents prefer languages other
In which
languages
do Indians
prefer
online
video?
than Hindi and English
With the internet and smartphone penetration in India
reaching a critical mass, access to OTT platforms
has become widespread across different cultures,
regions, and languages. In order to cater to this wide
audience base, platforms have been increasingly
providing personalised content and experiences. One
of the important aspects of this personalisation where
the platforms have been investing heavily, is content
creation in different Indian languages.
Our survey revealed that while Hindi dominated
the online video consumption language preference
with 64 per cent of the respondents alluding to the
same, nearly 30 per cent of the overall respondents
preferred consuming online video content in
vernacular/regional languages. A signicant 20 per
cent of the preference was for South India based
languages, clearly outlining the importance of South
as an important market when it comes to content
creation/market expansion decisions.
The preference for English was at 6 per cent, lower
than the English speaking population in India, which is
close to 12-13 per cent.
Language preferrence for online video
consumption
3%
3%
4%
5%
4%
6%
11%
64%
Hindi Tamil English Kannada
Telugu Bengali Marathi Others
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Unravelling the digital video consumer 22
One of reasons for the dominant preference of Hindi Regional language speakers have a clear afnity
could be the supply of content, especially original for content in their spoken tongue
content on online video platforms in the Hindi
language. Currently, global platforms like Netix and
Amazon Prime Video have a large library of English
originals, comparatively smaller library of Hindi
content and a minimal presence in terms of regional
content. However, India-specic platforms like Eros
Now, Zee5, ALT Balaji etc. have a specic focus on
Indian languages (Hindi and regional original content).
Although on most of these platforms, dubbed content
in regional languages is available, but the difference in
content hours of native regional and Hindi originals is
higher than 10X.
Platforms Originals (No. of hours)
Hindi Regional
Zee5
Amazon Prime
Video
Eros Now
Hotstar
Alt Balaji
Netix
Sony Liv
Source: KPMG Analysis for the period June 2018 to 14 June 2019
High Moderate-High
presence presence
Moderate Low
presence presence
While Hindi dominates at an overall level, interestingly
the survey revealed that respondents displayed
a strong penchant for content in the native,
spoken language. For example, 90 per cent of the
respondents speaking Tamil and Kannada language
preferred content in their spoken language. Content
preferences across other major language speakers
such as Gujarati, Telugu, Bengali and Marathi were
also found to be skewed towards their native
language. This points to a large opportunity, waiting to
be explored, for the online video players in terms of
content creation and micro-targeting the demand that
emanates from across the country.
% of language speakers prefering
content in native language*
Gujarati
70%
Telugu
69%
Tamil
90%
Marathi
64%
Malayalam
63%
Kannada
91%
Bengali
77%
*Users whose top two language preferences for watching
content includes their spoken language
South Indian market is ercely loyal to their native
language; Hindi is highly relevant in East and West
India
When the language preferences were analysed across
different regions, it was observed that the Southern
region had the strongest penchant for content in
regional languages. In other regions, Hindi was largely
preferred by respondents with regional languages
gaining minority share. In West and East India, while
the native language preference was important, Hindi
was highly relevant. And as one would expect, the
preference for Hindi was dominant in the northern
regions.
In three out of the four cities surveyed in South India,
Hindi could not make it to the top two languages
preferred by the respondents, signifying the
strong demand for original content in South Indian
languages. In fact, English got the second highest
share of the most preferred language in these cities.
In Hyderabad, this share was observed to be as high
as 22 per cent probably due to the cosmopolitan
nature of the working population.
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Respondents most preferred language to watch online content
23
North South
English
Marwari
Punjabi English
English
English
Punjabi
2%
1%
Hindi
9%
3%
4%
22%
9%
Hindi
97%
19%
Hindi
99%
Tamil
95%
Telugu
71%
Hindi
96%
Tamil
88%
Kannada
64%
Hindi
80%
Delhi Jaipur Ludhiana Panipat
Bengaluru Coimbatore Hyderabad Madurai
East West
English
Oriya
Bengali
Bengali
4%
13%
3%
Gujarati
Marathi
44%
Marathi
Hindi
95%
11%
21%
Marathi
Hindi
86%
12%
Hindi
96%
18%
Hindi
85%
Hindi
63%
Hindi
77%
Hindi
75%
Hindi
50%
Kolkata Patna BhubneshwarJamshedpur
Mumbai Ahmedabad Nagpur Pune
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Unravelling the digital video consumer 24
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25
Mobile phones – the primary screens?
