India Surpasses 800 Million Internet Users, with 707 Million Actively Engaging in OTT Services: IAMAI Report

The Internet and Mobile Association of India (IAMAI) and KANTAR's collaborative effort, the 'Internet in India Report 2023,' has unveiled staggering insights into the Internet landscape, showcasing India's digital evolution. The report, presented by Harsh Jain, IAMAI Chairman and CEO/Co-founder of Dream Sports, during the India Digital Summit 2024, highlights the monumental growth with over 800 million Internet users in the country.

Rise of OTT Services:

A remarkable revelation from the report indicates that approximately 707 million Internet users actively engage in Over-the-Top (OTT) audio and video services. This dominance of OTT platforms underscores the profound impact of digital entertainment on India's online landscape. The data draws from the extensive ICUBE 2023 study, encompassing over 90,000 households nationwide, making it the most comprehensive analysis of Internet usage in India.

Non-Traditional Streaming Devices Leading the Way:

The surge in digital entertainment consumption is not only attributed to OTT services but also to the increasing adoption of non-traditional devices. Smart TVs, smart speakers, Firesticks, Chromecasts, and Blu-Ray players have seen a remarkable growth of 58 percent between 2021 and 2023. The shift in viewing habits is evident, with 208 million individuals exclusively accessing video content through Internet-enabled devices, surpassing the 181 million using traditional linear TV services.

Diverse Internet Services:

The IAMAI report identifies communications, with 621 million users, and social media, with 575 million users, as the second and third most popular Internet services among Indian users. Communication encompasses various forms of online interaction such as text, voice, or video chat, email, and video conferencing.

Internet Penetration and Rural Impact:

India's Internet penetration has exceeded 800 million users in 2023, reaching 820 million active users. This represents over 55 percent of the population accessing the Internet during the previous year. Rural India plays a pivotal role, contributing over 53 percent of the total user base, with 442 million users. The gender ratio among Internet users has evolved to a balanced 54:46 ratio in recent years.

Language Preferences and Growth Opportunities:

Focusing on Indic languages could catalyze growth, as 57 percent of users prefer accessing content in regional languages. Strong preferences are observed for languages such as Tamil, Telugu, and Malayalam. Despite growth rate decelerations post-pandemic, states with lower Internet penetration, like Jharkhand (46 percent penetration) and Bihar (37 percent penetration), exhibit promising growth rates of 12 percent and 17 percent, respectively.

Closing the Gender Gap and Embracing Regional Languages

Another noteworthy finding is the narrowing gender gap in internet usage. The ratio has shifted significantly from a male-dominated 71:29 in 2015 to a more balanced 54:46 ratio in recent years, closely reflecting the national sex ratio.

The report further emphasizes the importance of catering to regional language preferences. With 57% of users preferring content in their native languages, focusing on Tamil, Telugu, and Malayalam could potentially accelerate future growth.

Key Findings of the Report:

• 707 million Indians actively engage with OTT platforms, demonstrating their widespread popularity.

• OTT services surpass conventional linear TV, with 208 million viewers accessing video content solely through internet-enabled devices compared to 181 million users relying on traditional television.

• This surge in digital entertainment consumption is further fueled by a 58% increase in the adoption of non-traditional streaming devices like smart TVs, smart speakers, and streaming sticks between 2021 and 2023.

Looking Ahead: Promising Signs for Continued Growth

Despite the observed slowdown in growth rates, the report underlines the positive outlook for India's digital future. States with historically lower internet penetration rates, like Jharkhand (46%) and Bihar (37%), are demonstrating encouraging growth (12% and 17%, respectively), hinting at potential for further expansion in the coming years.

In conclusion, the "Internet in India Report 2023" paints a comprehensive picture of the country's dynamic digital landscape. With OTT platforms leading the charge and significant strides made in rural inclusion and regional language accessibility, India's internet journey promises continued growth and evolution in the years to come.