In line with global trends, the Indian consumer is increasingly consuming the content on digital platforms. This trend is observed for all type of content including news (text), music (audio), or video. India added 43 million internet users (20.5% growth) from October 2013 to September 2014 and total internet users crossed 254 million 6 in September 2014. Out of these, 235 million 6 users accessed internet through mobile devices. The growth in internet users was seen both in rural and urban parts of India. Internet users in rural India is expected to reach 138 million by June 2015, while 216 million internet users are expected to be in urban India by then. With improved networks, better access to internet, multimedia service-capable mobile devices and application development ecosystem, more and more media consumption would happen on digital platforms. India has around 300,000 app developers and is already the second largest Android developer community in the world after the US.
On an average, an internet connected user in India spends 14% of his or her time and 17% of his or her monthly spending on entertainment. Combined spend by an internet user on Mobile and Entertainment increased by 34% in two years from 2012 to 2014. Out of the total time spent on digital media by youths, about 21% of the time is spent on audio and video entertainment. Spending per month by users on digital media especially entertainment is expected to grow by 2.5 times by 2020. A similar trend is expected for the time spent on consuming the digital media services.
Content providers (content aggregators, labels, and content right holders) and the technology platform providers that enable the digital delivery of the content form the essential parts of the ecosystem for the services like music and video streaming. Distribution channels for on-demand content service has been dominated by app stores and telecom players that provide wider reach through their WAP sites to their customer base in past. However, new OTT players are now coming up with innovative models to increase their distribution reach towards targeted audience through e-commerce, retail, OEMs partnerships, etc.