The proliferation of smartphones and smart feature
phones in the country, coupled with affordable
data have resulted in mobile phones becoming the
dominant medium of online video consumption in
Where
and when
are the
consumers
watching
online
video?
India with wide-spread freedom of access.
Our survey highlighted what has been universally
known, that 87 per cent of the daily time spent on
online video by the respondents, is through the
mobile phone. Interestingly, the second highest
access device was the smart television, at 5 per
cent of the online time spent, which outlines the
affordability-led growth that smart TVs have been able
to achieve in the market. In fact, the contribution of
smart TVs doubles to 10 per cent for metro users,
which bodes well for the democratisation of access
of online video as well as potential for consumption of
long form content on the larger screens.
As per the Counterpoint research on major OTT
platforms in 2019, 27 per cent of Eros Now users
watch content on Smart Televisions, which was the
highest amongst all leading platforms. This viewership
on Smart TVs points to the potential of movie
consumption of large screens, with movies one of the
major categories that are tailored to SVOD premium
subscription businesses as well
16
.
% of daily online video watching time
(Overall)
Mobile phone
Internet enabled
5
Television
Tablet
1
Laptop
4
Personal
2
computer
Other
1
16. Counterpoint Research’s India OTT Video Content Market Consumer Survey, 2019
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87
Anytime anywhere access driving adoption of
video platforms
While the ubiquity of mobile devices, access to
affordable mobile data has made it easy for users to
access online video content at any place, and the user
experience is amplied with video platforms adopting
varied techniques like exible video resolutions and
ofine viewing capabilities to provide a seamless
experience to the user even when network speeds
are uctuating. The importance of this ease of
access was evident in our survey with nearly 18 per
cent of the respondents who paid for OTT doing so
in order to get access to video at any place. This
factor has greater signicance in metro cities, owing
to longer commute times, with nearly 30 per cent
who subscribe paying to access videos at any place:
making it one of the top three reasons for subscribing
to OTT in metros.
18%
Respondents
preferring ease
of access for
subscription
Unravelling the digital video consumer 26
Online videos are consumed throughout the day –
even during ofce hours!
The exibility of watching online video on
smartphones has resulted in a relatively distributed
content consumption pattern throughout the day.
This was corroborated in our survey results when
the time bands for online video consumption were
analysed across respondents in different professions.
It was observed that at least 12 per cent of the
respondents in any profession watched online videos
during morning commute time (7 a.m. – 10 a.m.).
This number more than doubled for the evening
commute time (6 p.m. – 8 p.m.) with more than 29
per cent respondents preferring this window. Contrary
to common conceptions, it was also found that a
signicant chunk of users (more than 28 per cent
of the respondents) watch video content during the
traditional work hours (10 a.m. – 6 p.m.). With video
consumption spreading out evenly across multiple
time slots, online video platforms could look to
maximise consumer engagement by having a content
strategy that caters to consumer needs as per the
time of the day.
Preferred time slots for online video consumption (across professions)
53%
48%
44%
42%
41%
34%
33%
30%
29%
29%
29%
28%
25%
15%
15%
15%
14%
14%
12%
11%
Unemployed Self Employed – Small Self Employed – Large Public/Private Sector
Medium Business Business
7 AM - 10 AM 10 AM - 6 PM 6 PM - 8 PM 8 PM - 11 PM 11 PM - 7 AM
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27
TV or OTT – prime time is here to stay
% of respondents across time periods (Overall)
16%
21%
33%
31%
31%
29%
47%
41%
13%
14%
Weekday Weekend
7 AM - 10 AM 10 AM - 6 PM 6 PM - 8 PM 8 PM - 11 PM 11 PM - 7 AM
In an appointment-viewing driven medium like TV,
popular shows are aired in the evening window from
8 p.m. to 11 p.m. and compete for viewership among
each other. While the emergence of OTT platforms
has ensured consumers can watch their favourite
shows/content in a non-linear fashion, the most
desired time slot for entertainment (online video)
remains the same. This was evident in our survey
results, which indicated that more than 40 per cent
respondents preferred the 8 p.m. - 11 p.m. time band
for online video consumption on both weekdays and
weekends.
