Online Video Consumption Likely To Increase By 45% In 2018 Due To Adoption Of 3G/4G Tech

In India, where traditionally, the highest video consumption has been happening on TV; however with the faster growing internet penetration and access to multimedia devices, online video traffic is witnessing a steep rise. More and more time is spent on consuming digital videos.

There were 31.9 million unique online video viewers in India in March 2011 who watched 1.86 billion videos; this number of online video viewers increased by 69% to 54 million in March 2013 who watched 3.7 billion videos 38. This number of online video users is estimated to have crossed 200 million by the end of 2014.

videoconsumption
Average monthly users by age group

Youth Connection:

There is higher traction of online video among young internet users. In July 2014, a user in age group 15-24 years watched 66.8 online videos on an average while user above 45 years of age watched only 53.2 videos in that month.

videoconsumptionagewise
Users in age group

Social Sharing Traction:

About 65% of Indians shared their videos through mobile as compared to 53% globally during 2013. With that high usage of online videos total Internet video traffic in India is expected to be 72% of all Indian Internet traffic in 2018, up from 45% in 2013. This traffic would include online streaming services like YouTube, Video on Demand services such as Netflix and mobile TV services like nexGTv, Ditto and TataSky etc.

videoconsumptionindvsglobal
Mobile sharing, Ind Vs Global

Digital Video subscription market is estimated to be around 35-40 billion by 2020 at a monthly Average revenue per user of around 60 with around 10% paid penetration among online video users. Further, online video services would garner around 5-7% of the overall digital ad spend by 2020.

While Indian women prefer music videos as their second option, men are mostly inclined towards Sports. YouTube gets around 60 million unique visitors every month. About 63 per cent of Indians using YouTube watch music videos and about half of them watch TV shows and film trailers.

According to a report released by Vuclip, 80% of its consumers report watching videos on their mobile devices at least once every 2-3 days, with more than half opting to watch daily.

“In coming times, with rapid 3G adoption and 4G on the anvil, we will see more and more original content produced for online consumption especially for second and third screens,” said  G D Singh, CEO & Director, DigiVive.

Even though data consumption is on the rise, the connection speeds in India are much lower than most other countries in the world. This is currently the biggest roadblock for the digital content industry in India. The adoption of 3G/4G technologies is expected to increase the connection speed in India, which is further expected to increase the digital video content consumption and online ad spending.

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