OTT services see growth in AVoD as cost-sensitive audiences savour free content

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Subscribe to enjoy similar stories. Video-streaming platforms that are building hybrid models - a combination of subscription offerings and advertising-backed content - are seeing their free content make up a substantial chunk of viewership, anything between 50 and 90%, according to media industry experts.

While streaming services like ZEE5, SonyLIV, JioCinema and many others offer premium content for monthly and annual subscriptions, it is the advertising-based video on demand (AVoD) (libraries of these services, including catch-up TV content, movies as well as some originals), that are the primary draw, given the easy access and low-entry barriers. AVoD content mainly attracts younger, cost-conscious viewers, often from tier-two and tier-three cities.

These audiences lean towards regional or mass-appeal content and are comfortable with ad interruptions, experts point out. “AVoD content typically garners significantly higher viewership compared to SVoD (subscription video on demand) content, primarily due to its free accessibility and lower barrier to entry.

Platforms offering both models often find their AVoD library drawing a larger number of casual viewers, as no payment or commitment is required," said Rajat Agrawal, chief operating officer, Ultra Media & Entertainment Group that operates OTT platform Ultra Jhakaas. Also Read: F&B pricing key strategy for smaller theatres to bolster footfalls While engagement levels, completion rates, and average watch time per session are generally higher on SVoD content, Agrawal pointed out that OTT platforms have a strong opportunity to build on advertising and monetization via AVoD.