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Unravelling the digital video consumer 28
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29
3 out of 10 respondents viewed online video
content on telco platforms
Since late 2016, when the impetus on 4G services
picked up steam, content has become increasingly
important for telcos across the board. In a bid to keep
How is
online video
content
being
distributed?
users locked in to their ecosystem, telcos have been
partnering with multiple online video platforms (both
AVOD and SVOD), with diverse content offerings
ranging from Live TV to sports to digital originals. For
online video platforms as well, telcos act as important
distribution outlets to ensure their content reaches a
critical mass of users, with minimal spends on own
customer acquisition costs.
The importance of telcos as a distribution medium
was evident in our survey, with 3 out of 10 users
watching online video content on telco platforms,
either solely or in conjunction with standalone online
video platforms. Amongst the telco platforms, Jio TV
saw the highest usage amongst respondents with
Airtel TV a distant second.
10
3
Online video watchers
Those who
prefer telco
platform
The primary/determining factor for usage of telco
apps was found to be the availability of ‘Live
Television’ on these apps, with 56 per cent of Jio TV
users and 37 per cent of Airtel TV users, amongst the
respondents, alluding to the same. The importance
of original content was also evident with close to 32
per cent of respondents for both Jio TV and Airtel TV
mentioning it as one of the factors for them choosing
the said platforms.
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Telco platforms are key distribution partners for
some OTT platforms
The availability of diverse content offerings on telco
platforms has meant that users can view content
behind the paywall, through these telco apps without
having to subscribe for it separately. Our survey
results revealed that of the respondents who view
SVOD content but don’t pay for it, nearly 43 per cent
have access to the said content through telco apps.
Although the telcos are recovering some form of
content cost from users, through the bundled voice,
data and content plans that are on offer in the market.
SVOD consumers who don’t subscribe to
paid OTT
Watch only
31%
free content
Free subscription
43%
through telco
Shared credentials
26%
Unravelling the digital video consumer 30
While nearly every OTT platform in India has
capitalised on the reach of the telco distribution to
maximise their audience, there are some platforms
who have established a signicant viewership
base on the telco platform through the distribution
partnerships. Eros Now and Zee5 are SVOD platforms
which have amongst the largest width of telco
partnerships in the Indian OTT ecosystem.
Telco billing may assist growth in direct
subscription
Among the 34 per cent of respondents in metros
who don’t subscribe to SVOD content, a majority
of them don’t feel the need for subscription as they
feel enough content is available for free or they
simply don’t want to spend money on online video.
Interestingly, nearly one out of 10 users said that they
would subscribe to SVOD platforms if their online
video subscription was bundled with their telco bill.
Recent efforts by telcos like Airtel and Vodafone
Idea, having preview offers of SVOD platforms as a
part of their premium postpaid offerings, eventually
transitioning to a carrier billing-based subscription,
reinforce the above ndings.
Reasons of AVOD users in metros for not subscribing
Do not want to spent on the subscription
42%
Will subscriber it if it is bundled with my phone bill
11%
I don’t know how to pay money online
5%
Exclusive content will be available through
piracy in the future
7%
Watch online video only for catch up TV
27%
Exclusive content of one platform is
available for free on other platform
10%
Quality of exclusive online video content
is not too great
14%
Enough content available for free
47%
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The key component for the success of an online video
platform is the availability of content that resonates
well with the audience. Both the quality and quantity
of the content is extremely important to attract and
retain customers on any online video platform. Our
survey reafrmed the critical nature of content, with
it being the primary factor for nearly 87 per cent of
the respondents, when it came to installing an online
video app.
Quality and exclusivity of content amongst the
top reasons for SVOD subscriptions
Expectedly, content played the most crucial role
when it came to respondents actually subscribing
to a paid online video platform. ‘Content quality’ and
‘content exclusivity on the platform’ were amongst
the top three reasons for respondents paying money
for an online video platform. The same outlines the
importance that exclusive, high quality, tent-pole
content has in terms of attracting users to platforms.
31
Content
is the
proverbial
87%
Respondents install
app for new content
‘king’
Reasons for subscribing to OTT platform
(% of total respondents)
39%
36%
30%
18%
15%
14%
7% 7%
Better Better Exclusive Ease Affordable, Replacement Ease of Others
content viewing content of don’t mind for TV payment
qua lity experience access spending through
Telco
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A superior viewing experience and alternative to
TV also important reasons for SVOD subscriptions
A superior viewing experience on paid online
video platforms was observed as the second
most important reason for subscription. The
fact that most SVOD platforms provide an ad-
free subscription experience could be one of the
important determinants for a superior experience.
