The Connected TV (CTV) market in India is undergoing a period of explosive growth. It’s being fueled by several factors like widespread internet availability, the rise of affordable smart TVs, and the increasing popularity of over-the-top (OTT) streaming services.
So, what is Connected TV (CTV)?
Connected TV (CTV) is basically any television that can connect to the internet and stream online video content. It’s your regular TV set but supercharged with internet capabilities. This means you can do a whole lot more than just watch cable!
CTV is transforming the way we watch television. It offers more freedom, flexibility, and control over the entertainment experience. In short, it’s the future of TV, and it’s happening now!
Current State of the CTV Industry in India
India’s CTV market is dynamic and rapidly evolving. The adoption is increasing across diverse demographics and regions. Some of the key factors contributing to this growth are:
- Increased Internet Penetration: India has over 700 million Internet users, creating a vast potential audience for CTV content and advertising.
- Proliferation of Smart TVs: The number of Indian households with smart TVs is increasing like never before. Over 48 million households own connected TVs in India. In 2023 alone, almost 4.5 million smart TVs were shipped to India.
- Popularity of OTT Platforms: The popularity of OTT streaming services like Disney+ Hotstar and Amazon Prime Video has fueled Indian CTV adoption.
- Affordable Smart TVs: Low-priced smart TVs from brands like Xiaomi and Realme have made CTVs more accessible to consumers.
- Changing Viewing Habits: Indian consumers are shifting away from traditional cable and satellite TV. They are opting for the flexibility and diverse content offered by CTV. This trend is reflected in the increasing number of households embracing cord-cutting and cord-shaving.
Key Market Data:
- TV households in India have reached 217 million, growing at a CAGR of 1.1% from 2020-2023.
- 65% of Indian Internet users watch ad-supported video content.
- Nearly 75% of Indian internet users have watched one or more pay TV services in the last month.
- 64% of Indians have watched a service with addressable TV capabilities within the last month.
- 9.8% of total TV advertising revenue went towards Addressable TV services in 2023.
- CTV ad expenditure in India accounted for $86 million in 2023.
- The Indian TV advertising market is projected to grow at over 11% CAGR over the next 5 years.
Projected Growth of the CTV Industry in India (2025 and Beyond)
The CTV market in India is going to see more continued growth in the coming years. Several studies and projections indicate:
- CTV ad spend in India is expected to increase fivefold by 2027.
- CTV ad revenue in India is projected to reach an impressive USD 395 million by 2027.
- CTV ad revenue will see about 17.6% increase in 2025.
- CTV will account for 24.9% of TV advertising revenue by 2029.
- India’s OTT market is estimated to be worth US$5,584 million by 2028.
- India’s OTT market is growing at a CAGR of 14.32%, outpacing the global growth rate of 8.4%.
- CTV households are expected to reach 80 million by the end of 2025.
- 5G adoption in India is projected to reach 65% of all mobile subscriptions by 2029, with 840 million users. It is going to further enhance the CTV advertising landscape by enabling more immersive and high-quality video and audio ad experiences.
These projections highlight the significant potential of the CTV market in India. A substantial growth is expected in both user base and ad revenue in the industry.
Major Players in the CTV Industry in India
With the industry growing at a fast pace, the CTV landscape in India is competitive. Both international and domestic players are vying for the market share. Some of the key players are:
- Hotstar: It’s a dominant player offering a mix of domestic and international content, including live sports, with both subscription and advertising-based models.
- Reliance: It’s the largest of all. It will most probably be merging Hotstar, however speculation. Previously it acquired Viacom18 and merged Disney.
- Amazon Prime Video: It’s a major player with a vast library of movies and TV shows, including original content, with both subscription and advertising-based models.
- Netflix: A global streaming giant with a growing presence in India, offering a diverse range of international content.
- Zee5: It’s a platform with a strong focus on regional content and original programming.
- SonyLIV: It’s a popular platform offering a mix of entertainment, sports, and original content.
- Airtel Digital TV: It’s a leading TV subscription brand in India.
Global Trends:
- TF1+ and M6+: In France, the largest TV broadcaster, TF1, and the second-largest broadcaster, M6, have launched free, ad-supported streaming platforms (TF1+ and M6+, respectively). It highlights a global trend of traditional broadcasters entering the CTV market.
In addition to these major players, several smaller OTT platforms and niche streaming services are also contributing to the growth of the CTV market in India.
Challenges and Opportunities in the CTV Industry in India
While the CTV market in India presents significant opportunities, some challenges need to be addressed too:
Challenges:
- Ad Fraud: Invalid traffic and fraudulent impressions are a concern in the CTV advertising space.
- Brand Safety: Ensuring ads appear in brand-safe environments is crucial, especially on platforms with user-generated content.
- Fragmentation: The diverse OTT ecosystem poses challenges for advertisers seeking a cohesive presence across platforms.
- Measurement: Accurate measurement of CTV ad performance remains a challenge.
- Content Gaps: Ensuring sufficient ad inventory to fill ad breaks without repetition is crucial.
- Regulatory Complexities: Stakeholders need to navigate the evolving regulatory landscape for digital media in India.
- Revenue Diversification: Media owners need to explore diverse revenue models to maximize monetization opportunities.
Opportunities:
- Targeted Advertising: CTV enables precise audience targeting based on demographics, interests, and viewing habits.
- Increased Engagement: CTV viewers are more engaged with content and advertising compared to traditional TV. A Kantar report indicates that 63% of consumers find CTV ads more personalized to their liking.
- Programmatic Advertising: Programmatic buying allows for automated and efficient ad placement.
- Interactive Advertising: Interactive ad formats can enhance engagement and drive conversions.
- Personalization: AI-powered personalization can deliver tailored ad experiences.
Key Considerations:
- Linear TV’s Value: While CTV offers advanced targeting and measurement capabilities, linear TV ads still hold value due to their seamless integration into the user experience and their broad reach.
- Strategic Partnerships: Challenges in the CTV industry, such as ad fraud and fragmentation, can be mitigated through strategic partnerships and the development of standardized tools.
By addressing the challenges and capitalizing on the opportunities, stakeholders in the industry can drive the continued growth and success of the CTV landscape in India.
