Monetisation ยท Revenue Models

CTV revenue models in India: AVOD, SVOD, hybrid, and FAST explained

India CTV publishers use several distinct revenue models, and understanding each is as important for buyers as for publishers. The revenue model a publisher chooses directly affects ad load, inventory quality, floor CPMs, and the type of audience a platform attracts. For advertisers, recognising which model powers the platform they are buying on clarifies what they are actually paying for and what to expect.

AVOD: advertising video on demand

AVOD is the dominant revenue model for India CTV advertising. Viewers access content free of charge; advertising is the monetisation mechanism. India's largest AVOD platforms by CTV: JioHotstar (with its free Hotstar tier), MX Player, Samsung TV Plus, and regional AVOD platforms like Manorama Max and Sun NXT (partially). AVOD platforms have the largest total audience reach but also the highest ad load expectations — viewers are monetised through advertising rather than subscription fees. India AVOD CPMs for CTV: ₹100–400 for standard inventory, ₹400–1,500+ for premium content environments.

SVOD: subscription video on demand

SVOD platforms charge subscription fees and are typically ad-free (or ad-light). Netflix in India is SVOD-only for its standard and premium tiers. Amazon Prime Video is SVOD with a separate ads tier launched in 2024. Disney+ Hotstar's premium subscription tiers are SVOD. Zee5 offers an SVOD tier alongside its AVOD tier. SVOD models do not generate direct advertising revenue from subscribed viewers — these viewers are not reachable via CTV advertising on those subscription tiers.

Hybrid AVOD+SVOD

Most major India OTT platforms use a hybrid model: a free AVOD tier to capture mass reach, supplemented by paid subscription tiers that offer ad-free viewing or premium content access. JioHotstar, Zee5, SonyLIV, and Voot all operate hybrid models. For advertisers, the AVOD tier is accessible; the SVOD tier is not. The mix of free vs paid subscribers affects inventory availability — a platform with 80% AVOD users has more ad inventory to monetise than one with 60% subscribers.

FAST: free ad-supported streaming TV

FAST channels are pre-programmed linear-style streams delivered over the internet — no subscription, always-on, ad-supported. Samsung TV Plus is the largest FAST platform in India available on Samsung smart TVs without any app download or account creation. FAST provides advertisers with a linear TV-like buying experience on CTV — defined time slots, no catch-up, always fresh ad breaks. CPMs on FAST channels are typically lower than AVOD premium content (₹80–200) but the inventory is highly scalable.

Direct IO vs programmatic: revenue mix implications

Revenue modelDirect IO shareProgrammatic shareFloor CPM
JioHotstar AVOD premium~60–70%~30–40%₹300–800+
Zee5 / SonyLIV AVOD~40–50%~50–60%₹150–350
MX Player AVOD~20–30%~70–80%₹80–200
Samsung TV Plus FAST~30%~70%₹80–150

India-specific revenue model considerations

India's low average ARPU (average revenue per user) relative to Western markets has pushed most publishers heavily toward AVOD — subscription price sensitivity is high in India, making the SVOD-only model viable only at the premium end of the market (Netflix, Amazon Prime) or as a top-up. This means India CTV has a large, accessible AVOD inventory pool — but also means publishers must manage ad load carefully to retain free viewers. Ad loads that exceed viewer tolerance cause churn back to lower-quality but lower-ad-density alternatives.