The backend technology stack also plays an important
role in the user experience from customer journey,
predictive search functionality, minimum clicks to
access their favorite video, load and buffering time to
recommendation engines.
Further, a relatively small, but not insignificant ~14
per cent of the respondents considered subscription
Better viewing experience
Unravelling the digital video consumer 32
to online video platforms as an alternative to TV
subscription. This is an important aspect which
points to a future threat of cord cutting/shaving in the
country.
As per the Counterpoint research on major OTT
platforms in 2019, 9% of Eros Now users spent more
than 21 hours/week on watching online content,
which was the highest amongst all major platforms.
One of the factors aiding this engagement could be
the quality of the Eros Now product and customer
experience across device forms
17
.
The above reasons for OTT subscription, when
analysed across various aspects revealed the
following:-
While quality of content remains the most
important factor for respondents in Tier 1/2
cities, viewing experience had the highest
importance amongst respondents in metros
36%
56%
All respondents
Respondents
from metros
Affordable, don’t mind spending
The affordability factor for subscribing
to online video content was found to be
progressively increasing with age. The
affordability can be deduced to be a function
of increasing disposable income with
increasing age
12%
15%
18%
24%
15-24
25-36
37-50
50+
Age group
Better viewing experience
A superior ad-free viewing experience was
found to be the most important factor for
respondents with paid subscriptions, rather
than content. The same again outlines the
importance of the overall experience that a
platform provides to a paid user.
36%
43%
All respondents
SVOD
respondents
1 7. Counterpoint Research’s India OTT Video Content Market Consumer Survey, 2019
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33
Affordable, don’t mind spending
Affordability was found to be a relatively
lesser concern for respondents having
“Originals” as the preferred genre,
highlighting the importance of originals in
the content strategy of a platform
15%
21%
All respondents
Respondents
with originals as
preferred gene
Sports as a preferred genre
Factors around ‘Viewing experience’ and
‘Ease of access” were found to be more
prominent for respondents having Sports as
a preferred genre
36%
18%
42%
24%
Better
viewing
experience
Ease of
access
Respondents with sports as preferred genre
All respondents
Switching between online video platforms? could prompt users to switch platforms, making
Content rules again it pertinent for a platform to upgrade its library
with fresh content regularly to keep attracting and
Content was found to be among the most important
retaining users. Although, the second and the fourth
factors for switching between online video platforms
most important reasons were related to monetary
by respondents. The primary reason for switching
benets, however, given the predominance of content
platforms was ‘Favorite content on other platform at
freshness and quality, pricing does not seem to be
that particular time’, with ‘content freshness’ being
the primary factor in decision making when it comes
the third most important factor. This signies the
to switching between platforms.
importance of hook-based/tent-pole content which
Reasons for switching to other platform (% of total respondents)
Other platform showing favourite
films/series at that moment
Free trial period got over but available
on new platform
Other platform launching fresh/new
content more often
24%
30%
39%
Found a cheaper/free alternative 18%
Try a newly launched video OTT app 14%
Free subscription to another platform through
telecom operator
12%
Other 17%
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Unravelling the digital video consumer 34
Importance of content quality Importance of free trials
AVOD
AVOD
32%
61%
respondents
respondents
SVOD
SVOD
65%
26%
respondents
respondents
All
All
63%
30%
respondents
respondents
The switching behaviour, when analyzed across SVOD More than one-third of users unsubscribe from a
and AVOD users, outlined that SVOD users gave platform due to lack of good content
more importance to ‘content quality and freshness’
When the reasons for unsubscribing from a platform
as compared to their AVOD counterparts. On the
were analysed, a majority of the respondents
other hand, ‘free trial period’ as a factor was seen to
chose ‘content quality’ as the primary factor again,
be higher in AVOD users, highlighting their sampling
reafrming the importance of compelling content as
behavior.
the primary driver for user retention.
Reasons for unsubscribing from OTT platform (% of total respondents)
Lack of good
content
Free trial period
got over
Found a better
alternative
No updation in
fresh content
Expensive
37% 28%
21%
16%
26%
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35
SVOD subscribers are deeply engaged
Understanding
the Indian
SVOD
subscriber
with online video apps
As consumption of video content continues
to gain traction, subscriptions on online video
platforms have also started to pick up over
the last 12 to 18 months. As per our survey,
a substantial 44 per cent of the respondents
were paying for online video content.
