India's internet user base crossed 820 million last year. (Image: rawpixel)A seismic shift in digital entertainment consumption has taken place in India over the past few years. According to the ‘Internet in India Report 2023’, a staggering 707 million Internet users are actively engaged in over-the-top (OTT) audio and video services.
The report, prepared jointly by the Internet and Mobile Association of India (IAMAI) and data analytics firm Kantar, draws upon the extensive ICUBE 2023 survey of over 90,000 households across all Indian states.
While OTT has witnessed meteoric rise, the appetite for digital entertainment is further stimulated by non-traditional streaming devices. Per the report, the smart devices category, encompassing smart TVs, speakers, streaming sticks and players, has grown by a remarkable 58% between 2021 and 2023. Significantly, 208 million individuals now solely use these Internet-connected devices to watch video content, overtaking the 181 million still reliant on conventional TVs.
(Image: IAMAI)
After OTT, communications and social media rank as the second and third most popular online activities engaged in by Indians. The report defines OTT as streaming of either subscribed or user-generated audio/video content. Communications covers the myriad forms of online interaction including messaging, email, video conferencing etc.
Notably, rural India has emerged as the driving force behind these use cases, contributing over 50% of users. This underscores the critical role of our villages in shaping Internet consumption patterns nationwide.
While India’s Internet user base crossed 820 million in 2023, growth rates have slowed post-pandemic, especially in urban areas. However, the addition of over 50 million new users is still a remarkable achievement given the already massive scale. Targeting regional language users, who account for 57% of the total, could potentially revive growth.
Encouragingly, states with the lowest Internet penetration like Jharkhand and Bihar are clocking above-average expansion, indicating headroom for continued spread.