That these are still early days for the online
video market was evident in the survey
results, with SVOD subscribers using
about 2.7 online video apps on an average
but paying only for one of those apps in a
universe comprising more than 30 players,
thereby leaving a lot of room for growth in
terms of subscription revenues. Compared
to the SVOD subscribers, AVOD users were
found to use only 2.2 online video apps
on an average, which suggests that SVOD
subscribers are more deeply engaged with
video platforms and tend to explore both free
and paid platforms for their entertainment
needs.
Subscription translates to higher video
consumption
SVOD platforms, as per their value proposition
and target customers, have diverse content
offerings ranging from live sports, digital
movie premieres and original shows to
exclusives for their paying subscribers.
In order to keep their existing customers
engaged and attract new subscribers, SVOD
players in the country have been consistently
trying to add fresh and exclusive content on
their platforms over the past few months
with platform capabilities empowering offline
viewing (through downloads of premium
video content) as well as multi-screen
consumption.
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Frequency of online video consumption
(times per week)
AVOD
12
users
SVOD
13
subscribers
This focus on innovation through fresh content and
better user experience seems to be translating into
higher consumption for SVOD users as suggested by
the results from our survey.
Average session durations
46%
Average session duration (min)
Unravelling the digital video consumer 36
AVOD
36.9
users
SVOD
43.3
subscribers
While frequency of consumption for SVOD
subscribers was found to be only marginally higher
compared to AVOD users, more than 61 per cent
of the SVOD respondents surveyed watched video
content more than once a day.
29%
21%
42%
25%
37%
AVOD SVOD
Less than 20 minutes 20 to 45 minutes More than 45 minutes
In addition, session durations for SVOD subscribers
were found to be 43.3 minutes on an average, nearly
17 per cent more than that witnessed in AVOD
users, suggesting that SVOD subscribers may have a
penchant for long form content. This was corroborated
by survey results pointing out that nearly 37 per cent
of SVOD subscribers had average session duration
of more than 45 minutes compared to only 25 per
cent of AVOD users falling in the same consumption
bucket. These findings suggest that the consumer
mindset to maximise value for money coupled with
access to premium content (ad free or otherwise in
case of live sports) in a timely and non-linear fashion
are key reasons driving more frequent and higher
video consumption in paid subscribers.
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Preference for sports and non-linear viewing stands out among SVOD subscribers
37
While content category preferences among SVOD subscribers are similar to that of AVOD users, higher
inclination towards sports stands out among the former.
Content category preferences
32%
AVOD subs
30%
29%
SVOD subs
24%
All subs
22%
22%
22%
21%
20%
16%
15%
12%
11%
9%
10%
2%
1%
2%
TV content
Full length
Online original Music videos
Sports Any other
films/Movies
series
category
With movies remaining the most popular content
category across both SVOD and AVOD groups, 21
per cent of the SVOD subscribers surveyed preferred
sports content against just 12 per cent in the case
of AVOD users. Popular OTT platforms that have
digital rights to popular sports properties have tried
to exploit this penchant for sports and create suitable
monetisation strategies with the availability of live
sports placed at the heart of it.
To provide a seamless viewing experience, many
online platforms allow users to watch content over
multiple sessions without needing to remember
where the earlier session ended. This capability
coupled with the ability to watch offline (downloading
of premium content is permitted on most paid
subscriptions) has changed the way SVOD users
watch movies. Our survey results revealed that a
majority of SVOD subscribers, who prefer watching
movies, consume it over multiple sessions with two
sessions being the most common choice.
Movie watching pattern among SVOD
subs prefering movies
37% 39%
24%
One session Two session More than
two sessions
77 per cent of SVOD subscribers consume content
through direct subscriptions
While telcos have played a key role in empowering
online video platforms with reach to a wide user base,
our survey results pointed out that direct usage of the
specific online video platform was preferred by SVOD
respondents as compared to AVOD ones. As SVOD
platforms that are also present on telco apps tend
to reserve select content offerings and experience-
related features (like ability to download, etc.) to their
own app, SVOD users who can access similar/same
content on both the telco and OTT platform app are
likely to prefer direct consumption.
Content consumption preference
77%
65%
35%
23%
70%
30%
Direct Telco
AVOD subs SVOD subs All subs
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Unravelling the digital video consumer 38
Ad free viewing and cash payments are important for SVOD users
Originals, besides becoming a buzz word in the video content industry, have attracted new audiences with
their fresh and, at times, uninhibited appeal to story-telling.
Reasons of SVOD subscribers for paying
Better viewing experience with no advertisements
43%
Better content quality on paid platform
37%
Exclusive content on paid online video platform
32%
Easy to get video access in any place
19%
Online video platform are affordable
16%
See online video platform as a replacement for TV
14%
Others
8%
Ease of payment through Telco 7%
However, factors like an ‘ad free viewing experience’
and ‘content quality’ are extremely critical when
it comes to offerings for paying subscribers. The
importance of these was highlighted in the survey
results as the top drivers of subscription were
observed to be an ‘ad free viewing experience’ and
‘better content quality on paid platforms’, chosen
by nearly 43 per cent and 37 per cent of the SVOD
respondents, respectively. This trend in the Indian
video market, which is still to mature in terms of
monetisation, appears to hint that video platforms
getting their basics right are likely to garner a large
share of the subscription market.
Nineteen per cent of the SVOD respondents
subscribe through cash
Most online video platforms that have a subscription
offering in India permit payments only through the
online medium. Among the notable exceptions to this
trend are Hotstar and Hoichoi with their CoD (Cash
on Delivery) and recharge card model respectively
.While video platforms across the board have tapped
into partnerships, especially with telcos, partnerships
enabling cash payments are conspicuous by their
absence.
In contrast to expectations, this doesn’t seem to
have stopped people from subscribing through
cash payments with nearly 19 per cent of the SVOD
respondents surveyed, paying for their online video
services through cash. Adoption of an inclusive
subscription strategy that enables cash payments and
addresses leakages happening through middlemen
acting on their own to exploit the gap in payment
options may further propel subscription growth for
SVOD platforms operating in India.
Consumer pricing of major SVOD platforms
Subscription plans of key OTT players in India
Player
Monthly
Plan(INR)
Yearly
Plan(INR)
Netix 500 NA
Netix (Mobile
only)
199 NA
Amazon Prime
Video
129 999
Hotstar VIP NA 365
Hotstar 299 999
Zee5 99 999
Sony LIV 99 499
Eros Now 49 470
Alt Balaji 34* 300
Hoichoi NA 499
Viu 50^ 599
Note: *Minimum three months plan, ^Minimum two months plan
Given the fact that there is fast emerging base of
mass consumers with access to digital infrastructure
who are increasingly consuming content online,
OTT platforms which appeal to a wide set of digital
mainstream consumers with content in their
languages, are likely to see traction in terms of
subscription businesses going ahead. Further, with
the price sensitive Indian consumer already habituated
to low subscription prices with the monthly Cable and
Satellite (C&S) ARPUs ranging between INR 220-250,
the sweet spot for OTT subscription could be in the
range of INR 40-100, given the increasing propensity
of consumer to access content on more than one
platform, as outlined earlier in the survey.
© 2019 KPMG, an Indian Registered Partnership and a member rm of the KPMG network of independent member rms afliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
39
Entertainment needs of more than 80%
respondents are fully met online!
The masses are beginning to recognise that
online video can be a primary means to meet their
entertainment needs. More than 80 per cent of the
Is Cord
cutting
imminent?
respondents across different city tiers and income
brackets were able to fulfill their entertainment needs
completely through online videos. The ubiquitous
access of online videos along with diversity of content
available could be the primary drivers behind such
assertions made by the respondents.
% whose entertainment needs are fully
met online
Tier 2 80%
Tier 1
88%
Metros 88%
% whose entertainment needs are fully
met online
10 lakhs+
86%
5-10 lakhs 83%
3-5 lakhs 84%
Upto 3 lakhs 86%
© 2019 KPMG, an Indian Registered Partnership and a member rm of the KPMG network of independent member rms afliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
People are starting to seriously consider cord
cutting as an option
Of the respondents who fulfill their entertainment
needs completely through online videos, nearly 38
per cent of them mentioned about being open to
cord cutting. While the intent to cut the cord may not
actually translate into doing so eventually, more than a
third of the respondents willing to actively consider it
outlines the rapid growth that digital video has made,
and the threat that traditional video distribution could
face in the long run.
The data set for potential cord cutters, when analysed across city tiers, income brackets and age groups,
revealed the following:
% considering cord cutting % considering cord cutting
Respondents
considering cord
cutting with
entertainment
needs completely
met online
38%
Unravelling the digital video consumer 40
33%
29%
33% Tier 2
Tier 1
Metros
32% <3 lakhs
32%
3-5 lakhs
30%
5-10 lakhs
38%
>10 lakhs
Respondents in Tier 1/2 cities were observed
to have a somewhat higher propensity to cut
the cord compared to those in metros
While respondents in highest income bracket
were found to have higher inclination towards
cord cutting, nearly one-third of respondents
earning <INR 5 lakh p.a. were also considering
cutting the cord
% considering cord cutting
29% 15-24 Years
34%
25-36 Years
33%
37-50 Years
31%
>50 Years
Nearly a third of the respondents in 25-50
years age group could be cutting the cord in
the immediate future
The ‘quality of content’ available on online video
platforms and the freedom of ‘anytime, anywhere
viewing’ were the primary drivers of the intent behind
cord cutting by a majority of the respondents, at
39 per cent and 24 per cent respectively. The same
outlines the impact that a fresh approach to content
and storytelling, can make on the viewers across the
board.
© 2019 KPMG, an Indian Registered Partnership and a member rm of the KPMG network of independent member rms afliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
41
Most preferred reason for cord cutting (% of total respondents)
39%
24%
21%
9%
7%
Online video Freedom of Online video Can watch all TV Any Other
platforms viewing anytime, platforms are more shows and movies
have better anywhere on value for money online through my TV
quality content online video and reasonably and broadband
platform priced connection
The content category preferences, when analysed probably not digital natives, but consumers who could
for the potential cord cutters and non-cord cutters, look to online video for the ease it provides, while
revealed that for the cord cutters, movies and still remaining true to their traditional video choices.
television content (catch up) were of primary However, the lower preference of online originals
importance, with the preference of originals being amongst cord cutters could also be a function of
surprisingly lower than the non-cord cutters. This the relatively low supply that originals suffer from
outlines the fact that the potential cord cutters are currently in the market.
Most preferred category (Cord cutters vs. non-cord cutters)
34%
27%
15%
14%
8%
3%
28%
19%
23%
18%
11%
1%
Cord cutters Non-cord cutters
Full length films/Movies TV content available as catch-up
Music videos Sports
Online original series like Permanent Roommates, Any other category
Sacred Games etc.
© 2019 KPMG, an Indian Registered Partnership and a member rm of the KPMG network of independent member rms afliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Unravelling the digital video consumer 42
© 2019 KPMG, an Indian Registered Partnership and a member rm of the KPMG network of independent member rms afliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
43
Acknowledgements
Business team:
• Ankit Setia
• Arshia Mittal
• Maulik Shah
• Neha Pevekar
• Vibhor Gauba
Design and Compliance team:
• Rahil Uppal
• Rasesh Gajjar
• Sameer Hattangadi
Eros Now team:
• Akhil Yerawar
• Rajkunwar Patankar
• Upkar Singh Khubbar
© 2019 KPMG, an Indian Registered Partnership and a member rm of the KPMG network of independent member rms afliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
© 2019 KPMG, an Indian Registered Partnership and a member rm of the KPMG network of independent member rms afliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG in India contacts: Eros Now contacts:
Nilaya Varma
Partner and Leader
Markets Enablement
T: +91 124 669 1000
E: nila[email protected]
Satya Easwaran
Partner and Head
Technology, Media and Telecom
T: +91 22 6134 9200
E: seaswaran@kpmg.com
Girish Menon
Partner and Head
Media and Entertainment
T: +91 22 6134 9200
home.kpmg/in
Rishika Lulla Singh
Chief Executive Ofcer
T: +91 22 6602 1656
E: rishika.lulla@erosnow.com
Ali Hussein
Chief Operating Ofcer
T: +91 22 6602 1656
E: ali.hussein@erosnow.com
www.erosnow.com
Creative First contacts:
Ranjan Singh
Creative First
T: +91 9867673342
E: ranjan@taxilms.in
Follow us on:
home.kpmg/in/socialmedia
Use of companies’ names in the report is only to exemplify the trends in the industry. We maintain our independence from such entities and no bias is intended towards any of them
in the report.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide
accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one
should act on such information without appropriate professional advice after a thorough examination of the particular situation.
© 2019 KPMG, an Indian Registered Partnership and a member rm of the KPMG network of independent member rms afliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
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